Posted: 29 November, 2012. Written by REA News
Renewable Energy Association
29th November 2012
The REA welcomes the publication of Energy Bill today , which answers several of REA’s top 10 asks, set out in October . The REA is holding members’ meetings today to discuss the future for renewable power under the Electricity Market Reform (EMR) regime introduced by the Energy Bill, and will issue fuller analysis in due course.
Initially, the REA welcomes:
While the REA strongly welcomes Government’s commitment to renewable energy and the commitment of funds under the Levy Control Framework, we ask Government to give clarity as soon as possible on how these funds will be allocated across renewables, nuclear, CCS and potentially energy efficiency measures.
REA Chief Executive Gaynor Hartnell said:
“The devil will be in the detail, which we have yet to fully examine. However, if the new regime is implemented sensitively, consumers and green generators should both win.
“Electricity customers will only pay what is necessary to move the UK towards a more sustainable and secure energy future. That’s because, with these new contracts, if the price of electricity increases, the amount of subsidy required can fall. Generators should get a stable price, provided they achieve the fair market price for their electricity. That’s why it’s essential we have a route to market which guarantees this.
“We can’t afford to be complacent, however. It is vital that confidence in the policy framework is established quickly given the investment hiatus we face. There is still much work to do, to translate the legislation into clear and effective policy. We look forward to working closely with DECC to ensure our members can have full confidence in the new framework as quickly as possible.”
The REA is keen to communicate the facts about the real costs to consumers of renewable energy policies, which currently make up approximately £22 of average consumer energy bills, with increases in wholesale gas prices being the key driver of energy bill increases in recent years. We also urge a consideration of the benefits of renewable energy investment alongside the costs .
The REA’s attention is now focused on two critical areas of Electricity Market Reform (EMR) under the Energy Bill.
On the exemption of energy-intensive industries from additional costs under EMR , REA Head of On-site Renewables Mike Landy comments:
“The most cost-effective ways for energy-intensive industries to manage their energy costs are demand reduction and on-site generation, such as solar power and biomass- or waste-powered CHP.
“Heavy industry remains a largely untapped opportunity for renewable energy deployment, and it is vital it is supported in the policy framework – either through eligibility for the Feed-in Tariff up to 10MW or a simplified ‘Contracts for Difference’ process – or else this cost-effective renewables deployment opportunity risks falling through the gaps.”
For further information or to request an interview, please contact:
REA Press Office: +44 (0)2079 810 856, or:
Name: Gaynor Hartnell
Title: Chief Executive, REA
Tel: +44 (0)7870 629 575
Name: Leonie Greene
Title: Head of External Affairs, REA
Tel: +44 (0)7932 720 091
Notes to Editors
• Crucial first step in reassuring investors after the referendum campaign. • Government need to back this up with ambitious energy plan to deliver on much needed new energy infrastructure...