UK Environment Minister Caroline Spelman has said the UK will work with Columbia and others to drive forward the proposal for new Sustainable Development Goals (SDGs) in a speech setting out ambitions for Rio+20

These goals are expected to galvanise international and domestic efforts on major sustainability issues such as food security, water and access to clean energy.

In addition, the UK is seeking agreement to move away from the use of GDP as the sole indicator of progress in government accounts. The proposal is called GDP+ and would be used to encourage other countries to measure and account for the value of their natural resources and the social wellbeing of their citizens.

Spelman said, ‘Our economic and environmental security relies on ambitious outcomes from Rio+20. Rio+20 has to be a workshop not a talking shop. The international community has not made sufficient progress on important world challenges such as food security, access to clean water and sustainable energy. We need urgent action now. SDGs can drive international action on these key issues and build on the success of the Millennium Development Goals. I will be pushing for real progress on new goals to set us on the right path to a greener and more sustainable world.’

She added, ‘We are committed to achieving growth, but this should not come at the cost of the natural resources we take for granted, or at the cost of wellbeing. We want to see countries acknowledging the true value of nature to our economy, by reflecting its worth in their accounts. The UK is a world leader in this field, and I will be making the case for all nations to match our progress.’

Copyright © 2012 NewNet

A taskforce comprising of Marine Scotland, The Crown Estate, environmental regulators and renewable energy developers has published a blueprint to streamline the construction of offshore generation systems.

The group recommended several measures to speed up the scoping, planning and consenting of offshore renewable developments.

It suggested creating a national database of survey data, with contributions from the Department of Energy and Climate Change (DECC), The Crown Estate and project managers. The idea for the tool is that it would reduce duplication and minimise the cost and time spent on the planning stage.

The taskforce said that common standards need to be introduced for data collection and assessment to ensure developers can use methodologies consistently.

It said there needs to be multi-lateral consultation with other sea users such as fisheries and commercial ships at the earliest opportunity and before applications are made.

The group also recommended increasing resources in Marine Scotland to provide more environemental specialists for efficient scoping and applications, as well as prioritising early work to identify potential sites for new test facilities.

Alex Salmond, First Minister for Scotland, said, ‘The Scottish government and our agencies are determined to build a strong, sustainable and world-leading offshore renewables industry, bringing jobs and investment to communities around the country. An increasing number of major overseas firms are already joining leading Scottish companies to invest in the development of wind, wave and tidal in Scotland. As we move towards our 2020 target of ensuring renewables contribute at least 100 per cent of Scotland’s own electricity demand, it is important that the scoping, planning, development and deployment of offshore wind, wave and tidal generation is done as effectively and efficiently as possible.’

He added, ‘By ensuring that government, developers and others get things right at the strategic planning and earliest licensing stages we can cut the time and resource spent on inappropriate developments and allow a greater focus on those areas with the best opportunities to harness resources sustainably. In that way, we will reduce our reliance on other forms of fossil fuel-generated power and help tackle damaging climate change.’

Jenny Hogan, director of policy at Scottish Renewables, added, ‘With more than 11GW of offshore wind, wave and tidal energy projects in the pipeline by 2020, a streamlined and efficient process for securing planning consent is crucial to making these plans a reality, and creating a lynchpin for Scotland’s next industrial revolution. This report’s recommendations will build upon the concerted effort made by industry, government and regulators to move these projects closer to deployment, and ultimately deliver clean, safe and electricity from around our shores to homes and businesses across Scotland.’

Copyright © 2012 NewNet

Newly-appointed UK Energy Minister Edward Davey has created a new team within the Department of Energy and Climate Change (DECC) dedicated to energy efficiency.

The 50-strong Energy Efficiency Deployment Office (EEDO) will work to support the implementation of the Green Deal, the roll-out of smart meters and the increased use of renewable heat, as well as identifying opportunities to implement energy efficiency measures throughout the UK.

The department will work with leading industry experts and has launched a call for evidence to help underpin the efficiency strategy.

Davey said, ‘I’m hugely enthusiastic about energy efficiency. It’s the cheapest way of cutting carbon – and cutting bills for consumers. It has to be right at the heart of what we do. EEDO will be a centre of expertise, challenging our work and making energy efficiency real and relevant to people’s everyday lives. Two out of three consumers think their home is wasting energy, but only one in three is going to do anything about it. That has to change. We need to get out there and show people what energy efficiency can really do for them.’

He added, ‘The Green Deal will play a huge part in this work and will also support jobs in the insulation and construction industries – as many as 65,000 right across the country by 2015. It can help us deliver a fairer, greener economy. And help us get young people back into work – or into work for the first time. The UK has some of the most inefficient housing stock in the EU. But getting this right means as a nation we make energy savings over the next decade equivalent to two nuclear power stations while making everyone’s homes warmer and cheaper to run.’

Speaking at a NewNet event yesterday, Energy Minister Greg Barker unveiled a proposed bill that would monetise energy efficiency technology in the same way thefeed-in tariff supports renewable generation.

Copyright © 2012 NewNet

A UK energy bill to be introduced later this year will monetise energy efficiency in the same way the feed-in tariff (FIT) supports renewable generation, it was revealed by Minister for Energy and Climate Change Greg Barker at a NewNet event.

Barker used a speech to outline how the Department of Energy and Climate Change (DECC) will go beyond the Green Deal to push the energy efficiency agenda through incentive mechanisms, in the same way wind and solar generation have been supported by the FIT.

In addition, the new bill will outline proposed FIT rates for renewable technologies over a number of years, bringing much-coveted certainty to the market, especially the embattled solar sector.

Barker acknowledged the difficulty in putting a financial value on efficiency measures, but argued that if done correctly the UK could lead the world in this blossoming industry.

Barker said, ‘If we the government can get this right, the monetising of energy efficiency, we can create an industry to lead the world.

‘Energy efficiency is the energy agenda for the age of austerity, but it is also the agenda for growth.’

Barker also alluded to the much-anticipated Green Investment Bank, which he said will be enshrined in law by upcoming legislation.

The new bank will target four main areas for investment; the Green Deal, waste-to-energy, industrial energy efficiency and offshore wind.

However Baker was also keen to stress that the government-backed lender will also be used to support the growth and commercialisation of innovative start-up companies in the cleantech space.

Copyright © 2012 NewNet

More than 100 Conservative MPs in the UK have written to the Prime Minister demanding a cut to the level of subsidy the country’s onshore wind industry receives.

In a letter seen by The Sunday Telegraph 101 politicians called for an end to the £400m a year support the sector received.

The move comes just days after UK Energy Secretary Chris Huhne stepped down amid claims that he had perverted the course of justice. Ed Davey, formerly Business Minister, has taken over the roll.

The UK government has ambitious green aims with onshore wind playing a major part.

According to The Telegraph, more than 4,500 new installations are due to be put in place over the coming years.

Copyright © 2012 NewNet

The Chinese government has ordered airlines based in the country not to comply with the European Union’s (EU) charge on carbon emissions.

These airlines had previously said they would not pay the US carbon tax and this has now been made mandatory by the State Council, it was reported n the Financial Times.

The announcement comes one week before Chinese and European leaders are due to meet at a summit and days after Wen Jiabao, China’s Premier, said Beijing would look to provide more financial support to help Europe out of its debt crisis.

The initial impact on Chinese airplanes entering EU countries is unclear.

Copyright © 2012 NewNet

A surge in Chinese solar cell and panel imports into the US may result in back-dated tariff duties being applied on the equipment under new action to be taken by the Department of Commerce.

The Coalition for American Solar Manufacturing said it recognised that efforts were now being taken against what it calls a ‘massive, evasive’ surge ahead of the department’s first preliminary determination on duties scheduled for 2 March. But a fresh report that it was commissioned warns that any tariff may result in a loss of US jobs.

The Department of Commerce may now imposes countervailing duties on all imports of cells and modules from Chinese exporters that were brought into the US from 3 December.

‘After several years of massive imports of illegally subsidised and dumped Chinese solar products, the US solar manufacturing industry and its workers greatly appreciate the Department of Commerce’s finding that importers of Chinese products have mounted a massive surge in product to evade accountability to US and international trade law,’ said Gordon Brinser, president of SolarWorld Industries America based in Oregon.

He added, ‘SolarWorld and the Coalition for American Solar Manufacturing believe that free trade is trade free of illegal governmental intervention. Robust and legal international competition, not predatory pricing that relies on massive and improper subsidies, will produce the best products and sustainable price declines over the long term. Today, we are one step closer to these aims.’

Copyright © 2012 NewNet

The Spanish Ministry of Industry, Tourism and Trade has announced the temporary suspension of feed-in tariff support for new cogeneration, renewable energy or waste-to-energy facilities.

It said the move was to combat a tariff deficit and argued costs were too high to sustain current developments with the current economic crisis the country is facing, But facilities in operation will not be affected by the suspension.

Details on how long the measure will be in place have not yet been revealed and the Ministry said Spain will still meet European Union targets for 2020.

Spain produces around a third of its electricity through renewables, giving it one of the highest proportions of clean energy capacity in the world.

Copyright © 2012 NewNet

The US city of Houston has joined the Better Buildings Challenge, a public-private partnership looking to improve energy efficiency by 20 per cent in commercial, government and school buildings by 2020.

Houston Mayor Annise Parker has committed to improving efficiency across 30 million square feet of public and private buildings throughout the city.

Steven Chu, US Energy Secretary, said, ‘As President Obama made clear in this week’s State of the Union address, one of the easiest ways for businesses to save money and improve their competitiveness is to reduce energy waste in their buildings and factories. Through the Better Buildings Challenge, the city of Houston is helping to boost manufacturing, create US jobs, reduce pollution, and build an American economy that lasts.’

Mayor Parker added, ‘I am committed to sustainability. It’s not only helps our environment, it also saves taxpayer dollars. The city and its local corporate partners in the [Better Buildings Challenge] have already taken numerous steps to make buildings and other facilities more energy efficient and more efficiencies will follow. We are leading by example.’

The Better Building scheme was launched by President Obama last December. He unveiled public and private funding worth $4bn for energy efficiency improvements to be implemented under the two-year programme.

Copyright © 2012 NewNet

Political support for renewables is far-reaching with parties on both sides of the spectrum in full support of its development, a Member of the European Parliament said today.

Speaking at a renewable energy event in London, Krisjanis Karins, Member of the Industry, Energy & Research Committee at the European Parliament, said political sentiment towards renewables was much more aligned than in other energy sectors.

He said, ‘I am quite certain that renewable energies will have political and policy support in the future. The political spectrum does not disagree with this. Investments in renewable energy, however, will only make sense if they are matched by investment in infrastructure.’

He stressed that the 20/20/20 targets were of political importance across Europe – not only in order to reduce emissions but to reduce dependency on imports and increase energy security across the bloc.

But Karins said he recognised there are major challenges to overcome. He identified the top three obstacles to be the lack of certainty in how much – or where – the sun and wind may shine and blow, the major infrastructure spend that will need to take place to integrate renewables, and the challenges associated with energy storage.

‘On the political side, there is a great need to increase the role of renewables and increase energy efficiency.’

He added, ‘Everyone is in agreement with this. There is no general agreement on nuclear and coal. Renewables do have a solid place.’

Copyright © 2012 NewNet

The Colombian capital city of Bogota has launched a pilot project to spur the use of electric vehicles (EV) in the city’s taxi fleet.

A public-private partnership that includes the local authority, the Clinton Climate Initiative and the C40 Cities Climate Leadership Group, will introduce 50 EV taxis within the capital district over the next three months.

Columbia already has a national programme to support EVs by imposing zero import duty on electric cars. In addition, Bogota is running a scheme that removes circulation restrictions and permitting requirements for EV taxis and private owners.

Felipe Targa, Colombian Vice-Minister of Transportation, said, ‘This pilot project is very important countrywide and an example for the world because it sets a path to transform vehicle fleets with low carbon technologies, foster green vehicle market increasing consumers confidence, and opens a wide window for public and private transportation away from pollution and green house gases emissions.’

Jay Carson, CEO of the C40, added, ‘Bogota’s [EV] taxi project is a significant achievement, which demonstrates, once again, the city’s clear commitment to transform its transportation sector. As an active member of the C40-CCI Electric Vehicle Network, Bogota has both learned from and contributed to the knowledge of other cities across the network. C40 is about action, and I commend Bogota for taking this decisive step to implement innovative new transport policies that will improve the quality of life in the city and address climate change.’

Copyright © 2012 NewNet

UK businesses may be severely impacted by the government’s decision to set harsher carbon penalties than the rest of Europe.

According to a report in the Financial Times, a report by the House of Commons energy and climate change committee concluded that a decision by the Treasury to set one single carbon price floor may result in power-hungry companies locating to elsewhere in Europe.

A statement by committee chair Tim Yeo, said, ‘Unless the price of carbon is increased at an EU-wide level, taking action on our own will have no overall effect on emissions other than to outsource them.’

In 2011, the government set a carbon price floor of £16 in 2013, which will then rise to £30 in 2020.

Copyright © 2012 NewNet

The UK Court of Appeal has unanimously thrown out the government’s case to change the feed-in tariff (FIT) rate for solar retrospectively.

Three judges also refused permission for the case to be taken to the Supreme Court. It now seems likely that the revised FIT rate will come into place on 1 April, with an eligibility date on or after 3 March.

Daniel Green, CEO of HomeSun, said, ‘The Secretary of State has failed to have proper regard for the rights conferred by the FIT, which aims to encourage homeowners to generate their own energy. Like a government bond, that rate is fixed depending on the date the installation becomes eligible and government cannot change it as they choose. Both this appeal and the Judicial Review in The High Court would not have been required had DECC simply followed its own process and allowed the industry, that it claims to support, time to prepare for a lower FIT.’

He added, ‘The government must now move on and deliver a FIT which is fair and not just for the rich. This means, dropping the so called ‘aggregator tariff’ which will discriminate again companies trying to provide free solar or low cost solar and punish private homeowners that don’t have £1000s in the bank. Solar should not be just for the rich.’

Caroline Flint MP, Labour’s Shadow Energy and Climate Change Secretary, said, ‘Today’s ruling is a victory for all of us who have been warning for months that the Tory-led government’s deep cuts to solar power are not just bad for the public, bad for jobs and growth, and bad for the environment, but legally flawed too.

‘The government has wasted time and money fighting the High Court ruling and created huge uncertainty, putting thousands of jobs in renewable energy at risk. The government must now go back to the drawing board and bring forward more measured proposals that guarantee the continued growth of the solar industry, put feed-in tariffs on a sustainable footing and are fair to the public.’

Copyright © 2012 NewNet

US President Barack Obama has called for the passing of clean energy tax credits to promote an industry ‘that has never looked more promising’ in his State of the Union Address.

He stressed that to grow the economy oil is not enough and urged a move towards cleaner and cheaper energy sources.

He also hinted to the Department of Energy-Solyndra fiasco by saying he recognised some companies would fail.

He said, ‘Some technologies don’t pan out; some companies fail. But I will not walk away from the promise of clean energy… I will not cede the wind or solar or battery industry to China or Germany because we refuse to make the same commitment here.

‘We’ve subsidised oil companies for a century. That’s long enough. It’s time to end the taxpayer giveaways to an industry that rarely has been more profitable, and double-down on a clean energy industry that never has been more promising. Pass clean energy tax credits. Create these jobs.’

But he also called for the continued development of natural gas reserves.

‘The development of natural gas will create jobs and power trucks and factories that are cleaner and cheaper, proving that we don’t have to choose between our environment and our economy. And by the way, it was public research dollars, over the course of 30 years, that helped develop the technologies to extract all this natural gas out of shale rock – reminding us that government support is critical in helping businesses get new energy ideas off the ground.’

Copyright © 2012 NewNet

Russia has ranked at the bottom of a new 132-country study looking at measures used to tackle pollution and manage natural resources between 2000 and 2010.

Research conducted by the US’ Yale and Columbia universities identified a severe breakdown in environmental health through the decade, as well as worsening performances on overfishing and forest losses.

Exploitation of natural resources combined with a lack of regulation is the reason Russia performed so badly, it was reported in the Financial Times.

Latvia was ranked as the country that improved the most, following the elimination of coal from the country’s electricity mix and reforestation measures. The runners-up of this category were Azerbaijan, Romania, Albania and Egypt.

A separate report called the Environmental Performance Index that looked at environmental policies was topped by Switzerland, which was followed by Latvia, Norway, Luxemburg and Costa Rica.

The worst five performers were South Africa, Kazakhstan, Uzbekistan, Turkmenistan and Iraq.

Copyright © 2012 NewNet

UK energy regulator Ofgem has outlined plans for a £7bn upgrade of Scotland’s grid to ease the integration of renewables on to the electricity network.

Ofgem has launched a consultation on proposals that include a £2.9bn of investment with up to a further £4.7bn available over the course of the price control period, out to 2021.

The investment is part of Ofgem’s decision for SP Transmission and Scottish Hydro Electric Transmission to be the first companies fast-tracked under the new framework.

Alistair Buchanan, CEO at Ofgem, said, ‘Today is a very significant moment for three reasons. Firstly, it forms a key part of implementing the £200bn investment identified in Project Discovery to protect our security of supply.

Secondly, the upgraded network will greatly assist connections to renewable generators.

Finally, our brand new RIIO model to setting price controls shows how we are cutting red tape.’

In March 2011, Ofgem revealed plans for the new RIIO (Revenue=Incentives+Innovation+Outputs) framework, which it said is designed to incentivise companies to deliver more than £30bn of investment needed to fully upgrade the grid.

