UK biomass phase-out is now in sight

This report by Ember analyzes the impact of a new UK government subsidy package for large-scale biomass generation at Drax Power Station for the period from April 2027 to March 2031. The report details how the transition to a new Contracts for Difference (CfD) scheme will reduce subsidies and generation, while discussing the broader strategy to phase out biomass in favor of a clean power system by 2030.

• The UK government's new subsidy package for Drax Power Station from 2027 to 2031 is expected to reduce subsidies to approximately £1.2 million per day and decrease electricity generation by 55% compared to pre-crisis levels, resulting in Drax providing only 1.8% of the UK's electricity supply in 2030.
• Despite the reduction in generation, Drax is projected to remain the UK's largest emitting power station during the subsidy period, with annual emissions falling to approximately 5.8 MtCO2e from a 2021-2024 average of 12.57 MtCO2e.
• The new 2027-31 CfD mechanism introduces 'collared' generation requirements to prevent the curtailment of power during price spikes; Drax must maintain an average capacity factor between 22% and 27%, with specific seasonal limits (11%-16% in summer and 33%-38% in winter).
• A new 'excess-profits' windfall levy will be implemented for Drax, with profit clawback rates of 30% for earnings exceeding £160 million and 60% for earnings exceeding £200 million.
• The report highlights energy security risks associated with biomass, noting that over 99% of wood pellets burned at Drax in 2024 were imported, primarily from North America, leaving the UK exposed to global price volatility.
• Bioenergy with carbon capture and storage (BECCS) at Drax has faced repeated delays, moving from an initial 2027 start date to at least the early 2030s, and is described as one of the most expensive carbon abatement technologies.
• The report argues that achieving 'Clean Power 2030' through the deployment of wind, solar, and energy storage is critical to phasing out large-scale biomass and reducing the need for expensive backup power.

APA

Mayo, F. (2025). UK biomass phase-out is now in sight. Ember. https://ember-energy.org/app/uploads/2025/04/Typeset-copy-UK-biomass-phase-out-is-now-in-sight.pdf

Chicago

Mayo, Frankie. UK biomass phase-out is now in sight. Ember, 2025. https://ember-energy.org/app/uploads/2025/04/Typeset-copy-UK-biomass-phase-out-is-now-in-sight.pdf.

Wikipedia

{{cite report |last1=Mayo |first1=Frankie |title=UK biomass phase-out is now in sight |publisher=Ember |date=16 April 2025 |url=https://ember-energy.org/app/uploads/2025/04/Typeset-copy-UK-biomass-phase-out-is-now-in-sight.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mayo2025biomass, author = {Mayo, Frankie}, title = {{UK biomass phase-out is now in sight}}, institution = {Ember}, year = {2025}, month = apr, url = {https://ember-energy.org/app/uploads/2025/04/Typeset-copy-UK-biomass-phase-out-is-now-in-sight.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }