The group further added that the developers would rush into making their projects fit under the limited cap.
The warning from REA comes in the wake of proposals from Department of Energy and Climate Change (DECC) to limit new biomass projects under the Renewables Obligation (RO).
REA chief executive Gaynor Hartnell remarked that the entire concept formulated by the department of capping the biomass limit is wrong.
"There may be as much as 1,000MW of projects still in active development, yet DECC wants to limit the build to only 400MW," added Hartnell.
Nevertheless, DECC claims that the limit is pertaining to affordability by the developers. The department also stated that these projects would produce cheaper power than offshore wind projects.
"The irony is that DECC should be welcoming such projects, rather than turning them away. The UK faces an impending capacity crunch in 2015-16 and the steady, baseload green electricity generation from these biomass projects is needed, and can provide significant investment and jobs across the country.
"The majority of projects proposed today could be operational, had there not been a series of policy changes and prolonged lack of clarity on the Government’s part," argued Hartnell.