Copyright © 2012 NewNet

The UK’s Department of Energy and Climate Change (DECC) has introduced to the government draft licence modifications that would make provisions for a reduced feed-in tariff (FIT) rate to come into place on 1 April, with an eligibility date on or after 3 March.

The new level would be in line with previous announcements, with residential installations seeing support cut roughly in half to £0.21.

But the organisation is still standing by its earlier decision to bring in changes on 12 December 2011, before the consultation period on this issue was due to close.

This decision was overturned by a High Court ruling, but DECC has appealed this judgement and, if successful, will retroactively reduce tariff levels for all installations made on or after 12 December.

Greg Barker, Minister for Climate Change, said, ‘I know this is a difficult time for the sector and I want to do as much as I can to end the current uncertainty created by the legal challenge. We must reduce the level of FITs for solar panels as quickly as possible, to protect consumer bills and to avoid bust in the whole [FIT] budget.’

He added, ‘We’re appealing against the court ruling that’s challenged our proposal for a December reference date. This remains our aim, and we are waiting for the judgment of the Court of Appeal. But this is too important for us to sit and do nothing while we wait. Today we’re putting in place a contingency that will bring a £0.21 rate into effect from April for installations from 3 March. In the circumstances we believe this gives the industry as much certainty as is possible.’

Copyright © 2012 NewNet

UK industry body the Property and Energy Professionals Association (PEPA) has urged the government to reassess its plan to introduce the Green Deal in October this year.

The organisation has raised a number of concerns about the impact of the scheme on non-domestic buildings and has suggested staggering the implementation of the programme.

PEPA recommends the Green Deal come into force initially just for residential buildings, followed by commercial properties at a later date, in order to address potential issues. It said this method was successful in bringing about the Energy Performance Certificates in 2007.

Stephen O’Hara, chairman of PEPA, said, ‘We are strongly behind the Green Deal and the significant improvements that it could make to the energy efficiency of the UK’s buildings. However, with such a pivotal new framework, it is imperative the government gets it right from the offset. It was evident from the recent consultation process that while plans for domestic properties are well advanced, there are still a number of unanswered questions relating to non-domestic properties. As such, we feel that more time needs to be spent to address these concerns and to make any necessary revisions.’

He added, ‘However, rather than delay the whole introduction unnecessarily, we are urging the government to go ahead with the framework for domestic buildings as planned, while introducing the scheme for non-domestic buildings at a later date. This approach will allow homeowners to begin benefiting from the new framework as soon as possible, while allowing the government more time to ensure that plans for non-domestic homes are robust, before they are introduced.’

Questions are also being raised over the effectiveness of the proposals, with one expert recently saying to NewNet that the programme could actually lead to a reduction in energy efficiency activity.

Another suggested that cleantech-leaning financial institutions may be unwilling to support the government in this project due to the problems caused by the recent solar feed-in tariff argument.

Others have taken issue with the way that the Green Deal will replace, rather than enhance, existing initiatives that are helping households to implement efficiency measures.

Garry Worthington, head of Green Deal at Climate Energy, said, ‘There are a number of challenges facing the government if the Green Deal and Energy Company Obligation [ECO] are to deliver cost-effective emissions reductions and meet the carbon reduction targets which have been set.

‘The current ECO proposals will see subsidies for loft and cavity wall insulation come to an end for many, with the government’s own predictions suggesting an annual drop in the number of cavity wall installations when the current subsidy regime finishes. We believe that to maintain demand and support a smooth transition to the Green Deal loft and cavity wall insulation should be included within the carbon-saving element of ECO for a limited period of time.’

Copyright © 2012 NewNet

The UK government has launched a study to evaluate the potential of using hydrogen as a vehicle fuel in anticipation of the technology’s market roll-out, expected in 2014 or 2015.

The UKH2Mobility programme will assess the case for the introduction of hydrogen vehicles as a solution to decarbonising road transport. A review will be carried out investigating the investment require to commercialise the technology, including the refuelling infrastructure necessary to support the adoption of hydrogen vehicles.

It will also look to identify steps required to make the UK a leading global player in hydrogen fuel cell electric vehicle manufacturing and the potential economic benefits and job creation that would come with this.

Mark Prisk, UK Business Minister, said, ‘The UK is proving itself to be a key early market for ultra-low emission vehicles with growing numbers of electric and plug-in hybrids appearing on our roads. The government is supporting this market by investing £400m to support the development, demonstration and deployment of low and ultra-low emission vehicles. Hydrogen fuel cell electric vehicles are increasingly being recognised as one of the viable options as we move to a lower carbon motoring future. They are highly efficient, can be fuelled in minutes, travel an equivalent range to a conventional combustion engine, and have zero tail-pipe emissions.’

Jerry Hardcastle, vice president for vehicle design and development at Nissan, added, ‘This is an important step for the automotive sector towards the development of clean vehicle technologies and zero emission mobility. It will lay many of the foundations for the commercial deployment of hydrogen-powered fuel cell electric vehicles which could represent a large segment of the UK market in the coming years. With this comprehensive list of partners we can be assured to have all the knowledge necessary to make UKH2 Mobility an exhaustive and credible study.’

Copyright © 2012 NewNet

The UK’s renewable energy and energy efficiency policies have not been approached in a holistic way and lack a ‘joined-up’ approach, an industry expert told NewNet.

Nick Eyre, with the University of Oxford, is among a number of industry thought-leaders working with the UK Energy Research Centre (UKERC) to carry-out in-depth research into the Department of Energy and Climate Change’s consultation on the Green Deal.

He told NewNet that in the entire impact assessment launched by the government into the Green Deal scheme there was no mention of how the Green Investment Bank would sit alongside the energy efficiency initiative.

‘It was somewhat surprising that in over 200 pages the words ‘Green Investment Bank’ were not mentioned as it is something that is clearly about green investment. There may be good reasons for not using the Green Investment Bank for major energy refurbishment in the building sector but at least I would have thought it should have been mentioned.

‘The Green Investment Bank is not up and running but it is pretty clear that the built environment needs a big fraction of the investment that is needed to get to a low carbon economy.’

In addition, he said more could have been done to promote building-integrated renewable energy generation systems in the Green Deal proposals, rather than purely focusing on energy efficiency.

Eyre said, ‘We are concerned there is not enough ‘joining up’. That is not to say a mechanism like the Green Deal to strongly target insulation is not needed, but we feel the process of getting private financing to householders so they do not have to make a big capital upfront payment, would be very helpful for renewable heat and renewable electricity as well.’

He added, ‘It is clear the biggest barrier stopping people benefitting from the feed-in tariff is that capital expenditure is needed upfront. One of the strengths of the Green Deal mechanism is that you can make a capital investment based on future saving and really the FIT is the sort of future saving that could have been made, but does not seem to have been joined up by the government.’

Copyright © 2012 NewNet

The UK’s proposed Green Deal initiative may actually result in a reduction in energy efficient activity rather than stimulating the sector as it aims to do, a leading specialist told NewNet.

Nick Eyre, with the University of Oxford, has been among a number of thought-leaders working with the UK Energy Research Centre (UKERC) to carry out research into the Department of Energy and Climate Change’s consultation on the Green Deal.

He said the headline claims over the potential of the Green Deal do not correspond with the statistical predictions DECC actually makes.

‘Our biggest fear we have about the proposals is that they are going to lead to a reduction in energy efficiency activity.

To clarify, this is not an increase in activity it is a reduction. There seems to be an inconsistency in the headline message and the reality of the numbers in the impact assessment.’

The government’s own impact assessment, the UKERC said, shows that the rate of energy efficiency improvement will be less than 25 per cent than is currently being achieved.

He said energy efficiency-focused policies in Europe have actually been influenced by successful UK initiatives in this area and fears that much of this hard work will now be undone.

‘The mechanism we have in the UK at the moment has actually informed a lot of policy development in France and in Italy so other countries have learnt from us. It is slightly odd that we are proposing to change it and as such, all our previous strengths of delivering low-cost energy insulation measures are essentially being thrown away.

Copyright © 2012 NewNet

The US Council on Jobs and Competitiveness has urged for the extension of production tax credits (PTC) that currently hang in the balance but which many see as being vital to propping up the country’s renewable energy sector.

In a major report, the Council also recommends making research and development (R&D) tax credits permanent and investing heavily in clean energy and efficiency.

The US currently imports 300 million barrels of oil per month, at a cost to the country of $1bn a day. In addition, rising standards of living in developing countries is predicted to lead to a 33 per cent increase in global energy demand by 2030.

This dependence on imports and potential global shortages means the US must make major changes to avoid security of supply issues.

The report said, ‘America needs to: optimise use of all of its natural resources while protecting public health and the environment; support efficiency measures in both electricity generation and transportation; and drive energy innovation and investment from basic invention to industry scale-up.’

The Council recognises tight financial conditions need to be considered with regard to any government investment and acknowledged that any public investment must not come at the expense of widening the fiscal deficit. However, the report pointed out that as a proportion of GDP the US invests relatively little in clean energy.

Germany leads the world in this regard, spending 1.4 per cent of GDP on clean energy technologies. China, the main threat to US economic dominance, spends 0.55 per cent, almost double the US’ proportion of 0.23 per cent.

The Council said recent federal funding to R&D on clean energy programmes amounted to around $4bn, and it recommended doubling or tripling this level.

The report said, ‘Cuts in this area would be terribly shortsighted. Because energy entails huge capital investments in projects that often last decades, utilities have traditionally shied away from making big investments in energy R&D or buying into new technologies. If the US wants to build an energy infrastructure for the 21st Century and remain globally competitive in energy technologies, we need to increase, not decrease, vital public and private investments in energy research, development and deployment.’

To encourage the commercialisation of innovative technologies, the report suggested setting up an agency called the Clean Energy Development Administration.

This would help guide start-ups through the financing valley of death. Offsetting a portion of funds from energy projects with lesser returns could be a way to set up this department without significant fiscal strain.

Encouraging private capital into cleantech R&D could be achieved through the increased use of tax credits related to innovation and performance.

Denise Bode, CEO of the American Wind Energy Association, said, ‘This endorsement of an extension for wind energy’s key PTC is yet another indication of how vital wind power has become as a source of American jobs and how important fast action on the PTC is to keeping this economic success story going. With a stable PTC, the wind industry is poised to grow to almost 100,000 jobs four years from now and stay on track to support 500,000 American jobs by 2030, as projected during the George Bush administration.’

The Council also suggested streamlining regulations to facilitate the rapid development of renewable energy projects. It said the speedy adoption of best practice standards would allow government to reduce regulatory or permitting obstacles to new developments.

In addition, the Council also recommended comprehensive energy efficiency and alternative vehicle initiatives to further reduce dependence on fossil fuels and provide a platform for sustainable growth.

Copyright © 2012 NewNet

Hydrogen cars will be the focus of a new government initiative in the UK that will aim to make them commercially viable by 2015.

Together with 13 of the biggest car makers, the government will conduct a study into hydrogen’s potential as a low-carbon transport fuel.

According to a report in today’s Financial Times, the scheme mirrors projects already being carried out in Germany, the US and Japan.

Mark Frisk, Minister of State for Business and Enterprise, told the paper that the aim was to derisk the technology by bringing a certainty to the market.

Copyright © 2012 NewNet

A report by the UK’s Public Accounts Committee has questioned the benefits of a programme that could see 53 million gas and electricity meters replaced in the UK over the next seven years.

Under European directives, all member states are required to install smart metering systems to at least 80 per cent of domestic energy consumers by 2020.

The UK government wants to push further and has called for energy suppliers to upgrade meters in all homes and small non-domestic premises by 2019. The Department of Energy and Climate Change (DECC), the agency responsible for the implementation of the scheme, has estimated upgrades will cost £11.7bn.

The Public Accounts review argues that costs will be borne by the consumer, but many of the initial benefits will go to suppliers. DECC has insisted utilities are in the best position to carry out the work and that competition will ensure savings are past down to consumers.

However, this review said there is no transparent mechanism in place to ensure this happens and that past experience indicates competition does not work effectively in this market and cannot be relied on to keep prices low

It also pointed to uncertainties in other areas of the programme, starting with consumer involvement. It said many people will be unwilling to cooperate with the initiative and that a comprehensive communications programme is required to articulate the necessity of the upgrades.

Substantial benefits will only be realised with widespread take-up of the smart meters, and with consumers using them to change their consumption behaviour. But the review said the utilities role around this issue remains unclear and that DECC needs to clearly address how suppliers must promote and educate consumers about the technology.

The procurement process for such a vast amount of new devices, expected to cost around £3bn, also contains big challenges. It said DECC will need to conduct proper trials to identify and manage the risks of such a substantial project being financed by the consumer.

Another issue is that many vulnerable people on low incomes currently using prepayment meters will need to be protected. The review suggested it will be unfair if these consumers do not share in the potential benefits, but have to pay for it through higher bills.

Hans Kristiansen, chief executive of Orsis which contributed evidence to the Committee, said, ‘Current proposals will not meet the government’s well intentioned objectives and the benefits of the scheme are not weighted in favour of the consumer as they should be. For example, whilst smart metering will save the Big 6 millions – the consumer will only see a benefit of £23 a year on current estimates and that’s only after they have paid nearly £350 in their energy bills to pay for it.’

He added, ‘There is a simpler, more cost effective and consumer friendly approach to smart metering that we advocate and which is available now. We urge the government to accept the report’s recommendations as well as look at simpler, smarter alternatives to ensure the biggest roll-out of smart metering anywhere in the world is a blueprint for the rest to follow, rather than risking it become an expensive white elephant in which we all have to pick up the tab.’

Copyright © 2012 NewNet

California once again cemented its cleantech credentials by pushing through the US’ first energy efficiency standard that will reduce wasted energy from the estimated 170 million chargers across the state.

The California Energy Commission has put into law energy efficiency standards that will come into effect in 2013 and are set to save 2,200GWh of energy each year.

Robert Weisenmiller, chair of the Energy Commission, said the impact on California’s ‘plugged-in’ population will be immense.

‘The standards will reduce the wasted electricity from powering our day-to-day appliances by 40 per cent and help California meet its strategic climate policy goals. Once again, California is setting the standard for energy efficiency, keeping the state’s dominance as the most energy efficient state per capita.’

The amount of energy saved will be enough to power nearly 350,000 homes and the move has been welcomed by the state’s major energy companies.

Gene Rodrigues, director of energy efficiency and customer solar for Southern California Edison said it supported the adoption of the battery charger systems standards.

‘Once the measure is fully implemented, Californians will save a total of $300m each year on their electricity bills, with the added environmental benefits of decreasing carbon emissions by approximately one million tons.’

Energy consumed to charge batteries is increasing in California. And, nearly two-thirds of the 8,000GWh of electricity consumed in California is wasted by inefficiency.

Despite this, California’s pro-active approach to clean technologies has meant that despite an ever growing population – with an ever-growing energy hunger – the state’s electricity consumption per capita has remained flat for the past 35 years compared to the rest of the nation, which has increased its energy consumption by at least 40 per cent.

Data released by the California Energy Commission show that since 1976, energy efficiency standards for appliances alone have saved California tax payers $36bn.

A second major utility Pacific Gas & Electric also sees the standards as a positive development.

Steve Malnight, vice president of customer energy solutions for PG&E, said, ‘PG&E is a strong supporter of codes and standards as a vital tool in helping to achieve California’s clean energy goals.

‘The battery charger standards adopted today are a very cost-effective way to reduce energy consumption, reduce customer costs, and reduce greenhouse gas emissions.’

Some of the state’s most notable cleantech developments of recent months have also take within renewable energy generation and in particular the wind sector.

Earlier this month, US wind farm developer Pattern Energy received approval from the California Public Utilities Commission for a 20-year power purchase agreement with PDG&E supporting the go-ahead of the 315MW Octillio wind farm.

In addition, US renewable energy developer Redwood Trails Wind – a subsidiary of NextEra Energy – has secured financing totally $234m for 236.8MW of wind energy projects across Oklahoma and California.

Copyright © 2012 NewNet

UK Energy Minister Greg Barker has launched a partnership to try and ensure the country has the right skills to implement the government’s Green Deal initiative.

The Green Deal Skills Alliance will work to create new training and accreditation for the energy assessment, advice and installation workforce. It is made up of three sector skills councils; Asset Skills, ConstructionSkills and SummitSkills.

Barker said, ‘The success of the Green Deal will, in part, come down to having people who have the right skills and knowledge to instill trust. The Green Deal Skills Alliance will help industry face the challenges ahead so people get the right training and qualifications they will need in order to gain work under the Green Deal.

Mark Farrar, CEO of ConstructionSkills, added, ‘It is vital that firms, particularly SMEs, are able to meet demand for the construction of low carbon technology, as well as knowing how not to fall foul of changing regulations. We want to help SMEs understand the impact of new legislative requirements affecting carbon emissions and develop the right skills to respond to this demand. We need to ensure that government and larger contractors adequately support SMEs in meeting green skills needs.’

Copyright © 2012 NewNet

The UK Court of Appeal has said it will defer any decision on the solar feed-in tariff debate.

It is reviewing the Department of Energy and Climate Change’s case against a previous ruling that a planned change to the subsidy rate was legally flawed.

According to a number of press reports, the court believes it is ‘rather optimistic’ to think a decision will be made this week.

In December, the country’s high court ruled that the implementation date of the cut to the FIT was illegal – a move celebrated by much of the industry.

