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ELECTRICITY MARKET REFORM


Will CfD budget scupper moves to bring forward geothermal and marine projects?


Geothermal developers have been boosted by proposals published in May to facilitate underground drilling. These proposals could make it much easier for developers to negotiate arrangements with local communities. The marine renewables sector was also boosted in July as the Crown  several wave and tidal stream energy sites and announced  leasing round. However, when the budget


for the new Contracts for Difference scheme was published in late July, hopes of a boom in new renewable power schemes began to fade. Only £205 million has been made  this autumn, with £50 million for established technologies (onshore wind, solar, hydro and conventional waste to energy technologies) and £155 million for less-established technologies (offshore wind, biomass CHP, advanced waste conversion, marine renewables and geothermal). The future for coal-to-biomass conversions remains unclear,


RENEWABLE FUELS


Marine energy 


from a minimum CfD budget reserve – but is there enough money to go around for other technologies?


although the ongoing conversion  ahead.


While £205 million might sound like a lot, it doesn’t really scratch the surface given the


scale of investment required to upgrade our creaking electricity  century. The renewable power sector will have to enter into 


Major biofuels policy block resolved


Good news at last for European biofuel companies, as the EU  on proposals to address indirect land use change (ILUC). The REA objects to the use of the uncertain science of ILUC as a basis for policy-making but, given political realities, the increased cap for agricultural biofuels, from 5% up to 7% of transport energy, should


www.r-e-a.net


be a workable compromise for the UK renewable fuels industry.


UK biofuel companies have


 projects in recent years because the Government was refusing to set out its own policies until the EU ILUC uncertainty was resolved. Now that ILUC is resolved, the path is clear for the DfT


to set out the Renewable Transport Fuel Obligation to 2020, so that industry can start moving again. In a further boost, the Low Carbon Vehicle Partnership published helpful analysis in June on different options for meeting the Government’s 2020 target of 10% renewable transport, with further work also ongoing on this topic.


AUTUMN 2014


so the REA and STA are continuing to work on the details of the scheme to make sure it is accessible for all players of all types and scales across all renewable power technologies.


Government needs to clearly set out its policies to attract 


| RENEWABLE ENERGY QUARTERLY | REQ 7


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