By David Prosser, Business Editor
Monday, 9 May 2011
Manufacturers will today call on the Government to reconsider targets for the growth of renewable energy, following a new report that claims it may be too expensive.
The EEF manufacturers' organisation said warnings that renewable energy would remain more costly than the alternatives for many years to come should prompt ministers to consider other opportunities.
Otherwise, the EEF added, energy users in Britain, including consumers, would be forced to pay higher bills than necessary, while businesses would be put at a competitive disadvantage to international rivals.
The EEF was responding to a report from the Committee on Climate Change, the independent body set up to provide the Government with impartial advice on carbon budgets – as well as to monitor the progress Britain is making towards achieving its climate change targets.
The report said that in 20 years time, a decade after Britain is set to achieve ambitious targets for power from renewable sources, most of these technologies would still be more costly than low-carbon alternatives such as nuclear.
The EEF said the findings should lead to a review of the policy – and ultimately a shift towards an approach that includes more nuclear power, though such a move will be hard for the Goverment to promote in light of the recent problems at the Fukushima nuclear plant in Japan.
The organsation also urged the Government to consider planning for greater use of carbon capture and storage technology which aims to provide cleaner forms of existing power generation, as well as putting a much greater emphasis on energy efficiency.
Steve Radley, the EEF's director of policy, said: "Renewables must play a growing role in our energy mix and we need the right policies to ensure that this happens.
"But we need to ask if the 2020 renewable energy target is leading us down the wrong path."
Monday, 9 May 2011
Solar industry pins hopes on U-turn as feed-in tariff consultation ends
BusinessGreen: Controversial consultation closes today with industry experts warning proposed cuts represent 'disaster' for UK solar sector
James Murray for BusinessGreen guardian.co.uk, Friday 6 May 2011 10.18 BST The consultation on the government's proposed cuts to feed-in tariff incentives for solar projects with 50kW capacity draws to a close today, with industry figures warning that the sector faces "disaster" if the coalition adopts its current proposals.
The consultation documents, which were launched in March, propose deep cuts to feed-in tariff incentives of between 40 and 70 per cent for all solar photovoltaic (PV) installations with over 50kW capacity.
A spokeswoman for DECC confirmed that the consultation exercises had resulted in 370 responses as of yesterday.
Some solar firms focused on small scale domestic panels have supported the government's argument that cuts to the feed-in tariffs available to larger installations are necessary to protect the level of incentives available to households.
But many developers and industry trade groups have submitted responses to the consultation warning that the scale of the cuts will result in a halt to all solar installations with over 50kW capacity.
They have also warned that the way in which the cuts have been proposed ahead of the original schedule for reviewing feed-in tariffs has severely undermined investor confidence in the renewables sector.
Howard Johns, chairman of the Solar Trade Association, said the industry continued to hope that ministers would "see some sense" and drop proposals for deep cuts to incentives that would represent a "disaster for solar in the UK".
His comments were echoed by Leonnie Greene of the Renewbale Energy Association, who said the trade body would continue to "lobby hard" for less swingeing cuts to incentives.
"Our view is that the overall ambition is much too low and the government clearly does not understand the strategic importance of solar," she said.
"We are going back to a scenario where a few wealthy green home owners can install solar, when we want to be widening access to solar, particularly through community scale projects."
Industry insiders have expressed some optimism that the government could rethink the scale of the cuts it is proposing for mid-sized solar installations, particularly after research from building giant Kingspan revealed that, under the proposed feed-in tariff rates, no solar installations with over 50kW capacity would meet the government's stated target of delivering rates of return of between five and eight per cent for investors.
"There have been some very interesting meetings between government officials and the building industry," said one industry insider. "They are making their case very forcefully and taking it beyond DECC to other departments. That is having an impact."
However, Johns expressed scepticism that ministers will agree to significant changes to the proposed cuts, noting that "they seemed to enter into this consultation with a very clear result in mind - which is one of the reasons they are now facing legal action".
A group of 11 solar firms last month filed for a judicial review into the coalition's decision to launch the fast track review of feed-in tariffs, arguing that the government had failed to adhere to its own stated processes for changing the incentives. DECC was given 21 days to respond to the legal action and a response is expected in the coming days.
The results of the legal action could still affect whether the government can proceed with plans to finalise the feed-in tariff cuts and bring them into effect from the start of August.
The DECC spokeswoman said the department would now consider all of the consultation responses it has received and decide on how to move forward in due course.
James Murray for BusinessGreen guardian.co.uk, Friday 6 May 2011 10.18 BST The consultation on the government's proposed cuts to feed-in tariff incentives for solar projects with 50kW capacity draws to a close today, with industry figures warning that the sector faces "disaster" if the coalition adopts its current proposals.
The consultation documents, which were launched in March, propose deep cuts to feed-in tariff incentives of between 40 and 70 per cent for all solar photovoltaic (PV) installations with over 50kW capacity.
A spokeswoman for DECC confirmed that the consultation exercises had resulted in 370 responses as of yesterday.
Some solar firms focused on small scale domestic panels have supported the government's argument that cuts to the feed-in tariffs available to larger installations are necessary to protect the level of incentives available to households.
But many developers and industry trade groups have submitted responses to the consultation warning that the scale of the cuts will result in a halt to all solar installations with over 50kW capacity.
