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Blackbridge biomass subsidy blow

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Screen Shot 2016-08-25 at 12.28.35THE COMPANY behind a controversial scheme to ship biomass halfway around the world to be burned in Milford Haven has failed to deny that its business model is threatened by a significant change in UK Government policy on biomass power generation. 

Egnedol, whose head office continues to be a vacant shop in a Carmarthen side-street, was asked to respond to news that the Government is to significantly reduce the amount of money paid as subsidy to companies who generate power from biomass material.

The Department for Business, Energy and Industrial Strategy (BEIS, previously the Department of Energy and Climate Change) laid an amendment in Parliament to the Renewable Heat Incentive on July 7 to reduce support for biomass combined-heat-and-power (CHP) systems.

The changes in support are specifically targeted at biomass CHP plants that use less than 20 % of their fuel for electricity production (with the other 80 % being used for renewable heat). This change will affect all plants applying on or after Aug 1. Neither DECC or the new BEIS had formally consulted with relevant trade associations or directly with industry on this specific change prior to laying the new amendment in Parliament, surprising many in the industry and putting a number of projects at risk.

The REA surveyed 36 companies that are developing biomass CHP projects in the UK. Of those companies, 34 had already made major equipment orders for the construction of their facilities or put down non-refundable deposits; 25 companies have reported that the changes laid before parliament will have a ‘very negative ‘ impact on their project, and additional eight reporting ‘negative ‘ impact.

REA discussions with member companies involved in the biomass CHP industry (unrelated to the survey) indicate many companies are facing up to a 35 % reduction in their anticipated tariff.

James Court, Head of Policy and E xternal Affairs at the REA, said: “Despite the amendment claiming ‘no impact on the private or voluntary sectors is foreseen ‘, the abrupt cut in support significantly impacts the biomass CHP industry. It is the suddenness and the lack of consultation that is the core issue here. Over £140m worth of investment is affected by this change.

“The industry has invested in good faith in these projects, some which have been in preparation and construction for up to two years.

“This unexpected cut will prove damaging to investor confidence and significantly reduces the likelihood that many companies and investors will be keen to invest in this low-carbon technology in the future.

“We are therefore calling on BEIS to withdraw the amendment until a proper consultation has been launched to examine the impact on these projects, or introduce a grace period for those who can demonstrate that they have already made a significant financial commitment.”

Egnedol’s development has been dogged by controversy from the outset. A meeting between the company’s representatives and councillors was described as farcical, after the spokespersons sent were unable to answer even the most basic questions posed to them by councillors. In addition, it is not clear what amount of public money will be handed over to the company, whether directly by way of grant or by long-term ‘green’ subsidy and carbon-trading credits.

Although Egnedol has put some exhibitions on for members of the public in Milford Haven, it has declined to attend public question and answer sessions, leading to continuing suspicion about its bona fides and ability to commence the project, let alone complete it.

While Egnedol has made a public statement that it intends to start operation from the Blackbridge site next year, the South Hook development took three years from the same stage as the Egnedol scheme is at.

A 50MW generating facility would require 50 tonnes of biomass derived from timber each hour. And that assumes that it burns only timber. Once permission is granted, there would be nothing to prevent the plant’s operators burning waste in order to fuel its plant. The company has declined to say precisely what material will be burned at Blackbridge, although it has denied it will be the patented ‘miracle plant’ that features so prominently in the company’s promotional websites as being the source of its ambitious plans for biomass generation.

None of the existing (far smaller) similar facilities in the UK are operating at anywhere near their projected efficiency, while an operation in Carmarthenshire was denied by planners after it emerged insufficient attention had been given to the potential adverse effects of such a development on the environment.

 

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Business

Plaid energy policy challenged by Labour after Adam Price interview

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LABOUR SAYS MINISTERS MUST EXPLAIN COST AND TIMETABLE FOR PYLON PLANS

PLAID CYMRU’S approach to energy infrastructure has come under scrutiny after Energy Minister Adam Price was challenged over plans to reduce the use of overhead pylons in Wales.

Mr Price defended the Welsh Government’s position during an appearance on BBC Radio Wales’ Sunday Supplement, arguing that communities must have greater confidence in how major grid projects are handled.

