Responding to today’s statement by the Secretary of State Ed Miliband and today’s raft of strategies and papers, REA’s Director of Policy Gaynor Hartnell said;

“The renewables industry has had a tough time in the UK for many years and it has missed out on technologies where it should have led the world.  What we heard from Mr Miliband today shows a level of understanding and political leadership that suggests that may be about to change.”

The REA has been pressing for hard measures to ensure the UK industry can overcome immediate difficulties and to ensure the UK establishes long-term and stable frameworks for ALL forms of renewable energy – across heat, gas, transport as well as electricity.  The Association has also sought policies that will enable far wider investment in renewable energy, including by businesses, communities and individuals.

While delivery will be the crucial test, and concerns remain, the announcements made today undoubtedly demonstrate a step-change in political leadership that is desperately needed to ensure renewables can tackle the serious threats of UK energy security and climate change. 

Measures strongly welcomed by REA

Remit Change at Ofgem – REA has been pressing for the regulator to be obliged to facilitate the delivery of a low carbon system as part of its primary remit for many years.  This change will ensure the electricity system supports renewables at all scales.  At around 30%, electricity bears the largest share of the renewables target. Therefore the change of Ofgem’s remit is extremely welcome and indeed essential if we are to meet Government targets.  This measure shows an impressive level of political leadership.

Eligibility for Renewable Heat projects for the forthcoming Renewable Heat Incentive (RHI) – the announcement that renewable heat projects being built today will be eligible for the RHI should help ease the paralysis in the renewable heat industry. A similar announcement has been made for Renewable Electricity Tariffs. However REA is still pressing for the RHI to be expedited as heat is the biggest single use of energy in the UK and renewable heat still has no dedicated support. 

Initial Proposals for Local Renewable Energy – the proposals put forward by government largely echo the REA’s own ‘blueprint’ published in March.  The Tariff proposals have the potential to foster a local renewable energy revolution with communities, businesses and the general public all getting involved.  However, the REA blueprint and existing reports by Element Energy and the Energy Saving Trust show that Tariffs can make a far more substantial contribution to renewable energy targets than the government’s figures suggest.

New Support for Marine Renewables - The new £22million Marine Renewables Proving Fund (as part of the £60m wave and tidal package) should help overcome the barriers to accessing existing support for wave and tidal technologies.  The £120m measure for offshore wind is very welcome.

Measures Welcome

Changes to the Town and Country Planning Act to aid better and positive decision-making for renewables. The REA will be looking at the details, however, the Association is deeply wary of anything that might encourage planners to take pen to map and zone areas where they feel projects would be best located or should be avoided. This approach is too often inconsistent with the technical requirements of the technologies.

Electric Transport is only as clean as the energy it uses - An extra £10m towards creation of an electric vehicle infrastructure, in addition to the £20m announced in the budget, is welcome however it is unclear where the additional power will come from. The vast majority of the 2020 transport target will be met by biofuels. 

Smart Grids and Smart Meters – The REA is concerned about the level of funding to support intelligent local networks and local renewable power generation.  Only £6million has been announced to support technologies for smart grids.

Transmission Access Review - The combination of the industry governance process alongside a regulator with no remit to facilitate the transition to a low carbon economy has resulted an impasse.  For this reason we would welcome government intervention in the form of REA’s desired outcome to the Grid Access Review - a form of “connect and manage” where any additional constraint costs don’t fall solely on new entrants, but are spread across all energy users as much as possible.

Cause for Concern

Project Finance - The REA has found little mention of the serious project finance problems affecting industry.  We have been waiting for £400milion European Investment Bank money promised in the budget, which, when challenged, the Secretary of State said should be coming in the autumn.  Urgent action is needed.

Renewable Gas Injection to gas grid - A report by National Grid showed the huge potential for green gas injection into the gas grid which could supply nearly half of domestic users.  There is no technical reason to delay introduction for a Tariff for green gas.

Please note; given the large amount of information made available today the REA is continuing to analyse the output - do contact us for further details.

DECC - Low Carbon Transition Plan

DECC Low Carbon Industrial Strategy

DFT Low Carbon Transport Strategy

Renewable Energy Strategy consultation document

DECC - RO and Feed-in-Tariff consultation

Read the ful transcript of Ed Miliband's speech and questions in the House of Commons.

Press coverage on Low Carbon announcments