Archived press release

Government boost for renewable energy

1 December 2003

Electricity suppliers will have to source 15 per cent of their supplies from renewable energy sources by 2015 the Government said today. The announcement, which will significantly boost the renewable energy market has been welcomed by Friends of the Earth.

The Renewables Obligation was introduced by the Government eighteen months ago, to provide an incentive scheme for renewable energy. Under the Obligation, supplies had to source 10 per cent of its electricity form renewable sources.

Today's extension of the Renewables Obligation shows that the Government is keen to maintain confidence in the renewables market, and follows calls from industry to set a longer term target to achieve this. Investors should now be more willing to invest their capital in projects which may not come to fruition until after 2010 - this will include many of the Government's proposed off-shore wind farms.

Friends of the Earth's Energy Campaigner, Bryony Worthington said:

"This announcement is extremely welcome. It will increase confidence in Government pledges to deliver a low carbon energy future. Ministers must now set challenging targets for renewable transport fuels and renewable sources of heat."

Government recently consulted on changes to the way the Renewable Obligation operates which have been met with considerable criticism from green groups and renewable energy trade associations. The proposed changes would make it easier to generate renewable electricity in existing coal fired stations at the expense of dedicated renewable projects. A report commissioned by Friends of the Earth and the British Wind Energy Association [1] found that the changes could greatly increase emissions of carbon dioxide because the renewable energy subsidy would make coal more profitable than cleaner gas stations.

Friends of the Earth are calling on Government to listen to their critics and to rethink the proposals.

Note

[1] Analysis of the Effect of Co-firing Biomass with Fossil Fuels on the Renewables Obligation A report prepared for British Wind Energy Association and Friends of the Earth November 2003

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Published by Friends of the Earth Trust