The revised Feed In Tariff rates are due to be implemented on 1st August 2011.

The rate for larger scale solar energy projects of 250 kW – 5MW has been dramatically reduced from 30.7 pence per kWh to 8.5 pence. As a result the UK is unlikely to see proposals for ground based solar parks of this scale. Many in the industry believe only solar projects in the highest tariff band of up to 5kW are likely to be installed.

Conversely, as only a handful of new anaerobic digestion plants have been installed under the existing FIT tariff rate, the Government has decided the rate should be increased.

Energy and Climate Change Minister Greg Barker said:

“I want to drive an ambitious roll out of new green energy technologies in homes, communities and small businesses and the FIT scheme has a vital part to play in building a more decentralised energy economy.

“We have carefully considered the evidence that has been presented as part of the consultation and this has reinforced my conviction of the need to make changes as a matter of urgency. Without action the scheme would be overwhelmed.”

Dave Sowden, Chief Executive of the Micropower Council commented:

“This is bad news for many worthwhile projects – schools, communities, public buildings. The Government was clear from last November it intended to act on large-scale, field-based solar, but took the entire Built Environment sector completely by surprise when announcing the review, and we are disappointed it has not been persuaded to recognise the merits of projects in this sector or recognise the impact on investor confidence surprise announcements can have.

In the longer term, we also need to start now to build the case for a significantly more ambitious feed-in tariff scheme during the next Spending Review Period (2015 onwards) so that all forms of sustainable electricity production from buildings can be scaled up and costs brought down quickly.”

The new solar and anaerobic digestion FIT rates are outlined below:

New Solar PV
>50 kW – <150 kW total installed capacity = 19 pence/ kWh
>150 kW – <250 kW = 15p/ kWh
250 kW - 5 MW and stand alone installations = 8.5 pence/kWh

New Anaerobic digestion:
< 250 kW = 14p/ kWh
>250 kW – < 500 kW = 13p/ kWh

The report recommends that “if a set of alternative options can be found to meet the EU renewable energy target, then offshore wind ambition in 2020 could be moderated.”

RenewableUK’s Chief Executive, said: “The report is welcome in as much as it recommends increasing the share of renewable energy to 40% by 2030. However, we are not going to get there if we do not stand four-square behind offshore wind in the run up to 2020. An unambitious target could scare off investors just when they have pledged so much commitment in establishing UK factories. This in turn could stymie delivery of targets and prevent the creation of up to 50,000 jobs in offshore wind over the next decade.”

The industry trade body believes that offshore wind energy costs are likely to come down whilst assumptions by the committee about the costs of nuclear are optimistic.

Another recent report by Price Waterhouse Cooper says that wind industry representatives believe offshore wind energy will not require subsidies within 15 years.

Huhne says the reforms are necessary to deal with increased electricity demand, ageing power stations and the need for low carbon energy sources in order to meet climate change challenges. The changes are likely to mean new feed in tariffs for larger scale low carbon technologies.

The government believes that all low carbon electricity generation needs support to capture its benefits to our climate and to ensure security of supply. The department of energy and climate change want the true costs of unabated fossil fuels and the benefits of low carbon electricity to be captured in policy.

The reforms aim to provide investor confidence for nuclear and renewable energy which share the characteristics of large upfront costs and low ongoing running costs. These characteristics have historically been less attractive than the lower up front costs of gas. Long term contracts by way of feed in tariffs for low carbon generation are expected to further encourage green energy investment.

Energy secretary Huhne said:

“These reforms lay the foundations for a sustainable economy, bringing billions in investment in the UK through greater certainty, safeguarding jobs up and down the supply chain, and giving the UK real competitive advantage in advanced energy technologies.

“Crucially, our reforms will also make sure there is enough spare supply to keep the lights on reliably. They will protect the rules for existing investments. And, over the long term, they will achieve more, while resulting in bills lower than they would otherwise be.”

The reforms are at the consultation stage and the government says it is interested in views on whether the preferred package under the electricity reform is the right one. It is anticipated that reforms will be in place by 2013, but that renewables investors would be able to build under the renewables obligation until 2017.

