the sole support mechanism for new-gen-eration applications. Accredited RO ca-pacity will continue to be supported for a further 20 years, expiring in 2037. Table 1 shows the strike prices and expected deployment by 2020 for the various renewable technologies. Wood pellets are currently used exclusively in the biomass conversion category, which is projected to be between 1.7 and 3.4 gigawatts of capacity by 2020 or about 7.6 per cent of the supported renewable technologies. Since Drax Power has al-ready converted one boiler with 0.6 GW capacity and has announced intentions to convert two more for a total of 1.8 GW capacity, this leaves another 1.6 GW for other generators – presumably RWE Ly-nemouth and Eggborough Power. If all the capacity is converted as planned, this will mean an annual demand for some 13 million tonnes of wood pellets in the U.K. by 2020, up from about 2 million tonnes in 2013. Notably, at a strike price of £105/MWh, biomass conversions are less expensive than both offshore wind (at £155) and large-scale photovoltaic (at £120), both of which are expected to have more deployed capacity than biomass conversions. the CaPaCity market The Capacity Market is designed to pro-tect consumers against the risk of supply shortages and electricity price spikes. Each year, beginning in 2014, an auction will be held by the National Grid (U.K.’s system operator) for a delivery year four years hence. The four-year lead time is deemed to be the amount of time needed to plan and construct new generating ca-pacity. Participation is also open to exist-ing generators. where Do we go from here? On Dec. 4, 2013, the U.K. Department of Energy and Climate Change (DECC) sent draft investment contacts to Drax Power for the conversion of two addition-al 600 MW power units, to Eggborough Power for three 500 MW units, and to RWE Lynemouth Power for one 400 MW unit. Then, in an unusual move, on Dec. 19, 2013, DECC released a list of “provi-sionally affordable projects” omitting Egg-borough Power from the list. Eggborough, with their local MP – Nigel Adams – are trying to understand this omission and to convince the energy minister to change the government’s decision. So at the moment, it appears that only the two Drax units and one Lyne-mouth unit are set to go ahead with Egg-borough being doubtful. Nevertheless, between Drax and RWE Lynemouth, conversion of three power units would represent about six or seven million tonnes of new wood pellet capacity an-nually. If Eggborough is able to work through its latest setback, conversion of its three units could account for another six million tonnes of wood pellets an-nually. We need to continue to offer our support to Eggborough. • Gordon Murray is executive director of the Wood Pellet Association of Canada. He encourages all those who want to support and benefit from the growth of the Ca -nadian wood pellet industry to join. Gordon welcomes all comments and can be contacted by telephone at 250-837-8821 or by e-mail at [email protected]. The Largest Biomass Conference in North America March 24-26, 2014 Orlando, FL www.biomassconference.com Exlusive Discount Save $250 PROMO CODE: CANBIO2014 Canadian Biomass Magazine readers receive a discount on full conference registration rates At the 2013 event in Minneapolis … 100% of the exhibitors 96% of exhibitors 94% of exhibitors positively rated the quality of the entire conference “I will go again next year & I will get more sales directly from contacts made at this conference.” – Justin C. Miller, Scott Equipment “Great show to attend. Excellent opportunity to network with industry execs and professionals as well as catch up on industry topics and developments.” – Matt Weidner, Weidcom “This is a ‘must attend’ event if you are developing biomass to energy projects. All the burning issues were covered in the conference and 866-746-8385 | [email protected] the important equipment providers have an expo booth.” #IBCE14 Follow Us: twitter.com/biomassmagazine – Guillermina Perez del Castillo, Abengoa made valuable contacts would recommend this conference Canadian BIOMASS 11
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