Copyright © 2012 NewNet

A new study has estimated that in ten years the US state of Kentucky could create more than 28,000 jobs and slow the growth of electricity bills, by passing new legislation currently in front of the General Assembly.

Synapse Energy Economics was commissioned to produce an analysis of the Clean Energy Opportunity Act currently being debated. The proposal calls for the establishment of a renewable and efficiency standard requiring utilities to obtain an increasing share of their electricity from renewables and to ramp-up efficiency drives.

The bill would require energy companies to supply 12.5 per cent of electricity from renewable sources by 2022 and to achieve 10.25 per cent cumulative energy savings by the same year.

The Synapse study concludes that should the Act pass, households would see annual electricity bills fall by between eight and ten per cent. In addition, it said the 28,000 jobs created would mitigate those lost in the fossil fuel sector and add $1.5bn to the gross state product once fully implemented in 2022.

Justin Maxson, president of the Mountain Association for Community Economic Development, said, ‘This study confirms that legislation to diversify our electricity portfolio would be economically beneficial to Kentucky. The bill would allow the state to hedge against increasing rates by making homes and businesses more energy efficient. And it would spur the creation of clean energy jobs installing renewable energy projects and making energy efficiency upgrades. The era of cheap energy is coming to an end and it is really a question of whether we in Kentucky take advantage of the opportunities that exist in the clean energy economy of the future.’

Matt Partymiller of Solar Energy Solutions, added, ‘Efficiency and renewables are already the emerging trend in construction in the Commonwealth. This report by Synapse captures what Kentucky engineers and contractors already know and what other states have already seen. Legislation like the Clean Energy Opportunity Act will provide the tools necessary for Kentucky builders to create jobs while ensuring Kentucky energy costs stay low.’

Copyright © 2012 NewNet

The fight is now underway to extend the US Production Tax Credit (PTC) propping up the country’s wind sector but just how high it will feature in the election contest is still a matter for debate.

Like with the reduction of the feed-in tariffs in Europe, fear the tax might expire is likely to result in 2012 being a bumper wind year. But with international company Vestas already warning of more redundancies if the PTC is not kept, its expiry is likely to result in a bleak 2013 with ripples felt internationally.

A recent report by Make Consulting said effects are already being felt on the wind supply chain, which is reluctant to expand amid political uncertainty.

For turbine suppliers and the supply chain to survive, it said cost cutting alone will not suffice and although turbine prices have eroded steadily since 2008, these aggressive sales tactics may not be sustainable.

Key lobbyists the American Wind Energy Association (AWEA) aimed to get the PTC included in a set of legislation that is due to go through before the end of the year encompassing a wide range of tax provisions, but failed to do so.

This week, Montana US Senator Max Baucus announced NaturEner was set to proceed with construction of the 189MW Rim Rock wind power project but said it was only able to do so because of the PTC.

Baucus was a key proponent in crafting the PTC and is now likely to be increasingly active in the fight to save it.

But Make warns that even if the PTC is extended, market impact is likely to be muted due to more challenging macro-economic conditions. It cited weak market conditions and natural gas futures remain low and as such even with a PTC 2013 is unlikely to be a boom year.

A key sign that opportunities must be taken sooner rather than later has been the entrance of prolific investor Warren Buffett into the sector.

Through his firm MidAmerican Energy, Buffett is set to purchase wind projects in Iowa with a combined capacity of 407.1MW in the latest of a string of renewable energy.

It has reached an agreement with RPM Access for the acquisition of the 103.5MW Vienna wind farm, located in Marshall and Tama counties.

Copyright © 2012 NewNet

A number of European countries are way behind the work that is needed to meet their 2020 targets, new figures suggest.

Among those with the most work to do is the UK, which according to the European-wide barometer EUObserv’ER, found renewable energy’s share of gross consumption of energy to be just three per cent against a target of 20 per cent by 2020.

Top of the rankings was Sweden, which in 2010 used renewable energies for 46.9 per cent of its power needs and is very close to meeting its 2020 target of 49 per cent.

EUObserv’ER is a European Commission project that measures the progress made by renewable energies in each member state.

In 2010, the renewable energy share accounted for 12.4 per cent of overall gross final energy consumption as against 11.5 per cent in 2009.

Bottom of the European league table was Malta, which recorded just 0.3 per cent against a ten per cent 2020 target pipped just by Luxembourg which failed to improve on its 2009 score of just 2.6 per cent.

In 2011, the UK together with France and Germany called for targets for certain European countries to be raised to 30 per cent.

This target looks a long way off for the UK but figures released by the Department of Energy and Climate Change (DECC) seem to contradict the findings of EUObserv’EU.

At the end of last year, DECC said that for the third quarter, the renewables’ share of electricity generation increased from 8.1 per cent in the third quarter of 2010, to nine per cent in the third quarter of 2011.

In comparison, EUOberv’ER said Germany’s 2010 figure stood at 10.7 per cent and France’s at 12.4 per cent.

Copyright © 2012 NewNet

The Welsh government has gained new powers to ensure environmentally friendly construction practices.

Starting at the end of 2011, responsibility for building regulations in Wales is now under the authority of the Welsh Assembly, rather than the UK government. It said it will increase the focus on sustainability and energy efficiency.

John Griffiths, Environment Minister for Wales, said, ‘One of our first actions will be to raise energy performance standards in new homes. As a government we are committed to reducing the carbon emissions of the built environment and to moving to building standards that will deliver housing that is much more energy efficient. We have already made significant efforts to achieve these aims through our planning policies; however, we recognise that building regulations will be one of the key tools in helping us to reach our goals.’

He added, ‘Now that Wales has responsibility for setting its own building regulations we will be progressing work to make changes to that will enable us to deliver a 55 per cent improvement on 2006 requirements for new homes. Not only will this help us to decrease the carbon emissions of the built environment in Wales, it will also result in new homes that are much warmer and cheaper to heat.’

Copyright © 2012 NewNet

Scottish Energy Minister Fergus Ewing has welcomed news that 2011 was the best year for renewable energy so far in Scotland, and called on the industry to build on this success.

Figures released by the Department of Energy and Climate Change (DECC) showed the country produced 94 per cent of 2010′s entire renewable output in the first three quarters of 2011.

Industry data for the year to October showed a record £750m investment into the sector, with 7GW of capacity operational, under construction or with planning consent. Ewing hopes to best this in 2012 with a pipeline of renewable projects set to deliver 17GW of new capacity, representing an estimated £46bn investment into the country.

Ewing said, ‘This investment will create jobs and opportunities for all Scotland’s communities, and in 2012 we will introduce a community benefit register to help all of Scotland’s communities to ensure they reap the benefits of the renewable energy revolution, as well as reinvigorating the support we offer under our CARES scheme to encourage more local and community ownership of renewable energy.’

He added, ‘Renewable energy provides an opportunity to reindustrialise Scotland, and I am working with colleagues to ensure we help our young people obtain the skills they need to gain high quality jobs in this sector, as well as working with the oil and gas sector to ensure we transfer the valuable skills and knowledge of years of experience to the renewable energy sector. My new year’s resolution is to continue to do everything in my power further Scotland’s reputation as a global green energy powerhouse in 2012.’

Copyright © 2012 NewNet

UK Energy Minister Greg Barker has stood by his description of green activists as the ‘environmental Taliban.’

In an interview with today’s Financial Times, Barker defended the coalition government’s record on environmental issues, citing the creation of the Green Investment Bank, the proposed Green Deal and the carbon price floor.

He said in reference to the Taliban comment, ‘There is nothing environmental about exporting manufacturing jobs abroad.’

Barker was also keen to address public concerns over the potential impact of subsidies such as the feed-in tariff can have on consumer bills.

Barker said, ‘There is a change, and that is towards better value for money and greater financial rigour. We recognise that in tough times the green economy doesn’t fit in a silo on its own, as some in the lobby seem to think it should. It’s entirely right we should be mindful of the impact on consumer bills. I was quite shocked at how some in the environmental lobby were so scathing about it.’

Copyright © 2012 NewNet

The Massachusetts Supreme Judicial Court has unanimously upheld a long term power purchase agreement (PPA) between developers of the Cape Wind offshore project and the National Grid.

The court reviewed the decision by the Massachusetts Department of Public Utilities to approve the PPA and concluded that;

‘Our review of the record indicates that there was clearly sufficient evidence of which the department could base its conclusion that the special benefits of PPA-1 exceeded those of other renewable energy resources, and we uphold the department’s conclusion that approval of the contract was in the public interest.’

Adding, ‘The evidence in this proceeding makes it clear that the Cape Wind project offers unique benefits relative to the other renewable resources available. In particular, the project’s combination of size, location, capacity factor, advanced stage of permitting, and advanced stage of development is unmatched by any other renewable resource in the region for the foreseeable future. This combination of benefits will significantly enhance the ability of National Grid to achieve renewables and greenhouse gas emissions reduction requirements.’

The development is set to become the US’ first offshore wind farm but has encountered aggressive opposition from the outset. In October, the US Court of Appeals revoked permission for the development, citing potential hazards to air travel.

This followed the original decision, made in April by Secretary of the Interior Ken Salazaar, to approve the project. At the time, construction was expected to begin in the third quarter of 2011.

Jim Gordon, president of Cape Wind, said, ‘This decision provides a big boost for creating up to 1,000 jobs and providing Massachusetts with cleaner air, greater energy independence and a leadership position in offshore wind power.’

Copyright © 2011 NewNet

The Scottish government has revealed plans for two new wind installations that have a combined capacity of 198MW. 

The first will be developed by Infinergy and is the 177MW Dorenell wind farm on the Glenfiddich estate in Moray. It represents a capital investment of £250m and will create about 75 jobs in the construction phase.

In addition, a 21MW extension will now be added to the 104MW Muaitheabhal wind farm in Lewis and will provide power to a further 9,000 homes. Energy Minister Fergus Ewing said, ‘These two projects will provide a significant boost to the economy and to our efforts to become a green energy powerhouse.’

He added, ‘Crucially, I am pleased to see local communities profiting from Scotland’s vast natural resources through community benefit agreements that will keep money in our communities.’

Copyright © 2011 NewNet

The US Environmental Protection Agency (EPA) has implemented a new regulation called the Mercury and Air Toxins Standards, introduced to protect the country from power plant emissions of pollutants including arsenic, acid gas, nickel, selenium and cyanide.

The new standard will force coal power operators to implement pollution controls that are already standard in more than 50 per cent of US coal plants.

The total health and economic benefits of the new regulation are predicted to be worth as much as $90bn annually, according to the EPA.

Lisa Jackson, EPA administrator, said, ‘By cutting emissions that are linked to developmental disorders and respiratory illnesses like asthma, these standards represent a major victory for clean air and public health– and especially for the health of our children. With these standards that were two decades in the making, EPA is rounding out a year of incredible progress on clean air in America with another action that will benefit the American people for years to come. The Mercury and Air Toxics Standards will protect millions of families and children from harmful and costly air pollution and provide the American people with health benefits that far outweigh the costs of compliance.’

Copyright © 2011 NewNet

The recent High Court ruling that saw the UK government’s cut to its solar feed-in tariff (FIT) deemed illegal has been greeted with celebration by the sector, even if uncertainty still remains in the sector.

The judgement was not over the policy change itself, but rather the 12 December cut-off that came two weeks before the consultation period was due to end and significantly before April 2012, when the changes were originally expected.

Paul Williams, CEO of renewable energy company Freetricity, told NewNet, ’Because there was no consultation, the cut was too savage and too soon and this enables a proper consultation to take place. It’s not government money, its money that is split over the energy companies and it’s probably more to do with them and that they’re losing turnover to clean energy.

‘There is an uncertainty associated with it and what we could end up with is a worse cut in the FIT perhaps from April, but the government need to understand that we are building an industry here that has huge employment potential, hopefully they will sit down and start talking. This is one of the few new industries in the UK that can create employment, eventually exports and should be a good news story for the UK. People are being laid off because of this and when you think of the loss in tax and cost of benefits, you think it has not been properly thought through which is what everybody said at the beginning.

‘We have already been selling to customers [at the revised rate] but in order to do it we need big houses, 14 to 16 panel systems, where as before we were doing form eight to 16 panels. We need them to be in the south of the country with very south facing roofs and absolutely no shading, then we can just about make the model work. The government excluded people in energy poverty, ex-council housing estates and those who most need a cut in their electricity bill – that was the result in the cut in tariffs, but of course this was never discussed. If you don’t consult properly and talk, then a minister in government and a few treasury officials probably don’t think or realise what the full implications are, which is the idea of a consultation.’

David Hunt, a director at solar home installer Eco Environments, said the result was a huge embarrassment for the government. He said, ‘The combination of the High Court ruling and the Parliamentary report is hugely embarrassing for the government, but nothing compared to the potential fall-out for an already embattled renewable energy industry. How can our industry sell with confidence to potential customers when we have total uncertainty over the future feed-in-tariff rates? Unless the government gets its house in order very quickly, the solar industry faces months of paralysis. While companies such as Eco Environments welcome the High Court ruling and the select committees’ damning report, these findings have caused a dangerous period of uncertainty which the government must move swiftly to halt.

‘We have never advocated holding the feed-in-tariff rate at 43.3/kWh and a return to this level will simply give the cowboy operators in our industry one last hurrah. Instead the government must move quickly to consult and agree a workable and sustainable new subsidy level while at the same time removing the requirement that every home must achieve the C-rating for energy efficiency in order to qualify for the maximum feed-in-tariff level going forward.’

Richard Goodfellow, energy partner at Addleshaw Goddard, added, ‘Whilst yesterday’s High Court ruling is a victory for those in the solar industry, the reality is that it will simply lead to a delay in the cuts to the feed in tariff for solar from 43.3p to 21p per kWh of energy generated. A delay would however allow a more reasonable timescale for installations to be completed before the tariff is reduced. Cutting the tariff from 12 December despite the consultation on reductions to the tariff not ending until 23 December was always likely to result in hostility from those in the solar industry. However, the cost of PV cells has significantly dropped over the past year and it is appropriate for the subsidy levels to be reduced. This should enable the Department for Energy and Climate Change to instead allocate higher subsidies to those renewable technologies which are at a less developed stage.’

Copyright © 2011 NewNet

A court ruling will mean airlines outside Europe will have to pay for their carbon emissions when entering the skies above the bloc.

Europe’s highest court has ruled in favour of taxing all airlines despite strong objections from the US, today’s Financial Times said.

Earlier this week, NewNet reported that Secretary of State Hilary Clinton had joined calls against imposing the measure on US airlines.

The European Court of Justice has, however, ruled that imposing carbon tax on airlines outside of the EU does not infringe the sovereign right of other nations.

Copyright © 2011 NewNet

UK solar companies and Friends of the Earth have won their case against the coalition government’s planned cut to the feed-in tariff (FIT), with a judicial review finding the measures to have an illegal ‘effective date’.

The Royal Courts of Justice ruled that it was unfair to impose a cut to the FIT from 12 December when the review consultation period is yet to close.

The consultation is due to finish on 23 December, two weeks after the lower rate was due to come into force and the case against it was launched by HomeSun and Solarcentury.

Daniel Green, CEO of HomeSun, said, ‘There are so many winners who will benefit from this decision: the solar industry with its 35,000 jobs and 3,000 companies, which may now be saved and continue to contribute over £230m in tax and PAYE to the Treasury; the British public who have embraced solar like no other energy efficiency technology and it is a win for honesty over illegality.’

He added, ‘The losers here are the big energy companies who don’t want to see homeowners producing their own energy but just want us to pay more and more to them; and also those who appear to be their allies, [Energy Secretary] Chris Huhne and the Department for Energy and Climate Change. He has been caught with his hand on the steering wheel of this unlawful action, believing that he can push through legislation at any cost without due consultation and he should not be allowed to pass the blame.’

Climate Change Minister Greg Barker said, however, that the government would appeal the decision.

He said, ‘We disagree with the Court’s decision. We will be seeking an appeal and hope to secure a hearing as soon as possible. Regardless of today’s outcome, the current high tariffs for solar PV are not sustainable and changes need to be made in order to protect the budget which is funded by consumers through their energy bills.’

Copyright © 2011 NewNet

The Kingdom of Bahrain is evaluating a plan to create an energy agency dedicated to renewable energy and conservation.

The consideration has been spurred by the United Nations Development Program (UNDP) initiatives and the potential new organisation would work in close partnership with the UNDP. Together they would aid the development of solar and wind energy projects in the country.

According to Energy Minister Abdulhussain Mirza, Bahrain has already made significant steps to improve energy efficiency and has worked to conserve large quantities of gas. In addition, the Natural Oil and Gas Authority and the Electricity and Water Authority are currently looking to develop alternative energy projects.

Copyright © 2010 NewNet

UK energy regulator Ofgem has called for industry feedback on proposals to change the formula that sets transmission charges for electricity producers using the high voltage grid.

Under the present system, generators pay more to transmit power the further they are from heavily populated areas. Ofgem has suggested to essentially keep that format, but added it wants to shift the formula in order to take into account how the power is produced, as well as the frequency the network uses to transmit power.

With its fast-growing renewable sector and ambitious clean generation targets Scotland stands to gain a lot from these suggestions. Wind farms located in the north of the country, a location heavily favoured for wind energy developments but sparsely populated, could see reductions of up to 60 per cent in the amounts paid for using the network.

This would help to strengthen the investment case for installations in the area and should also help to encourage the immature marine power industry, which has a big presence in the country.

