Britain seeks to limit biomass power costs

LONDON (Reuters) - Britain’s government has launched a consultation into cutting the cost of support it provides for biomass power units, it said on Friday.

Some plants generating electricity by burning biomass are eligible for subsidies under Britain’s renewable support scheme called the Renewables Obligation.

Britain’s Department for Business, Energy and Industrial Strategy said it wants to protect against “significant and unforecast development” of more biomass units under the scheme, which could result in additional costs of 110-190 million pounds a year.

Several coal-fired power plants have been converted to use biomass as the country seeks to phase out coal plants by 2025.

The consultation will run until October 26.

Reporting by Susanna Twidale; editing by Jason Neely