At the request of DESNZ, the National Energy System Operator (NESO) analysed the impact on Great Britain's electricity system covering the period 2027 to 2031, if bespoke support for large-scale biomass generation at Drax (2.5 GW capacity) and Lynemouth (0.4 GW capacity) was withdrawn from 2027.

NESO's analysis identified that having large-scale biomass available in this period could have a significant impact in mitigating potential risks to electricity security of supply and could also support the delivery of Clean Power by 2030. The analysis showed that without large-scale biomass, security of supply would not be ensured in scenarios with additional supply losses. While alternative options could deliver the same outcomes, these options have greater delivery risks.

The Government has now agreed to continue funding the wood pellet fuelled Drax power station but will cut subsidies in half.

The Drax power station, near Selby, Yorkshire, generates about 5 per cent of the UK's electricity and although there have been plans to capture carbon from the plant, the use of imported wood pellets has been controversial.

The company currently receives £1bn in subsidies.

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