Fergus Ewing, Energy Minister for Scotland, said, ‘Scotland has the best renewable energy resources in Europe, with a quarter of Europe’s tidal and offshore wind potential and a tenth of its wave power. That is why we have set an ambitious, but achievable, target of the equivalent of all of Scotland’s electricity needs to come from renewables by 2020, as part of a wider balanced energy mix. This will make a major contribution to the UK’s renewables obligation.

‘The locational charging approach means that generators in the north of Scotland, often with the most significant renewables resource, face the highest transmission charges in the UK, while those in other parts of the UK are subsidised. I welcome the findings of Ofgem’s report showing that they now accept that the status quo is no longer an option. The current unfair system of transmission charging will and must change and I urge industry players in Scotland to respond to the consultation.’

One option that is off the table is the possibility of charging a standard rate regardless of location. Ofgem argued this would lead to an increased cost to UK consumers of around £7bn, without creating significant additional benefits. It said that its suggested changes ensure the cost of transmission is limited for households.

In comparison to their Scottish counterparts, producers in South England currently receiving payments would see their level of support drop. Others currently getting payments from the National Grid will begin to face charges.

A final decision is set for April 2012. This will be followed by National Grid tabling proposals to change industry rules, with the new regime potentially coming into force in 2013.

Hannah Nixon, senior partner for transmission at Ofgem, said, ‘The current formula was designed for a different era when Britain’s power all came from conventional sources like coal and gas. The mix of generators producing power is changing rapidly. More renewable and low carbon generators are connecting to the grid. So the charging formula needs to be updated to reflect the new realities of the generation mix. Renewable generators with a variable output are not using the networks continually. The formula needs to reflect this to ensure their charges are fairer.’

Copyright © 2011 NewNet

A key tax credit is set to expire in the US and is putting its wind energy sector in jeopardy.

The production tax credit (PTC) is set to come to an end at the close of the year and is only currently available to projects that are operational before 31 December 2012.

Key lobbyists the American Wind Energy Association (AWEA) aimed to get the PCT included in a set of legislation that is due to go through before the end of the year encompassing a wide range of tax provisions.

But they have now failed and CEO Denise Bode has warned that time is running out to keep the wind energy industry buoyant going forward.

‘We are disappointed that an extension of wind energy’s key federal tax incentive was not included in this bill,’ said Bode. ‘The clock is ticking, business decisions are being made and some damage is certain.’

She did say, however, that she was hopeful that action could be taken early in the New Year.

‘American manufacturing jobs are coming back, with tens of thousands of new jobs from wind power,’ said Bode. ‘But these jobs could vanish if Congress allows the PTC to expire, in effect enacting a targeted tax increase, and sending our jobs to foreign countries. Congress must act as early in 2012 as possible to keep this American manufacturing success story going.’

The PTC is equivalent to $0.021kWh for the first ten year’s of a projects operation and as such makes installations much more financially viable.

A recent report cited by AWEA has found that with a stable tax policy the wind industry can grow to almost 100,000 US jobs over the next four years, including growing the wind manufacturing sector by one third.

International businesses with an interest in the US wind space have also been involved in the lobbying but to date to no avail. Danish wind turbine manufacturer Vestas has called for the PTC to be extended stating that it has been a significant driver of growth for the sector.

Martha Wyrsch, president of Vestas-American Wind Technology, said the PTC is not extended, hundreds of US wind-industry suppliers employing thousands of people also would be affected.

‘An extension of the PTC is necessary for the continued employment of the 80,000 people working in the US wind industry,’ said Wyrsch. ‘Wind energy has grown dramatically in the past several years, creating a manufacturing renaissance in the US, and the PTC has been a significant driver in that growth. The jobs at stake, which include 20,000 people in the US wind industry’s manufacturing sector and technical jobs throughout rural America, are skilled-labour positions with competitive wages and medical and retirement benefits.’

Since 1999, the PTC has received short-term extensions seven times, and has lapsed three times so it is not unlikely that the New Year could bring revised hope. But with US politics moving away from the agenda, those with an interest in the sector will have to stay active – and loud – to ensure action is taken.

Copyright © 2011 NewNet

The US said it will take action against European plans to impose carbon taxes on international airlines.

According to today’s Financial Times, tension over the issue is rising around the world and US Secretary of State Hilary Clinton has called for the European Commission to halt its plans.

She has written a letter ‘strongly urging’ them to step its plan to charge any airline flying into the bloc for their carbon emissions saying that if it goes ahead ‘appropriate action’ will have to be taken.

Now European airlines have said they are fearful of any retaliatory action.

Copyright © 2011 NewNet

There has been a record level of investment into Scotland’s renewable energy sector over 2011 with Energy Minister Fergus Ewing stating it has been the best ever year for its development.

According to industry figures cited by the government, the year to October 2011 saw a record breaking £750m of investment being plunged into the country’s clean power generation efforts.

In addition, there is a pipeline of proposed projects worth an estimated £46bn with 17GW of generating capacity.

Ewing said, ’2011 has been an exceptional year for renewable energy in Scotland – truly the best year yet – and I am proud to be Energy Minister at such an exciting time.

‘We have seen momentous progress towards our goal of generating the equivalent of 100 per cent of Scotland’s electricity needs from renewables by 2020.’

Scotland currently has 7GW of renewable energy projects operational, under construction or consented.

Copyright © 2011 NewNet

Disgruntled investors in the UK’s small-scale solar market have won a legal step in their battle to stop subsidy cuts.

A High Court ruling has granted in favour of venture capital trusts (VCT) and enterprise investments schemes (EIS) wanting a judicial review of the cuts.

A review has been set for 20 December, according to reports, and may overturn a cut that came into force on 12 December.

Companies involved in the court proceedings include HomeSun, Friends of the Earth and Solarcentury.

The EIS and VCT market flourished when the small-scale solar tariff came into force in April 2010 but has suffered from the investor uncertainty caused by changing government policies.

Copyright © 2011 NewNet

A number of high-profile companies have called on the European Commission to give a boost to the bloc’s falling carbon trading prices.

European allowances fell to their lowest ever level on Wednesday prompting a dozen international firms to demand action.

According to the Financial Times, they called for the withholding of allowances – due to enter the market in 2013 – to address the oversupply many fear.

In addition, the group, which included Phillips and Royal Dutch Shell, should also rethink policies that distort the market, the report said.

Copyright © 2011 NewNet

The UK’s Electricity Market Reform (EMR) has moved a step closer to reality to today with a technical update released by the Department of Energy and Climate Change.

The update sets out details of the government’s decision to legislate for a capacity mechanism in the form of a capacity market, which it said has been designed to ensure consumers receive continued energy supplies and avoid higher prices.

It also sets out the government’s view that the system operator – which is part of the National Grid – best meets the criteria for delivering the feed-in tariff with contracts for difference.

At its launch, Energy and Climate Change Secretary Chris Huhne said, ‘Today marks a milestone in delivering the reforms we need to move to a low carbon economy while keeping the lights on and costs for consumers down.’

He added, ‘We want to give certainty to investors to develop the mix of clean energy sources that will power the UK in the years to come.’

The move has been welcomed by power operator the National Grid.

Nick Winser, executive director of the National Grid, said, ‘We welcome today’s announcement and look forward to playing our part in delivering government policy on EMR. There is still a lot of work to do, but we believe we are well placed to deliver these changes that will help provide secure and reliable energy supplies into the future.’

Copyright © 2011 NewNet

UK households are expected to suffer from price rises to energy bills partly due to carbon emissions-saving measures being implemented by the government, a new report has found.

A study by the Committee on Climate Change found that the amount of the energy bill that supports low carbon investment is expected to rise to 20 per cent from the current standing of eight per cent, according to today’s Financial Times.

But the report did find that wholesale gas prices are the primary reason behind the price hikes.

Much of the low carbon funding is being spent on energy efficiency measures, the report said.

Copyright © 2011 NewNet

A recent study led by the UK Committee on Climate Change (CCC) concluded that bioenergy has the potential to produce ten per cent of the UK’s demand but an expert has suggested that current incentives are encouraging the wrong type of use for the renewable fuel.

The ten per cent figure is significantly up on the current two per cent, making bioenergy a crucial component in meeting the country’s 2050 emissions targets. But getting to this point will not be easy. James Greenleaf, senior consultant at Redpoint Energy, an organisation involved in the CCC study, told NewNet that there are many challenges in developing a sustainable, large-scale UK bioenergy sector.

Greenleaf said, ‘The key thing from the UK’s perspective is that the amount of bioenergy we need for the 2050 emissions target means a very large proportion will need to be imported. We are not going to be self-sufficient in bioenergy supply, as we just do not have the land area for that. The scenarios the CCC was looking at actually included the transport emissions from importing bioenergy crops to the UK to try and understand the impact of this. This is trying to highlight that actually it’s not a completely zero carbon resource and we need to be careful in how we produce it and how we account for the emissions that go along with it.’

As well as considering the emissions impact of transporting crops for bioenergy, and the affect on the food supply in the countries producing those crops, the research also tried to look at the effects of different possible uses of bioenergy. The study suggested that current incentive proposals may encourage the wrong type of usage.

Greenleaf said, ‘At the moment the government is proposing slightly higher credits for dedicated new bioenergy plants and slightly lower [Renewable Obligation Certficates] for the conversion of existing coal-fired plants to use biomass. But from the modelling work looking at all the options simultaneously, actually using bioenergy in new power plants, without carbon capture and storage, was one of the least desirable options. It’s potentially something the Department of Energy & Climate Change needs to think about in its policy review.’

Building new bioenergy plants from scratch is currently one of the least sustainable ways of using bioenergy, according to the research. But this could change with the development of new technologies.

Greenleaf said, ‘There were a number of options whose desirability is dependent upon whether or not carbon capture and storage is commercially and technically feasible. If it is feasible, using bioenergy with carbon capture and storage for electricity production could be quite a desirable use because it can produce negative emissions credits.’

Ultimately one of the best usages is through conversion of what is already there, as this mitigates the majority of emissions from the building process and generally replaces a fossil fuel technology. This could be particularly significant given the number of UK coal plants expected to close within the near future.

Greenleaf said, ‘In terms of the existing stock, the modelling showed that actually converting part of the existing stock to co-fire or enhanced co-firing is actually relatively cheap and a good way of implementing the renewable targets, even if you do not have CCS. Trying to convert the existing stock we have got is quite a cost effective way of using bioenergy.’

Copyright @ 2011 NewNet

Members of the House and Senate for the US state of Illinois have voted in favour of extending its biodiesel blending programme.

Bill 397 lengthens the closing date for the biodiesel state sales tax incentives to 31 December 2018, it was passed by 44 votes to nine. With the extension in place, any fuel blend that contains more than ten per cent biofuel will continue to be eligible for fuel tax exemption.

Between 2004 and 2010 in Illinois, the biodiesel industry generated household income worth $1.5bn, as well as accounting for more than $2.6bn of the state’s gross domestic product.

Daniel Oh, president and CEO of bioenergy company the Renewable Energy Group, said, ‘On behalf of our employees, vendors and customers, Renewable Energy Group applauds the Illinois legislature for promoting green collar jobs, Illinois agriculture, rural economic development and sound environmental policy. Since Illinois’ inception of the B11 blending credits in 2004, more biodiesel has been blended in Illinois annually than in any other state. By extending the biodiesel tax abatement for B11 and higher blends through 2018, the Illinois legislature showcases its commitment to more than 1,500 green collar jobs in the state.’

Copyright © 2011 NewNet

Large energy companies that have access to important consumer information such as energy bills are likely to be the ones responsible for implementing the UK’s Green Deal initiative project but are in the dark as to their exact role, an industry expert told NewNet.

Jayesh Parmar is in charge of the energy advisory service at consultancy Baringa Partners and helps major utilities adapt to changing regulations and policies.

Parmar said, ‘Typically the supply companies are a good mechanism for government to use to get these policies implemented in the industry. Utilities first and foremost, would like to see clarity, definition and firmness of the proposals. At the moment there is much uncertainty and that is stopping the utility companies from taking major investment decisions.’

It is a time of huge opportunity for UK utilities, especially given that they have had difficulty adopting to the new, deregulated energy market. The UK utility market is facing an all time low in consumer confidence and many energy suppliers have had trouble differentiating from competitors on factors other than price. Policies centred on retrofit upgrades, however, represent a chance to develop unique offerings.

Parmar said, ‘The advent of smart metering is going to represent a huge opportunity to those suppliers who get it right, and that is because the nature of the consumer proposition is about not just selling kWh or molecules of gas. It’s about providing an energy service to the house as well as an information service that allows appliances to be controlled, and the timing and supply of energy to be controlled on the most cost-effective basis for consumers. That revolution is just beginning.’

Parmar also advises players from energy-intensive industries that are being strained by rising prices that are only expected to go up. The Green Deal is geared to helping these businesses as well but considering the nature of what those companies’ activities, Green Deal-initiated processes and upgrades are likely to take time to affect savings.

To help these companies further, the recent Autumn Statement announced £250m to be released in 2013 to mitigate the impact of rising energy prices. Although recognition of the issue is regarded as helpful, the administration process and size of capital may limit its effectiveness.

Parmar said, ‘It’s seen as very positive and especially the fact the government seems to have recognised that energy processes, and particularly the cost of greening our energy generation, is likely to impose a significant burden on the major energy consumers. What remains a concern is the scale of the funds that have so far been announced is relatively small in comparison to the total cost of energy for these major consumers. The second aspect is that there is quite a lot of uncertainty still about the mechanism of which major consumers this could apply to and how this would be rolled out.’

Copyright © 2011 NewNet

Canada has revealed that it will now leave the Kyoto accord to save it from losing potentially billions of dollars in penalties.

According to the Financial Times, Environment Minister Peter Kent made the decision within hours of returning from the climate change conference in Durban.

He said, ‘Kyoto – for Canada – is in the past. As such, we are invoking our legal right to formally withdraw.’

Canada was one of the initial proponents of the Kyoto Protocol in 1997 but has since fallen back on compliance measures.

Copyright © 2011 NewNet

The Head of Planning for the Welsh Assembly Rosmary Thomas has stated the country’s government will review all renewable energy applications processed by the planning system since 2005. But experts are already beginning to call its effectiveness into question.

The review will be conducted with the aim of determining how long the system takes to produce decisions, with in-depth research looking into several cases. Information obtained through the study will be used to form the basis of a strategy that will allow the Welsh government to ensure that ‘we get our house in order.’

Thomas said, ‘We need to dispel the myth that Wales isn’t open for business in terms of energy projects. We want to find out where the blockages are. What are the problems? We will commission that research as soon as possible.’

But players within the Welsh cleantech sector have questioned the effectiveness of this review to address the problems holding up projects in Wales.

Nick Evans, partner at legal advisers Bircham Dyson Bell, said, ‘If the review only looks at those planning applications that were completed, not the ones that are currently in the system, it risks missing out on the most difficult cases. Almost by definition the applications that are still ‘live’ are probably the ones that are ‘stuck’ and taking the longest time to progress. Clearly, this will clearly skew any results.’

He added, ‘Furthermore, the planning system has just had a significant overhaul where applications for large projects go to the IPC, and as it stands at present, there is only one Welsh renewables application that has been submitted via the new planning system. A review of the old system has therefore almost become irrelevant given the new planning regime that’s just been put in place. It seems odd timing for the Welsh government to consider the review at this juncture, and it’s not clear what they hope to achieve.’

Rob Tate, managing director of independent Welsh wind energy developer West Coast Energy, recently spoke to NewNet to explain issues within the country’s planning system. The creation of specific areas for all wind energy projects, he said, has caused difficulty for smaller developers within the sector, with limited grid access also a major concern.

Gerry Jewson, chairman of West Coast Energy, also said more action needs to be taken. He said, ‘West Coast Energy welcomes the First Minister’s statement that Wales is open for business and wants to maximise the generation of electricity from low carbon sources, including onshore and offshore wind energy. However, whilst we understand that the Welsh government cannot act unilaterally with respect to the Renewables Obligation and large infrastructure projects, it does have the ability to take action in respect of sub 50MW planning applications.

He added, ‘West Coast Energy has long argued that wind farm policy in Wales, dominated as it is by the Strategic Search Areas of TAN 8, fails to allow for the development of smaller projects outside of these boundaries. It is here that innovative community partnerships offer the greatest opportunity to maximise community involvement in wind farms, whilst also providing wider benefits to the Welsh economy. This opportunity needs swift action to change the planning and consenting process if it is to be realised.’

Copyright © 2011 NewNet

A last minute breakthrough may finally have been reached at the United Nations climate change conference in Durban last week but sceptics are already questioning whether it will be too little, too late.

The amendment of the Kyoto Protocol and creation global climate commitments were the biggest achievement of the United Nations climate conference in Durban, South Africa. An organisation called the Ad Hoc Working Group on the Durban Platform for Enhanced Action has been formed to develop an international treaty that will follow the extinction of the Kyoto Protocol.

Christiana Figueres, executive secretary of the United Nations Framework Convention on Climate Change (UNFCCC), said, ‘This is highly significant because the Kyoto Protocol’s accounting rules, mechanisms and markets all remain in action as effective tools to leverage global climate action and as models to inform future agreements.’

The proposed new treaty will differ from the previous one as it is designed to be globally adhered to, rather than the present form of just including industrialised countries. A deadline of 2015 has been agreed upon for the new framework to be created, with targets coming into force in 2020. Some have argued, however, that the delay in implementation could be costly.

Steve Sawyer, general secretary of the Global Wind Energy Council, said, ‘At some point, diplomacy and short term national interests must come face to face with the facts. Action which does not begin until after 2020 will be too little too late, and we will lock in three degrees Celsius or more of temperature rise, with disastrous economic, social and human consequences.’

