In a bid to find a solution to the energy crisis facing their country, Pakistani delegates have met in the UK as part of an alternative energy drive which has been necessitated by a fear of dependence on fossil fuels. During their visit to the UK, the Pakistani group toured various successful renewable energy projects around the country and consulted specialists in order to find possible viable alternatives to fossil fuels which have proved not only dirty, but also expensive and precarious in the region.

Arif Allauddin, Chief Executive of Alternative Energy Development Board who led the delegation on the four day visit highlighted both the need for investment and a need for foreign specialist help in developing a successful Pakistani renewable energy program. After visiting a wind farm near Glasgow, Allauddin asserted that for Pakistan, wind energy represents the best alternative to fossil fuels and that the Pakistani government has already set aside large swathes of land for the construction of turbines between Karachi and Hyderabad.

The Pakistani Alternative Energy Development Board has been keen to highlight the fact that renewable investment in their country offers very attractive returns, using the current example of a Turkish company apparently already generating power wind power in Thatta. The UK government, having already passed the Energy Bill in November of last year, has provisions that will consolidate and help attract further investment in renewables in this country. The proposed feed-in tariff, set to be introduced in 2010 will entice investors by guaranteeing a fixed rate for energy fed in to the national grid from green sources. The Pakistani delegation claims that their government is taking similar measures in order to attract UK investors in to their renewable market.

Having already been impressed by some of the renewable operations currently producing power in the UK, Allauddin made clear the fact that Pakistan will, sometime in the near future have to start generating a far greater percentage of its megawatts from renewable sources if it is to protect itself from any future fossil fuel crises.

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.”

The Scottish First Minister, Alex Salmond has warned against investing heavily in nuclear energy explaining that it would divert much needed funds away from clean, renewable sources of energy. The Scottish Minister has asserted the need for a coherent investment program in green energy sources, both as a means of slowing climate change and helping the government to meet its green target, which in Scotland is producing 20 per cent of its energy from renewable sources by 2020.

Replying to questions in the Scottish Parliament, Alex Salmond stated,

“Anything you invest – and it will be billions – in nuclear power is billions taken away from clean technology and in renewable technology. We have great prospects in our renewables sector – I think that is a huge priority.”

Although there is a general acceptance that renewable sources will be essential for future energy production, nuclear is often considered to be a very real and viable alternative to fossil fuel production. Lord Adair, Chairman for the Committee for climate change remains an exponent of nuclear energy as a possible solution to future energy production but there has been a general move away from nuclear of late partly due to concerns over safety. This was highlighted by the recent Bradwell Power Station case whereby it was found guilty of leaking radioactive material from its reactors over a period of fourteen years.

The Energy Bill of last year sets out provisions for the introduction of a feed-in tariff in 2010 as a means of attracting investment in renewable energy production. It is believed that once there is a coherent tariff system in place in the UK, investment in green energy will become much more widespread and more attractive compared to nuclear which is often criticised for being both unsafe and expensive.

In a show of support for the possible introduction of a feed-in tariff, the UK solar industry, led by the UK Solar PV Manufacturers Association has launched its ‘We support solar campaign’. Following last years Energy Bill, there is now a real probability of a coherent feed-in tariff law being established in the UK

The feed-in tariff is government legislation which attracts investment and promotes growth in the renewable energy sector by making it a financially viable option. This is done by guaranteeing a fixed, premium rate for energy fed-into the national grid from renewable energy suppliers. The added cost of producing energy by renewable means is therefore offset by the fixed rates that the traditional energy companies are obliged to pay for the green Megawatts.

The feed-in tariff contracts will provide small renewable installations (generally under 5MW) with a steady revenue stream and it is believed that this will help spread the ‘green’ message into communities. Around 30 MPs are now backing the take up of a serious feed-in tariff policy, as has been seen in places like Germany and California where they have been successful. The government has hinted strongly that they will be looking to mirror feed-in tariff systems implemented abroad and there is growing pressure both from leading renewable energy producers and environmental groups alike for their adoption in the UK.

Former UK government minister, Michael Meacher has given his support to the feed-in tariff and Environment and Climate Change Secretary, Ed Milliband by saying,

“Ed Miliband’s decision to introduce a feed-in tariff for solar PV and other small-scale renewable electricity technologies is potentially a real turning point for the UK solar PV sector. It gives the UK a vital new policy tool that should help to maximise the contribution from solar PV to our demanding renewable energy target.”