John
07-29-2010, 02:05 PM
Britain's energy industry wants swift and concrete action by the coalition to turn the new government's low-carbon future plan into reality.
"While it is easy to get excited about policy announcements, ultimately it is only the implementation of these policies and programmes that will make a difference," said David Symons, director at consultancy WSP Environment & Energy.
"The extent to which the proposals will be seen through remains to be seen."
In his first annual energy statement, Secretary of State for Energy and Climate Change Chris Huhne announced more consultations and reviews in at least 10 out of his 32 so-called actions.
"Time is running out for investors to make the decisions that will provide timely delivery of badly needed generating capacity to replace the looming shortfall," said Ernst & Young's assistant director Jim Fitzgerald.
" statement did nothing to accelerate those investment decisions, and have arguably put them back by a further, critical six months."
When the new government was voted into office nearly three months ago it promised to put an end to drawn-out consultation processes seen under the Labour leadership and to start acting instead.
"I intend to make decisions put off for too long to fundamentally change how we supply and use energy in Britain ... To give the power industry the confidence it needs to invest in low carbon energy projects," Huhne said shortly after his nomination for the ministerial post.
But policies which the new government has been able to push forward until now are largely based on work done by the previous government.
The Department for Energy and Climate Change (DECC) will, for example, implement a new regime for power grid connection from August 11, whereby generators will be granted a permit based on the time it took them to complete preliminary works, to help cut licensing delays.
This decision stems from an intervention made in June 2009 by the then Secretary of State, Ed Miliband, to accelerate the process of connecting new green energy projects to help meeting Britain's renewable energy targets.
GOVERNMENT MOVES ON BIOMASS
One noteworthy decision the coalition announced in its annual energy statement was that it will guarantee subsidies for biomass as a fuel for power generation under the Renewables Obligation (RO) scheme for another 20 years.
"There is welcome progress on grandfathering of Renewable Obligation Certificates (ROCs) for biomass ... which will mean that projects can start moving ahead," said Deloitte's Head of UK Renewable Energy, Roman Webber.
But even here the government was criticised for not making decisions that cover enough aspects of the market.
UK power generator Drax, which has launched an extensive programme for converting its coal-fired power capacity into co-firing biomass plants, said it lacked certainty for biomass units which are ready to operate now.
"We remain concerned that there will still be a period of uncertainty for dedicated biomass plants which would not be accredited, and so ready to begin generating, until after April 2013," said a Drax spokesperson.
CONSULTATION
The annual energy statement also included a number of commitments to various policies on which the energy industry has been waiting for political action.
Renewable heat, for example, has been identified by the sector as a major element of low-carbon energy consumption.
"Delivery of the Renewable Heat Incentive is vital to encourage people to take up the challenge of a low carbon future in their own homes," said E.ON UK Chief Executive Paul Golby.
The government said it was "fully committed to taking action on renewable heat," but clear policies are still missing.
"We cannot afford any further delays to the deployment of renewable technologies, and if the industry is not encouraged by stable and supportive policies soon," said Richard Fearnall, Development Manager for West Coast Energy.
"The UK government is in real danger of failing to deliver on its 2020 carbon reduction targets and its promise to address the ever widening energy gap."
"While it is easy to get excited about policy announcements, ultimately it is only the implementation of these policies and programmes that will make a difference," said David Symons, director at consultancy WSP Environment & Energy.
"The extent to which the proposals will be seen through remains to be seen."
In his first annual energy statement, Secretary of State for Energy and Climate Change Chris Huhne announced more consultations and reviews in at least 10 out of his 32 so-called actions.
"Time is running out for investors to make the decisions that will provide timely delivery of badly needed generating capacity to replace the looming shortfall," said Ernst & Young's assistant director Jim Fitzgerald.
" statement did nothing to accelerate those investment decisions, and have arguably put them back by a further, critical six months."
When the new government was voted into office nearly three months ago it promised to put an end to drawn-out consultation processes seen under the Labour leadership and to start acting instead.
"I intend to make decisions put off for too long to fundamentally change how we supply and use energy in Britain ... To give the power industry the confidence it needs to invest in low carbon energy projects," Huhne said shortly after his nomination for the ministerial post.
But policies which the new government has been able to push forward until now are largely based on work done by the previous government.
The Department for Energy and Climate Change (DECC) will, for example, implement a new regime for power grid connection from August 11, whereby generators will be granted a permit based on the time it took them to complete preliminary works, to help cut licensing delays.
This decision stems from an intervention made in June 2009 by the then Secretary of State, Ed Miliband, to accelerate the process of connecting new green energy projects to help meeting Britain's renewable energy targets.
GOVERNMENT MOVES ON BIOMASS
One noteworthy decision the coalition announced in its annual energy statement was that it will guarantee subsidies for biomass as a fuel for power generation under the Renewables Obligation (RO) scheme for another 20 years.
"There is welcome progress on grandfathering of Renewable Obligation Certificates (ROCs) for biomass ... which will mean that projects can start moving ahead," said Deloitte's Head of UK Renewable Energy, Roman Webber.
But even here the government was criticised for not making decisions that cover enough aspects of the market.
UK power generator Drax, which has launched an extensive programme for converting its coal-fired power capacity into co-firing biomass plants, said it lacked certainty for biomass units which are ready to operate now.
"We remain concerned that there will still be a period of uncertainty for dedicated biomass plants which would not be accredited, and so ready to begin generating, until after April 2013," said a Drax spokesperson.
CONSULTATION
The annual energy statement also included a number of commitments to various policies on which the energy industry has been waiting for political action.
Renewable heat, for example, has been identified by the sector as a major element of low-carbon energy consumption.
"Delivery of the Renewable Heat Incentive is vital to encourage people to take up the challenge of a low carbon future in their own homes," said E.ON UK Chief Executive Paul Golby.
The government said it was "fully committed to taking action on renewable heat," but clear policies are still missing.
"We cannot afford any further delays to the deployment of renewable technologies, and if the industry is not encouraged by stable and supportive policies soon," said Richard Fearnall, Development Manager for West Coast Energy.
"The UK government is in real danger of failing to deliver on its 2020 carbon reduction targets and its promise to address the ever widening energy gap."