CHP to benefit from UK low carbon strategy

The British government is to increase by £25m the level of funding aimed at less established technologies such as combined heat and power, as part of its overall drive towards decarbonisation.

The level of funding for such projects has been increased "following high levels of demand for contracts" the Department of Energy and Climate Change (DECC) said in a statement.
Houses of Parliament London
As part of its Contracts for Difference (CfD) support scheme, the government has already awarded early funding to eight projects and is now offering £65m for established technologies, such as onshore wind and solar farms, and £260m for less established technologies, including offshore wind and biomass with combined heat and power (CHP).

Business Green reports that less established technologies will have to compete for contracts but within their technology category, ensuring that renewables technologies that are currently relatively expensive continue to enjoy support.

The long-awaited auction process kicks off on Friday with a raft of projects expected to submit bids for support.

Projects coming online from 2016/17 that offer the lowest price for electricity will win funding and look set to face penalties should they fail to deliver under a non-delivery disincentive, which was also unveiled on Thursday.

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