For quite some time I have been puzzled as to the passivity of the whole of the electricity supply industry over what is coming down the tracks on EMR.
I think I know why our sector has been so quiet, and the sentiment is this:
EMR is primarily for nuclear. Renewables are being swept along in the flow, with little control over the outcome. There is also so little for us to focus on – we simply can’t get a grip on it. Instead members are focusing on being able to build out in the remaining years of the RO. Right now the banding review is a more pressing concern.

Understandable sentiments – but surely we should now be getting more vocal?
There are two things that Government is adamant over. Firstly that EMR will happen – although it must be uncomfortable that only one utility i

s enthusiastic, that the commission is not warmly disposed to nuclear getting state aid, and that François Hollande, the new French president, is not keen.

Secondly, that there will be auctions. Not at first, but certainly by 2020 and possibly sooner.

Your chief executive has two concerns. Firstly, in the pre-auction phase, contract prices seem likely to be set on the low side, in order to keep the volume of projects coming through under control. See how twitchy Government is over the prospect of another PV FIT situation. The only other options for controlling the volume of capacity taking up FIT CfDs would appear to be handing them out on a first-come first-served basis, until they decide they have enough, or Government officials working to some set of unknown rules to decide who is worthy of a contract and who is not. (If anyone has any other ideas I’d be keen to hear). All of these are highly undesirable, to say the least.

Auctions would provide a mechanism for controlling the volume of projects coming through, as the Government can decide on the basis of the bids which contracts to let. I expect for that reason alone Government will become even more attracted to auctions than they are already.

My second concern is this…. the membership has made it clear that it won’t countenance auctions, so where does this leave us? If we bury our head in the sand, might they just go away?

I have suggested to the membership that the cheapest technologies – the ones Government thinks can work without (or virtually without) ROCs – might do well to offer themselves up as guinea pigs. They could be used to trial auctions, so Government has time to get it right, before it foists them on offshore wind etc.

These technologies have nothing to lose. And something to prove. They can prove that they are worth encouraging rather than cold shouldering. And they would provide a very useful service in terms of getting auctions right. (Or, indeed, showing that they should not be pursued).

I am sure that the members would rather that the idea of auctions goes away, but if EMR is coming, they will surely follow.

And if the alternative is a timid Government, above all keen to ensure that the contracts don’t prove too popular for fear of a repeat of PV FITs… then perhaps we should take a deep breath and think about it. Should we face up to this and get in there on the debate and try to influence the outcome? There is a wealth of experience among those in the membership who were around in the NFFO years. How can we impart our knowledge and the lessons learned if we won’t talk about it?

Yours faithfully,

Gaynor Hartnell
Chief Executive
Renewable Energy Association

All four major trade associations representing domestic solar PV – the British Photovoltaic Association (BPVA) [1], the Micropower Council (MPC) [2], the Renewable Energy Association (REA) [3] and the Solar Trade Association (STA) [4] – have joined together to set the record straight about the current status of solar power and the Feed-in Tariff. The industry is concerned that the public may be confused about solar power and the Feed-in Tariff and would like to take this opportunity to clarify the situation.

The Feed-in Tariff was launched in spring 2010, designed to offer returns of up to 8% to homeowners looking to generate their own renewable electricity – tax free, index linked, and guaranteed for 25 years. No surprise then that we’ve seen over a quarter of a million domestic solar installations go in under the scheme, totalling over 1.3GW installed capacity. Two years later, the tariff is offering the same return as it did when it was first launched – yet the market is stagnant. Why?

Whilst actual rates of return are no longer exceeding Government’s target range to the same extent as last year, a high level of consumer confusion around solar PV and the Feed-in Tariff may be playing a significant role in the drop off in the number of installations. The last six months have seen a stream of headlines about “drastic cuts,” an “illegal consultation,” “legal wrangling,” “huge job losses” and “strict energy efficiency requirements”. However, while the industry undoubtedly went through a difficult time, these headlines obscure a more important truth.

Thanks to drastically falling costs, solar PV remains one of the best investments around, which shields customers from rising energy bills and generates an income to boot, while helping fight climate change and strengthen energy security.

There is also concern that the slip back into 'double-dip' recession is suppressing demand from worried consumers.

The facts about solar power and the Feed-in Tariff

• Costs have fallen more rapidly in solar over the past 12 months than any other energy technology.
• With investment today mainstream analysts expect solar power to be cheaper than buying electricity off the grid before the end of the decade, saving all consumers money in future.
• A 4kWp system, the largest size for which the highest tariff is available, can be purchased today for under £9,000, whereas only one year ago it would have cost upwards of £15,000. An average domestic system is around 2.5kWp.
• Solar does have a bright future in the UK. It is an exciting and popular technology. Tariffs will reduce over time in line with these significant cost reductions, with the industry keen to keep rates of return roughly within the same target range.
• Solar PV continues to offer very attractive returns in comparison to other investment options available to consumers.
• 50% of UK housing stock already meets the energy efficiency requirement for the higher tariff, so if your home has decent insulation, it’s highly likely to be eligible today.
• For those homes that don’t yet meet the EPC-D, the Government’s Carbon Emissions Reduction Target scheme places an obligation on energy providers to subsidise domestic energy efficiency measures, up to 100% of the cost in the case of low income households.

Reza Shaybani, Chairman of the British Photovoltaic Association, comments:

“Around a quarter of the UK’s aging power generation capacity is due to close over the coming decade. We must cut our dependency to fossil fuel which we have no control over its security of supply or price. Solar PV can offer the clean, affordable and secure energy that we need for the future of the United Kingdom. We see investing in clean and green energy as a national duty.”

Dave Sowden, Chief Executive of the Micropower Council, comments:

“Solar PV still offers attractive returns for consumers, in excess of many alternative investment products. Improving consumer understanding of solar PV and the Feed-in Tariff scheme is likely to be key to restoring healthy uptake levels. We are pleased that the policy framework is now on a more stable footing and are optimistic that this will signal a new dawn of consumer confidence in the microgeneration sector.”

Gaynor Hartnell, Chief Executive of the Renewable Energy Association, comments:

“With gas and electricity prices on the rise yet again, returns for today's investors in solar power are likely to be better than expected. By the end of this decade, solar energy costs are expected to fall to the point where it costs the same to generate your own power as it does to buy it from the grid. A technology with this potential is bound to transform our energy future.”

Paul Barwell, Chief Executive of the Solar Trade Association, comments:

“There is no financial explanation for the low installation levels we’re currently seeing. The main reason seems to be a lack of clear information for the public – an informational deficit which industry is today seeking to redress.”

ENDS

For further information or to request an interview, please contact:

REA/STA Press Office: +44 (0)2079 810 856
BPVA Press Office: press@bpva.org.uk
MPC Press Office: 01564 732790, or:

Name: Gaynor Hartnell
Title: Chief Executive, REA
Tel: 07870 629 575

Name: Paul Barwell
Title: Chief Executive, STA
Tel: 07785 111 359

Name: Dave Sowden
Title: Chief Executive, MPC
Tel: 07836 231848
Or 07920 824 144

Name: Reza Shaybani
Title: Chairman, BPVA
Tel: 07802 216226
Reza.shaybani@bpva.org.uk

Notes to Editors

1. The British Photovoltaic Association (BPVA) is the national trade association of the UK solar photovoltaic industry. We are a fully independent not-for-profit organisation. Our mission is “To ensure that solar photovoltaic energy is established as the leading renewable energy source in the UK”. We promote solar PV at national and international levels and assist our members in their business development in the UK. As the voice of the industry, the BPVA is working to make solar PV a mainstream and significant energy source by expanding markets, removing market barriers, strengthening the industry and educating the public on the benefits of solar energy. For more information, see: www.bpva.org.uk

2. The Micropower Council (MPC) is a cross-industry body whose membership comprises of electricity and gas companies, manufacturers, installers, trade associations, professional bodies, non-governmental organisations and charities in the microgeneration sector. We provide the microgeneration industry’s main focal point for Government, regulators, Parliament, opinion formers and the general public on regulation and public policy issues affecting the on-site production by consumers of their own sustainable, low carbon heat and power. For more information, see: www.micropower.co.uk

3. The Renewable Energy Association (REA) led the successful campaign for the introduction of Feed-In Tariffs in the UK with Friends of the Earth. We represent renewable energy producers and promote the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewables trade association in the UK, representing a wide range of companies, from major multinationals to sole traders. For more information, see: www.r-e-a.net

4. The Solar Trade Association (STA) represents companies working in solar thermal and solar power in the UK. Since 2011 the STA has been affiliated to the Renewable Energy Association. Established in 1978 as a not-for-profit trade association we represent a diverse membership across the solar power and solar heating industry. The STA works in conjunction with its members to achieve the right regulatory framework and incentives for solar to deliver an increasing contribution to the UK’s electricity and heating needs. We undertake policy development and provide expert advice and analysis to government departments, agencies, regulators, NGOs and other stakeholders. For more information, see: www.solar-trade.org.uk
 

Electricity Market Reform and Green Investment Bank introduced

The Queen’s Speech at the State Opening or Parliament today introduced Electricity Market Reform (EMR) [1] and the Green Investment Bank (GIB).

