Archived press release

Energy Bill: Renewable energy proposals must be strengthened

5 November 2008

A coalition of trade bodies, unions and charities is calling for Government plans to introduce a feed-in tariff into its Energy Bill to be significantly strengthened so that households, businesses, communities and local authorities are given real financial incentives to install small-scale green energy systems such as solar panels, wind generators and water turbines. The House of Lords will vote on amendments to the Bill later today (Wednesday 5 November 2008).

29 organisations including the British Retail Consortium, Royal Institute of British Architects (RIBA), the Country Land and Business Association, Home Builders Federation, The Co-operative Group, TUC, Energy Saving Trust and Friends of the Earth have written to every member of the House of Lords expressing disappointment with Government plans to include FITs in the Energy Bill and urging Peers to support amendments that would considerably strengthen the proposals. The groups warn that there are a number of flaws in the Government's proposed amendment to the Energy Bill and fear it will do little to boost the development of small-scale renewable energy projects.

A feed-in tariff is a guaranteed, long-term, premium price paid to households, communities and businesses for electricity they generate from renewable sources such as wind, water and the sun. Last month, following a year-long campaign, the Government agreed to introduce a feed-in tariff - but its proposals, published last week, fall a long way short of what is required.

Ed Matthew, Head of UK Climate Friends of the Earth - which has led the campaign for a UK feed-in tariff - said:

"A strong feed-in tariff is desperately needed to give homes, businesses, communities and local authorities a financial incentive to fit renewable energy systems and play a major role in tackling climate change."

"Unfortunately the Government's woolly proposals are fundamentally flawed and will not guarantee that an effective scheme will be introduced."

"Proposals for a feed-in tariff must be strengthened to ensure that the UK reaps the benefits of its abundant supply of clean, green energy."

Further changes to the Government's feed-in tariff amendment have been tabled by Conservatives, Liberal Democrats and Labour peers. These would set a timetable for the introduction of a scheme and oblige the government to include the most basic elements of a feed-in tariff - which are common to schemes across Europe.

Notes:

1. The coalition of organisations say that there are a number of flaws to the Government's amendment to the Energy Bill:

• It lacks the basic elements of similar schemes across Europe. The Government must vary support payments to take account of different technologies and the size of installation. It must also allow payments to be set for a fixed contract length to give investors financial security.

• It only covers schemes up to three megawatts - Friends of the Earth says the threshold should be at least 10 MW to encourage investment in the full range of community and municipal schemes. This would work without damaging investor confidence in large scale renewable schemes which would continue to be covered by the existing Renewables Obligation.

• There is no timetable for action - Friends of the Earth says the Bill must put a duty on the Government to introduce a scheme within one year.

2. The letter states: "We warmly welcomed the Government's announcement a fortnight ago that they would introduce a feed-in tariff for electricity and an incentive for heat. However, we are disappointed that both of the amendments that the Government has tabled lack a timetable for their introduction, and that the feed-in tariff amendment does not even guarantee the introduction of a feed-in tariff or have a high enough threshold." They warn that the Government's amendment: "is so vaguely worded that it gives no certainty that a feed-in tariff as internationally recognized will actually be introduced."
Copies of the letter are available on request.

The letter was signed by: British Retail Consortium, Chartered Institute of Housing, Compass, Country Land and Business Association, Energy Saving Trust, Federation of Master Builders, Friends of the Earth, Greenpeace UK, Ground Source Heat Pump Association, Home Builders Federation, Institution of Civil Engineers, National Union of Teachers, Neal's Yard Remedies, Premises Studios, Public and Commercial Services Union, RIBA, Schott UK, Scientists for Global Responsibility, Sharp UK, Solar Century, Solar Trade Association, The Co-operative Group , TUC, UK PV Manufacturer Groups, UK-Green Building Council, UNISON, Worcester Bosch, World Future Council.

3. Seventeen European countries have adopted a feed-in tariff system with considerable success. Germany generates 15% of its electricity from renewable sources. Turnover in the German renewable industry rose is £20 billion and employment in the sector is 250,000 (compared to a UK renewable energy sector that employs about 20,000 people).

4. 191 MPs have signed a Commons Early Day Motion in support of a strong feed-in tariff law that was previously tabled by a cross-party group of peers.

5. The Government agreed to introduce a feed-in tariff last month following a year-long campaign Department of Energy and Climate Change press release, Thursday 16 October 2008: UK leads world with commitment to cut emissions by 80% by 2050 http://nds.coi.gov.uk/environment/fullDetail.asp?ReleaseID=381477space¬
&NewsAreaID=2&NavigatedFromDepartment=False

6. Friends of the Earth is a member of the Stop Climate Chaos Coalition, the UK's largest group of people dedicated to action on climate change.

If you're a journalist looking for press information please contact the Friends of the Earth media team on 020 7566 1649.

Published by Friends of the Earth Trust