UK and European Biomass Power Activity July 2012

Transcription

1 UK and European Biomass Power Activity July 2012 Lucy Hopwood Head of Biomass & Biogas

2 Introduction Providing high quality, leading technical consultancy enabling the exploitation of technologies and opportunities the bioeconomy. Specialising in bioenergy, biofuels and bio-based products, with an unparalleled knowledge of bio-based supply chains. Consultancy Market, technical, policy & sustainability expertise Advisory Strategic guidance and briefings, meeting support Membership Standard & business membership packages

3 Renewable Energy Directive (RED) RED (EU27): 20% renewable energy in total energy mix by 2020 Renewable Energy Strategy (RES) UK RED delivery plan 15% renewable energy by % electricity 14% heat 10% fuels = 108 TWh/y = 126 TWh/y

4 Renewable energy consumption EU27 Gross inland consumption of renewable energy ( ) in EU27 (Mtoe)

5 Figure 3.3 Bioenergy balance in 2008 (ktoe) and AEBIOM targets for 2020 (Mtoe) Bioenergy balance in 2008

6 CHP generation, 2008 (% gross electricity generation) UK poor due to absence of district heating systems and disconnect from suitable heat users

7 UK Progress to Date UK Energy Production vs Targets Transport Heat = 10% by 2020 = 14% by Electricity = 32% by Energy contribution (%) = 3.8% TOTAL Renewable Energy

8 Renewables Obligation Open to new generation to 2017; scheme closes 2037 Technology Current Band (ROCs) Proposed Band (ROCs) Biomass conversion Co-firing of biomass (enhanced) (1) Co-firing of biomass with CHP 1 1 Co-firing of energy crops (with CHP) Dedicated biomass (with CHP) Dedicated energy crops (with CHP) 1 (1.5) 1 (1.5) 1.5 (2) 1.5 (2) to 31 March 2016, 1.4 after 2 (2) 2 (2) in 2013/14 and 2014/15; 1.9 in 2015/16 and 1.8 in 2016/17

9 Renewable Heat Incentive Tariff name Small commercial biomass Medium commercial biomass Large commercial biomass Eligible technology Solid biomass including solid biomass contained in municipal solid waste (incl. CHP) Eligible sizes Less than 200 kwth 200 kwth and above; less than 1,000 kwth 1,000 kwth and above Tier Previous tariff (pence / kwth) up to 31 March 2012 New rounded tariff (pence / kwth) from 1 April 2012 Tier Tier Tier Tier N/A 1 1 Tier 1 applies annually up to the Tier Break, Tier 2 above the Tier Break. The Tier Break is: installed capacity x 1,314 peak load hours, i.e.: kwth x 1,314

10 Biopower plant capacity (MWe) Awaiting Government response to RO Banding Review Jun-11 Nov-11 Feb-12 Jul-12

11 installed capacity MWe July 2011 Installed capacity and technology split of operational plant RWE Tilbury Dedicated biomass combustion Co-firing Conversion

12 installed capacity MWe 4,500 4,000 3,500 3,000 July 2012 Installed capacity and technology split of all projects, inc planned Has dropped by c. 1GWe since February over fears in securing biomass in competition with cofiring/conversion 2,500 2,000 1,500 1,000 4,181 Eligible for 1.5 ROC s Eligible for 0.5 ROC s proposed 1 ROC for Enhanced 4,235 Eligible for 1.5 ROC s now, 1 ROC Proposed (new band) Dedicated biomass combustion 805 Co-firing Conversion

13 Installed capacity MWe 12,000 Capacity projections by year (as at July 2012) Capacity projections by year (as at July 2012) 10,000 8,000 6,000 4,000 2,

14 % of final energy demand 16 Progress against RED targets

15 Biopower Pipeline Feedstock Requirement - Feb 2012 TOTAL requirement of c. 50 million tonnes if all planned plant goes ahead

16 Biomass Supply Estimates A wide range of scenarios from many models give very different supply estimates because of differing assumptions Source: DECC

17 European Approach European Commission reported in February 2010 on the requirement for sustainability criteria for solid biomass & biogas used for heat, electricity & cooling EC did not mandate EU-wide sustainability criteria for solid and gaseous biomass, instead member states can choose whether or not to introduce criteria But where members states do introduce criteria the Commission recommends that they: ensure that these in almost all respects are the same as those laid down in the Renewable Energy Directive. This would ensure greater consistency and avoid unwarranted discrimination in the use of raw materials. Further report due on effectiveness imminently

18 UK progress so far (electricity) In April 2011 the UK introduced criteria under the Renewables Obligation for solid biomass & biogas used for electricity: Minimum 60% GHG lifecycle emission saving: relative to EU fossil fuel electricity average ( kg CO2eq per MWh) Land criteria: General restrictions on use of raw materials from land important on carbon or biodiversity grounds e.g. primary forest, wetlands and peatlands (all meanings as in RED Directive) First reports on performance were due in May 2012 covering April March 2012 Biomass GHG tool launched September 2011 Consultation on Ofgem s Draft Biomass & Biogas Sustainability Guidance

19 Now and from 2013 Use of wastes is excluded from these sustainability criteria Waste is sewage gas, landfill gas and generally those materials considered to be waste under the EU Revised Waste Framework Directive (WFD), e.g. municipal solid waste DECC intend, from April 2013, biomass & biogas generators of 1MWe capacity or above, must meet the criteria to receive support (i.e. for the biomass power to be eligible for RO certificates) Generators below 1MWe will only need to continue to factually report on performance, they will not risk losing financial support should any biomass consignment fail to meet the criteria.

20 RO Banding Review Issues Delayed: Uncertainty and future security Transition to EMR (2017) Future uncertainty EU Sustainability Criteria Unknown, potentially different to UK-own criteria Lack of ports and transport infrastructure For handing, storing and transporting feedstocks Lack of security for international feedstock suppliers Not attracting inward investment and supply Lack of district heating networks Little potential for heat use; site specific Woodland Trust

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