It is also significant that nothing concrete has been agreed on other than by those already signed up to Kyoto. For example, China recently indicated it would be willing to sign some form of agreement, but is expected to be reluctant to commit to terms that could harm its economic growth.

It also emerged that countries have begun contributing money to the Green Climate Fund, with a view to making it ready for 2012. The financing is designed to aid developing nations implement renewable solutions and adapt to the challenges of climate change. A 20-member Standing Committee consisting of developed and developing nations will be created to monitor the distribution of climate finance.

A 16-member group called the Adaptation Committee has been set up to monitor the success of the strengthening of countries abilities to adapt to climate change. The poorest and most vulnerable countries will be monitored most closely, in an effort to better protect these nations against extreme weather conditions.

In addition, an advanced framework has been created for the monitoring of emissions from both developed and developing nations, looking to take into account the differentiated responsibilities of each country. The governments meeting in South Africa agreed to fully implement measures announced at lat year’s summit in Mexico that will support the up-take of renewable technologies in the developing world.

Figueres said, ‘This means that urgent support for the developing world, especially for the poorest and most vulnerable to adapt to climate change, will also be launched on time.’

Although there was agreement in many areas, it was admitted that pledges to cut emissions will not be enough to keep global average temperature rises below two degrees Celsius. Attending countries decided that ambition will have to be strengthened in future, and this will be led by climate science in the Intergovernmental Panel on Climate Change’s Fifth Assessment Report and global review, taking place between 2013 and 2015.

Copyright © 2011 NewNet

A global deal to extend the life of the Kyoto treaty and create new targets could give a vital boost to faltering carbon markets, according to bankers and analysts.

Countries represented at the United Nations climate conference in Durban agreed to keep the parameters of the Kyoto treaty until 2015, with a new system to follow obliging all countries to make emissions reduction commitments, regardless of wealth.

This should help to boost carbon trading, particularly in Europe the world’s largest market, where prices have plunged to record lows in recent weeks following the eurozone crisis and fears of oversupply.

Nations at the Durban summit also agreed to the creation of a $100bn fund to help developing nations implement cleantech solutions, it was reported in the Financial Times.

Copyright © 2011 NewNet

The UK’s water management industry is to undergo a dramatic shift with laws regarding the mergers of competing companies relaxed.

In a change to way it is run now, each business will also be able to choose between suppliers, according to the Financial Times.

Under new rules, mergers will no longer have to be referred to the Competition Commission.

A number of cleantech innovators have been targeting the traditionally conservative water management space in the hope of making it more efficient and less wasteful.

Copyright © 2011 NewNet

Amid the global climate change discussions taking place in Durban this week, host country South Africa has announced the winning preferred bidders for its first round of renewable energy tenders.

This includes about 630MW of wind projects and about the same amount of solar photovoltaic projects. In addition, it has started the ball rolling on 150MW of concentrating solar power projects.

Over the next two years, the country expects to add a further 2.2GW of clean power to give it energy security for its power-hungry population and mining sector and help it reduce its reliance on emissions-heavy coal.

The move has been welcomed by many participants around the world.

Steve Sawyer, secretary general of the Global Wind Energy Council described the moment as lift-off.

‘The South African government is to be congratulated for taking the first step towards putting this country in a position to lead the energy revolution in Africa.’

The country’s Integrated Resource Plan – which was brought into law in 2010 – calls for 8.4GW of wind power over the next 20 years, which is set to stimulate a thriving industry.

‘Much of sub-Saharan Africa has tremendous wind and solar potential, a dynamic and growing economy and severe water shortages; perfect conditions to grow a renewable energy industry. We hope that South Africa will be the hub and driver of that development,’ said Sawyer. ‘Thousands of new high quality jobs and billions in investment based on the development of clean indigenous energy sources will provide a major boost to the fledgling economies in the region.’

The country’s Department of Energy has stated that the country’s goal should be to generate 42 per cent of all new electricity from renewable energy sources over the next 20 years.

For the grid connection request for proposals along, it has received 300 applications.

In total, 28 preferred bidders have been named with the list including local renewable energy projects and power installations. But there are a lot of allocations still available, presenting open opportunities for businesses interested in this space.

Helping to push forward the space further is a fund launched by Investec and the European Investment Bank, which was also launched at the Durban United Nations Climate Change talks.

With this new €100m facility, EIB and Investec have become equal partners and each contributed €50m.

Investec’s Fazel Moosa said, ‘We are delighted to be announcing this facility which has the potential to help the government and industry transform South Africa’s renewable energy efforts. Investec’s significant global and local experience in project finance for the renewable energy space as well as its current investment pipeline were instrumental in bringing this deal together. We are convinced that our expertise, coupled with the funding the EIB is providing will support the growth of a green economy in South Africa.’

Speaking before the event, Christiana Figueres, executive secretary of UN Framework Convention on Climate Change (UNFCCC), said despite the lack of media attention the talks have a central aim in finding a way past the end of the Kyoto Protocol.

She said, ‘The Kyoto Protocol is the only legally binding treaty the world presently has to combat climate change, and it is important that governments safeguard what they had worked on so long to agree and develop, and what has proven effective. This includes, for example, the rules that guarantee transparency of effort to reduce greenhouse gases and market mechanisms that allow industrialised countries to partly achieve their emission reduction goals by investing in clean technology in developing countries.’

Today, UK Energy Secretary Chris Huhne said the world must signal that the objective remains a legally binding global deal.

‘Nothing else will provide certainty for the businesses and investors who are building the next generation of homes, vehicles and power plants. Nothing else will close the emissions gap, delivering the carbon cuts we need to keep global warming within two degrees. Nothing else will show our determination to meet the climate challenge as fairly and as fully as possible.

That is why the UK, with our EU partners, remains a firm advocate of a global legally binding agreement within the UNFCCC. We want all countries to commit now to a comprehensive global legal framework, and to complete negotiations on it by 2015 at the latest.’

Copyright © 2011 NewNet

German Federal Environment Minister Norbert Rottgen has committed €15m to Grenada and Mali to help the countries implement programmes designed to mitigate the impacts of climate change.

Mali will receive €10m and Grenada €5m, both countries are strongly affected by climate change and particularly vulnerable to storms, floods and droughts. The funding announcement was made at the United Nations climate change conference in Durban and accompanied by the signing of a joint ministerial declaration

Both countries have adopted integrated adoption strategies that look at combinations of solutions. They are looking at areas such as water management, coastal defence and agriculture.

Copyright © 2011 NewNet

Xie Zhenhua, head of the Chinese delegation at the United Nations Climate Change conference in Durban, has said that Beijing was prepared to agree to some form of legally biding emissions target.

This could probably not happen before 2020, when the current round of pledges expire, and five conditions would have to met to guarantee China’s involvement, according to the Financial Times. These include the European Union (EU) and other countries signing a new round of legally binding assurances under the Kyoto Protocol, as well as developed countries financing poorer nation’s attempts to deal with climate change.

Zhenhua also said expectations would have to be realistic as to the capabilities of developing states in tackling this issue and added that these conditions are not new. Although not a decisive action, other leaders should be buoyed by a Chinese official talking openly and positively on this subject.

Copyright © 2011 NewNet

US President Barack Obama has unveiled $4bn of public and private sector funding for energy efficiency upgrades to buildings over the next two years, the campaign is called the Better Buildings Challenge.

The investment includes a $2bn commitment to improvements of federal buildings using long-term energy savings to pay back initial capital expenditure. A further $2bn has been pledged by 60 CEOs, mayors, university presidents and labour leaders for efficiency improvements and to upgrade energy performance by a minimum of 20 per cent by 2020 in 1.6 billion square feet of office, industrial, municipal, hospital, university, community college and school buildings.

The announcement follows a commitment made by 14 partners at the Clinton Global Initiative America meeting in June to invest $500m for efficiency upgrades across 300 million square feet of real estate.

Obama said, ‘Upgrading the energy efficiency of America’s buildings is one of the fastest, easiest, and cheapest ways to save money, cut down on harmful pollution, and create good jobs right now. But we can’t wait for Congress to act. So today, I’m directing all federal agencies to make at least $2bn worth of energy efficiency upgrades over the next 2 years – at no up-front cost to the taxpayer. Coupled with today’s extraordinary private sector commitments of $2bn to upgrade businesses, factories, and military housing, America is taking another big step towards the competitive, clean energy economy it will take to win the future.’

Copyright © 2011 NewNet

The UK could be the first country to give customers the facility to choose their airline based on emissions and other environmental factors.

The Civil Aviation Authority (CAA) published draft legislation in November that would force airlines to publish information regarding emissions, efficiency and other sustainability factors, it was reported in the Financial Times.

Many airlines already publish emissions data, but without an industry standard there is little clarity over who performs better and the CAA is proposing a comparison-website style measure that would provide transparency to the market.

At this stage it is unclear whether airplane operators will be judged on emissions per aircraft or per traveller, and whether other factors such as capital expenditure on alternative fuel research will be taken into account.

Copyright © 2011 NewNet

The task of rebalancing the UK economy away from carbon is well-progressed and is set to result in greater energy security and the development of new innovative technologies, according to the UK government’s recently released Carbon Plan.

Emissions in the UK must by law be cut by at least 80 per cent on 1990 levels by 2050. The UK was first to set its ambition in law, with binding carbon budgets spanning successive Parliaments to give the necessary certainty to investors. The Carbon Plan sets out progress to date and assesses cost-effective next steps.

It shows that UK emissions have already been cut by more than 25 per cent on 1990 levels. In addition with the policies already in place the economy will significantly exceed the 34 per cent target set for the first 15 years under the Climate Change Act, and would have done so even if the recession had not occurred, according to UK Energy and Climate Change Secretary Chris Huhne.

Meeting the fourth carbon budget of a 50 per cent cut in emissions by the mid-2020s will not have any additional cost implications during this Parliament, but beyond that will require a decade of mass deployment of key technologies, he said.

‘Publishing the Carbon Plan sends two crucial messages. To the negotiators in Durban working this week and next to make progress on a global agreement on climate change, the Carbon Plan shows the UK is walking the walk, demonstrating that it can be done and living up to our promise to show climate leadership.

‘To the public and businesses at home, rightly worried about the cost of living and state of the economy, the Carbon Plan shows that the gradual rebalancing of our economy away from carbon is achievable and, in the long run, highly desirable.

‘Every bit of progress we make is one more step away from import dependency, away from price volatility and from the emissions that threaten our way of life. Our national economic interest is to be found in a cost-effective transition to low carbon, to an economy that is more resilient, innovative and efficient.’

The Carbon Plan plots out a number of plausible future scenarios. It takes what DECC describes as a ‘pragmatic, no regrets approach’ to sequencing the transition to low carbon, keeping as many technologies in play as possible and exploiting normal replacement cycles to avoid infrastructure or equipment becoming prematurely obsolete.

Copyright © 2011 NewNet

Yesterday UK Chancellor George Osborne announced the Autumn Review and National Infrastructure Plan, highlighting how the coalition government will attempt to prevent a double dip recession and accelerate growth and job creation.

Here are opinions from UK business on what effect the proposals should have on the UK cleantech sector;

Jae Mather, director of sustainability at HW Fisher & Company, said, ‘In claiming that social and environmental goals shouldn’t be a burden to business, the Chancellor has misconstrued the essence of sustainability, which is about reducing companies’ costs and helping them to manage the risk of rising energy prices. Also, larger companies increasingly want their supply chains to be made up of ethically sound businesses and those that fail to meet their criteria will potentially lose out. We encourage any initiatives that will reignite the UK’s [small to medium enterprises], but growth and sustainability are by no means mutually exclusive.’

John Scott, who sits on the energy policy panel of the Institute of Engineering and Technology (IET), said, ‘With an aging energy infrastructure and an urgent need to change the way we generate and use energy, the publication of the National Infrastructure Plan comes at a crucial time. The focus on interdependence of infrastructure systems is particularly welcome. However, the IET cautions that this needs to be considered at the design stage to maximise the opportunities for smart infrastructure, not just at the installation stage. Our future energy infrastructure has to be designed as a system of systems, requiring joined-up thinking across different sectors. Crucially, it needs a new engineering approach to address the uncertainties of the future, which will include a more statistical design and new skills across disciplines.’

Mark Payton, managing director of Mercia Fund Management, said, ‘The further increases in tax relief and the widening of the eligibility rules will make EIS investments into early stage high growth businesses even more attractive, particularly given the low levels of interest currently available on savings. This is not just good news for investors but it will potentially make a significant difference to the funding of such businesses and to the economy as a whole. We are also pleased that the Chancellor has recognised the vital importance of high technology firms in this economy, not only by improving the EIS reliefs but by continuing to support science funding and by widening the eligibility for [research and development] tax credits, all of which will further benefit the companies in which the fund will look to invest.’

Elin Twigge, environmental account director for Political Lobbying and Media Relations, said, ‘Importantly for the renewables sector, part of the [National infrastructure Plan] funding was earmarked to deliver improvements to both ‘waste facilities’ and ‘power stations.’ However, digging further into the supporting documentation, it appears that it isn’t green power that the Chancellor is championing. He cites a single renewable project, the recently consented Anglesey biomass power plant, alongside a host of coal and gas-fired developments. So, despite reiterating commitments to the Green Deal and creation of the Green Investment Bank, it is clear that in uncertain economic times, a low carbon economy is not this government’s most pressing priority. Instead they are reducing the tax burden on energy-intensive industry. A clear industrial policy is emerging, but is it more grey than green?’

Copyright © 2011 NewNet

The UK’s Autumn Review today has confirmed a £200m incentive for the Green Deal but has missed a major opportunity in centering the country’s economic recovery around sustainable development.

The government’s flagship energy efficiency programme, the Green Deal, has received £200m to go towards incentivising its take up – as was previously announced – but Paul King, CEO of the UK Green Building Council said a major chance has been missed.

He said, ‘Buried in the Autumn Report is confirmation that government is committing £200m over two years to incentivise take up of the Green Deal. That’s great news and a huge victory for DECC, although we still have to wait until next year for the detail.’

He added, ‘However, we’re kidding ourselves if we think [Chancellor] George Osborne has seen the light.

References to sustainability in the National Infrastructure Plan don’t seem to be part of any kind of overarching strategy. This was an opportunity missed to put green growth and green jobs at the heart of economic recovery.’

Copyright © 2011 NewNet

Moving to a low carbon economy would only affect the UK’s 2030 GDP by one per cent, a leading expert has said, saying it is a small price to pay to combat climate change.

Speaking at a recent NewNet event, David Kennedy, CEO of the Committee on Climate Change said steps need to be taken now to make sure the country hits the UK’s legally binding climate change targets.

The Committee on Climate Change advises the UK government on its carbon budgets and strategies to meet these targets.

He said, ‘In 2030, GDP should be only one per cent less if we are to care about carbon compared to a business as usual scenario. As we have always argued, it is a cost worth paying given the costs and risks associated with dangerous climate change.’

He added, ‘The implication of the 2050 target is that we should be aiming for a 60 per cent emissions cut on 1990 levels by 2030.’

Kennedy said the committee and the government recognised that costs are key but stressed over the next five years these can be kept to a minimum.

The rise in consumer energy prices over the past year has forced the issue into the spotlight and into the mainstream press but Kennedy insists these rises are down to gas prices, with low carbon investments forming only a minimal part.

‘At the moment, energy bills only include a very small component for low carbon. If we implement all the energy efficiency measured there is an opportunity to reduce energy consumption to a level greater than the financing needed for low carbon investment.’

And, while businesses have spoken out against any additional taxes on emissions, Kennedy said the majority are already covered under European legislation with only a handful such as aluminium and some chemicals companies for which the policy needs to be reassessed.

‘There is a group of companies that account for one per cent of GDP, one per cent of employment and 15 per cent of emissions. Most of them have very generous protection under the EU trading scheme and there are only a handful we are concerned about.

Copyright © 2011 NewNet

This week the UK Department of Energy and Climate Change (DECC) launched a consultation for the eagerly anticipated Green Deal, a programme designed to help households and commercial buildings employ energy efficiency measures. NewNet spoke to several companies in the energy efficiency and building sectors to gauge initial reactions to the proposals.

The idea is the government will cover upfront costs with consumers paying back the loan out of savings in their utility bills. Dave Farebrother is Environment Director for Land Securities, one of the largest commercial landlords in the UK and has mixed thoughts as to what the policy will mean for the country’s building stock.

Farebrother said, ‘We applaud the intensions of the Green Deal, it is clearly a flagship instrument for them and they have recognised that existing buildings are the problem. Previously most of the focus has been on new developments and that is only around two per cent of the stock, so it’s existing buildings that have to be tackled. Clearly one of the issues in improving existing buildings is finance, so they have recognised the problem and have done something about it.

‘I think it is likely to work quite well for households, it’s likely to work for quite a few owner-occupiers in commercial buildings, it may even work for single tenants in rental buildings where they have got a long lease. However, something like 50 to 60 per cent of the commercial market is rental property with more than one tenant. The problem with those buildings is not really the finance because, particularly for the larger landlords, we have the money to carry out works. So finance, which is what the Green Deal provides a solution to, is not the issue.

‘There are a lot of multi-tenanted buildings where the initial electricity bill is paid by the landlord and then allocated to the tenants through sub meters. As the cost of the Green Deal is going to be allocated to the utilities bill, the occupier does not actually have a utilities bill to add it too, so it is quite hard to see how the mechanism will actually work.’

