The UK Forest Products Association (UKFPA) welcomed the government’s recent decision to curtail subsidies for burning wood for electricity generation in large-scale power stations, but said the threat from the combined heat and power (CHP) sector would remain.

The government’s Electricity Market Reform Delivery Plan, released for consultation on July 18, recommends subsidies for existing power stations converted to burn biomass to end in 2027.

The government is also proposing to cap payments to new dedicated biomass electricity-only power stations to 400MW. Dedicated CHP plants will be exempt.