Gaynor Hartnell, Chief Executive of the REA [2], said:

“We look forward to seeing the details of the Energy Bill. This is of immense importance to project developers in renewables, as the measures it puts in place will eventually replace the Renewables Obligation. Many of the projects in development now are working to a timescale that takes them into the new regime, and they need to know the detail as soon as possible.

“The new arrangements aim to deliver a stable price for renewable electricity generators, irrespective of what happens to electricity prices. If all works as intended, it should make project development less risky and means that the public pays no more than it needs to for green power.”

We are also awaiting the Government’s conclusions on the subsidy levels coming into effect from April next year under the current policy, the Renewables Obligation. Gaynor Hartnell continues:

“It was originally intended that the legislation setting out how many ROCs [3] generators would earn for their power output from 2013 onwards would be in place a full year ahead. This would have given project developers absolute confidence to progress their plans. As it stands we could know the intended levels later this month but won’t see the legislation until the autumn.”

ENDS

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

Notes to Editors

1. More information should be provided via an operational update to the EMR, which we understand may be published by the end of this month.

2. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. For more information, see: www.r-e-a.net

3. ROCs = Renewable Obligation Certificates, worth around £45 per MWh or 4.5 pence per unit of electricity.

Three important and near-simultaneous reports present compelling case for urgently accelerating UK biofuels policy

The REA [1] has welcomed the rapid-fire publication of three reports, which together present a compelling case for clarity on UK biofuels policy. The UK has a legally binding target of meeting 10% of transport demand from renewable sources by 2020 – the latest official figures (for 2010) have us at 2.9% [2]. The transport sector currently accounts for 24% of UK greenhouse gas (GHG) emissions, according to the recently published DECC/Defra/DfT ‘UK Bioenergy Strategy’ [3].

The Strategy also states (p. 51) that:

“potentially for as long as we use fossil fuels, sustainable first generation biofuels … offer a cost-effective contribution to reduced emissions from transport in line with our carbon reduction objectives.”

The previous day, the IEA presented to the Clean Energy Ministerial [4] findings from its new report ‘Tracking Clean Energy Progress’ [5], which states clearly (p. 54) that:

“Biofuels production needs to double, requiring a four fold increase in advanced biofuels production over currently announced capacity by 2020 [to prevent global warming over 2°C]”

Both these publications also stress the importance of rigorous sustainability criteria, concerns which the REA shares. Latest figures from DfT [6], also released last week, reveal that while home-grown biofuels accounted for only 12% of the UK biofuels market between April and December last year, 93% of these achieved the voluntary sustainability criteria.

This compares with a 53% average across the board, with growth in imports of Dutch used cooking oil (UCO) and American maize-based ethanol dominating the biodiesel and bioethanol markets respectively. However, with the Renewable Transport Fuels Obligation (RTFO) [7] now transposed into legislation, these criteria are no longer voluntary, and biofuels which don’t meet these requirements will not count towards the UK’s renewable transport target.

REA Chief Executive Gaynor Hartnell comments [8]:

“The Government cannot afford to ignore the transport sector in the move towards a sustainable energy economy. The Bioenergy Strategy is welcome but we urgently need a dedicated low carbon transport strategy. This is vital for building the investor confidence to steer us towards our mandated renewable energy and carbon targets.

“As we argue in ‘Renewable Energy: Made in Britain’ [9], released last week, we should seek to maximise domestic renewable energy, including our transport fuels, which have exemplary green credentials. The sooner Government gets its policies in order, the more we can rely on biofuels made in Britain, and the less we will have to rely on imports.”

Both documents also champion the benefits of advanced biofuels and electric vehicles, while also acknowledging that the commercial viability of these solutions is still some time off. This is why the first generation biofuel market needs proper policy support now to accelerate the transition towards these future technologies, as REA’s Head of Renewable Transport Clare Wenner explains:

“Advanced biofuels and electric vehicles will undoubtedly have a vital role to play in the ongoing decarbonisation of the transport sector – but they are not a panacea, and they will not materialise overnight.

“Government needs to craft stable policy to support the first generation biofuels market, to enable the key players to build up their markets. They will then be in a position where they can afford to invest in the R&D required to make these future technologies viable.

“We need to establish both a market today and a pathway that rewards continuous technology improvement.”

The REA’s Renewable Transport Fuels Group (RTFG) will host a parliamentary event on 25th June to further state the case for clear biofuels policy support to 2020.

ENDS

For further information or to request an interview, please contact:

REA Press Office: +44 (0)2079 810 856, or:

Name: Clare Wenner
Title: Head of Renewable Transport, REA
Tel: +44 (0)7802 487 679

Name: Gaynor Hartnell
Title: Chief Executive, REA
Tel: +44 (0)7870 629 575

Notes to Editors

1. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. For more information, see: www.r-e-a.net
2. DECC: ‘Digest of United Kingdom Energy Statistics,’ 2011, p. 217. Available at: http://www.decc.gov.uk/en/content/cms/statistics/publications/dukes/dukes.aspx
3. DECC/Defra/DfT: ‘UK Bioenergy Strategy,’ 26th April 2012. Available at: http://www.decc.gov.uk/en/content/cms/meeting_energy/bioenergy/strategy/strategy.aspx
4. The Clean Energy Ministerial took place at Lancaster House in London from 25th-26th April 2012, with energy ministers from 22 countries meeting to discuss low carbon energy. For more information, see: http://www.cleanenergyministerial.org/events/cem3/index.html
5. IEA: ‘Tracking Clean Energy Progress,’ 25th April 2012. Available at: http://www.iea.org/papers/2012/Tracking_Clean_Energy_Progress.pdf
6. DfT: ‘RTFO report for the pre-RED implementation part of Year 4,’ 26th April 2012. Available at: http://www.dft.gov.uk/statistics/releases/biofuels-statistics-apr-2011-to-dec-2011
7. For more information, see: http://www.dft.gov.uk/topics/sustainable/biofuels/rtfo
8. Gaynor Hartnell also spoke about this subject on Radio 4 yesterday: ‘The World This Weekend,’ 29th April 2012. Available at: http://www.r-e-a.net/news/rea-chief-exec-gaynor-hartnell-speaks-on-radio-4
9. The Executive Summary of ‘Renewable Energy: Made in Britain’ is available at: http://www.r-e-a.net/resources/rea-publications
   Hard copies of the report, priced at £25, may be ordered by visiting: http://www.r-e-a.net/resources/rea-publications or emailing: madeinbritain@r-e-a.net

REA responds to Bioenergy Strategy

REA [1] responds to publication of DECC’s Bioenergy Strategy [2]

REA Chief Executive Gaynor Hartnell said:

“Government expects around half its renewable energy target will be met by wood, energy crops and other forms of biomass such as wastes from agriculture. These will displace fossil fuels for the production of heat, transport fuels and power.

“Some of this biomass will come from the UK and some will be imported. But all of it must be sustainable, deliver significant carbon savings and not impact on biodiversity. If it doesn’t meet strict criteria on sustainability, it won’t count as renewable. Imported biomass fuels for power generation can be just as green as when they are sourced locally, if used in large stations at ports serviced by large cargo ships. The UK currently imports 27% of its energy [3], and adding sustainable biomass to the mix improves the nation’s energy security as well as our green credentials.”
 

                                                                               ENDS

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

Notes to Editors

1. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. For more information, see: www.r-e-a.net

2. DECC: ‘The Bioenergy Strategy,’ 26th April 2012. Available at: http://www.decc.gov.uk/en/content/cms/meeting_energy/bioenergy/strategy/strategy.aspx

3. World Bank: ‘Energy imports, net (% of energy use),’ 2011. Available at: http://data.worldbank.org/indicator/EG.IMP.CONS.ZS

4. The Clean Energy Ministerial will take place at Lancaster House in London from 25th-26th April 2012, with energy ministers from 22 countries will meet to discuss low carbon energy. For more information, see: http://www.cleanenergyministerial.org/events/cem3/index.html

5. The Executive Summary of ‘Renewable Energy: Made in Britain’ is available at: http://www.r-e-a.net/resources/rea-publications Electronic versions are available to journalists upon request.
 

