Archived press release

Invest in UK renewables or risk losing billions of pounds Government warned

8 July 2006

The UK economy risks missing out on billions of pounds if the Government fails to set out a framework for a massive increase in renewable energy [1] in next week's Energy Review, warns Friends of the Earth. The environmental campaign group said the review is a golden opportunity for the UK to become a world leader in developing a low-carbon, nuclear free economy that must not be missed.

The UK already languishes at the bottom of the EU renewable energy league table, with only Malta producing less renewable energy as a percentage of total energy consumption [2]. And foreign companies dominate the market in areas such as wind power - the top manufacturers of wind turbines are Danish, Spanish, Germany and American and Indian [3].

A number of renewable energy innovators and independent analysts have also told Friends of the Earth [4] that the UK is in danger of losing out to countries such as Germany and Japan if the Government does not do more to support the development of renewables through its Energy Review. Around £30 billion was invested in renewable energy worldwide (directly employing more than 1.7 million people) in 2004. The UK contribution was less than one per cent [5].

Friends of the Earth is calling on the Government to introduce measures that will boost business confidence and investment in the renewable sector. This must also include committing successive governments to annual reductions in UK carbon dioxide emissions. The law, which is being promoted by The Big Ask [6], Friends of the Earths climate campaign, already has the backing of most MPs and three quarters of the population.

Earlier this year the Government's sustainability watchdog, the Sustainable Development Commission, assessed "the most comprehensive evidence base available" before concluding that "nuclear power is not the answer to tackling climate change or security of supply" and "that it is indeed possible to meet the UK's energy needs without nuclear power" [7]. Friends of the Earth agrees and says that the Energy Review must:

• Make the UK a world leader in the development of renewable energy. The Government has set a target for 15 percent of the UK's energy to be generated from renewable sources by 2015. However without more ambitious policies which promote a wider range of renewable electricity sources the Government is unlikely to achieve this target, or even begin to tap the enormous potential of renewable energy sources.

• Reduce the demand for electricity through new energy efficiency measures: there is the potential to reduce electricity consumption by around 10% percent in the UK by 2020. The government must do far more to promote energy-efficiency policy for industry, the commercial and retail sector and households. If nothing is done, demand will continue to grow.

• Ensure fossil fuels are used in the most efficient way possible through the promotion of combined heat and power schemes, decentralised energy systems and technologies for `cleaner coal' making power stations `capture ready' for when carbon capture and storage becomes available.

• Make substantial cuts in other sectors - such as transport - too. Last year the Tyndall Centre for Climate Change research published a report warning that all householders, motorists and businesses will have to reduce their carbon dioxide pollution to zero if the growing aviation industry is to be incorporated into Government climate change targets for 2050

• Introduce a new law to ensure that UK carbon dioxide emissions are cut every year. A climate change law called for by The Big Ask, Friends of the Earth's climate campaign, already has the backing of most MPs and 75 per cent of the population.

Friends of the Earth's Director, Tony Juniper said:

"The Energy Review must make the UK a world leader in renewable energy. As well as tackling climate change and delivering huge quantities of clean energy, this would produce massive economic benefits for the UK as well. There is a huge market for renewable energy yet the UK Government is failing to grasp the potential."

"The Government has a golden opportunity to lead the world in the development of a low-carbon economy. We can tackle climate change and meet our energy needs by cutting energy waste, harnessing the power of renewables and using fossil fuels more efficiently. And we can do this without wasting more money on dirty and dangerous nuclear power. The world is already a dangerous place. Encouraging countries around the world to build nuclear power stations will make it an even more so."

"Ministers must ensure that tackling climate change is a central part of every Government strategy, including the transport sector. The Government should heed the growing calls for a new climate change law which would require successive governments to make annual cuts in carbon dioxide emissions. The new law, which is being promoted by Friends of the Earth's The Big Ask climate campaign, already has the backing of most MPs and three quarters of the public."

Notes

Details of Friends of the Earth `s research, A Bright Energy Future, which shows that the UK can meet its electricity needs, reduce the need for imported natural gas, and tackle climate change without a new nuclear power programme can be found at:
www.foe.co.uk/resource/press_releases/ ¬
new_research_shows_a_brigh_02032006.html

Friends of the Earth's Nuclear briefing:
www.foe.co.uk/resource/media_briefing/nuclear_power_energy_review.pdf (PDF)

1. More information available from Friends of the Earth or see below for more details of renewable energy market

2. Eurostat

3, World Watch Institute: Renewable 2005 Global Status Report

4. Friends of the Earth can put you in touch with a range of business leaders within the renewable sector as well as independent analysts.

5. World Watch Institute: Renewable 2005 Global Status Report

6. www.thebigask.com

7. www.sd-commission.org.uk/presslist.php?id=51

The renewable energy market

The fastest growing energy technology in the world is grid-connected solar photovoltaic (PV), which grew in existing capacity by 60 percent per year from 2000-2004, to cover more than 400,000 rooftops in Japan, Germany, and the United States. Second is wind power capacity, which grew by 28 percent per year, led by Germany, with almost 17 GW installed as of 2004.

Grid-connected solar PV installations are concentrated in three countries: Japan, Germany, and the United States, driven by supportive policies. By 2004, more than 400,000 homes in these countries had rooftop solar PV feeding power into the grid.

The renewable energy industry continues to grow rapidly. Direct jobs worldwide from renewable energy manufacturing, operations, and maintenance exceeded 1.7 million in 2004, including some 0.9 million for biofuels production. Indirect jobs are likely several times larger.

The most recent research on the economic impact of renewable energy in the UK estimated that around 7,700 jobs are currently sustained by renewable, in a market valued at around £280 million. [REA]

The wind power industry produced more than 6,000 wind turbines in 2004, at an average size of 1.25 MW each. The top six manufacturers are Vestas (Denmark, merged with NEG Micon in 2004), Gamesa (Spain), Enercon (Germany), GE Energy (USA), Siemens (Denmark, merged with Bonus in 2004), and Suzlon (India).

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Published by Friends of the Earth Trust