The European Commission is to investigate whether the UK’s plans to subsidise the conversion of part of a coal power plant to operate on biomass are a breach of state aid rules.
Under current plans, if the average wholesale price of electricity falls below a fixed price set by the government, Drax will receive a top-up from the taxpayer.
The rationale is presumably to reduce carbon emissions and to generate electricity from ‘renewables’. However, the plant will run entirely on wood pellets sources mainly from North and Central America. Hardly carbon neutral!