On 4th April 2012 GWE Biogas’ Sandhill Biogas Plant became certified for all three products under the Biofertiliser Certification Scheme: separated liquor, separated fibre, and whole digestate. The plant can process around 50,000 tonnes of food waste annually through anaerobic digestion (AD), reducing the amount of waste sent to landfill and generating a significant amount of renewable energy in the process.

Ciaran Burns, Renewable Schemes Manager for REAL, comments:

“Congratulations to GWE Biogas. This is fantastic news. Assuring that digestate from the AD process is safe for humans, plants and animals is vital for the continued development of the industry. The BCS is a sign of best practice within the industry, and it’s great to see another plant achieve this milestone.”

GWE Biogas has installed advanced processing apparatus at the plant, including depackaging equipment that allows it to accept packaged food sources, and it also has an innovative process for separating the digestate into the different fractions. This allows the plant to reduce both storage and transport requirements.

Tom Megginson, Director at GWE Biogas, comments:

“We are delighted to have achieved PAS110 certification and it now allows us to close the loop of waste to fertiliser to food by using our valuable biofertiliser on our own land to help reduce the carbon footprint of producing safe, high quality food ingredients such as milling wheat and malting barley. This is true recycling of products to land.”

The plant can now dispatch the biofertiliser as a product which will be of benefit to the plant operators and biofertiliser end users. Biofertiliser is a source of essential nutrients in agriculture and will help to reduce end users’ dependence on chemical fertilisers and peat-based soil improvers.

Brand new research from the REA and Innovas [3] finds that the anaerobic digestion industry supports 2,650 jobs across 140 companies in the UK, with a sector turnover of £320 million. UK export value is £28 million, while the global market value is £8.8 billion.

ENDS

For further information or to request an interview, please contact:

REA press office: 02079 810 856, or

Ciaran Burns
Title: Renewable Schemes Manager, REAL
Tel: 02079 810 853 Name:

Tom Megginson
Title: Director, GWE Biogas Ltd
Tel: 01377 229 425

Notes to Editors

1. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. The REA has dedicated websites for Biogas and the Biofertiliser Certification Scheme.

2. The Biofertiliser Certification Scheme provides assurance to consumers, farmers, food producers and retailers that biofertiliser is safe and of good quality, and provides “end of waste” status for digestates from AD. It is administered by Renewable Energy Assurance Limited, a subsidiary of the Renewable Energy Association, set up to operate assurance schemes in the renewable microgeneration sector.

3. The Executive Summary of ‘Renewable Energy: Made in Britain’ is available at: http://www.r-e-a.net/resources/rea-publications

Hard copies of the report, priced at £25, may be ordered by emailing: madeinbritain@r-e-a.net
 

REA responds to Prime Minister's speech at Clean Energy Ministerial

Recognition of renewable energy welcome, but benefits need urgently to be better understood
The REA [1] has welcomed the acknowledgement by the Prime Minister today [2] that renewables are the fastest growing energy sector in the world. However, the REA wants the Government to take more care to understand the many economic benefits of renewable energy investment, including jobs.

REA Chief Executive Gaynor Hartnell said:

“Renewables account for 110,000 UK jobs, seven times more than David Cameron thinks. The sector's turnover last year was £12.5 billion [3]. Of the low carbon energy sources that the Government is looking to bring forward under its Electricity Market Reform proposals, renewables are the most likely to succeed. They can be deployed more quickly, they are proven and they will need less subsidy.

“Renewables have extremely low running costs, but capital costs can be higher than other energy technologies. For that reason it is essential that the cost of financing is kept low. Stable policies build investor confidence and make projects more bankable. The ball is in the Government’s court to make that happen.”

International Energy Agency analysis [4] shows that globally fossil fuels receive six times the subsidy that renewable energy receives. UK subsidies for fossil fuels are estimated at £3.6 billion, mostly in the form of tax breaks, of which a fresh round was announced for the oil and gas sectors in this year's Budget. The UK Government does not routinely cost the benefits of renewable energy generation - a situation the REA has asked to be addressed in its new report ‘Renewable Energy: Made in Britain’.

REA Chairman Martin Wright adds:

“There is a tendency to focus on the costs of renewables as opposed to the benefits. Renewables give us energy independence, they are totally sustainable, there is no waste, and over the long term they will provide low cost energy and, above all, price stability.

“Essentially, renewables represent a tremendous business opportunity now, and offer long term comparative advantage for the UK economy. In anyone’s books that is a compelling proposition.”

Renewables facts and stats

• The UK produces 3.3% of its energy from renewable sources [5]. The EU average figure is 12% [6] and the global average is 16%.
• The EU 2020 renewable energy target is 20%, but the UK’s target is just 15% because we are historically among the poorest performers in Europe.
• Over one million people are employed in renewables across the EU [8].
• REA/Innovas figures show that we now employ around 110,000 people across over 15 technologies in the UK [3].
• The UK renewables sector turned over £12.5 billion, and exported £1.6 billion, in 2010/11. Sector subsidy was £1.4 billion in 2010, indicating that the sector is very effective at leveraging investment [3].
• UK renewables sector growth in 2009-2010 was 11% across the sector, so bucking recession trends - and was even higher last year [3].
• Germany employs 370,000 people in their renewables sector – they say this rivals their car industry. They produced 11% of their energy from renewables in 2010 (Alexa Capital say Germany installed more renewables capacity over 2011 than the UK installed over past 10 years).
• Investment in renewable energy now exceeds investment in nuclear and fossil fuels globally [7].
• Renewable energy is the fastest growing energy sector in the world [7].

                                                    ENDS

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

Notes to Editors

1. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. For more information, see: www.r-e-a.net

2. David Cameron’s speech to the Clean Energy Ministerial is available here: http://www.decc.gov.uk/en/content/cms/news/pn12_054/pn12_054.aspx
The Clean Energy Ministerial is taking place at Lancaster House in London from 25th-26th April 2012, with energy ministers from 22 countries meeting to discuss low carbon energy. For more information, see: http://www.cleanenergyministerial.org/events/cem3/index.html

3. The Executive Summary of ‘Renewable Energy: Made in Britain’ is available at: http://www.r-e-a.net/resources/rea-publications. Hard copies of the report, priced at £25, can be ordered by emailing madeinbritain@r-e-a.net

4. The IEA estimates that global subsidies for fossil fuels have risen to over $400 billion in 2010 and will rise to £660 billion by 2020 - or 0.7% of global GDP. The IEA are calling for an end to these perverse subsidies. UK fossil fuel subsidies, mostly in the form of VAT breaks are estimated at £3.63 billion in 2010. Subsidy for renewable energy in the same year was £1.4 billion. For more detail, see ‘Renewable Energy: Made in Britain,’ p. 13: http://www.r-e-a.net/resources/pdf/60/REA_renewable_energy_report.pdf
A further £3 billion of tax breaks for the oil and gas sector was announced in this year's Budget, available at: http://www.hm-treasury.gov.uk/budget2012.htm

5. DECC: ‘Digest of United Kingdom Energy Statistics,’ 2011. Available at: http://www.decc.gov.uk/en/content/cms/statistics/publications/dukes/dukes.aspx

6. See EUROSTAT data here: http://epp.eurostat.ec.europa.eu/portal/page/portal/energy/introduction

7. IEA: ‘World Energy Outlook,’ 2011. Available at: http://www.worldenergyoutlook.org/

8. EurObserv’ER: ‘The State of Renewable Energies in Europe,’ 2011. Available at: http://www.eurobserv-er.org/pdf/barobilan11.pdf

REA [1] finds outstanding renewable energy growth bucks recession

News that the UK is officially back in recession has come as the Clean Energy Ministerial [2] gets underway in London.

The REA’s major new report 'Renewable Energy: Made in Britain' [3], launched yesterday with Energy Minister Greg Barker, shows that the UK renewables sector grew an average of 11% from 2009-2010, with even greater growth achieved in some technologies. This compares with a national average growth rate of just 1.4% over the same period. Renewable energy is the fastest growing energy sector in the world, outstripping investment in conventional energy.

REA Chief Executive Gaynor Hartnell said:

“The Treasury has been marginalising renewable energy, but evidence in the UK and from around the world shows renewable energy should be at the heart of Government’s growth strategy."

