Microgeneration Policy
Power to the people?
The Government wants to see businesses and householders across the UK generating their own energy. But, says Tom Idle, financial constraints may threaten this vision of the future from becoming a reality
standard answers: either a) ‘It’s a secret and you’ll have to wait for the Spending Review on 20 October’; or b) ‘I don’t know. We’re awaiting the Spending Review on 20 October’. And so, we sit and wait patiently for the Spending Review on 20 October as policy announcements will largely be dictated by what limited cash is left in the kitty. And energy policy is no different. Despite its vitriolic attacks on the previ- ous government’s lack of joined-up thinking coupled with a mishmash of policies, targets and ambitions, the Coalition has so far failed to offer any clear mandate for action when it comes to the future of UK energy. There’s been plenty of talk. And June’s Annual Energy Statement, which was released with a plethora of documents, added to the mix, but did little to appease a confused and disinterested invest- ment community.
A Rightly or wrongly, government policy is
likely to favour a mix of energy sources in the future. New nuclear power stations will come on stream before the decade is out; coal-fired power stations will continue to operate, albeit with mandatorily-fitted carbon capture and storage technology; expensive wind and tidal energy farms will find backers; and communi- ty energy projects will increase in popularity.
sk any Government minister or civil servant a question about future policy and you currently get one of two
And it’s these small-scale, community ener- gy schemes the Government seems to be most clear – and excited – about . “The era of cheap, abundant energy is over,” says the Secretary of State for Energy and Climate Change, Chris Huhne. “We must find smart ways of making energy go further, and value it for the costly resource it is, not take it for granted. And even as we reduce overall demand for energy, we may need to meet a near doubling in demand for electricity, as we shift industry, transport and heating onto the grid.”
The introduction of the feed-in tariffs
We must find smart ways of making energy go further, and value it for the costly resource it is, not take it for granted
(FITs) mechanism in April has been designed to convince businesses, schools, community groups and householders to dip their hand in their pockets to pay for on-site renewables – guaranteeing above market prices for the energy they sell back to the National Grid. So far, some 100,000 organisations have taken the plunge, installing things like small wind tur- bines and solar panels – and the Government hopes the number to do so will soar in the coming years.
In fact, it reckons that small-scale instal- 4 | Sustainable Business | Microgeneration | October 2010
lations could meet two per cent of the UK’s electricity demand by 2020.
Climate Change Minister, Greg Barker, says he wants to see what more the Government can do to help develop the microgeneration industry and get more advice to businesses so that they can trust the technology on the market. As part of this, DECC has launched a consultation (which runs until 22 December) seeking input on how to improve technologies and develop skills in the emerging industry. It will focus on electricity generators less than 50kW in sez and heat generating technologies of less than 300kW. And as well as the more established technologies, it will also examine fuel cells and passive flue gas recovery devices. “I want
to see businesses generating
their own energy,” says Barker. “We can literally bring power back to the people. Microgeneration is a key part of this vision.” But it is only a vision and there’s still a long way to go before businesses and households generating their own energy is commonplace across the UK. Especially with a cash-strapped government in place that might not be able to give the sector the support it needs. Like most government incentive schemes, subsidies for generating electricity are under pressure. A coalition of green, countryside and housing groups recently wrote to Huhne warning him not to slash support for green electricity and heating – a move sparked by
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52