The Sustainable Energy Alliance (SEA) supported Lindhurst wind farm, just outside the town of Mansfield from the early planning stages.  The wind farm had over 3000 letters of support from local people.

The 5 turbine wind farm will generate enough renewable electricity to provide for the annual average needs of around 5000 homes.

SEA coordinator, Jonathan Lincoln who grew up in Mansfield said:

“To lessen the worst effects of man-made climate change, action must be taken now to reduce the amounts of greenhouse gases we discharge into the atmosphere.  Energy conservation and renewable technologies, such as wind, wave, solar and hydro, offer us a solution.  Of these, wind power, both on and offshore is the most easily implemented and the most cost effective.  It must and will play a key role in our energy mix.  The building of this wind farm in a bid to reduce carbon dioxide emissions is a step in the right direction and a step towards a truly sustainable energy future in Notts.”

Wind power provides a clear opportunity to produce clean and sustainable energy and it works!  Britain has the best wind resource in Europe and the potential to develop a world class wind industry.  Furthermore, we have a responsibility and a binding commitment to international agreements designed to address climate change, and these commitments must be taken seriously.”

Despite being within 500 metres of nearby homes a spokesperson for the owner of the wind farm RWE npower said that there had only been one complaint about the wind farm.  The complaint related to TV interference which was being remedied by the company.

However it is still unclear as to what communities can claim to help them install renewable energy projects.  Although the European Commission has said that grant recipients should not be eligible to receive the FIT, the latest DECC advice is that in some cases both grants and FITS can be claimed without breaching State Aid rules.

According to DECC, if a public organisation who has received a grant before 1st April 2010 for a renewable energy installation commissioned between 15th July 2009 and 31st March 2010,  it could be eligible for FIT payments in the following scenarios:

1) Recipients of publicly funded grants who comply with the EU’s rules on ‘de minimis‘ aid. To be de minimis, public funding, including funding from FITs, must not exceed €200,000 (around £160,000) over a period of three years.

2) Non-standardised costs are additional costs incurred as a result of measures taken to reduce the environmental impact of a renewable energy installation.  (This also potentially applies to residential claims).

It is however unlikely that communities contemplating bigger projects will be able to secure both significant grant investment and FITS.  DECC is currently preparing a detailed guidance note to provide further clarity.

The temporary wind turbine installed by SIAC Wind Power was installed as part of the UK wind week event. The wind turbine and wind week is hoped to promote wind energy in the UK.

Secretary of State for Energy and Climate Change Chris Hulne said:

“Wind energy is at the heart of our plans for renewable energy. This week will see thousands of people visiting their local wind farms and events around the country raising awareness of the opportunities there are for energy security, jobs and business from the industry.”

Wind week comprises a series of events across the UK offering up wind farm visits and educational tours to give everyone a chance to learn more about the technology. For a list of venues and events in different locations visit the EmbraceMyPlanet website.

Huhne has brought the costs to the attention of the Cabinet and pointed out that the total budget for the energy and climate change department is limited to £3bn annually. Huhne described his department as “not so much the Departement of Energy and Climate Change, as the Department of nuclear legacy and bits of other things“….He went on to say that what we are effectively paying for here is “decades of cheap nuclear electricity for which we have suddenly got a massive postdated bill“.

Hulne is however commited to the spend saying that there are genuine nuclear safety issues that mean it has to be paid for. Meanwhile questions are being raised as to how this will affect the rest of the energy efficiency and climate change programmes. No further details regarding how the new government will support renewable energy have been issued.

The new Secretary of State for Energy and Climate Change is in the ironic position of being responsible for determining new nuclear power stations when he is strongly anti-nuclear. Under the coalition agreement Lib Dems are not allowed to vote on the nuclear issue. Hulne is however likely to have a pro-nuclear mandate due to support from the Conservatives and Labour. Despite abdicating the right to vote on nuclear, it does not appear that the Lib Dems are going to keep wholly quiet on the issue.

Speaking during a House of Commons debate, Mr Miliband criticised the coalition government saying that their renewables policy doesn’t yet add up because they have Lib Dem targets with Conservative planning policy. He also said their nuclear policy doesn’t add up because they have three positions.