“We recommend the Chancellor attends the Clean Energy Ministerial. The potential for renewable energy to stimulate much needed growth and employment is understood by the major economies attending this important event today. The UK should be taking this major economic opportunity every bit as seriously.”

Data from the US Energy Information Administration shows the renewable energy sector grew 27% between 2009 and 2011 in the US [4]. President Obama has said “the country that leads the clean energy economy is likely to lead the global economy” [5]. India enjoyed the highest global growth rates in renewables at 52% in 2011 [6]. BP said earlier this year they expect growth in renewables over 8% per annum to 2030, much higher than growth in fossil fuels [7].

‘Renewable Energy: Made in Britain’ shows the UK renewable energy industry employs around 110,000 people and turned over around £12.5 billion in 2010/11. Public investment in UK renewables in 2010 was around £1.4 billion, showing the sector is highly effective at leveraging private investment. The industry needs to grow 16% per annum and to sustain around 400,000 jobs by 2020 to meet the Government’s renewable energy targets [8].

In a welcome move today BIS has committed £80 million to the waste infrastructure sector ahead of Green Investment Bank loans. The investment will provide support for energy-from-waste (EfW) projects. The Business Secretary Vince Cable has taken a ‘step’ in the right direction regarding the ‘opportunity to unlock substantial commercial investment in green technologies.’

ENDS

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: Lead Author, ‘Renewable Energy: Made in Britain’
Tel: +44 (0)7932 720 091

Notes to Editors

1. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. For more information, see: www.r-e-a.net

2. The Clean Energy Ministerial will take place at Lancaster House in London from 25th-26th April 2012, with energy ministers from 22 countries will meet to discuss low carbon energy. For more information, see: http://www.cleanenergyministerial.org/events/cem3/index.html

3. The Executive Summary of ‘Renewable Energy: Made in Britain’ is available at: http://www.r-e-a.net/resources/rea-publications Electronic versions are available to journalists upon request.

4. Renewable Energy World: ‘Renewables Experience Explosive Growth in First Three Years of Obama Administration,’ 2nd April 2012. Available at: http://www.renewableenergyworld.com/rea/news/article/2012/04/renewables-experience-explosive-growth-in-first-three-years-of-obama-administration

5. Barack Obama: ‘Remarks by the President on the economy,’ 26th May 2010. Available at: http://www.whitehouse.gov/the-press-office/remarks-president-economy-0

6. The Guardian: ‘India records world-beating green energy growth,’ 3rd February 2012. Available at: http://www.guardian.co.uk/environment/2012/feb/03/india-green-energy-growth

7. Bloomberg: ‘Renewable-Energy Growth to Outpace Oil, Gas Through 2030, BP Says,’ 18th January 2012. Available at: http://www.bloomberg.com/news/2012-01-18/renewables-to-grow-more-than-8-a-year-through-2030-bp-says.html

8. The EU Renewable Energy Directive requires the UK to meet 15% of its overall energy demand from renewables by 2020. This includes a requirement to meet 10% of transport demand from renewable sources. The UK intends to meet the remainder of the target by meeting 12% of heat demand and 30% of electricity demand from renewables by 2020, according to DECC’s 2009 Renewable Energy Strategy.
 

The REA [1] welcomes the Planning and Climate Change Coalition’s [2] report ‘Planning for Climate Change – Guidance for Local Authorities’ [3]

Translating the National Planning Policy Framework [4] into practical development plans and planning decisions will not be without its challenges. REA Chief Executive Gaynor Hartnell comments:

“Local authorities have a key role in facilitating the UK meeting its challenging and legally binding renewables target. By 2020 we need to increase renewable energy penetration from today’s level of 3% up to 15% [5]. We urge planning authorities to make sure their development plans contain robust policies to assist with this. There can be no better example of sustainable growth than the deployment of renewables in sympathy with the local environment.

“The NPPF also requires local authorities to identify “suitable areas” for renewable energy deployment [6, 7, 8]. We are not convinced that a mapping approach is helpful for all technologies, although it could well demonstrate the opportunities for deep geothermal and larger scale PV [9, 10, 11]. It can certainly also help with strategic planning to meet industrial heat demand. We will be happy to advise local authorities on how they might approach resource mapping”.

ENDS

For further information or to request an interview, please contact:

REA Press Office: +44 (0)2079 810 856

Notes to Editors

1. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. For more information, see: www.r-e-a.net

2. The REA is a member of the Planning and Climate Change Coalition (PCCC) and supports its goal of providing clear guidance to planning authorities on how to translate the National Planning Policy Framework (NPPF) into practical development plan policies and planning decisions. For more information on the Coalition, visit: http://www.tcpa.org.uk/pages/climate-coalition.html

3. The PCCC launched the report at 11:00 this morning in the Houses of Parliament, with Bob Neill MP, Parliamentary Undersecretary of State, CLG, Joan Walley MP, Chair of the Environmental Audit Committee, and Heidi Alexander MP.

4. The NPPF was published by the DCLG on 27 March 2012, following a controversial consultation launched in July 2011. View the document online here: http://www.communities.gov.uk/planningandbuilding/planningsystem/planningpolicy/planningpolicyframework/

5. In 2008 the UK agreed to achieve 15% of our national energy consumption from renewable energy by 2020, from a starting point of just 1.3% in 2005. Enshrined within an EU directive, this legally binding target represents a very significant challenge that can only be achieved if a concerted and co-operative effort is made at all levels. The latest statistics indicate that renewables currently contribute just 3% of consumption, so we now have only eight years to achieve the fivefold increase required. The REA supports the role of this report in facilitating the achievement of both our renewables target, and the target of reducing our greenhouse gas emissions 80% by 2050.

6. Renewable energy sources are generally highly dispersed and, wherever possible, used close to where they arise. It is logical that we should make as much use as possible of those renewable resources that arise close to where we live. Creating a supportive local planning framework is therefore crucial to their success. Our challenge in the coming years is to integrate renewables into our local environment at a cost that is acceptable – acceptable financially, environmentally and socially. The REA firmly believes that, with a constructive approach from all sides, this can be achieved and will have multiple and significant benefits for the economy, people and the quality of our environment.

7. We are concerned that the abolition of regional spatial strategies removes an important mechanism for the UK’s national renewables target to be devolved to a regional level, which to date has provided a clear strategic context for local development plans. This makes it more difficult for those developing local plans to relate to the national target and for Government to ensure that local plan policies make sufficient allowance for the national target to be achieved. We do not believe that the NPPF’s 'duty to cooperate' will provide a sufficient impetus for the level of cooperation between neighbouring authorities required to achieve a more strategic, regional approach for renewable energy deployment.

8. The REA is concerned that the NPPF requires local authorities to identify “suitable areas” for renewable energy deployment (Paragraph 97). Although identifying broad areas of search can be helpful in principle, in practice it can easily become an attempt to restrict deployment to an overly-confined area. Furthermore, opportunity mapping has very limited relevance for most renewable energy technologies and a requirement to map is likely to delay deployment and restrict the development of perfectly acceptable locations. As the REA has long argued, it is far preferable for local plans to establish clear criteria-based policies. Once these are in place, renewable energy developers are in the best position to determine the location of projects within the context of the plan and can engage in constructive pre-application dialogue with the planning authorities to review proposed locations.

9. We are concerned at the loss of detailed, clear and helpful guidance contained within PPS 22 (Renewable Energy) and PPS 1 (Delivering Sustainable Development). For example the statement in PPS 22 that “planning authorities may include policies in local development documents that require a percentage of the energy to be used in new residential, commercial or industrial developments to come from on-site renewable energy developments” provides an important encouragement to local authorities to promote the uptake of small-scale renewables in the built environment and by local business. Such regulatory incentives form an important complement to the financial incentives provided by government. We urge the Government to retain as supplementary guidance as much as possible of the information in PPS 22 (and its useful companion guide) and PPS 1.

10. We believe that the NPPF’s treatment of renewable energy deployment within the Green Belt is too restrictive; the aim of Green Belt policy is to prevent urban sprawl and there will be many instances where renewables can be deployed without compromising this aim.

11. The REA acknowledges that the localism agenda and provisions within the Localism Act may provide opportunities for supporting renewable energy deployment but is equally concerned that the powers could be used by a vocal minority to restrict deployment that is fully in line with national goals and targets. We hope that this will be closely monitored by Government and appropriate action taken if the achievement of our 2020 renewables target becomes under threat.

