Solar Feed In Tariff Website

The renewable energy industry has warned that the renewable energy sector risks failing in its infancy if the proposed closure of the micro-renewables fund, worth £50m goes ahead. The possible loss of funds along with the news that feed-in tariffs will not be introduced until 2010 has concerned some members of the industry who have lobbied the government for essential funds, crucial to the development and investment in small, renewable installations.

Ed Milliband, Secretary of the newly formed Department of Energy and Climate Change announced that all funding for low carbon public sector buildings will be withdrawn from June 2009. The scheme, called the Low Carbon Buildings Program (LCBP) has, until now paid up to half of all costs incurred in the installation of micro-renewable facilities in public sector buildings and has been absolutely essential for covering the inevitable cost of installing renewable energy plant.

Philip Wolfe, Director of REA criticised the government proposal stating, “The government rightly talks about a green jobs revolution, but these initiatives will be strangled at birth if the companies that deliver them have no market in the meantime.”

Lobbyists are arguing that the government should continue the funding program at least until the introduction of feed-in tariffs in order that the industry, in particular manufacturers of heating units do not collapse. The proposed feed-in tariff will help renewable investors by guaranteeing a fixed, premium rate for power fed-into the national grid. The premium rate paid for the green megawatts will be paid for by existing power companies and will offset the expense of generating power by renewable means. In places such as California, Germany and Australia this scheme has been extremely successful as a way of attracting investment.

The importance of the LCBP and the vitality it provides to the industry was highlighted by Ray Noble, ex UK head of BP Solar, “Before, there was about £8-10m worth of funding per year. The LCBP nearly tripled the amount.”

Tags: Australia, BP solar, California, Department of Energy and Climate Change, Ed Milliband, feed in tariff, fund, Germany, Kevin Langley, LCBP, Low Carbon Buildings Program, Megawatts, micro-renewables, Philip Wolfe, Ray Noble, REA, renewable energy, UK

Although slowing somewhat in the past year, the renewable energy expanded despite the global credit crunch especially in the sector of solar, wind and geothermal investment. According to the World Wind Energy Association around 12,000 megawatts of wind power generation capacity were installed in 2008 along with 9,740 megawatts of Photovoltaic (PV) solar energy power generation potential. The geothermal sector saw a further 6,000 megawatts of capacity installed and it is believed that 2009 will see added expansion.

To oversee this expansion, The Renewable Energy Industry Agency (IRENA) has been established as a multi-national agency dedicated to the growth the renewable sector. It is hoped that the agency will help energy companies invest in renewable plant and increase investment in green technology. Similarly, they will be hoping to develop an awareness of renewable energy solutions in developing nations. Sigmar Gabriel, the German Environment Minister stated that,

“IRENA will help to remove the many obstacles which up to now have delayed the rapid expansion of renewables. The market is still distorted by subsidies for conventional energies, technological know-how is inadequate, information is not always correct.”

Last Monday in Bonn saw the inaugural IRENA conference, attended by over 120 delegates of a number of nations, such as Germany, Spain, Denmark, India, the United Arab Emirates (UAE), and Kenya (all the founder members).

Although the agency is conspicuously missing the membership of such countries as Australia, China, the United States, Japan and the United Kingdom, its original founder members are more than happy with the uptake in participation thus far and are confident that the other major industrial nations will be brought on board eventually. Indeed, a British representative of the Department for Energy and Climate change who was present at the conference was quoted in the Guardian as saying,

“We are certainly supportive and are interested in joining, but we need to make sure that what we’re joining has the right focus. There needs to be more focus on the deployment of renewables rather than just talking policy and issuing papers. And there needs to be a wider membership.”

Tags: Australia, Bonn, China, credit crunch, Denmark, Department of Energy and Climate Change, geothermal, Germany, green technology, India, IRENA, Japan, Kenya, Kevin Langley, photovoltaic, renewable energy industry agency, Sigmar Gabriel, solar, Spain, UAE, UK, US, wind, wind power, world wind energy association