Archived press release

Governments renewable energy policy is moving out of the slow lane

26 June 2008

The launch of the Government's renewable energy consultation is a welcome sign that Ministers' thinking on green energy is moving out of the slow lane Friends of the Earth said today (26 June 2008) - but warned that Government policy still needs to shift up a gear if the UK is to tackle the dual challenges of spiraling fuel prices and climate change.

The consultation, launched by the Prime Minister, explores how the UK can meet European targets for generating 15 percent of energy from renewable sources by 2020 and recognises for the first time that kick-starting a renewable energy revolution will require change across a wide range of policy areas.

But Friends of the Earth remains concerned the Government may still try to wriggle out of its European commitments by counting carbon capture storage technology and investments in renewable energy projects overseas towards the targets for generating renewable energy at home.

Building a thriving renewable energy industry will bring billions of pounds, tens of thousands of jobs and a clean and secure energy supply to the UK. It is estimated that Germany's overall climate change programme will pay for itself and make a profit of 6 billion Euros for the German economy [1]. Renewable energy could also deliver massive savings at a household level - for example a ground source heat pump could save more than £800 a year on heating [2].

However while the consultation is very welcome the revolution needs to start now. Despite the shift in rhetoric, the government continues to oppose the introduction of Feed in Tariffs - a proven mechanism for encouraging small scale renewable energy projects - in the Energy Bill which is currently going through Parliament. Leaving this measure to the consultation will create years of delay. A Feed in Tariff pays the home owner a premium price for any renewable electricity they export back to the National Grid.

Friends of the Earth's energy campaigner Robin Webster said:

"The Government's thinking on renewable energy has been stuck in the slow lane for too long - this consultation indicates they are ready to shift up a gear.

"The Government is asking all the right questions about how to kick start a renewable energy revolution - but there are worrying gaps in their plans to deliver it. We are calling on Ministers to end attempts to wriggle out of European green energy targets and get on with leading Britain to a cleaner, greener and more prosperous future.

"Meeting the European targets is a challenge - but it's also a huge opportunity to build a thriving renewable energy industry that will bring billions of pounds, hundreds of thousands of jobs and a clean and secure energy supply to the UK.

"And it is the only route to a secure low carbon future in an era of spiraling oil prices and dangerous climate challenge."

Friends of the Earth background briefing

Initial reaction to renewable energy consultation, 26^th June 2008

The renewable energy consultation launched today represents a big shift in Government policy even from a year ago. Friends of the Earth is pleased with the following elements of the strategy:

It asks the right questions - dealing with key barriers to green energy generation, including blockages in the planning system, a weak manufacturing sector and access to the national grid - recognising that the most important thing that the Government can do is give certainty and confidence to business for the long term.

It proposes a revolution in how we heat our homes and businesses - increasing the proportion of renewable heat from only 0.6 percent at the moment to 14 percent by 2020. Heat currently accounts for 47% of our carbon emissions and it is desperately important that this sector is addressed.

It could achieve what the Planning Bill has failed to by giving clear signals to local and regional authorities to prioritise green energy developments. Measures proposed include setting binding targets at a regional level for renewable energy generation; creating `green light areas' for renewable energy generation and ideas for providing the skills, benefits to communities and driving culture change at a local level. These changes should help deliver some of the 200 wind farm applications which the British Wind Energy Association says are stuck in the planning system.

However, Friends of the Earth believes the consultation underplays the benefits that a green energy revolution could bring while overplaying the costs.

The Government says a £100 billion investment is needed to meet the renewable energy target. However, it is unclear whether this figure includes investment that would have had to happen anyway (for example upgrading the National Grid) and it fails to reflect the benefits to the UK economy that would accrue from the expansion of renewable energy and energy efficiency. The Government's modeling as a whole fails to factor in rising oil prices (costs in the consultation are based on $70 a barrel of oil).

The Government's figures are based on un-ambitious targets for increasing energy efficiency in the UK. The figures use predictions in the 2007 Energy White Paper - which would not even bring the UK's final energy demand back down to 1995 levels. A more ambitious programme of energy efficiency measures could cut the costs of delivering 15 per cent of our energy from renewable sources.

The consultation fails to properly address the potential of wave and tidal technologies - Government figures suggest that less than one percent of the UK's energy demands in 2020 can be met by wave technology.

The Governments proposals rely very heavily on biomass energy from crops (waste streams, woodland coppice, biogas) and biofuels for transport. Friends of the Earth believes that biomass (including energy crops)has a role to play in the energy mix. But strict guarantees are needed to ensure that biomass use will not lead to an increase in greenhouse gas emissions or the displacement of essential food production. Energy crops should not be used for biofuels for transport as this is the least efficient use of this technology.

Friends of the Earth's proposals

Friends of the Earth, together with Greenpeace, WWF and Stop Climate Chaos are calling for the Government to take five steps to deliver fifteen percent:

Energy efficiency: introduce a comprehensive programme of domestic and industrial energy efficiency to cut emissions and lift millions of people out of fuel poverty. At the very least the UK needs to deliver on its EU commitment to reduce final energy demand by 20% by 2020 - however it is likely they will need to go further.

Planning: ensure the planning system sends a clear signal to local and regional authorities to prioritise renewable energy by setting binding local and regional targets for renewable energy generation, identifying `green light areas' for renewables development across the UK and providing local decision makers the skills and advice they need to take the lead in boosting green energy at a community level.

Building a UK renewables industry: intervention in the economy to maximize the economic and social benefits and ensure renewables targets are delivered. This means a strategic approach, developing the right regulatory structure by reforming OFGEM to include climate change as part of its primary purpose, and giving renewables priority access to the National Grid. The Government must address supply chain issues, actively support a UK renewables manufacturing and supply industry, create the right skills base to support this industry and ensure the necessary infrastructure e.g. ports to support the development of off shore wind.

Support scheme: Introduce a financial support mechanism for large and small-scale renewable development. This means a feed-in-tariff system should be introduced which guarantees a premium price for electricity generated by small-scale renewable energy technologies and exported to the National Grid.The Government needs to demonstrate that the support system for large scale renewable technologies is affordable, works for a range of renewable technologies, and provides the long-term stability business and investors need.

Bio-energy: There is a finite amount of land available for bio-energy production (biomass and biofuels) so we need to make the most of it. Targets for biofuels use in transport should be scrapped as growing bio-fuels for use in transport is the least efficient way of using land. Biomass for heat and electricity should be part of the energy mix but strict sustainability criteria must be introduced to protect people and the environment, and an upper limit set for biomass according to what can be produced sustainably in Europe.

Notes

[1] German Federal Environment Agency (UBA)

[2] Energy Saving Trust - relates to an electric heated house

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Published by Friends of the Earth Trust