New research by the REA and Innovas reveals that the UK’s £12.5 billion renewables industry supports 110,000 jobs across supply chain, and could support 400,000 by 2020

‘Renewable Energy: Made in Britain,’ a ground-breaking new report from the REA [1] and Innovas, leaders in the low carbon economy field, will be launched tomorrow, on the eve of the Clean Energy Ministerial Summit [2]. REA and the report sponsors will hear from Energy Minister Greg Barker at the launch, which will take place at the award-winning headquarters of Renewable Energy Systems [3].

This report marks the first time that the turnover and employment figures of the entire UK renewables sector have been quantified and brought together in one place. The report finds that in 2010/11, the UK renewables industry was worth £12.5 billion and supported 110,000 jobs, with 400,000 in total required to meet the 2020 renewables targets [4]. The report also reveals:

• the overall increase in market value from 2009/10 to 2010/11 was 11% - outstripping economic growth over the same period (1.4%) by a factor of eight;
• meeting our renewable energy targets would displace fossil fuels with a cumulative value of £60 billion to 2020, giving a significant boost to the UK’s balance of trade.

These findings come just days after the European Commission identified the green economy as a “key sector” offering “important job creation potential,” with renewables alone claimed to provide up to 3 million jobs across the EU to 2020 [5]. Just today, Friends of the Earth revealed results of a survey which found that “85 per cent of Brits would like to see the Government increasing the use of clean British energy and reducing the use of overseas gas” [6].

Launching the report, REA Chief Executive Gaynor Hartnell said:

“Harnessing our renewables creates employment and means that rather than spending money on energy imports we can keep it circulating in the UK economy. Government needs to take steps to build the skills base and keep the UK on track to meet its renewables targets. When it comes to the employment, economic and energy challenges we face, the answer is clear - make it renewable and make it in Britain.”

Gregory Barker, Minister of State for Climate Change, said:

“Renewable energy not only provides us with clean and secure energy that cuts our reliance on imported fossil fuels - it generates billions of pounds of investment and potentially hundreds and thousands of jobs and is a key growth sector for the UK economy.

“The REA’s report sets out plainly the opportunities and challenges in this area. We are determined to seize the momentum and secure maximum benefit for the UK.”

Will Hutton, former editor-in-chief of the Observer and Principal of Hertford College, Oxford, said in the report’s foreword:

“There is another revolution in the making: come what may business and society need diverse and resilient sources of energy that are independent from the political and geological vagaries of fossil fuels.”

Tim Yeo, REA President and Chair of the Environmental Audit Committee’s 2009 inquiry into ‘Green Jobs and Skills,’ said:

“The growth of the renewable energy industry is a really positive story for the UK and this report provides a great synopsis of our current position and the opportunities for the future. The Government must lead the way with a clearer and more systematic approach to developing the skills required to ensure a shortage does not derail the industry’s continued expansion.”

John Cridland, Director-General of the Confederation of British Industries, said:

“Renewables will play a key role in the development of the low-carbon economy, helping to diversify the UK energy mix whilst also providing opportunities for economic growth and new jobs.”

Frances O’Grady, Deputy General Secretary of the Trades Union Congress, said:

“This report makes the strongest case yet to show that green opportunities, and the jobs the sector has the potential to create, can provide decent, highly skilled employment to people whose jobs are being lost as a result of changes in the global economy. The Government’s green challenge is now to do all it can to create the investment climate to generate the green jobs we need to meet our 2020 target.”

Crisis – or opportunity?

“The renewable energy targets, ageing infrastructure, diminishing energy security, poor economic growth and high unemployment are a circle crying out to be squared.”

‘Renewable Energy: Made in Britain,’ p. 7

This report makes it clear that the UK is facing challenges on several fronts, but that taking a joined-up approach which treats all of these problems together will create the single most important economic opportunity of this generation.

While the Government has shown strong leadership and made great strides in offshore wind and marine renewables, a framework is required which ensures link-up between all relevant departments to capitalise on the full range of benefits offered by renewables. This could be achieved by relaunching the Office for Renewable Energy Deployment, currently housed within DECC, as a cross-departmental office chaired by the Prime Minister and Deputy Prime Minister. Additional recommendations, outlined in full on p. 8 of the report, include:

• the appointment of a BIS Minister with a renewable energy remit;
• the recording of employment figures in renewables by the Office for National Statistics;
• the routine assessment of the economic benefits of renewable energy by HMT;
• and the publication of a national strategy for renewable energy skills.

This final point is crucial, as the skills “time bomb” is both a major obstacle to achieving the green growth vision, and also a major opportunity for putting disillusioned graduates, the unemployed, and those in low paid work into high value careers.

£60 billion drain on economy of business as usual to 2020

Our analysis shows that meeting our renewable energy targets would displace fossil fuels with a value of £11 billion in 2020 (£60 billion cumulatively to 2020). Failure to meet our targets would see most of this money leave the UK economy through imports of oil, gas and coal – money better invested in supporting domestic growth in domestic jobs. Read more on p. 14 of the report.

The report exposes the portrayal of renewable energy as being excessively subsidised in comparison with other energy sources as utterly wrong. Analysis from the International Energy Agency shows that globally renewables receive just one sixth of the subsidy of fossil fuels, while analysis from Ofgem and the Committee on Climate Change reveals that renewable energy policies have only added a fraction to energy bills compared to increases caused by spiking wholesale gas prices. Read more on p. 13 of the report.

UK renewable energy innovation is impressive and must be championed

The report includes a regional breakdown which shows that the employment and economic opportunities are widely distributed across the country. It sets out over 30 case studies of UK innovation and manufacturing across over 15 technologies including:

• highly competitive manufacturing innovation in solar thermal;
• biofuels produced from waste;
• the deepest onshore wells ever to be drilled in the UK for the first deep geothermal power plant;
• the use of biomass heat to green Scotland's whisky industry and stabilise energy bills;
• pyrolysis and gasification producing clean synthetic gas from old tyres and hazardous wastes;
• green gas for truckers filling up on the M6;
• remanufacturing of Chinese solar cells into innovative building-integrated products;
• world-leading device innovation in marine energy systems;
• a start-up company that’s reached £25 million turnover in just five years.

These impressive innovations show that UK innovators are ready to step up to the plate, and give a taste of what is possible with the right Government supporting framework. These companies are heeding the call of Barack Obama to not get left behind in the most important global economic race of the 21st Century [6]. Will Government do likewise?

Words of welcome from the report’s sponsors

Gearoid Lane, Managing Director of British Gas New Energy, said:

“This report shows the impact renewable energy can have in the economic wellbeing of Britain. Renewable technology makes sense for households giving them access to cheaper and cleaner energy sources. It also makes sense for Britain by creating much needed skilled jobs. We’re playing our part by setting up our own green skills training centre in Wales and investing in businesses developing renewable energy technology.”

Keith Marshall OBE, Chief Executive of SummitSkills, said:

“High quality skills are essential to making the growth of renewable energy a reality. The skills system is ready to respond - we just need the policy landscape completely joined up to drive demand for investment in training and upskilling. This report provides an essential building block to make this happen and we are pleased to be one of the sponsors.”

John Adkins, Group MD of Myriad CEG, said:

“This excellent report clearly shows that with a bit more long-term, joined-up thinking from Government the renewable energy sector can reach its true potential, as both a driver of employment and economic growth.”

ENDS

For further information or to request an interview, please contact:

REA Press Office: +44 (0)2079 810 856

Name: Gaynor Hartnell
Title: Chief Executive, REA
Tel: +44 (0)7870 629 575

Name: Leonie Greene
Title: Lead Author, ‘Renewable Energy: Made in Britain’
Tel: +44 (0)7932 720 091

Notes to Editors

1. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. For more information, see: www.r-e-a.net
2. The Clean Energy Ministerial will take place at Lancaster House in London from 25th-26th April 2012, with energy ministers from 22 countries will meet to discuss low carbon energy. For more information, see: http://www.cleanenergyministerial.org/events/cem3/index.html
3. The launch event will begin at 9:00 on 24th April at the headquarters of Renewable Energy Systems (RES), located in Kings Langley, Herts WD4 8LR, which is just off J20 of the M25 or 30 minutes out of London Euston by train. Energy Minister Greg Barker will join representatives from the REA, the report’s sponsors and other prominent public figures. RES will take attendees on a tour of the facility, taking in many of the technologies covered in the report.
   Journalists wishing to attend the event should contact REA Press Officer James Beard: jbeard@r-e-a.net.
4. The EU Renewable Energy Directive requires the UK to meet 15% of its overall energy demand from renewables by 2020. This includes a requirement to meet 10% of transport demand from renewable sources. The UK intends to meet the remainder of the target by meeting 12% of heat demand and 30% of electricity demand from renewables by 2020, according to DECC’s 2009 Renewable Energy Strategy.
5. European Commission: ‘Towards a job-rich recovery,’ 18th April 2012. Available at: http://ec.europa.eu/social/BlobServlet?docId=7619&langId=en
6. Friends of the Earth: ‘85 per cent of public support clean British energy - new poll,’ 23rd April 2012. Available at: http://www.foe.co.uk/resource/press_releases/clean_british_energy_23042012.html
7. Barack Obama: ‘Remarks by the President on the economy,’ 26th May 2010. Available at: http://www.whitehouse.gov/the-press-office/remarks-president-economy-0
   “Around the world, from China to Germany, our competitors are waging a historic effort to lead in developing new energy technologies… Nobody is playing for second place. These countries recognize that the nation that leads the clean energy economy is likely to lead the global economy. And if we fail to recognize that same imperative, we risk falling behind.”

