Feed-In Tariffs receive muted welcome
Plans to reward eco-friendly householders for the green energy that their solar panels produce have received a muted welcome.
The clean energy cashback plan, known as "feed-in tariffs", offers incentives from April for those who install small scale renewables on their homes. The government claims one in 10 homeowners could fit panels or small wind turbines by 2020.But the scheme has been criticised as not generous enough.
Payments
The UK gets about 5.5% of its electricity from renewable sources and, in order to hit green targets in 10 years' time, this would have to rise to 30%. Under the programme, people will be paid a fixed rate by their energy provider for electricity from small renewable power sources. They could also save money on their bills.
Homeowners who install photovoltaic panels could earn £900 a year when they first put in the technology, along with saving £140 a year on their bills, the Department of Energy and Climate Change (DECC) said.
Renewable energy groups suggest people will have a 5% to 8% rate of return on their initial green investment for up to 25 years, although this technology remains relatively expensive to install.
Solar panels and wind turbines of up to five megawatts will be paid for the electricity they generate, even if the homeowners used it themselves.
"The feed-in tariff will change the way householders and communities think about their future energy needs, making the payback for investment far shorter than in the past," said Energy Secretary Ed Miliband.
However, the cost of the scheme will come from higher charges for other customers who do not fit renewable energy sources. The typical customer will face an extra £11 on their annual bill by 2020, DECC said.
'Lack of incentive'
While many consumer groups have welcomed the move, they have also criticised the level of incentive payments provided under the scheme.
Different types of "green energy" suit different locations
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"Ministers have been far too timid with a policy that could make a significant contribution to cutting emissions and boosting energy security," said Dave Timms, of Friends of the Earth.
The Solar Trade Association said the rate of return was half of that seen under other schemes.
And Liz Laine, of watchdog Consumer Focus, said that the scheme could help people make big savings and cut carbon emissions, but more ambitious targets were needed from the government.
"It needs to offer more attractive cashback rates to overcome the cost-barrier of installing this technology and provide better information and advice to consumers," she said.
Proposals for a second incentive scheme for renewable heat, which will pay people to install technology such as ground source heat pumps and biomass boilers, have also been published. Details will be published in the 2010 Budget.
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Pilot Tidal Energy Scheme for North Wales Coast
Conwy County Borough Council has backed plans for a pilot tidal energy scheme off the North Wales Coast.
The £150 million scheme at Llanddulas in North Wales would provide a testing facility for turbine designers and manufacturers, and assess the environmental impact of turbines.
The project was given approval by the council as part of a strategic regeneration strategy for the Conwy coast, prepared by consultant Capita Symonds.
Paul Terry, Capita Symonds, said: "Tidal power will play a key role in providing a sustainable energy source for future generations. The North Wales coast is an ideal place for such a scheme as it’s blessed with a good tidal range and suitable ocean depth." He added that the project could also help protect the coast from rising sea levels, storm surges and coastal erosion.
The regeneration strategy also calls for seven new visitor centres costing £30m should be built at key locations stretching from Conwy to Rhuddlan. But North Wales Tourism chairman Chris Jackson raised doubts over whether the proposals could realistically be funded in the current economic climate. The council’s approval now means that Capita Symonds will seek funding for feasibility studies and investigations to develop a business case for the scheme.
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Micro-generation forms key part of Government's vision.
Climate Change Minister, Greg Barker, has launched a consultation on the Government's strategy to boost energy self-sufficiency in communities.
The public debate about microgeneration will look at ways to ensure the quality of generating technology and its installation, how to improve available products, and how to develop the microgeneration supply chain while providing more accessible advice.
The consultation follows last week's news that the Government is to overturn a ban on councils selling "green" electricity back to the national grid by the end of the year.
Mr Barker said“I want to see more homes, communities and businesses generating their own energy. We can literally bring power back to the people.Microgeneration is a key part of this vision.
“By becoming more self sufficient we can create sustainable local energy economies. People and communities can save money on their fuel bills at the same time as generating an income and cutting carbon. I want to work with industry to overcome the challenges it is facing. Together we will create a marketplace for jobs and prosperity alongside products and advice which people trust.”
More information can be found on the Microgeneration Strategy consultation web page
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Green policies could hit UK manufacturing hardest.
A report from the think-tank Civitas warns that the increasing cost of energy, which has been driven up as a result of green policies could hit the UK's manufacturing sector - just as the country needs industry to help boost the economy.
The report said efforts to tackle climate change through cutting greenhouse gas emissions and increasing renewable energy generation could significantly push up energy bills for business.Extra costs are put on energy from policies including the EU's emission trading scheme, the renewables obligation to boost investment in technology such as wind power, and the climate change levy which taxes energy use in businesses and the public sector. Also, the Labour Government's climate change strategy had already added an extra 14% on homeowners' electricity bills and 21% on business bills.
Last year's renewable energy strategy could have created "surcharges" of up to 70% for businesses, and 33% for domestic customers by 2020, the report from Civitas claimed. The study warns the new coalition Government's energy policy could be as damaging to manufacturing industry as the previous administration.
The review by economist Ruth Lea and Jeremy Nicholson, director of lobbyists the Energy Intensive Users Group, said the UK was badly placed to meet its commitments to boost renewables as it was starting from such a low base. Even without the extra costs imposed to pay for climate change policies, Britain has high industrial electricity prices, which threaten its competitiveness.
Ms Lea said: "The economy desperately needs a competitive and thriving manufacturing sector if it is to prosper. Competitive energy prices are vital to the success of manufacturers, especially energy intensive users.Government energy policies are, however, remorselessly driving up energy costs thus risking the 'migration' of manufacturing plants to economies where the costs are lower."