Plaid Cymru has pledged to give communities a stronger voice over energy developments and to look more closely at alternatives to overhead transmission lines, including underground cabling where possible.

The issue has become increasingly sensitive in rural parts of Wales, where proposed pylon routes linked to renewable energy schemes have raised concerns about landscape impact, tourism and local consultation.

However, Welsh Labour said the minister had failed to explain when any restriction on pylons would take effect, or who would pay the additional cost of placing cables underground.

A Welsh Labour spokesperson said: “Adam Price keeps saying how clear their manifesto was and yet he won’t say when they’re banning pylons. They won’t say who is paying for the extra cost of undergrounding cables.

“Without certainty, companies won’t invest. That’s thousands of clean, green energy jobs at risk. Plaid need more than a plan to have a plan.”

Labour said the Welsh Government must now set out how its policy would work in practice, including whether it amounts to an outright ban, what exemptions would apply, and how any extra costs would be funded.

The debate highlights the challenge facing ministers as Wales seeks to expand renewable energy generation while addressing public opposition to large-scale grid infrastructure.

 

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Community

Pembroke Fair praised as well-organised community event

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HORSES, STALLS AND FAMILY CROWDS RETURN TO MONKTON

FAMILIES, horse owners and visitors turned out in force for Pembroke Fair on Saturday (May 23), with many praising the event as one of the best organised in recent years.

Held at the Community Centre Field in Monkton, the annual fair brought together horse owners, traders and local families for a traditional day centred around horses, ponies, stalls and socialising.

Coloured cobs, heavy horses, ponies and horse-drawn traps attracted attention throughout the day, with many visitors gathering around the field to watch the animals being shown and led around the site.

A variety of stalls selling everything from clothing and ornaments to tack and second-hand goods helped create a lively market atmosphere, while food vendors kept visitors fed throughout the day.

Despite overcast conditions at times, the event remained busy, with many attendees staying for several hours to enjoy the traditional fair atmosphere.

Community members later took to social media to praise the smooth running of the event, with several publicly thanking organiser Charlie Price for his efforts in bringing the fair together.

Comments described the day as “well organised” and praised the welcoming atmosphere, with many saying it was encouraging to see a long-standing local tradition continuing to thrive.

The fair once again brought together members of the travelling community, local residents and horse enthusiasts from across west Wales.

A horse drive was also due to take place on Sunday (May 24), continuing the weekend’s celebrations.

Photo captions:

Traditional gathering: Horses, ponies, horse-drawn carts and market stalls drew crowds to Pembroke Fair in Monkton on Saturday (Pic: Herald).

 

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News

Watchdog criticises health board over £10m GP contract checks

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A HEALTH board has been criticised by Audit Wales after GP contracts worth more than £10m were awarded without sufficient due diligence checks.

Aneurin Bevan University Health Board allowed a GP partnership associated with eHarley Street Primary Care Solutions to take on eight GP contracts in south-east Wales, with a combined annual value of around £10.1m.

Audit Wales said the board should have carried out greater scrutiny before approving the arrangements, including checks on financial resilience, workforce plans, business risks and the partnership’s ability to manage several practices at once.

However, the watchdog found no evidence of fraud and noted the board was dealing with significant pressure in general practice, including vacant contracts and limited interest from other bidders.

The report said weaknesses in governance and scrutiny contributed to later disruption and uncertainty for patients and staff when problems emerged.

Concerns included financial and workforce pressures, unpaid invoices, and issues relating to tax and pension payments. Some contracts were later handed back, requiring the health board to step in to protect services.

Natasha Asghar MS, Welsh Conservative Shadow Cabinet Minister for Health and Social Care, said the findings were “deeply concerning”.

She said: “Patients and staff were left facing disruption and uncertainty because proper scrutiny was not carried out before these contracts were awarded.

“The Welsh Conservatives believe lessons must be learned to ensure robust checks are in place, protect frontline services and restore confidence in primary care across Wales.”

Aneurin Bevan University Health Board accepted the recommendations and said it had already strengthened its processes.

Audit Wales said the case highlighted the need for stronger checks before GP contracts are transferred, particularly when a single partnership is taking on multiple practices in a short period.

 

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