REA Chief Executive Gaynor Hartnell comments on DECC’s shale gas recommendations
 

“Before the Government pins its hopes on shale gas, it should look at all the potential implications, not just whether it can be extracted without causing mini earth tremors. There is no justification for this to undermine the case for renewables. Globally, renewables are being deployed at a faster rate than any other energy technologies, and for good reason. The UK needs to get firmly on the path to a renewable future and not be left behind. Whilst Nick Clegg sends a strong message on this[2], the overall impression is that the Government risks getting distracted by other potential options such as nuclear, carbon capture & storage and now shale gas.”

ENDS

For further information or to request an interview, please contact:

REA Press Office: +44 (0)2079 810 856

Name: Gaynor Hartnell
Title: Chief Executive, REA
Tel: +44 (0)7870 629 575

Notes to Editors

1. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. For more information, see: www.r-e-a.net

2. 2012.02.06 Nick Clegg – Going for growth means going for green: extracts below from DECC press release
“The race is on to lead the world in clean, green energy. Last year we saw record-breaking global investment in renewables - outstripping the cash piled into fossil fuels… So the choice for the UK is simple: wake up, or end up playing catch up… Low-carbon markets are the next frontier in the battle for global pre-eminence… I want the UK to be the number one destination for green investment. We’re in this race to win it.”
See: http://www.decc.gov.uk/en/content/cms/news/pn12_007/pn12_007.aspx
 

The REA will be hosting the British Renewable Energy Awards at the Jumeirah Carlton Tower Hotel on the 21st June 2012. The event, now in its 7th year, is one of the industry’s most prestigious gatherings and was established to celebrate and recognise achievements in the renewable energy sector.

The creativity and ingenuity of the UK renewables industry ensures there are a wealth of companies and individuals who have achieved something outstanding during 2011. The REA received almost 300 nominations across the full range of renewable energy technologies including power, heat, transport and renewable gas. From these nominations the list was whittled down to the following shortlisted nominees:

Shortlisted nominees have now been invited to submit a fuller entry. The winners and runners-up will be chosen by a distinguished panel of judges and the Awards will be presented at the glamorous Gala Awards Dinner on 21st June at the Jumeirah Carlton Tower Hotel in Knightsbridge.

Commenting on the nominations, Peter Ainsworth said:

"This year has again seen a record breaking number of entries for the REA Awards. The diversity and quality of the nominations may pose a problem for the judges; but it's a problem we're happy to have. It proves that, despite a difficult economic climate, renewable energy continues to be a powerhouse of job creation and investment. Reliance on fossil fuel is inevitably proving ever more expensive and fuel poverty is on the increase; renewable energy makes economic as well as social sense."

-ENDS-

For further information or to request an interview, please contact:

REA Events Team: +44 (0)2079 253 570 or events@r-e-a.net

________________________________________
1. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. www.r-e-a.net
2. For more details on the event, award categories, previous winners and booking forms, please see the REA Events pages: http://www.r-e-a.net/events/7th-annual-british-renewable-energy-awards

REA [1] Chief Executive Gaynor Hartnell comments on recent energy policy developments

In yesterday’s announcement of their withdrawal from plans to develop nuclear plants at Wylfa and Oldbury, E.ON and RWE explained some of the factors influencing their decision. E.ON expressed a desire to “deliver earlier benefit for customers and our company” [2], while RWE raised the issue of “very long lead times and payback periods” [3].

REA Chief Executive Gaynor Hartnell comments on the implications of this announcement for UK energy policy:

“This decision speaks volumes. In comparison with nuclear and carbon capture and storage, renewables win hands down.

“Renewable energy is cheaper, proven and reliable. It assists with security of supply, creates more jobs, the fuel doesn’t run out, and there is no need to find permanent storage for wastes which must be isolated indefinitely.

“Government is bending over backwards to assist all other energy sources, including gas, which it has just exempted from the emissions performance standard for the next thirty years. In contrast it seems lukewarm on renewables.”

However, the renewables industry continues to receive “mixed messages” from the Government:

“David Cameron recently named offshore wind as his renewables “focus”, for reasons which equally apply to many other renewable technologies. [4]

“George Osborne described renewables as “crucial” in his Budget statement [5], but did not outline any policies to support them. In contrast, he said “gas is cheap”, even though both Ofgem and the Committee on Climate Change have found gas to be very expensive.

“And while Ed Davey is “100% committed to the 2020 EU renewable energy target” [6], there is still no strategy in place to meet the 10% target for renewable transport.

“We understand the logic behind not placing winning technologies on a higher pedestal than other technologies, but giving the winners less support than the other technologies makes no sense whatsoever.”

The REA is currently working hard to ensure the best possible outcomes for UK industry and consumers in the changes to Feed-in Tariffs, the Renewable Heat Incentive, the RO Banding Review, Electricity Market Reforms, and the Renewable Transport Fuels Obligation.

ENDS

For further information or to request an interview, please contact:

REA Press Office: +44 (0)2079 810 856
Name: Gaynor Hartnell
Title: Chief Executive, REA
Tel: +44 (0)7870 629 575

Notes to Editors
1. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. For more information, see: www.r-e-a.net

2. http://pressreleases.eon-uk.com/blogs/eonukpressreleases/archive/2012/03/29/1802.aspx

3. www.npowermediacentre.com/Press-Releases/RWE-npower-announces-strategic-review-of-Horizon-Nuclear-Power-1137.aspx

4. See: www.number10.gov.uk/news/pm-speech-on-infrastructure/

“Our focus here will be on offshore wind for hard headed reasons. It is secure, it’s generated at home rather than imported and it’s one of the world’s fastest growing energy sources, which means substantial economic and export opportunities. I believe we’re well placed to become a world leader in offshore wind power and this government is going to do all it can to make sure that happens.”

Similar arguments could easily apply to solar, marine renewables, anaerobic digestion, and most other renewable technologies.
5. See: www.hm-treasury.gov.uk/budget2012_statement.htm

“Renewable energy will play a crucial part in Britain’s energy mix – but I will always be alert to the costs we are asking families and businesses to bear… Gas is cheap, has much less carbon than coal and will be the largest single source of our electricity in the coming years.”
The following two reports both addressed “the costs we are asking families and businesses to bear”:

2011.12.15 Committee on Climate Change: Household energy bills – impacts of meeting carbon budgets

From 2004 to 2010, “By far the largest contributor [to household energy bill increases] was the increase in the wholesale price of gas, which added around £290 to bills. Around £75 was due to policies that reduce carbon emissions. This included £30 to support investments in low-carbon power generation.”

2011.10.14 Ofgem Why are energy prices rising?

“Higher gas prices have been the main driver of increasing energy bills over the last eight years… Becoming more reliant on imported gas has meant that British gas prices have become increasingly influenced by global events, especially those that affect the oil prices as often European gas prices are linked to the oil price.”

6. See: www.decc.gov.uk/en/content/cms/news/guardianletter/guardianletter
 

The REA welcomes Tim Yeo and Martin Wright as its new President and Chairman respectively

Tim Yeo is to be the first ever President of the REA [1]. He has held Government posts in trade and industry, transport, the environment and agriculture, and is currently Chair of the Energy and Climate Change Select Committee.

Tim Yeo comments:

“I am delighted to be invited to be the first ever President of the Renewable Energy Association. Britain will only be able to meet its greenhouse gas emission reduction goals with a substantial contribution from low-carbon renewable energy.