Garry Worthington is head of Green Deal at the energy consultancy Climate Energy. He said, ‘The publication of the Green Deal and Energy Company Obligation (ECO) consultation document represents a significant milestone in the development of these revolutionary and unique schemes. Working in tandem, Green Deal and the ECO will drive the demand for improving the energy efficiency of our housing stock and businesses, and will create a practical framework for delivery both nationally and locally.

‘We are particularly pleased to see the proposal to appoint a Green Deal oversight body and an ECO administrator, and hope these two organisations will promote and facilitate regional and local Green Deal schemes to benefit local communities and businesses, and create new employment opportunities. Climate Energy welcomes the opportunity to shape these two important and exciting schemes, and will be participating in the consultation process.’

Adrian Pike is managing director of energy efficiency retrofit specialist Anesco and said the concept of the Green Deal as a whole is ‘absolutely right’. Pike said, ‘Looking at a variety of technologies to green-up our housing stock and our commercial buildings is the right thing to do and not just sticking microgeneration in – that’s not going to solve the problem and it’s not sustainable to do it that way either. For me then the issue is; is the money sufficient, and I don’t think it is, and secondly how is it really going to be funded.

‘If you take someone with a house, they borrow money from an energy company to have measures put on their house that they pay through their energy bill. When they come to sell their house – that debt sits with the house not you. If someone was then buying the house with that debt, they would see that as reducing the value of the property – it would not be a benefit. So residentially for me that’s the elephant in the room.

‘When you then get into social landlords, you are talking about tenants that are generally fuel poor, so they are the ones we should be addressing. For a credit risk point of view they are probably a higher credit risk. Is that section of society going to laden themselves up with debt to save money in a property they don’t own? These are the two big issues.’

Copyright © 2011 NewNet

The UK Department of Energy and Climate Change (DECC) has announced that from 28 November organisations will be able to apply for the new non-domestic renewable heat incentive (RHI).

Applications are to be made through energy regulator Ofgem and qualifying applicants will receive support through quarterly payments over a 20-year period. The initiative is aimed at helping companies and public sector entities switch to the use of renewable technologies for heating and hot water.

Tim Minett, chief executive of UK wood pellet supplier CPL Distribution, said, ‘We are relieved by today’s announcement. There is no denying that the delays to the Renewable Heat Incentive’s launch knocked confidence among board-level decision makers and a large number of projects to install renewable systems have been stalled as a result. On the basis of our own dealings, and feedback from biomass boiler manufacturers, we believe there are at least 250 major investment projects currently in limbo.’

He added, ‘This should allow us to convert expressions of interest into real signed contracts, and businesses and the public sector will then start to see the real and substantial savings this incentive scheme will deliver. It should deliver some new jobs which are much-needed in the current market. With the delays now behind us, this green light for the Renewable Heat Incentive will be a significant stepping stone in the UK’s transition towards a low-carbon economy.’

The scheme was originally scheduled to commence in September but there was a last minute change of plan following complaints from the European Commission that the incentives were too high.

Copyright © 2011 NewNet

A study conducted by energy consultants Element Energy has suggested the UK government’s proposed cuts to the solar feed-in tariff (FIT) will destroy 29,000 jobs and cost the treasury up to £230m annually in lost tax revenue.

The investigation was commissioned by Friends of the Earth and the Cut Don’t Kill campaign and stated the sector currently provides £275m to the government from employment taxes and VAT, with even more coming through corporation tax.

Howard Johns, of the Cut Don’t Kill campaign, said, ‘The government are forging ahead with a cut which is going to cost the Treasury a fortune, as well as devastate a thriving industry. It is madness at a time when David Cameron’s priorities are deficit reduction and delivering growth to enact a proposal which will make the deficit and the economic situation worse. This study shows that the tariff cut is utterly counterproductive for the Government – added to which tens of thousands of workers are facing redundancy before Christmas. This was meant to be the greenest gvernment ever, but if they push ahead with their plans they will become famous only for shooting themselves in the foot.’

Andy Atkins, executive director of Friends of the Earth, added, ‘Government plans to slash solar incentives will devastate a thriving industry and pull the plug on thousands of jobs. In a time of economic gloom, the solar industry has been one of the UK’s brightest success stories, enabling homes and communities across the country to free themselves from expensive fossil fuels. We believe the gvernment’s proposals are not only wrong, they’re also illegal – which is why we are taking Ministers to court.’

Earlier this week,managing director of Ploughcraft Chris Hopkins spoke to NewNet explaining why he feels the impact of the cuts is being overstated. He suggested job losses in the sector will not be as severe as many expect and that it will mainly be the newer companies in the market who experience difficulty.

Copyright © 2011 NewNet

Businesses in the UK are set to suffer from escalating energy costs due to green policies.

The Financial Times reports that power charges for businesses will increase by 19 per cent before 2020 but this figure is less than what was forecast a year ago due to the renewable heat incentive being funded due to general taxation not a levy on fossil fuel suppliers.

Governmental officials argue this price rise is less than the 26 per cent that it forecast one year ago.

Yesterday, Energy and Climate Change Secretary Chris Huhne laid out details of the Green Deal consultation, which aims to result in energy efficiency improvements of the country’s housing stock.

Copyright © 2011 NewNet

UK Energy and Climate Change Secretary Chris Huhne has launched a consultation on the heavily anticipated Green Deal initiative, designed to help households implement energy efficiency measures without having to pay upfront costs.

The plan is for every home and business in the country to be able to install packages of energy saving technologies with repayments for the installation made out of energy savings. Standards will be implemented to ensure cowboy builders do not make money from the scheme without benefitting the consumer. By 2020 household energy bills should be reduced by an average of seven per cent or £74.

The Department of Energy and Climate Change (DECC) said the scheme will kickstart £14bn of investment over the next decade, supporting at least 65,000 insulation and construction jobs by 2015. It also said safeguards will be implemented to help small businesses to get involved with retrofits so deals will not be dominated by larger companies.

One proposal is a requirement for energy companies to provide an annual £1.3bn to ensure everyone is able to benefit from the Green Deal, regardless of income or the type of property they live in. Additional help will be available to ensure those living in fuel poverty get better boilers and improved insulation with subsidies provided to help tackle houses that are more difficult to retrofit.

There will also be up to £150 cash back for participating households to make the scheme more attractive, the intention is to fund this through private sector Green Deal finance.

Huhne said, ‘The Green Deal is about putting energy consumers back in control of their bills and banishing Britain’s draughty homes to the history books. By stimulating billions of pounds of private sector investment, the Green Deal will revolutionise the way that we keep our homes warm, making them cosier, more efficient and all at no upfront cost. The Green Deal is also a massive business opportunity for firms up and down Britain, helping to power the economy and creating jobs. From one man bands and local authorities, to the big supermarkets and DIY stores, we want as many providers getting involved as possible because that’s what will give consumers the best deal.’

He added, ‘I want to insulate Britain’s homes not just from the cold weather, but also from the chill winds of global fossil fuel prices. It’s these that are pushing up consumer energy prices, and it’s why our balanced package of policies aimed at achieving energy savings and shifting to more home grown alternatives is the right one for the economy and all of us who pay energy bills. There are certainly costs to replacing our ageing energy infrastructure with modern clean power stations, and we take very seriously any impact of our policies on what consumers and businesses pay. We’ve repeatedly taken steps to reduce this – by removing some planned levies on bills and making others more cost effective and within budget. But a crucial – and too often ignored – priority of our whole strategy is to reduce the amount of energy we use in our homes.’

Copyright © 2011 NewNet

The Green Energy Act in the Canadian province of Ontario, established in 2009, has attracted huge private sector investment and stimulated job creation while contributing to a significant reducing in the use of fossil fuels.

The ruling Liberal government that introduced it has recently been re-elected and the party claims the introduction of the policy has attracted C$20bn ($19bn) into the region and predicts the creation of more than 50,000 jobs by the end of 2012.

Much of this is coming under criticism from the fossil fuel lobby with the feed-in tariff (FIT) for solar coming under particularly heavy scrutiny. Chris Asimakis of local company Potentia Solar spoke to NewNet to explain his stance on the issue and some of the success the region has had in advancing the cleantech cause.

Asimakis said, ‘No industry is subsidised more than the fossil fuel sector and a lot of those costs are hidden. It’s very important that people realise that every time you fill up your car with petrol, that you are paying heavy subsidies to the oil sector and every time that you use natural gas in this province to heat your home that you’re paying a heavy subsidy to natural gas suppliers. That is the fundamental visual problem with the feed-in tariff system, I definitely prefer the carbon tax but that is not very popular in Canada at all, but that would have been the right way to address it.’

Asimakis suggests a further way of increasing the transparency of the system in place would be to publish proposed FIT declines over a five-year period and enshrine those declines in law. He said this would help to stimulate more efficient ways of using solar and speed up the rate at which parity can be achieved.

It may not be as far off now, especially when you factor in the fact that Ontario uses more electricity in the summer, with significant air conditioning use throughout the province.

Asimakis said, ‘That power is very expensive because the demand is so high and the supply is restricted, therefore taking off demand at peak times is a very valuable thing. At this point in Ontario we do not have a transparent market, but if we did I would suggest that the price of peak power in the summer in Ontario is over 20 cents and if solar power continues the growth as it has been, we will reach grid parity in the next five years or so, in some countries it is already at grid parity.’

The Green Energy Act also allowed Ontario to reduce its dependence on imported fossil fuels. As the province does not have any of its own, its energy policy was dependent on imports and therefore causing money to flow out of the state. The new policy created new opportunities for energy to provide skilled jobs in the energy sector that otherwise would not exist.

Asimakis said, ‘I’m a big supporter of the notion of domestic content, I would be happy if they increased that domestic content requirement in the province. Its not just jobs that are being created, these are jobs for young engineers, they are good jobs, the type of jobs that you want your province to attract and your country to attract, these are high-skilled engineers who are coming out of school who have learnt about renewable energy and learned about these technologies.’

Copyright © 2011 NewNet

Fresh ceiling limits on how much renewable energy could be installed on individual UK households may come into force as the government aims to counteract criticism provoked by the changing solar tariff.

According to today’s Financial Times, putting tight limits now may mean the government avoids the PR disaster it has witnessed by its plans to halve small-scale solar subsidies on 12 December.

Energy Secretary Chris Huhne is now believed to be considering the idea of scrapping feed-in tariffs that are fixed for a period of time altogether.

Instead of this system, the FT said government officials are considering implementing a ceiling limit on how much households can install.

Copyright © 2011 NewNet

The proposed cut to the solar feed-in tariff (FIT) in the UK will not spell the end of the sector as some are predicting, but it will make it extremely hard for young businesses in the market, according to one expert.

Ploughcraft has been installing residential solar systems in the UK since 1996 and has experienced huge changes in available technology and public appetite. Managing director Chris Hopkins told NewNet he is not worried by the proposed changes, but is more concerned about the timing of the announcements and the sector’s readiness to cope.

Hopkins said, ‘Technology has halved in price and installation costs for people like myself have halved, so they have halved the [FIT]. It makes economic sense to halve it, it’s the timing that has really upset people. We knew we had to cut it, but not as quickly and by as much as what they have done – it’s six weeks, no one can react in six weeks.’

Installers new to the market will not be in a financial position to cope with the pace of change. The rapid growth UK solar has experienced in recent times is likely to be stalled, with bankruptcies and job losses an inevitability.

With the new 21 pence FIT rate in place Hopkins said homeowners will be able to receive a nine per cent return on their investment, still enough to interest the public, but a more modest cut to 29 pence gives a 12 per cent return that would help to continue to stimulate the market and encourage its growth.

Hopkins said, ‘There will be a lot of [companies] that have just entered the market and don’t have our efficiencies, if you have just started in the solar industry it is very tricky; it is very scientific and you need a lot of skills. A lot of those companies will vanish because they won’t be able to cope with the [FIT] being cut in half, but companies like ourselves will go on because we already have the infrastructure, we already have the efficiencies and we know how to do the work so we will continue to be sustainable.

‘My company will not experience massive job losses – we are already selling at the new rate of 21 pence, we already have orders for January and February. It will affect us, I anticipate our turnover shrinking by about 25 per cent, but some companies who have just entered this market might vanish because they have not been around as long.’

Sustainability is always welcome but so is job creation and competition. Hopkins estimates that there are around 50 solar businesses that will be able to whether the storm, out of more than 4,000 registered installers throughout the country.

The cuts may also have the unexpected effect of getting rid of some of the more negative aspects of sector’s rapid expansion, which is perhaps less tightly regulated then more established industries.

Hopkins said, ‘There has been, especially in the last six months, a lot of what I call scam cowboy merchants popping up and there are a lot of horror stories around people being ripped off, taking deposits and then vanishing and I think this cut will get rid of those companies as well, I think it will get rid of the scam merchants.’

Copyright © 2011 NewNet

Malaysian Prime Minister Datuk Seri Tun Razak has announced the launch of a National Biomass Strategy that will include the creation of an international Oil Palm Biomass Center (OPBC).

The facility will aim to bring international partners together with local Malaysian businesses and academic institutions. It will look to develop processes for highly-valued chemical products such as bio-plastics. In addition, researchers at the OPBC will look at ways to integrate nutrient recycling to improve soil quality and sustainable practices.

Rop Zoetemeyer, CTO of bio chemical company Purac, said, ‘We support the National Biomass Strategy and aim to develop raw materials for the production of lactic acid and lactides needed for the strongly growing market of bioplastics. It is essential that we take sustainability serious and the approach of OPBC has therefore our full support.’

Copyright © 2011 NewNet

A new US coalition consisting of 369 members has been launched calling on Congress to extend by four years the wind energy industries principle federal tax incentive, the Production Tax Credit (PTC).

The association includes a broad range of organisations including the National Association of Manufacturers, the American Farm Bureau Federation, the Edison Electric Institute, the Western Governors’ Association, United Steelworkers and many members of the environmental community.

The PTC is a tax incentive designed to encourage the development of clean energy sources while keeping electricity rates low. For wind energy the subsidy is set to expire next year with the coalition saying this will lead to job Closes as well as significant potential new sources of revenue for struggling farmers.

A letter to Congress, signed by all members, concludes, ‘Now is not the time to increase taxes on wind energy. The PTC should be extended for at least another four years so that American know-how can keep producing domestic clean energy. When the PTC has expired in the past, installations have dropped between 73 and 93 per cent, with corresponding job losses. An expiration at this time would jeopardise this new American manufacturing sector.

‘The next few years are critical to ensure that properly sited wind energy is a viable part of a balanced domestic electricity portfolio. We look forward to working with you to continue creating economic opportunities for American communities through clean, affordable, and homegrown wind energy.’

Copyright © 2011 NewNet

Dutch transmission company TenneT has written a letter to German government organisations the Federal Chancellery, the Federal Ministry of Economics and the Federal Environment Ministry, advising them against the further construction of cables in the North Sea for offshore wind projects

The company said that it, along with its offshore partners, has reached the limit of human, material and financial resources for underwater transmission. It said that it has made ‘exceptional’ efforts in the connection of offshore wind farms, has invested several billion euros and is at the limit of capacity in preparing for nine more developments in the region.

TenneT said it will carry on already authorised projects as planned but said further connections are not possible under current conditions and speed of connection required. It said that in order to maintain the pace of new offshore lines and keep up with the rate of new offshore facilities, regulatory changes would need to be made.

TenneT has asked the government in Germany for a discussion of adjustments to the regulatory framework and connection procedures with all offshore partners and the Federal Network Agency.

Copyright © 2011 NewNet

The US Department of Agriculture has funded a series of projects to convert biomass to energy through USDA’s Rural Energy for America programme (REAP).

The funding concludes 2011 biomass project funding assistance for a total of 52 projects with just over $31m in grant and loan note guarantees through the Rural Energy for America Program.

Deputy Agriculture Undersecretary for Rural Development Doug O’Brien said, “The Obama administration is assisting cooperatives, small businesses, farmers and ranchers, as they work to reduce their energy costs. When energy costs are reduced, American rural businesses become more competitive, allowing them to expand and create jobs.”

NC-CHP Owner I, LLC of Asheville, North Carolina, received a $5m loan for the installation of a combined heat and power system in Montgomery County. The system will generate steam by using a boiler system powered by wood chips and will also generate 5.25 million kWh of electricity per year.

Also in Montgomery County, applicant EWP, LLC will receive a $146,000 grant to install equipment at an existing hydroelectric plant so it can be reopened. The project has the potential to generate an estimated 2.8 million kWh per year.

This support helped to leverage a total of $154.5m of biomass project development in 26 states, according to USDA.

The funding is contingent on the recipient meeting the conditions of the grant or loan agreement. REAP grants can finance up to 25 percent of a project’s cost, up to $500,000 for renewable energy systems and $250,000 for energy efficiency improvements.

Copyright © 2011 NewNet

Firms representing the climate markets currently valued at $120bn have called for great regulatory clarity and consistency from global governments in their approach to climate change and emissions legislation.

Geoff Sinclair, head of carbon trading at Standard Bank said, ‘It is vital that governments outline new and effective agreements to follow the Kyoto Protocol. We need to see a significant commitment to enable and encourage investment in a low carbon future. The Clean Development Mechanism is a hugely successful incentive for developing countries to develop in an environmentally friendly way. Standard Bank is increasingly involved in CDM projects across the world, and as a leading player in developing and emerging markets, we are calling on governments in Durban to agree the continuation of this important programme.’

