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Monthly archives: November 2008

Britain‘s controversial Energy Bill was passed yesterday, signalling a significant move towards the use grid connected, renewable energy sources across the UK.

The new laws will see the UK cut gas emissions by 80 per cent by 2050 and open the door for feed in tariffs, with the Government paying owners of grid connected solar and wind systems a premium rate for the energy they produce.

Environmental groups and members of the renewable energy industry have warmly welcomed this new legislation. The Renewable Energy Association released the statement,


“The Renewable Energy Association is delighted that that government has recognised the advantages of a tariff-style incentive scheme which will open doors for small-scale producers of renewable heat, electricity and bio-methane,” Philip Wolfe, Director

It is generally accepted that the progressive feed-in tariff policies of European countries such as Germany, France and Spain have stimulated and accelerated the growth of renewable energies there.

The report, The Oil Crunch: Securing the UK’s energy future launched by Arup, FirstGroup, Foster + Partners, Scottish and Southern Energy, Solarcentury, Stagecoach Group, Virgin Group and Yahoo sets out a series of recommendations. The key warning in the report is that a peak in cheap, easily available oil production is likely to hit by 2013, posing a grave risk to the UK and world economy.

The report focuses on the need for the UK government to look towards alternative economic and environmental opportunities in order to combat the eventuality of Peak oil over the next decade. While Britain is certainly light years behind European states such as Germany in implementing practical energy legislation, the upcoming debate over the Energy Bill will undoubtedly open further debate into the need for the introduction of feed-in tariffs. In Germany they have proved a highly successful way of attracting investment into renewable energy production and some have predicted that German energy production could be one hundred per cent fossil fuel free by 2050. This would of course protect states such as Germany against any potential oil peaks over the next decades.

Currently the UK produces only five per cent of its energy by means of renewable sources compared to Germany with over fifty per cent. It is therefore considered essential that if the UK is to meet its green targets and perhaps more importantly, protect itself from the fluctuating and unsustainable fossil fuel market it is essential that the government heed the warnings set out by the Peak Oil and Energy Security Taskforce.

 

Friends of the Earth (FOE) along with other environmental groups, companies and trade unions have given their backing to the proposed introduction of feed-in tariffs when the government’s Energy Bill is debated at the end of the month. Supporters of the bill maintain that feed-in tariffs will be absolutely vital to the UK meeting green targets as they will offer an attractive incentive to renewable investors. The principle of feed-in tariffs is that the government will pay a fixed rate for energy fed back into the national grid by small, renewable energy producers, and has been highly successful around the globe, no more so than in Germany.

However, FOE have stated that it is the essential that the UK come up with a feed-in tariff which sets out a clear timetable for implementation in order to attract investment in the initial stages:

“A strong feed-in tariff is desperately needed to give homes, businesses, communities and local authorities a financial incentive to fit renewable energy systems and play a major role in tackling climate change.

“Unfortunately the government’s woolly proposals are fundamentally flawed and will not guarantee that an effective scheme will be introduced. Proposals for a feed-in tariff must be strengthened to ensure that the UK reaps the benefits of its abundant supply of clean, green energy” asserts Ed Matthew, spokesman for Friends of the Earth.