“Renewables can also help to improve both the independence and the security of Britain’s energy supplies. The work of the Renewable Energy Association is very important in this respect and I much look forward to working closely with the Association.”

Martin Wright, meanwhile, takes over from Andrew MacLellan as Chair of the Board of Directors [2]. Martin’s career began with the Royal Navy and has subsequently spanned a number of roles in finance before founding Marine Current Turbines Ltd. He is currently involved in both marine renewables and energy storage.

Martin comments:

“I am delighted to take on this role. Renewables undoubtedly form a vital part of the strategic future of energy in the UK, and remain the only means of power generation that can reduce dependence on imports and the inevitable price volatility that such dependence entails.

“Harnessing the UK’s own sources of clean, cheap and everlasting renewable energy is good for jobs, the balance of payments and maintaining our energy security. However, we have our work cut out, in the current economic climate, to mobilise the necessary investment, and to get the positive message out to the media.”

Gaynor Hartnell, the REA’s Chief Executive, said:

“Tim will provide the board with invaluable advice on championing renewables in these challenging times, and Martin’s interests on innovation, cost reduction and making renewables more relevant to the business community will help set our agenda.

Martin and I, along with other directors of the board, are very much looking forward to working with Tim and we look forward him presiding over future functions, including our Gala Awards dinner in June.”

The REA is currently working hard to ensure the best possible outcomes for UK industry and consumers in the changes to Feed-in Tariffs, the Renewable Heat Incentive, the RO Banding Review, and Electricity Market Reforms.

                                                                    Tim Yeo                                          Martin Wright

                                                                   President                            Chair of the Board of Directors  

                                                 Renewable Energy Association      Renewable Energy Association

             ENDS

 For further information or to request an interview, please contact:

            REA Press Office: +44 (0)2079 810 856

Name: Gaynor Hartnell
Title: Chief Executive, REA
Tel: +44 (0)7870 629 575

 
Notes to Editors
 
1. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. For more information, visit www.r-e-a.net

2. Other changes to the board include:

a. The retirement of Philip Wolfe. Philip had been the Association’s former Chief Executive and a board member since 2002. In recognition of his outstanding contribution he has been awarded lifetime membership of the REA.
b. Simon Merriweather, Business Development Director of Centrica, has also just joined.

For further information on the REA’s board, visit www.r-e-a.net/about/board-members

DECC’s consultation on interim RHI cost control “unnecessary and unhelpful”
 

REA [1] Chief Executive Gaynor Hartnell responds to DECC’s RHI update [2]

“To launch an official consultation on bringing the shutters down, having only just fired the starting gun on the RHI, is premature to say the least.

“The renewable heat market isn't going to flare up like solar did. If anything were concerned about an underspend.

“We’re totally supportive of getting effective cost control measures in place. Done properly this will be reassuring to the industry.

“In our opinion this consultation on interim cost control is unnecessary and unhelpful, but it’s certainly not a reason for lenders to become alarmed - particularly as Government intends to remove this power when longer-term control measures are in place.”

                                                                                      ENDS

For further information or to request an interview, please contact:

REA Press Office: +44 (0)2079 810 856

Name: Gaynor Hartnell
Title: Chief Executive, REA
Tel: +44 (0)7870 629 575

Name: Paul Thompson
Title: Head of Policy, REA
Tel: +44 (0)7980 264 580

________________________________________
1. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. www.r-e-a.net
2. View the DECC press release here: http://www.decc.gov.uk/en/content/cms/news/pn12_029/pn12_029.aspx

DECC views offshore wind as its "marginal technology" – by which it means that if any renewable energy source comes in cheaper, there is every reason to exploit it to the full – but for anything more expensive than offshore wind, there has to be a very good reason for supporting it.
To fulfil the role of “marginal technology” there must be a large potential resource and it must not be too expensive. Beyond that, other nice-to-haves are a good generating profile and being good for “UK Plc”. As an aside, if only DECC kept to this philosophy.… Reading between the lines, what seems to happen in reality is that even if it is cheaper, if there is not much of it, if there is a chance it might just happen anyway, if it looks good to sacrifice it, in order to send more funds to technologies that are a bit sexier …… then DECC does not appear to make that much effort to ensure that that cheaper technology gets deployed.

Broadly speaking the REA supports exploiting the most cost-effective renewables first.. We think that those technologies that are more expensive do need to justify themselves, and indeed they do. To take just two examples, PV certainly deserves to be supported because its costs are coming down and marine renewables do too, because the UK is a world leader in device innovation….

Now, here is an interesting thing to contemplate…… what if PV becomes cheaper than onshore wind? Should it then take the place of offshore wind and become the “marginal technology”?

There is every indication that it will become cheaper, and very soon. And the resource is also large. The UK is a densely populated area, and we all need roofs over our heads! It has the added bonus of looking like it will get a lot cheaper still, undercutting biomass, then onshore wind in turn and then beyond that.

Where would that leave offshore wind? Where would it leave biomass and bioenergy, and then onshore wind? If they become more expensive than PV there have to be good reasons for paying extra. And fortunately there are.

We will need a mix of renewables that can generate though the day and night, and in all seasons, (as most renewables do) and we need technologies that are dispatchable (i.e. thermal renewables). And we will always need to process wastes (so there is a further ongoing role for bioenergy).

But there is no escaping the fact that if / when PV becomes cheaper, it is a game-changer.

“Yes, but isn’t this some time off?” I hear you ask.

“Not in the context of decisions being taken in DECC right now,” would be my answer.

DECC has concluded that the largest PV projects will need a Feed In Tariff equivalent to much less than 2 ROCs/MWh from July this year. By 2017 the offshore wind will get 1.7ROCs/MWh, yet DECC is suggesting PV gets a FIT tariff of between 2.7 and 4p by then - around half the support available for offshore wind.

Clearly larger PV projects will migrate to the RO if this remains an option. But if PV's price does fall in the manner expected by DECC, and the number of ROCs is not adjusted it would be over-rewarded. PV developers think the tariffs proposed for the largest projects under the FIT are fancifully low. DECC is worried that the RO simply won’t be flexible enough to cater for a technology like PV where the cost is expected to fall so rapidly.

So what is DECC to do?

The worst thing it could do would be to remove PV from the RO. The most logical thing it could do would be to revisit its “marginal technology” philosophy, explain it fully and apply it consistently. The most pragmatic thing it could do would be to keep PV in the RO at the pre-determined degession that applies to all and do an emergency review if necessary.
 

But REA warns better understanding is needed urgently on economics of renewable energy investment

The REA welcomes the noticeably more positive tone of the Chancellor towards renewable energy in the Budget today. However, we are disappointed that this was not backed up with any significant additional measures to encourage investment in renewable energy, despite the Budget document making it clear that rising oil prices present a threat to economic recovery [1]. This inflationary threat has already been raised by the CBI in relation to manufacturing costs [2].

The Chancellor is wrong to equate renewable energy with higher costs - DECC's own modelling shows that a high renewables energy future costs no more, and could be cheaper, than business as usual [3]. Domestic renewable energy also means a high proportion of inflation-free energy, a better balance of trade deficit, and jobs.

The Chancellor justified the “major role of gas-?red electricity” by saying “gas is cheap,” whilst promising to keep an eye on the costs of renewable energy to families. However, Ofgem [4] and the Committee on Climate Change [5] show it is gas – not renewables – which are responsible for recent, unprecedented energy bill increases.

The International Energy Agency has warned that a 'golden age of gas' will not avert dangerous climate change, and Mervyn King clearly highlighted fossil fuel price links with inflation last year [6]. REA Chief Executive Gaynor Hartnell comments;

“It is short-termism in the extreme to hand out tax breaks to oil and gas because crude oil prices are soaring. Energy security demands we invest in energy sources that won’t run out.”

The Prime Minister warned on Monday that the UK is 'falling behind our competitors' in investing in modern infrastructure. That is squarely the case on renewable energy, where the UK remains one of the poorest performers in Europe despite boasting the best resources. The EU now employs well over one million people in renewable energy with an estimated €130 billion of sales [7] in 2010.

Gaynor Hartnell said;

"We are concerned that this government is making the re-investment case for old technologies (gas and nuclear [8]), more strongly than it is embracing the future for renewable generation technologies. Renewables are growing at a faster rate than any other energy sector in the world and price reductions in some technology areas are extraordinary. It is encouraging to see some signs that the Chancellor catching up with this agenda, but he has a long way to go. The International Energy Agency has warned that 'the window is closing' and they have urged countries to avoid 'locking-in' to fossil fuel infrastructure."