The first period of the Kyoto Protocol that currently provides the international framework for how countries together tackle climate change ends in 2012 and governments have yet to agree on what follows it.

The lack of clarity has already resulted in capital flight. Investments in projects that bring down carbon emissions in the developing world have fallen from a high of $7.4bn in 2007 to $1.5 bn in 2010. Figures for 2011 are widely expected to reflect a further decline.

‘A successful response to climate change will be defined by policies that succeed in meaningfully engaging private capital. Our specific suggestions for Durban therefore include further improvements to the Clean Development Mechanism, ensuring that the Green Climate Fund is operationalised and has an explicit strategy to attract private capital, and a formal recognition that countries can use all forms of finance, including markets, to reduce emissions from deforestation and forest degradation,’ said Abyd Karmali, global head of carbon markets at Bank of America Merrill Lynch.

Miles Austin, director of the Climate Markets & Investment Association (CMIA), added, ‘In Durban, it is incumbent upon governments to demonstrate their willingness to address climate change by laying out a clear roadmap for how and when a successor framework to the Kyoto Protocol will be achieved, in a manner that could accommodate and recognise efforts at any scale from regional up to global, and set a level of ambition that, in contrast to the current pledges, will actually enable us to limit the average global temperature rise to two degrees Celsius as heads of state have previously agreed in Copenhagen and Cancun.’

Copyright © 2011 NewNet

Fourteen investors and energy companies are seeking hundreds of millions of euros in damages resulting from the current Spanish government’s retroactive changes to the tariffs for existing solar photovoltaic (PV) electricity generation installations in December 2010.

The group are making the claims under the Energy Charter Treaty (ECT), a multilateral investment treaty designed to protect long-term energy investments. This is only the second time that the ECT has been invoked against a Western European country, with most of the claims previously brought against former communist bloc States.

The 14 investors bringing claims against Spain are primarily global investors and energy companies who are committed to renewable energy and whose capital is provided by pension funds and individual investors from around the world. These pension funds cover the retirement of hundreds of thousands of workers from Europe and the rest of the world.

The investors invested in Spain’s PV sector in reliance on the stable long-term revenues promised by the Spanish Government through Spain’s renewable energy feed-in tariff laws. However, Spain dramatically cut the feed-in-tariff in December 2010 after the investors had already committed approximately €2bn to build or acquire PV projects. The investors collectively hold investments in over 270MW of PV projects in Spain.

The investors’ formal demand for arbitration follows requests made by the investors in March 2011 for an amicable resolution to the dispute. After the current Spanish Government rejected a potential legislative solution in March 2011, it became clear to the investors that their only available option was legal action. The current Socialist Government subsequently rejected the investors’ request for an amicable resolution to the dispute during a face-to-face meeting in June 2011.

The multinational group of investors participating in this action include AES Solar, Ampere Equity Fund, HgCapital, Element Power, Impax Asset Management, KGAL GmbH & Co KG, NIBC European Infrastructure Fund, Whiteowl Capital, Eoxis, MPC Capital, MEIF Luxembourg Renewables and several others.

The investors collectively manage over $30bn on behalf of more than 70 pension funds and other institutional and individual investors collectively responsible for over $3tn in global capital assets.

Copyright © 2011 NewNet

Securing long-term finance for renewable projects in Europe is going to get even harder with the implementation of the Basel 3 financial regulations, according to experts.

The future of renewables in Europe, especially in the north of the continent, is shifting offshore as the availability of suitable sites on land for large-scale projects dwindles. But capital requirements for this type of technology are extremely high and necessitate long-term commitments from financial institutions. Elements within Basel 3 – such as the need for bigger capital reserves – mean that funding these massive projects will get harder for banks to push through.

James Donaldson is head of the power team at Investec, which has not done any deals in the offshore space yet. He said, while speaking at NewNet’s Envirotech and Clean Energy Summit last week, it would consider investing in the sector but that constraints over the coming years may make this tricky.

Donaldson said, ‘The developers and companies need to appreciate the pressures that the banks are under. Over the next six to twelve months and thereafter, we are going to see a shift towards shorter tenures, higher pricing, high coverage ratios and possibly lower gearing as well in response to continuing pressure on the banking market. That does not necessarily mean deals won’t get done, but people have to be more realistic about what terms are going to be available from banks over the next few years.’

Capital drying up further in the banking sector is not good news for cleantech developers, especially with governments in the region struggling with huge debts of their own.

Gareth Miller, head of renewables and natural resources for project finance at Barclays Corporate, said some government lenders, such as the UK’s soon to be capitalised Green Investment Bank, can play a significant role in stimulating the lending markets for renewables but only if they are prepared to take on more risk then a traditional commercial lender.

Miller said, ‘We are going to need to see some kind of quasi-sovereign, multi-lateral intervention whether that’s through large mezzanine slices or first loss insulation to de-lever the deals for genuine senior participation. That would seem quite a sensible thing to do if people are serious about hitting the targets by 2020, if they are not then we have to let people get used to these risks organically and the capital markets will come when they are ready. Once you get one or two deals away all of a sudden a floodgate will open and you will start to see more come to market. It is just getting those first couple of deals away where governments are probably going to have to take more risk then they are prepared to do right now.’

This will also have the knock-on effect of making it more difficult for new players to enter the market, especially with untested technologies such as marine power. Lenders will gravitate towards what they know works and generates a return, both for the equipment and project managers.

Alejandro Ciruelos, vice president of project acquisition finance for Santander’s energy division, said, ‘There will still definitely be appetite to lend to the clean energy sector on a project finance or senior debt basis, but it’s probably going to get tougher not only for the sponsors but for the banks as well. The approach of banks will more selective, so those who have already built up relationships with banks over the years will probably be on the safe side – the ones looking to raise capital for the first time will be prove more complicated.’

Copyright © 2011 NewNet

Leaders of countries in the Asia Pacific Economic Forum (APEC) have agreed to phase out subsidies for fossil fuels and have set up a reporting mechanism to track the progress.

Although there was no timescale set for the removal of incentives the countries involved, including the US, have committed to an raising the energy intensity reduction target to 45 per cent by 2035.

In addition, APEC members will create a list of environmental goods that contribute to green growth and sustainable development and have resolved to reduce applied tariff rates on these products to five per cent or less by the end of 2015. The list is expected to include technology such as wind turbines, solar panels and tidal energy devices.

APEC economies also pledged to eliminate non-financial barriers such as local content requirements which can distort the trade in cleantech goods and services.

Those in the green energy sector should be buoyed by the news even outside of the APEC region. Last month, a NewNet analysis showed that fossil fuels have been receiving increasing subsidies with the sector gaining $500bn in government support last year, the equivalent figure for renewables is around $60bn.

Copyright © 2011 NewNet

Scottish Energy Minister Fergus Ewing has called on the UK government to make Scotland the base for the Green Investment Bank (GIB). This follows on from last week when the UK chancellor George Osborne announced that half of the £200m Fossil Fuel Levy Fund would go to Scotland to invest in renewable energy with the other £100m being made available to support the capitalisation of the GIB.

Ewing said, ‘The Scottish government has presented the strong business case for the [GIB] to be based in Edinburgh. There has been cross-party support for this in Scotland and our proposals are clearly aligned with the essential components outlined by the UK government. Scotland’s case is now even stronger, given that half of Scotland’s Fossil Fuel Levy resources – some £100m – will help to capitalise the [GIB].

‘Edinburgh is recognised internationally as a centre of excellence in financial services and Scotland is at the forefront of innovation in project financing for renewables initiatives. Last month Edinburgh again hosted the Scottish Low Carbon Investment Conference attracting key players from the world of international finance and industry, as well as government, gathering to debate and work through the challenges and opportunities that come with the global shift to low carbon. This demonstrates the growing reputation of Edinburgh as a centre for green finance and a place where new and innovative ways of supporting the development of the low carbon market can, and are, being developed.

‘This week we welcomed the long overdue announcement on Fossil Fuel Levy. We have consistently pressed the UK government to deliver a solution that accelerates the release of this funding for renewable energy projects and over £100m additional funding is now available – vital funding to support further renewables investment and make the Green Investment Bank a reality for ongoing support. Scotland has made significant progress in developing a GIB operating model through Scottish Enterprise and the Scottish Investment Bank, and details have been passed to the UK government – we believe that Scotland would offer an excellent location.

‘Establishing the GIB in Edinburgh would not only be in line with UK government policy to spread business opportunities more evenly across the UK, but it would also makes commercial sense to base it in a city that is blazing-a-trail in the energy sector and has a historic reputation for financial services excellence.’

Copyright © 2011 NewNet

UK employee organisation the Confederation of British Industry (CBI) is set to criticise the government’s decision to cut the fee-in tariff for solar in a speech to be made by the director-general of the organisation. At the CBI East Midlands Annual Dinner John Cridland will say the low carbon sector risks being derailed by the unexpected changes with the potential for thousands of jobs to be lost.

Cridland will say, ‘Competitiveness needs to be policy priority number one. We need to give investors confidence to put their money into growth here not abroad. Take the low-carbon sector, which has been growing across the world throughout the recession. We need to expand our share.But last week the Government announced a dramatic cut in the solar feed-in tariff. A reduction was already on the cards from 1 April, but this will now come in by mid-December – before the consultation has even ended. This is the latest in a string of government own goals, following the Carbon Reduction Commitment becoming a pure revenue-raiser and the North Sea oil and gas tax.

‘Some companies have invested heavily in solar photovoltaic systems, and in the supply chains needed to install them. That commitment has been undermined by the feed-in tariff decision – and so industry trust and confidence in the government has evaporated. This bodes poorly for investment in future initiatives.A new industrial policy needs to recognise the real-time costs of these decisions, and should set out a clear path that investors understand and can believe in.’

Copyright © 2011 NewNet

The European Environment Agency (EEA) has released a report on transport emissions with a roadmap listing suggestions for a set of quantitative targets for vehicle emissions.

The report showed that in 2009 emissions from transport fell, but the EEA attributed this to the recession putting downward pressure on demand and consumption.

Total energy demand for transport fell by four per cent from 2007 to 2009 but an upward trend is expected with the resumption of economic growth.

The study showed emissions from transport accounted for 24 per cent of European Union (EU) greenhouse gasses in 2009.

The roadmap suggests EU member states by required to reduce transport emissions by 60 per cent by 2050 compared to 1990 levels. As emissions increased 27 per cent between 1990 and 2009, the EU will have to make a 68 per cent reduction from 2009 to 2050 to meet this target.

Alternative fuelled cars have seen an increasing take-up and in 2009 accounted for five per cent of the total. The majority of this was through liquefied petroleum gas (LPG) with electric vehicles (EV) making up 0.02 per cent.

The EEA calculated the average price of unleaded petrol or the equivalent, including tax, was is €1.14 per litre in June 2011. This is a 15 per cent increase in real terms from 1980, or an average annual rise of 0.5 per cent. Based on these findings the report concluded price signals were not making a strong enough impetus to encourage more efficient transport choices.

Copyright © 2011 NewNet

Investors in the cleantech industry have called on the worlds’ governments to adopt consistent long-term policies in order to stabilise the market.

Countries such as Spain and Germany have experienced a boom and bust-type scenario in their solar sectors as a result of changes to feed-in tariffs (FIT) for the technology.

Solar companies in the UK are expecting a similar situation with anticipated changes to the FIT announced recently.

But solar is not the only technology under review, as squeezed governments seek to reduce budget commitments by cutting support for the renewable sector. Investors have urged policy makers to start thinking about the long-term consequences of shifting subsidies to achieve short-term fiscal goals.

Peter Young, chairman of the Aldersgate Group, told NewNet, ‘We need to recognise that all of the support mechanisms are really for a demonstration of the technology rather than a long-term, sustainable plan for the industry. It is there to support renewable technology and make it competitive with traditional technologies in the short run.

‘We also have to look at a way of closing the gap between stating the intent to change the policy and then doing it because rumour has a way of taking over in this period and negatively impacting investment into the industry.’

Inconsistent policy messages cause problems in developing long-term projects with companies finding it increasingly difficult to attract investment because financiers are uncertain about the returns they can expect.

Rory Quinlan, managing director of Capital Dynamics, said, ‘When you start changing FITs it spreads to other regions and investors get scared. It also reinforces the idea that the [renewable] industry can only survive with subsidies, but fossil fuels actually receive far more support.’

The recognition that the fossil fuel sector receives public support has largely been ignored in government debates regarding the cleantech industry.

With a consistent approach to renewables there are some technologies that have the potential to become economically viable without public money in years, rather than decades.

For example one expert recently suggested that given current trends in prices solar could reach grid parity in three to five years time.

Despite recent changes many expect cleantech to still play a significant role in job creation.

Ben Warren, Ernst & Young, said, ‘Government’s role going forward will be supporting inward investment, whether that will be through tax benefits or relief and we will start to see government’s competing with each other for this investment.’

Copyright © 2011 NewNet

The UK’s Department of Energy and Climate Change (DECC) is currently looking at how to deliver the biggest household energy efficiency drive the country has ever seen.

The Green Deal initiative is expected to be implemented towards the end of 2012 and has an ambitious target of renovating 14 million homes by 2020, leading to a 29 per cent reduction in carbon emissions produced by UK housing stock.

Keepmoat works closely with the public sector to deliver new social housing and make improvements to existing homes. It renovates between 40,000 and 50,000 houses a year and was recently involved in the construction of a zero carbon housing estate near Wakefield. Nigel Banks is head of energy and sustainable solutions at Keepmoat and he spoke to NewNet to explain some of the challenges for companies working in this space.

Banks said, ‘In terms of new build housing and aspiring to higher energy standards the cut to the funding for the [Housing and Communities Agency], and also the changes to the standards which social landlords were having to build to, means most landlords are going back effectively to minimum standards. Although there are still a number of landlords we work with still looking to build to a higher standard.’

The combination of budget cuts and an impetus on increasing housing volumes is what Banks attributes to the lower standards in construction being taken up, although he did stress many social landlords were still aspiring to higher than required building codes.

Another major issue facing the sector is the proposed changes to the feed-in tariff (FIT) levels for photovoltaic (PV) installations. Under the existing tariffs housing associations were able to obtain third party finance for a rooftop project and still generate some money for other building renovations, but with the proposed new incentive scheme this could be over.

Banks said, ‘We were due to fit something like 10,000 panels before April, so it was a significant part of our business this year. If social landlords could obtain the 21 pence FIT then there is potential to be able to fit systems where landlords are borrowing, unfortunately the third party investor model may not stack up unless the local authority or housing association are willing to borrow the finance themselves. Certainly at 16.8 pence, which is proposed for multi-roofs, it won’t happen it’s just not viable.’

This is a big concern for the potential effectiveness of the Green Deal as rooftop solar has the potential to make a huge contribution to reducing household consumption, but without the right support it will not be viable.

Another fear that Banks raised is the potential for the proposed Energy Company Obligation, part of the government’s strategy to make energy providers help with affordable heat and tackle fuel poverty, may not apply to social landlords. Therefore the most vulnerable households, the ones the Green Deal aspires to help, may receive no real benefit when the initiative is introduced.

Banks said, ‘Hopefully the Green Deal will help in some ways with the financing mechanism but it won’t help cover it all. So we need a significant Energy Company Obligation, we need a FIT which will work for social landlords under the Green Deal and a renewable heat incentive which will make heat pumps for off gas properties viable. If all the policies work together as they were originally intended we should see properties brought up to a very high installation and energy efficiency standard. If the policies aren’t quite right it could be really slow to get going and that’s our big concern at the moment – what has happened with the FIT doesn’t engender a lot of confidence the Green Deal is going to take off to the level they’re expecting.’

Copyright © 2011 NewNet

The introduction of the proposed new feed-in tariff (FIT) levels for solar power in the UK could see more than half of companies in the sector cut staff numbers by 50 per cent.

Solar is rapidly becoming big business in the UK with 25,000 people employed in the industry compared to just 3,000 around two years ago, according to research seen by the Financial Times.

The Renewable Energy Association and Solar Trade Association surveyed 140 solar businesses employing 4,055 workers, the companies in this group said they were likely to reduced numbers by 1,715 should the suggested subsidy levels come into force. Around 56 per cent said they would have to cut their workforce by half or more.

The new FIT rates were proposed at the end of last month with Climate Change and Energy Minister Greg Barker arguing the current support system is unsustainable. The industry has been quick to react and criticise the move with Scottish Energy Minister Fergus Ewing also expressing concern lat week.

Copyright © 2011 NewNet

The European Climate Federation (ECF) has released a report suggesting that while the existing European Union (EU) policy framework is adequate up until 2020, the decarbonisation process will need to be exceeded in the subsequent ten years in order to meet the target of an 80 to 95 per cent emissions reduction on 1990 levels by 2050.

The Power Perspective 2030 report suggests the power sector can become decarbonised through a combination of a diverse portfolio of renewable energy sources and the increased use of flexible gas-fired plants. It said that in order for this to be achieved, upfront investments in low carbon technologies as well as transmission networks will need to double.

In forming projection on future emissions figures and power production capacity the report takes as a basis the premise that until 2020 existing plans for the power sector will be fully implemented. Moving forward it models a power system based on the achievement of the 2020 generating target of 50 per cent renewable energy in the EU.

According to the report, current power generations and grid plans are adequate to balance the planned power mix in 2020, but this will require significant commitment from member states. An example of the challenge is the 2020 energy savings goal is currently only set to realise half of the desired productivity gains, based on indications by European leaders.

