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Posts tagged with: Kevin Langley

At the beginning of the month the British parliament voted in favour of a parliamentary motion supporting next year’s introduction of feed-in tariffs by a massive majority of 240 MPs. The legislation designed to spur investment in the photovoltaic (PV) industry will, when implemented be an extremely effective mechanism for promoting growth in the fledgling renewable industry in the UK as it has been in other regions where feed-in tariff legislation has been introduced.

Feed-in tariffs work by offering fixed, premium rates for electricity fed-in to the grid by small scale solar energy producers. Over a period of 20-25 years the feed-in tariff (FIT) contract offers a return to solar investors thus greatly increasing the installation of PV plant. In Germany, for example where the tariff has been extremely successful in attracting investment there have been other market advantages such as job creation in the solar industry and of course a sharp rise in solar equipment manufacturing.

Members of the UK solar industry are now increasingly optimistic that the government FIT will generate a successful solar industry across the UK. As Clive Collison, head of Action South Facing a Hertfordshire based solar installation firm commented,

“We are very excited about this. We are now getting all sorts of inquiries from companies, local authorities and individuals. But nothing is guaranteed. We don’t know the level it will be set at yet and the big energy companies are still lobbying against it.”

With big conventional energy producers lobbying against solar energy legislation and a lingering support for nuclear power, it will be essential that the government seizes the opportunity this year to set up a FIT which offers real possibilities for a vibrant PV industry in Britain. With Gordon Brown’s commitment to the ‘Green New Deal’ with planned job creation and economic revitalization by means of the renewable energy industry, it is expected that the UK will reap the benefits of a strong tariff mechanism. Jeremy Leggett, Chairman of Solar Century has added his wait to the debate by pointing out the dangers of missing the boat on effective PV policy,

“UK plc will essentially have to sit and watch as other countries create jobs, tax income and energy security in one of the fastest-growing industries within the emerging green industrial revolution.”

A poll released this ahead of the World Climate Day on Friday revealed that the British public has a keen concern regarding action to tackle climate change. The poll, carried out by Christian Aid illustrates a general consensus of concern and awareness of government policies with regards to matters concerning meeting climate change targets.

With the UK government passing the Energy Act and establishing the Department of Energy and Climate Change, they have taken important steps to both meet their climate change objectives and revitalise the economy through the nurturing of a new green economy. Certainly, with the European elections at the fore, many of the electorate are taking a much closer look at the green policies of prospective political parties. Indeed, the results of the survey were thus,

·          77 per cent believe the UK government ought to do more to reduce carbon emissions

·          57 per cent say a political party’s climate policies would influence how they vote

·          70 per cent want the UK government to take a leading role in international climate change negotiations

·          90 per cent have taken steps to reduce their own carbon emissions

With these results in mind, the importance of recent climate change legislation affecting the solar industry will be even more in focus. The feed-in tariff provisions set out in last years Energy Act will become a reality next year as a mechanism designed to kick start investment in the fledgling industry.

With the UK government going through a consultancy process to determine the optimum tariff structure to energise the much hyped green economy, the YouGov report findings such as those above will offer a stark reminder that the public are now fully aware of the importance of government action in determining the success or failure of the UK solar industry.

The announcement last week that the largest onshore wind farm in Europe is to be expanded is set to offer a massive boost to renewables in the UK. The announcement by the Scottish first minister Alex Salmond will see the construction of a further 36 wind turbines on the site. The permission to extend the East Renfrewshire site by the government will be seen as a step towards realizing some of the rhetoric spoken this week in regards to a ‘green new deal’ in Britain.

Gordon Brown’s announcement at the beginning of this year about the introduction of a green new deal, was a reference to the reforms made by the Roosevelt administration in the face of the 1930s depression which gripped the world. Many were encouraged by the language of the announcement, believing it to be a real indication of a move towards a green economy. Certainly, the extension of the Eaglesham Moor wind farm site will go some way to contributing to the low-carbon economy espoused by politicians in recent months.

In real terms, it is likely that the wind farm expansion will lead to the creation of around 300 jobs and will make the site the first over 300MW in Europe with a total capacity of 462MW, enough to power up to 250,000 homes. As the UK government seeks to meet its climate change targets of cutting carbon emissions 80% by 2050, the Whitelee wind farm will provide evidence that there is at least some tangible work being done to both establish a green economy and meet its targets.

Speaking about the expansion of the wind farm expansion, Alex Salmon commented,

“Whitelee in its current form is already flying the flag for onshore wind power in Europe. The planned extension, which I am delighted to announce today, will enable the wind farm to harness its comparative and competitive advantage in wind generated energy within Europe.

He went on to add, “It has the infrastructure, the expertise and the capacity to continue to develop in the future.”

The recent introduction of a solar feed-in tariff by the Turkish government designed to kick start the photovoltaic (PV) sector has been heralded by Sharp Solar as the beginning of what will be solar boom in Turkey. Tariffs work by offering fixed, premium rates for small scale energy producers feeding electricity into the national grid.

The rates are designed to off set the obvious costs in producing electricity by renewable means and have proved to be a useful mechanism in attracting investment where they have been introduced elsewhere. Sharp Solar therefore believe that the tariff legislation along with the abundance of sunshine enjoyed by Turkey will contribute to the growth of their PV sector over the next ten years.

Peter Thiele, Executive Vice President of Sharp Energy Solutions stated this week that,

“There can be few countries in Europe that have as much growth potential as Turkey when it comes to the solar market”.

The tariff will operate in Turkey over a twenty year period with a rate of €0.28 per unit of energy for the first ten years and a rate of €0.22 for the following ten years being offered to solar micro-generators across Turkey. With an average of seven hours of sunlight per day, Turkey will prove to be an attractive prospect for investors looking to diversify their portfolios in green investments and similarly will help create PV jobs in the region.

With highly regarded investment gurus such as Jim Mellon adding their weight to the concept of solar investment, Turkey will be looking to benefit from what he described as an industry which will be ‘bigger than the internet’. Sharp Solar certainly agree with the idea that the Turkish feed-in tariff will lead to a solar industry boom in Turkey,

Turkey has long been one of Sharp’s European focus markets for photovoltaics. Together with our partner FORM Solar we have been active in this market for a number of years and are keeping a close watch on developments. The 28 euro cent feed-in tariff for solar energy agreed for the first ten years, with 22 euro cent during the next ten years will, we believe, ensures a start of a healthy development of the market without the risk of overheating as was witnessed in Spain for example, but could be improved in order to generate more interest of investors,” quoted Barbara Rudek, Sharp Energy Solution Europe.