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Renewable Energy Tariffs

RET campaign coalition

The REA was one of the leaders of the coalition which campaigned for the introduction of a renewable energy tariff.

Now that the enabling legislation is in place, the process of working up the detailed arrangements begins. and REA wishes to continue to play a key role in this. Read our approach to the development of the Tariffs.

Below is an account of the Renewable Energy Tariff campaign leading up to the passing of the Energy Bill.

On 29th October 2009 the UK Government tabled two separate amendments, one for electricity (sections 29-31 on pages 3 to 7) and one for heat and biogas (section 42 on pages 11 to 13).

A more detailed analysis of the Energy Act 2008 and the government amendments can be read here.

Below is an outline of the coalition campaign, lead by the REA and Friends of the Earth, calling for a renewable energy tariff for smaller scale renewables and a renewable heat.

Urgent action is required

Action is urgently needed in the UK to accelerate the deployment of renewable energy.  MPs from all parties during the 2nd reading debate recognised the Energy Bill to be out of date; the government calculates measures in the Energy Bill will deliver just 5% renewable energy by 2020.  This is insufficient to meet the UK’s 15% contribution towards the challenging new EU 20% renewable energy target or ambitious CO2 targets. 

BERR proposes a further round of consultation starting in summer to address this substantial shortfall, which means new legislation could be years away.  The industry has been consulted extensively (not least for the 2003 Energy White Paper) and now seeks a Parliamentary show of support for an accelerated timetable for the implementation of hard measures from BERR.

A proposed Renewable Energy Tariff

The case for a feed-in tariff for smaller scale renewable electricity projects is well rehearsed in Parliament (the EDM 890 on feed-in tariffs has over 270 signatures) and has attracted the support of many MPs including Hillary Benn. This could work effectively alongside the RO.

There has been much consultation on measures for renewable heat – and a similar tariff-based approach has many merits.  Anaerobic digestion (renewable gas) is also the subject of much attention, and lends itself to a feed in tariff approach.

The Clause, put forward by the coalition led by the REA and Friends of the Earth, aims to put in place the enabling legislation for a set of tariffs to cover all three of the sectors listed below. The detail of how each would work, including cost, would be the subject of consultation.

1.      On-site renewable electricity generators i.e. householders and commercial entities which could produce power primarily for their own use e.g. warehouses, hospitals, supermarkets, factories etc.  Please note this is not just microgeneration (which is equipment under 50kW capacity).

2.      Producers of renewable heat including biomass/biogas CHP, biomass boilers, ground, air and water source heat pumps and solar thermal.

3.      Producers of renewable gas, (i.e. those who purify biogas and feed it into the gas mains.  This is sometimes referred to as bio-methane.)

See the full REA Briefing below, alongside some of the news reports generated from the Renewable Energy Tariff Campaign.

The Feed in Tariff for Renewables Campaign

A cross party amendment to the Government's Energy Bill, known as `New Clause 4: "Renewable Energy Tariff"', was put forward by the coalition, led by the REA and Friends of the Earth. If  adopted it would provide a massive boost to the small scale renewables industry in the UK allowing homeowners, businesses, councils and large buildings (like supermarkets, leisure centres or shopping malls) to receive a generous fixed reward for each unit of renewable energy they generate.

Supporters of the Renewable Energy Tariff new Clause 4 in the Energy Bill are;

House Builders Federation

Institution of Civil Engineers

Institution of Mechanical Engineers

Federation of Master Builders

National Farmers Union

WWF

RSPB

UNISON

TUC

Greenpeace                                       

Friends of the Earth

Country Landowners Association

UK Green Building Council

Bianca Jagger and World Future Council

Energywatch

Energy Savings Trust

Co-op

Sharp UK

Solarcentury

Renewable Energy Association

National Energy Action

Solar Trade Association

Ground Source Heat Pump Association

Public and Commercial Services Union

Lily Allen and the Premises Recording Studios

British Retail Consortium

New Economics Foundation

Scientists for Global Responsibility

This is part of the REA's Energy Bill asks