Improvements to the grid will be crucial and Europe’s transmission system operators (TSO) have a ten-year development plan ending in 2020, which proposes an increase in the volume of electricity that can be transported throughout the EU of 64GW, a 30 per cent rise on existing capacity.

This alone is expected to cost €46bn but beyond this investment will have to be stepped up again with the ECF predicting a requirement for the decade after 2020 of €68bn. This will enable the additional of 109GW to the EU’s network, a 50 per cent increase on current capacity. Most of this is allocated to the need for interconnection improvements between countries, but there are also significant internal requirements such as north-west to west Germany upgrades of 10GW and an 8GW addition between the north and south of the UK.

The greater challenge may be the mobilisation of €567bn for the addition of new renewable facilities up to 2020 and the €1,153bn expected to be required the following decade. The report suggests that in order for this to be achieved there may need to be adaptations to the power markets or other measures in order to stimulate investment. It also points towards the adoption of new models in order to finance the transition.

Johannes Meier, CEO of the ECF, said, ‘What this report finds is that the grid is the glue that will hold together our decarbonised power system. We must be more efficient to deliver this in the most effective way, the grid needs to get smart. Only by setting a clear policy direction to 2030 will it be possible to achieve the decarbonisation goal.’

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A flagship energy efficiency policy launched by the UK government is not well suited to commercial buildings, industry experts have said.

Speaking at a London-based event, William Cooper, corporate finance director for commercial property landowner Land Securities, said a number of factors mean the Green Deal scheme is better fitted to residential developments.

‘The Green Deal does not work that well for commercial buildings. The landlord can not charge tenants for improvements, which could cause issues, for example. There are potential problems that result in the commercial landlord seeing a high level of risk without much incentive.’

In addition, he said the economic life of a commercial building is much shorter than with residential housing stock. This means that the economic benefits of Green Deal measures, such as improving the insulation, may not be felt for as many years.

He said that to really kick off the Green Deal in the commercial sector, the development cycle needs to be encouraged. ‘Increasing the development cycle will refresh the efficiency of high-carbon buildings in the UK.’

Peter Cosmetatos, director of policy and finance at the British Property Federation, also warned that there is a high degree of polarisation between the quality of commercial scale buildings and it should not be seen as one homogeneous group.

He said, ‘There are many differences between big corporate commercial stock where the average building lifecycle is managed thoughtfully and over the long-term and the rest, which tends to be tenanted by SMEs.’

‘In addition, this sector of the property stock tends to have a lot of bank debt.’

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The model on which Europe’s clean energy strategy is based has been called into question, putting the economic bloc’s future strategy in doubt.

According to today’s Financial Times, a group of advisers has said the Energy Roadmap 2050 is based on a model developed by a single university in Greece that can not be independently checked.

The specialists have, according to the FT, raised a ‘host of questions’ as to how basing European-wide developments on a model that can not be scrutinised may lead to inevitable difficulties.

Due to the model’s privately-owned status, many critics say it is near impossible to verify.

Copyright © 2011 NewNet

There needs to be ‘joined up thinking’ in the government and in the UK’s building sector if the Green Deal is to be implemented with full effect, a leading industry participant said.

Paul Boreham, group energy manager of Land Securities, said the UK’s proposed Green Deal policy – set to increase the level of energy efficiency measures being rolled out throughout the country – could result in massive benefits but there needs to be more coordination within the government.

‘We want joined up thinking if we are to achieve the government’s green energy policies. The policies are coming together in a bit of a mix,’ he said.

Land Securities is a major commercial property landowner and in the UK its buildings are responsible for 50 per cent of the country’s building-derived emissions.

Boreham said, ‘The Green Deal will provide a benefit to the people who are having trouble accessing the funding.’ But he warned because the debt stays with the property – not the owner – how this will be passed down when the tenant or landlord moves on is still a matter of concern.

‘Energy efficiency makes sense – the bottom line savings are achievable and realistic,’ he said.

Copyright © 2011 NewNet

A unique solar tax proposed for Riverside County in California has met with opposition from the Large-scale Solar Association (LSA), which argues the move would put a number of solar projects and thousands of jobs at risk.

The industry association is urging the Riverside Country Chamber of Commerce to oppose Board Policy B-29, which would create a multi-million dollar tax on solar facilities in the area. The organisation said that proposed utility-scale projects to 2015 will create 7,400 jobs in the area. This is the equivalent of a $50bn payroll and there is also an expected $50m in subsequent permanent operational payroll for an area that suffers from high unemployment.

The proposed tax has been delayed several times while county officials and sector representatives try to reach a compromise on the creation of an additional fee for large-scale solar in the area. Those in favour of the proposal argue that additional impacts of solar projects are not covered through sales and property taxes.

Shannon Eddy, executive director of the LSA, said, ‘The solar industry has always said it would pay its fair share, however, Riverside County has failed to conduct an impact study as requested by several supervisors last summer. We believe a study would reveal that county staff is asking solar companies for an unsubstantiated fee on projects that are already expected to bring thousands of jobs and billions of dollars in taxes and other economic benefits. Because no other county has such a fee, this will move Riverside County out of the market in a highly competitive industry that is driving California to its goal of using 33 per cent renewable energy by 2020.’

Earlier this month, BrightSource Energy unveiled plans to develop three 250MW solar thermal plants in the county and at the end of August NextEra Energy completed financing worth $935m for a 250MW Riverside project.

Copyright © 2011 NewNet

The Energy Minister for Scotland Fergus Ewing has criticised the UK Department for Energy and Climate Change’s (DECC) proposal to cut feed-in tariffs (FIT) for solar energy.

The plan - revealed at the end of last month – would see the FIT rate cut by more than half for residential systems. Ewing also criticised the pace of change, which could see the new rules come into force on 12 December when the industry was initially expecting to have until 1 April 2012 to prepare for the amended subsidies.

The sector is experiencing rapid expansion in Scotland with more than 1,300 installations in September alone. Many social housing projects are also currently underway with an emphasis on using solar to take residents out of fuel poverty

The Glasgow Housing Association has signed a contract to retrofit 500 homes with photovoltaic panels and Dundee City Council is engaging in a similar scheme to renovate 1,000. These projects may be cancelled if the suggested FIT levels come into place.

Ewing has written to UK secretary of State for Energy and Climate Change Chris Huhne to express concern about the proposals.

Ewing said, ‘Cutting the feed in tariff so sharply and with so little warning will have a devastating impact on families and businesses across Scotland. This change will be a body blow both to the blossoming Scottish solar industry, and to thousands of households across Scotland who will lose their chance to escape from fuel poverty. Companies with full order books, who have invested in recruiting and training new staff, including many I have visited in the past few months, will find the carpet pulled from under them, as the numbers on which they have based their business plans are changed, suddenly and without warning. Families in social housing who were expecting to be able to live without dreading their electricity bill will be deeply affected by this change. I urge Chris Huhne to reconsider both the speed of these cuts and how he will prevent those in most need being hit the most.’

Copyright © 2011 NewNet

US President Barack Obama has voiced his opinion on the solar trade dispute with China that began with a coalition of US companies filing a petition against Chinese manufacturers over allegations of dumping.

President Obama said in an interview with Portland-based news channel KGW NewsChannel8, ‘We have seen a lot of questionable competitive practices coming out of China when it comes to the clean energy space, and I have been more aggressive than previous administrations in enforcing our trade laws. We have filed actions against them when we see these kinds of dumping activities, and we’re going to look very carefully at this stuff and potentially bring actions if we find that the basic rules of the road have been violated.’

Following the original complaint, several Chinese companies including Suntech and Yingli have issued statements denying the charges and signalled their intention to fight any assertions of wrongdoing. In response the US group issued a statement outlining the grievances of US solar producers.

SolarWorld is one of the leaders of the US’ Coalition for American Solar Manufacturing and company president Gordon Brinser was encouraged by Obama’s remarks.

Brinser said, ‘The President acknowledged there are a considerable number of questionable trade practices, including dumping, coming out of China. We are heartened to hear that the Administration is looking closely at our case and the President has restated his commitment to enforcing US trade laws.’

Copyright © 2011 NewNet

A European association of biofuel producers has called on the European Commission to act against what it has described as ‘unfair’ imports of fuel ethanol from the US.

With strong targets in the bioenergy sector across the European Union, the demand for alternative fuels has risen sharply since the beginning of the year and a number of international groups have begun to target this space.

But today ePure, the association of European renewable energy producers, has called for direct action to be taken against US subsidies.

Today, the US is by far the biggest producer of ethanol as the government has been encouraging of its development and has propped up growth with strong subsidies.

ePure said this financial support is legitimate as long as it does not hamper growth in other countries.

US ethanol producers are, however, facing a market that is facing saturation, according to ePure, and as such are looking for growth opportunities. It said that from 2008 to 2010 US imports of fuel ethanol have risen by 500 per cent and going forward, 2011’s imports are expected to be twice as high as that witnessed in 2010.

Rob Vierhout, Secretary-General, said, ‘Massive and sudden imports of US ethanol, combined with fairly low prices over the last few years, have seriously damaged the economic situation of European producers.’

ePure has called for the European Commission to investigate these practices, which it describes as ‘unfair’ and said they constitute a serious prejudice to European producers.

Vierhout said, ‘The unfair competition of US imports is simply depriving the EU industry from the benefit of this positive evolution of its own domestic market.’

Copyright © 2011 NewNet

The US Court of Appeals has revoked permission granted to the proposed first ever offshore wind farm in the US, the 420MW Cape Wind project that was due to be located in Nantucket Sound, Massachusetts.

The Court ruled that a no hazard determination by the Federal Aviation Authority (FAA) failed to properly consider the dangers and risks to the operations and safety of the 400,000 flights that go through the area each year. This determination was reversed and the proposed facility now no longer has permission to begin construction.

Audra Parker, president and CEO of the Alliance to Protect Nantucket Sound, said, ‘This represents a major setback for an already struggling project. The decision is further reason for the Patrick Administration to stop its attempts to force the state’s second largest electric utility, NStar, to purchase energy from a project that will never be built. It is time for Cape Wind and the Department of Interior to relocate this project to another site that will not only protect Nantucket Sound, but allow properly sited offshore wind development in a timely way. After ten years, Cape Wind continues to face legal and financial challenges, while better and cheaper forms of green energy are widely available. The free market has shown little or no interest in Cape Wind, the federal government has refused to issue a loan guarantee for the project, and now a federal court has dealt Cape Wind a major setback in rejecting the FAA’s determination.’

Mark Rodgers, communications director for Cape Wind, responded by saying, ‘The FAA has reviewed Cape Wind for eight years and repeatedly determined that Cape Wind did not pose a hazard to air navigation. The essence of today’s court ruling is that the FAA needs to better explain its determination of no hazard. We are confident that after the FAA does this, that their decision will stand and we do not foresee any impact on the project’s schedule in moving forward. Really, today’s court decision doesn’t change things very much because our existing determination of no hazard (the third we have received since we started with this project) was set to expire in just 90 days and we were going to have to re-apply at that time anyway, this lets us begin that process sooner.’

In April, Secretary of the Interior Ken Salazaar granted permission for construction of the 130 turbine development with building expected to begin in the third quarter of this year. Earlier this month Salazar reaffirmed his commitment to offshore technology in the US which has seen NIMBY-ism holding back many proposed US facilities.

Copyright © 2011 NewNet

Changes to water regulation in England will allow 23,800 more businesses in the country to choose their water supplier.

Under the current system, only companies that use 50 megalitres of water per year are able to switch supply. The new proposals by Environment Minister Richard Benyon will cut the threshold to five megalites allowing 26,000 businesses to choose who provides their water, compared with just 2,200 now. The change is hoped to be implemented by the end of this year.

Benyon said, ‘This change will allow a huge number of extra businesses to search out better water deals by switching supplier if their current supply does not work for them. It also highlights the government’s firm commitment to help businesses and stimulate the economy.’

Regina Finn, regulator Ofwat’s CEO, added, ‘Ofwat welcomes the proposed lowering of the threshold, which will bring real benefits to an extra 24,000 business customers. This recommendation was made by Martin Cave in his review on competition in the sector. It is a step in the right direction and good news for qualifying businesses who will welcome greater choice during difficult economic times.’

NewNet recently spoke to Alan Sutherland who led Scotland through a similar transition that resulted in a significant fall in consumption.

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The UK’s Department of Energy and Climate Change (DECC) has proposed new feed-in tariff (FIT) levels for photovoltaic (PV) installations that will significantly cut the subsidy available if they come into force next April.

The change is subject to consultation but for small developments of up to 4kW of size the new FIT level would be 21 pence per KWh, down from the current 43.3 pence per kWh for retrofit installations and 37.8 pence per kWh for new build facilities.

Projects between 4kW and 10kW in size would have support reduced from the current 37.8 pence per kWh to 16.8 pence per kWh and the subsidy for facilities sized 10kW to 50kW will fall from 32.9 pence per kWh to 15.2 pence per kWh.

Developments of 50kW to 150kW in size will receive 12.9 pence per kWh, down from the current level of 19 pence per kWh and facilities with a generating capacity of between 150kW and 250kW will also receive 15 pence per kWh compared to 15 pence per kWh now.

The new tariffs would apply to all new PV installations with an eligibility date on or after 12 December 2011, these projects would receive the current tariff before switching to the new rate in April 2012.

DECC said the changes are necessary to secure the long-term viability of the solar industry in the UK and argued that the current system would cost consumers £980m, or £26 a household, annually by 2014 to 2015.

Greg Barker, Climate Change and Energy Minister, said, ‘My priority is to put the solar industry on a firm footing so that it can remain a successful and prosperous part of the green economy, and so that it doesn’t fall victim to boom and bust. The plummeting costs of solar mean we’ve got no option but to act so that we stay within budget and not threaten the whole viability of the FITs scheme. Although I fully realise that adjusting to the new lower tariffs will be a big challenge for many firms, it won’t come as a surprise to many in the solar industry who’ve themselves acknowledged the big fall in costs and the big increase in their rate of return over the past year.

‘Our proposal for an energy efficiency requirement, as well as the launch of the Green Deal next Autumn, creates a massive opportunity for these firms to use their expertise to get a foothold in this exciting new market. People who are now thinking of installing solar PV need to do so with their eyes wide open and I’d encourage them to call the Energy Saving Trust for the latest advice.’

Last week NewNet spoke to several experts working in the sector who argued that cutting support by the levels discussed would destroy the still immature UK solar industry.

Copyright © 2011 NewNet

The push back against Europe’s plans to charge airlines for their carbon emissions has gained strength with a number of countries outside the European Union (EU) calling for a change to the plans.

In total, 26 countries are expected to come together today to tell the International Civil Aviation Authority that the measure, ‘violates the cardinal principle of state sovereignty’, according to today’s Financial Times.

This is then expected to lead to a formal dispute in the coming weeks.

Europe’s aim is to include emissions from aviation in its next carbon trading period, which begins in January. But while airlines within the EU will receive credits for some of their pollutants, those outside will not.

Copyright © 2011 NewNet

Local authorities in the UK need to take a more strategic approach to collecting waste and form common interest policies in order to develop the sector, according to industry experts.

As new processes are created for managing waste and recycling, technology is becoming increasingly sophisticated and councils throughout the UK must do more to facilitate these new processes, industry leadings said today. Budget cuts have put pressure on councils to focus on the cost of waste collection, rather than the long-term benefits of creating a sustainable farmework.

Kris Wadrop, founder and CEO of waste management company Solvert, said, ‘The politics in my experience with local authorities is very simple ‘what can I do that’s the cheapest’. Their politics are fairly straightforward in that they will adopt the cheapest solution.’

But the drive to do things cheaply is not the only problem holding the industry back as a lack of a clear policy is also hampering the ability for companies to construct new facilities. Often a waste management business will design a plant to process the waste of an area that covers several local authority bodies.

Disconnected policy and the need to duplicate planning applications combined with a general lack of communication can lead to frustration for project developers in the sector. This is particularly evident in the case of Covanta, which has now scrapped plans for a £400m waste processing plant in South Wales in part because of this issue.

Tom Shields, CEO of Sterecycle, said, ‘Local politics is very important for Sterecycle because we operate in sub-regional markets in our various locations and our biggest customers are clearly the local authorities so it’s very important to meet their needs. The frustration in dealing with local politics is that we have far too many local authorities in this country, they don’t cooperate particularly well even in a situation where there are common interests.’

He added, ‘It is interesting that Covanta are withdrawing from a project in Merthyr Tydfil in South Wales citing fragmentation of council policy as one of their main reasons for withdrawing from that, after having invested a vast amount of money getting to the point they were at. There is an issue about getting cooperation and a common approach when you are trying to deal with a range of local authorities in the sub-regional market many of us are dealing with.’

Another issue is the way in which waste is collected. Although this has seen a dramatic improvement in recent years there is considerable differences in how this is managed between local authorities. On top of this many large food producers such as Kraft and Nestle are making the decision to become greener by switching their packaging from heavier cans and glass containers to lighter laminate pouches. There are companies creating solutions to recycle these pouches but due to collection systems they are ending up on landfill sites.

Adam Baddeley, principal consultant at Eunomia Research & Consulting, said, ‘We need more sophisticated collection schemes, we do need to influence the way local authorities are picking up waste and collecting waste. The containers to collect waste has been previously heavily incentivised by tonnage targets, this is now moving much more towards carbon targets, certainly in Scotland and Wales and hopefully in England too. For example, London has its own energy performance standard for waste and hopefully this sort of thing will start to drive change right down the supply chain.’

Copyright © 2011 NewNet