Archived press release

Foe welcomes Government boost for renewable energy

24 September 1998

Friends of the Earth has welcomed today's Government announcement substantially increasing the amount of renewable energy that Regional Electricity Companies will have to use. Announcing the fifth, and largest, set of Government grants for renewables - the Non Fossil Fuel Obligation (NFFO) - Energy Minister John Battle stated that this is the first step “in a new and strong drive for renewables.” Friends of the Earth supports the Government's view that this NFFO order should dispel doubts about the economic viability of renewable energy.

Developing renewable energy sources is key, along with energy efficiency, combined heat and power and traffic reduction, to achieving the Government's manifesto commitment of a unilateral 20% cut in UK CO2 emissions by 2010. Developing renewables also makes economic sense in its own right and is key to ensuring that the UK develops internationally competitive industries and creates jobs.

Friends of the Earth has calculated that 90,000 new jobs could be created in the UK if the Government achieved its 10% target of electricity generation from renewable sources by 2010. This target could be achieved at a total cost of £5.8 billion over the period to 2010. However, the Government will not achieve this target unless it brings forward extra policy measures to support additional renewable technologies including biomass, solar, and off-shore wind. Friends of the Earth also believes that the economic case for renewables would be substantially boosted if the Government introduced a carbon tax on fossil fuel energy sources to ensure that the price of fossil fuels reflected the substantial environment damage that their use causes.

Dr Patrick Green, Senior Energy Campaigner at Friends of the Earth said:

”Renewables are a proven technology that bring environmental, economic and employment benefits. Continued and visionary Government support for the new renewables industry is required if the UK is to become a world leader in developing sustainable technologies to fight climate change.”

However, on the negative side, Friends of the Earth is disappointed about the additional support given to waste to energy schemes (incineration).

[1] The non fossil fuel obligation (NFFO) was established by the Electricity Act 1989 and provides a guaranteed price and market for non-fossil fuels. This is the fifth NFFO order for renewables.Previous NFFO rounds were in 1990, 1991, 1994, 1996. Under the Non Fossil Fuel Obligation(NFFO) the Government specifies how much renewable energy it is prepared to support through financial subsidies, what the mix should be (i.e. how much must be from wind generation, biomass etc), and what price should be paid for it. Renewable developers then have to bid for NFFO contracts for specific projects.

[2] FOE has calculated that the UK could meet its 10% target for a total investment cost of £5.8 billion over the period to 2010. This is considerably less than the Government would raise from an industrial energy tax. It has been calculated that this could create over 94,000 net new jobs, and would be key to developing a UK manufacturing base in renewables, particularly wind power. It will provide the UK with key export potential as the world will need sustainable renewable energy to avert threat of dangerous climate change. In addition to the NFFO, which should be used to help new technologies gain entry into the market, the Government will need to introduce a percentage obligation of 1% per year on electricity suppliers to supply electricity from renewable sources. This will act as a market support instrument for technologies, such as on-shore wind, which have already benefited from NFFO.

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Published by Friends of the Earth Trust