The REA welcomes:

• The Chancellor's focus on infrastructure investment citing 'clean energy' as a clearly identified need;
• The Chancellor's acknowledgement that renewable energy will pay a 'crucial part' in the energy mix;
• Efforts to tackle the complexity of the Carbon Reduction Commitment which perversely discourages renewables investment by the commercial and public sector.
   

ENDS

For further information or to request an interview, please contact:

REA Press Office: +44 (0)2079 810 856

Name: Gaynor Hartnell
Title: Chief Executive, REA
Tel: +44 (0)7870 629 575

Notes to Editors

[1] "Oil prices have, however, recently risen to record levels in sterling terms, reflecting the impact of ongoing tensions in the Middle East. If sustained this could renew upward pressure on inflation and dampen recovery in the UK and globally" (p. 13)
http://cdn.hm-treasury.gov.uk/budget2012_complete.pdf

[2] “Any further rise in oil prices would be a significant concern, given the additional cost burden this would place on UK manufacturers and the knock-on effects it could have on the nascent recovery.” Ian McCafferty, CBI Chief Economic Adviser
http://www.cbi.org.uk/media-centre/press-releases/2012/03/manufacturers-predict-strong-rise-in-production-but-inflationary-pressures-pick-up-%E2%80%93-cbi-survey/

[3] http://www.guardian.co.uk/environment/2011/dec/28/uk-switch-low-carbon-energy

[4] “Higher gas prices have been the main driver of increasing energy bills over the last eight years.”
http://www.ofgem.gov.uk/Media/FactSheets/Documents1/Why%20are%20energy%20prices%20rising_factsheet_108.pdf

[5] “Of this £455 increase … Around £380 was unrelated to low-carbon measures, with £290 due to increases in wholesale costs reflecting increases in the price of gas and supplier costs … “£30 [is due to] decarbonising the energy mix through support for investments in low-carbon power generation including renewables”
http://downloads.theccc.org.uk.s3.amazonaws.com/Household%20Energy%20Bills/CCC_Energy%20Note%20Bill_bookmarked_1.pdf

[6] http://www.bbc.co.uk/news/business-13357282

[7] The State of Renewable Energies in Europe, 11th EurObserv’ER Report, 2011: http://www.eurobserv-er.org/pdf/barobilan11.pdf

[8] The Prime Minister talked on Monday about 'investing in modern gas power' and his conviction that nuclear plant should be replaced between 'now and 2030'. The only renewable technology he mentioned was offshore wind, but there are over 15 other renewable energy technologies represented by the REA. An estimated £211 billion was invested in renewable energy globally in 2010 – an increase of 32% on 2009 [9]. An estimated $250 - $260 billion [10] of renewable energy investments took place in 2011 despite the difficult economic backdrop. Illustrating the dramatic price falls in crystalline solar, total installations rose 69% while revenue rose 29%. Wind attracted the second largest share of global investment at $72 billion.

[9] Global Trends in Renewable Energy Investment, UNEP & Bloomberg Finance, 2011: http://www.unep.org/pdf/BNEF_global_trends_in_renewable_energy_investment_2011_report.pdf

[10] Clean Edge 2012: http://cleanedge.com/reports/clean-energy-trends-2012
& Bloomberg New Energy Finance 2012: http://www.bloomberg.com/news/2012-01-12/clean-energy-investment-rises-to-a-record-260-billion-on-solar.html

REA to turn up the heat at Ecobuild

REA return to Ecobuild with a new Biomass Heat Pavilion

The REA [1] will once again be exhibiting at Ecobuild [2] from 20th-22nd March, the “world’s biggest event for sustainable design, construction and the built environment,” which is expected to draw crowds of 65,000 people.

For the first time we will be hosting a Biomass Heat Pavilion (Stand S3541), where Asgard Biomass, Billington Biofuels, Biomass Heating Solutions, CPL Industries, Econergy, Imperative Energy, Rural Energy, Verdo Renewables, and Wood Energy will all be exhibiting together, creating a focal point for renewable heat at the event. REA experts across all technologies, renewable resources and policy areas will be available on the stand, so do come and visit us.

REA’s Head of Policy, Paul Thompson, and Technical Director, Stuart Pocock, will be giving expert briefings on the Renewable Heat Incentive and Feed-in Tariff respectively each day at 11:00 and 14:30 (RHI) and 11:30 and 15:00 (FIT) on Stand S3657, located only 25 metres away from the REA Pavilion along the back wall of the South Hall. These 15 minute expert briefings are completely free and open to all on a first come first served basis.

On Thursday, REA Chief Executive, Gaynor Hartnell, will be chairing the seminars on ‘Making a market in micro renewables’ from 10:30 to 12:00 in South Gallery Rooms 31 & 32, and speaking herself on ‘The future outlook for the micro renewables industry’ from 10:30 to 11:00. Gaynor will also be participating in a panel debate on ‘Making renewable generation happen: getting the scale right’ as part of the Ecobuild Conference from 14:15 to 15:15 in Platinum Suite 1. Other REA Experts will be speaking in various Ecobuild seminars sessions and will be well worth seeking out.

REA Head of Policy Paul Thompson comments:

“We are very excited to have this opportunity to mix and mingle with literally thousands of enthusiasts and experts alike, and show them what renewable energy is all about. Our biomass heat partners will be showcasing the latest technology and explaining why renewable heat – as well as power and transport – is vitally important for meeting our renewable energy targets, cutting our carbon, and keeping our houses warm. And our team of experts is looking forward to answering all your renewable energy questions at the REA Pavilion!”

The STA [3] and REAL [4] will be exhibiting in the North Hall, on stands N3865 and N9301 respectively.

ENDS

For further information or to request an interview, please contact:

            REA Events team: +44 (0)20 7925 3570, or

Name: Paul Thompson
Title: Head of Policy, REA
Tel: +44 (0)7980 264 580

Notes to Editors

1. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. www.r-e-a.net

2. Main website: www.ecobuild.co.uk
Floor plan: www.ecobuild.co.uk/uploads/eb-2012-floor-plan-14-03-12-final-1.pdf

3. The STA represents around 450 companies working in solar thermal and solar power, making it the largest association for solar in the UK. Since 2011 the STA has been affiliated to the REA. www.solar-trade.org.uk

4. The REAL Assurance Scheme, set up by the Renewable Energy Association, aims to guarantee a high quality experience for consumers wishing to buy or lease small-scale energy generation systems for their homes. www.realassurance.org.uk
 

European Parliament votes for binding 2030 renewables targets: REA response

The REA [1] welcomes the European Parliament’s call for binding 2030 renewables targets

The European Parliament today voted in favour of setting a binding renewable energy target for 2030 [2]. This goes against the UK’s recent communication to the European Commission, which called for any such target to be “technology neutral” [3]. The REA welcomes the European Parliament’s decision and urges the Government to heed this clear signal from Europe.

REA Chief Executive Gaynor Hartnell comments:

“Arguing for a technology-neutral target suggests that Government is only thinking about carbon. This blinkered approach ignores the risks of locking the UK into a future where we forever im

“It’s also crazy from a balance of payments point of view. Finite fossil fuels will only get more expensive, and carbon capture and storage and nuclear are not long term solutions. Both need fuel and places to store waste.

“In contrast, the costs of renewables are falling, and renewables have three trump cards: the fuel will never run out, there are no waste products to store, and they deliver energy independence.”

The European Renewable Energy Council (EREC) has previously called for targets of 45% by 2030 [4]. There is clearly a growing recognition that renewables have an absolutely vital role to play in developing a low cost, low carbon, and low waste energy system. The REA will continue to work with its European partners to ensure that the Government hears this message.

ENDS

For further information or to request an interview, please contact:

            REA Press Office: +44 (0)2079 810 856

Name: Gaynor Hartnell
Title: Chief Executive, REA
Tel: +44 (0)7870 629 575

Notes to Editors

1. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders.

2. The Renewable Energy Directive (RED) currently commits the EU to source 20% of total energy demand from renewable sources. This target is unevenly distributed across Member States to accommodate differing national contexts. The UK target is 15%. The RED includes a requirement for every Member State to meet 10% of transport energy demand from renewable sources by 2020. This plenary vote approved the European Commission’s 2050 Roadmap: http://www.roadmap2050.eu/downloads

3. http://www.decc.gov.uk/assets/decc/11/tackling-climate-change/2050/4619-uk-comments-on-2050-energy-roadmap-to-eu-commissio.pdf

4. http://www.erec.org/media/publications/45-by-2030.html