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<p>The subsidy cost per tonne of carbon saved by renewable technologies depends on
the type of electricity generation displaced. DECC’s 2012 Bioenergy Strategy1 assumed
that offshore wind and dedicated biomass displace combined cycle gas turbine plants
and biomass conversion plants displace coal plants. Estimates of subsidy cost per
tonne of carbon dioxide saved for these technologies are set out in the following
table (the Bioenergy Strategy did not include estimates for onshore wind nor explicitly
consider exports).</p><p> </p><table><tbody><tr><td><p>Technology</p></td><td><p>Subsidy
Cost per Tonne of Carbon Dioxide Saved (£/tCO2)</p></td></tr><tr><td><p>Offshore Wind</p></td><td><p>200</p></td></tr><tr><td><p>Dedicated
Biomass</p></td><td><p>200 to 530</p></td></tr><tr><td><p>Biomass Conversion</p></td><td><p>50
to 60</p></td></tr></tbody></table><p>The range for dedicated biomass and biomass
conversions reflects the range in possible carbon dioxide savings. It is the responsibility
of generators to determine where in their supply chain they make this saving.</p><p>Coal
to biomass conversions are supported as a transitional technology, to 2027. The table
shows that, in the short term, conversions of coal plants can offer better value for
money in abatement terms when compared to dedicated biomass plants and offshore wind,
which offer longer term benefits.</p><p>In line with the 2012 Bioenergy Strategy,
we have limited support for new build dedicated biomass electricity (without CHP)
by placing a cap of 400MW on the total new-build dedicated biomass capacity. This
reflects that the carbon savings are less cost-effective than coal to biomass conversions.</p><p>
</p><p> </p><p> </p><p><em><strong>[1]</strong></em><em> <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48337/5142-bioenergy-strategy-.pdf"
target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/48337/5142-bioenergy-strategy-.pdf</a></em></p><p>
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