UK - Green Paper gives amber light to renewables

BWEA today commends the Government’s intention to put the UK on track towards a sustainable future through committing to an extension to the Renewables Obligation (RO) to support the generation of 20% of electricity supplies from green sources. The Association is concerned however at the absence of a timescale in which this is to be achieved, and indeed the failure to translate the ‘aspirational’ 20% target to a firm commitment. BWEA is further concerned that momentum may be lost in the short term while proposed changes to the RO are consulted upon and implemented. The cocktail of measures proposed – including extending the RO from 15% to 20%, accompanied by a consultation on banding to boost offshore wind and other renewable technologies – has both positive and negative implications.

The proposal outlined to evolve the RO towards a banded mechanism after 2010 is a welcome recognition that extra support is needed for the offshore wind sector, but BWEA has reservations that this is the best way forward. Certainly, a new policy impetus for offshore is essential to underpin the UK’s pioneering position in this new technology. Our ambitious programme of offshore development makes this country pivotal in the creation of a new technology sector, which could result in revenues for UK plc of up to £2 billion per annum by 2020, half deriving from exports. However, BWEA urges caution, as BWEA CEO Maria McCaffery MBE comments:

“The RO is a market-based mechanism which has been very successful in incentivising new investors in the renewables sector. BWEA believes that any proposal to alter the support mechanism for renewables must satisfy some key criteria, paramount of which is maintaining the momentum of onshore wind through retaining the confidence of these new investors. It is in no one’s interest for development of the most cost effective renewable energy technology to be hindered by policy changes.

“BWEA is particularly pleased at the protection afforded to onshore wind development which has spearheaded renewables delivery, but urges Government to move swiftly on the proposed consultation to boost other technologies so as not to impede the momentum of renewables as a whole.”

The intention to speed up planning decisions are welcome news for a sector which can experience delays up to four years to get a project through the planning system. There are currently 11,000 MW of wind energy projects awaiting decisions; measures to speed up their determination will bring forward delivery of new clean and sustainable electricity generation, urgently needed to help close the energy gap and keep the UK on track for carbon emission reductions. BWEA is concerned that continued consultation will lead to further delay: decisions for onshore wind projects must be made by the end of 2007 in time to be built by 2010 to meet almost half of the Government target for renewables. BWEA CEO Maria McCaffery continued:

“Inevitably the devil will be in the detail, but BWEA looks forward to working with Government without delay to develop a support framework. It is imperative that we satisfy the key criteria we believe are essential for effectiveness in enhancing offshore wind and other marine renewables and continuing to build a new and sustainable energy sector for the UK.”

Further comment is available: contact Chris Tomlinson, Director of Operations on 07815 141 008 or Alison Hill, Head of Communications on 07956 859 749