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Biofuels: Power Stations

Volume 502: debated on Wednesday 16 December 2009

To ask the Secretary of State for Energy and Climate Change what the monetary value was of the renewables obligation certificate allocated to each biomass power station in operation in 2009-10. (307628)

The 2009-10 obligation period finishes on 31 March 2010. Records for the number of renewables obligation certificates issued to biomass power stations can be found on the Renewable and CHP Register at:

https://www.renewablesandchp.ofgem.gov.uk/Public/ReportManager.aspx?ReportVisibility=1&ReportCategory=0

From 1 April 2009 banding of renewable technologies was introduced. As a result of this, dedicated biomass stations using regular biomass will receive 1.5 ROCs per MWh, while those using energy crops will receive two ROCs per MWh.

The monetary value of ROCs is dependent on the buy out price and the recycle value. However, the actual amount a generator sells a ROC for is subject to commercial negotiation between a generator and supplier. The buy out price for each ROC per MWh issued in 2009-10 is £37.19. The recycle value will be determined by the compliance level for the 2009-10 obligation period.

To ask the Secretary of State for Energy and Climate Change what recent estimate he has made of the monetary value of the average annual allocation of renewables obligation certificates to each biomass power station in operation. (307629)

The 2009-10 obligation period finishes on 31 March 2010. Records for the number of renewables obligation certificates issued to Biomass power stations can be found on the renewable and CHP Register at:

https://www.renewablesandchp.ofgem.gov.uk/Public/ReportManager.aspx?ReportVisibility=1&ReportCategory=0

From 1 April 2009 banding of renewable technologies was introduced. As a result of this dedicated biomass stations using regular biomass will receive 1.5 ROCs per MWh while those using energy crops will receive 2 ROCs per MWh.

The monetary value of ROCs is dependent on the buy out price and recycle value. However, the actual amount a generator sells a ROC for is subject to commercial negotiation between a generator and supplier.

The buy out price for ROCs per MWh and the recycle value per ROC in the current and preceding obligation periods can be found in the following table.

Obligation period

Buyout price per MWh (£)

Recycle Value per ROC presented (£)

2002-03

30.00

115.94

223.55

2003-04

30.51

122.92

223.70

2004-05

31.59

113.66

219.99

2005-06

32.33

10.21

2006-07

33.24

16.04

2007-08

34.30

18.65

2008-09

35.76

18.54

2009-10

37.19

3

1 England and Wales

2 Scotland

3 Current Obligation Period