On economic growth, Miliband believes that short term cuts will “deny us the long term economic strength we need“. “In the months ahead we will be holding them to account to deliver, because it is in everyone in this country’s interests that we deliver on fairness on energy security and on climate change” said Miliband.

A report ‘UK Energy and the Environment’ published this week by independent company Cambridge Econometrics found that based on current policies, the UK is set to hit 6% of renewable energy by 2020 rather than the 15% target.

Many in the renewable energy industry are concerned that the new coalition planning bill risks weakening renewable energy policies and making renewable energy infrastructure unaffordable in many locations. If all the proposed measures are introduced the bill is likely to bring new projects to a grinding halt in many parts of the UK. The Coalition government to date have no strategic plan to reach their challenging renewable energy commitments beyond hoping that local authorities will all contribute fairly.

In 2007 Chris Hulne said “The doubling of our electricity generation from wind in a little more than a year shows what renewables can do, and gives the lie to the need for a new generation of nuclear power.“. It is ironic therefore that he will ultimately be responsible for nuclear power station planning applications.

Under the Conservative – Liberal Democrat coalition negotiations agreements reached yesterday, the parties agreed to put in place the following measures:

- Establishment of smart grid and roll-out of smart meters
- Establishment of feed-in tariff systems in electricity- as well as the maintenance of banded ROCs
- Measures to promote a huge increase in anaerobic digestion
- Creation of a green investment bank
- Home energy improvements
- Retention of energy performance certificates but scrapping HIPs
- Measures to encourage marine energy
- Establishment of emissions performance standard to prevent coal- fire power stations being built uless they are equipped with sufficient Carbon Capture Storage (CCS)
- Establishment of a high speed rail network
- No third runway at Heathrow or additional runways at Gatwick and Stansted
- Replacement of Air Passenger Duty with per flight duty
- Floor price for carbon
- Measures to make import or possession of illegal timber a criminal offence
- Measures to promote green spaces and wildlife corridors
- Mandating a national recharging network for electric and plug- in hybrid vehicles
- Continuation of public investment in CCS for 4 power stations
- Reduction of central government carbon emissions by 10% in 12 months
- Increase in the renewable energy target subject to the advice of the Climate Change Committee

The difficult issue is nuclear power. Liberal Democrats have long opposed any nuclear construction whilst the Conservatives are committed to allowing the replacement of nuclear power stations. A process has therefore been agreed which involves:

- The government completing the drafting of a national planning statement and putting it before Parliament.
- Specific agreement that a Liberal Democrat spokesman will speak agains the planning statement but that Lib Dem MP’s will abstain: and
- Clarity that this will not be regarded as an issue of confidence

Nuclear is therefore an area where the Lib Dems appear to have been at least partially gagged.

The FOE statement follows a call to party leaders for determined action to tackle climate change. 

FOE wrote to the three biggest party leaders asking them to show that climate change is a priority in their manifestos and requesting confirmation of actions that will be taken.  The letter was signed by  over 8000 people. In addition FOE has asked candidate MP’s to sign a pledge to tackle climate change.

Detailed responses were sent by Lib Dem leader Nick Clegg who describes himself as a ‘hugh Friends of the Earth supporter’ and Labour’s Ed Miliband who committed to ‘putting climate change to the front and centre of everything Labour does’.

A short response from the Conservatives confirmed that Cameron was committed to the issues raised in the letter and looked forward to working with Friends of the Earth in the future.  Despite this letter a FOE spokesperson today pointed out that it’s the commitments of individual candidates that in many ways matter the most, given our parliamentary system. 

Talking about the climate change pledge the FOE spokesperson said “And that’s where the Conservatives are so lacking.  As the number of signers in the other main parties moves past three figures, in the Conservative Party it is just four“.

Cameron may well himself believe that environmental issues are important, however whether the message is getting through to his party is a cause for concern to FOE.  “Perhaps the message is that David Cameron must now redouble his efforts” say FOE.

FOE are encouraging people to contact David Cameron urging him to do more.