A national renewable energy blueprint designed to slash carbon emissions dramatically, reduce the UK's dependency on oil and gas and claim a chunk of global green business opportunity was welcomed by manufacturers today (26 June).
Speaking at the Government's Low Carbon Economy Summit on London's South Bank, Business Secretary John Hutton outlined proposals to enable the UK to meet its proposed 15% renewable energy target by 2020, an increase of 1000% on current levels. This is likely to include up to a third of electricity coming from renewables as well as significant increases in the use of renewable forms of heat and transport fuels. Welcoming the statement, Martin Temple, Chairman of EEF, the manufacturers’ organisation said: “This is a real statement of intent by government and sends a strong signal to business of its commitment to renewable technologies. However, the clock is now ticking and we cannot afford any let up at a time when other governments have already made this a national priority. We need to move fast if we are to establish a lead as a world centre for low carbon technologies.
“However, given the extent to which other countries are ahead of the curve in developing low carbon forms of energy it is disappointing that the government has failed to back firm words with any significant extra funding, especially for emerging technologies.
“At a time of rapidly rising energy prices business will be concerned by the increasing costs associated with the dash for renewables. Government must ensure this is balanced by accelerating measures to improve energy efficiency and reduce waste.”
Mr Hutton said the Government was opening a new chapter in Britain's history as a nation of enterprise and innovation, moving from the old, carbon intensive economy of the industrial revolution to the new low carbon technologies of the 21st century.
"This vast expansion of renewable energy marks an important moment in this journey and, alongside our plans for new nuclear and clean coal, will play a crucial role in tackling climate change and reducing our dependency on oil and gas,” he went on.
There would be a new generation of green collar jobs, he said, making the most of Britain’s strengths as one of the world's largest manufacturing economies; a world class centre of energy expertise and a leading location for inward investment.
New NOP polling published by the Department for Business today shows broad public support for renewable energy:
* 84% of people favour the use of renewable energy.
* 64% would be happy to live within 5km of a wind power development.
The Renewable Energy Strategy consultation published today includes proposals for:
* Extending and raising the level of the Renewables Obligation to encourage 30-35% of electricity to come from renewable sources by 2020;
* Introducing a new financial incentive mechanism to encourage a very large increase in renewable heat, including in homes and other buildings;
* Extending more effective financial support for heat and electricity microgeneration technologies in homes and other buildings, potentially through a feed-in tariff;
* Helping the planning system to deliver, by agreeing a clear deployment strategy at regional level similar to the approach established for housing;
* Ensuring appropriate incentives for new electricity grid infrastructure and removing access to the transmission grid as a barrier to renewable deployment;
* Exploiting the full potential of energy from waste by considering further restrictions on landfilling biomass;
* Requiring all biofuels to meet strict sustainability criteria to limit adverse impacts on food prices, and other social and environmental concerns;
* Encouraging the development of new renewable technologies by ensuring effective support particularly where the UK has the potential to be a market leader;
* Maximising the benefits for UK business by providing a clear long-term policy framework, working with Regional Development Agencies to tackle blockages, considering support for specific technologies and addressing skills shortages.
The Government estimates that the expansion in renewable energy implied by the 15% target could:
* achieve carbon savings of around 20 million tonnes of CO2 in 2020 (representing a cumulative CO2 saving of up to 900 MtCO2 between now and 2030).
* help security of energy supply and reduce gas imports by between 12-16% in 2020
* provide significant business opportunities - there may be in the order of 160,000 jobs created in the UK and beyond arising out of research, innovation and development by using the UK's specific geographical advantages such as wave and tidal power.
Responses to the Renewable Energy Strategy consultation are invited by 26 September 2008. A final strategy is expected to be in place by spring 2009.
The Department for Business and Ofgem have also today published a new package of measures to speed up grid connections for renewable energy projects. A backlog of around 10GW of wind energy at various stages of development is currently waiting in the queue for grid connection.