They have also warned that the way in which the cuts have been proposed ahead of the original schedule for reviewing feed-in tariffs has severely undermined investor confidence in the renewables sector.
Howard Johns, chairman of the Solar Trade Association, said the industry continued to hope that ministers would "see some sense" and drop proposals for deep cuts to incentives that would represent a "disaster for solar in the UK".
His comments were echoed by Leonnie Greene of the Renewbale Energy Association, who said the trade body would continue to "lobby hard" for less swingeing cuts to incentives.
"Our view is that the overall ambition is much too low and the government clearly does not understand the strategic importance of solar," she said.
"We are going back to a scenario where a few wealthy green home owners can install solar, when we want to be widening access to solar, particularly through community scale projects."
Industry insiders have expressed some optimism that the government could rethink the scale of the cuts it is proposing for mid-sized solar installations, particularly after research from building giant Kingspan revealed that, under the proposed feed-in tariff rates, no solar installations with over 50kW capacity would meet the government's stated target of delivering rates of return of between five and eight per cent for investors.
"There have been some very interesting meetings between government officials and the building industry," said one industry insider. "They are making their case very forcefully and taking it beyond DECC to other departments. That is having an impact."
However, Johns expressed scepticism that ministers will agree to significant changes to the proposed cuts, noting that "they seemed to enter into this consultation with a very clear result in mind - which is one of the reasons they are now facing legal action".
A group of 11 solar firms last month filed for a judicial review into the coalition's decision to launch the fast track review of feed-in tariffs, arguing that the government had failed to adhere to its own stated processes for changing the incentives. DECC was given 21 days to respond to the legal action and a response is expected in the coming days.
The results of the legal action could still affect whether the government can proceed with plans to finalise the feed-in tariff cuts and bring them into effect from the start of August.
The DECC spokeswoman said the department would now consider all of the consultation responses it has received and decide on how to move forward in due course.
Electric success has left our petrol car idle in the driveway
As range, charging availability and performance have improved, our family is now on its third electric vehicle
Like many families, we have always had two cars: one for long journeys and another for commuting, shopping and school runs.
With the ever increasing cost of petrol, it made sense to find an alternative. So five years ago we bought a G-Wiz. Small, slow and very basic, the car made a certain amount of sense in town. It was small enough to park anywhere and nippy enough to make buzzing around the streets a lot of fun. It was never going to be big enough to be a main family car, but it did what it needed to do well enough. For anything involving the whole family, we simply took the other car.
In late 2009, we had the opportunity to upgrade to a pre-launch version of the Mitsubishi i MiEV electric car. Big enough to take the whole family, travel further afield and fast enough to tackle motorways with ease, the Mitsubishi could genuinely be used as a main family car, relegating our petrol car to second place.
It was an instant hit: the kids adored it and it was fast, practical and fun to drive. Because it was so driver-friendly and cheap to run, it rapidly became the car of choice for almost every journey we made.
We kept hold of the G-Wiz when we took on the Mitsubishi. It meant our petrol car hardly travelled anywhere at all.
Meanwhile, the Mitsubishi became the cool car on the block. Neighbours wanted lifts, friends of our children wanted rides. Everyone was impressed by the lack of noise, the performance and the smoothness. Thanks to its instant performance, the car could out-accelerate most other cars in day-to-day driving. When people had a short demonstration run and could see how user-friendly and competent it was, many of them were convinced that electric cars could be a genuine replacement for petrol power.
We travelled an average of 22.5 miles a day and our most regular route was to the next village and back for the school run – a round trip of six miles. According to the Department of Transport, our car use was fairly typical. The average car journey is 6.5 miles and the average daily use is between 22-24 miles per day, while 93% of all journeys are less than 25 miles: ideal for an electric car.
We charged the car up each night using off-peak electricity. Each morning, the car was ready to go. The total electricity cost in our first year was a mere £80.
Of course, it was not perfect. The range of the car varied depending on the type of driving and ambient temperature. At the time, Mitsubishi stated a range of up to 80 miles (the latest production version has a range of up to 92 miles). That range could be achieved when driving in a city. But driving on a motorway, the range dropped to around 55 miles. Driving in the cold with the heater on, the range could drop to around 40 miles.
Public charging points started cropping up in more cities. It became possible to travel further afield and recharge the car while it was parked. From my base near Coventry I could drive to Birmingham, Stoke-on-Trent, Leamington Spa, Oxford, Milton Keynes and Leicester, knowing that I could charge my car up while it was parked.
Our lease on the Mitsubishi came to an end after one year. We replaced it with a brand new Tata Indica Vista EV. Built by Indian car maker Tata from a brand new factory in the UK, the Indica Vista EV provides us with more space, greater comfort and a longer range.
Meanwhile, our petrol car still sits idle with very little use. I suspect we may be ditching it completely in the not too distant future.
• Michael Boxwell is the author of The 2011 Electric Car Guide, published by Greenstream Publishing
Like many families, we have always had two cars: one for long journeys and another for commuting, shopping and school runs.
With the ever increasing cost of petrol, it made sense to find an alternative. So five years ago we bought a G-Wiz. Small, slow and very basic, the car made a certain amount of sense in town. It was small enough to park anywhere and nippy enough to make buzzing around the streets a lot of fun. It was never going to be big enough to be a main family car, but it did what it needed to do well enough. For anything involving the whole family, we simply took the other car.
In late 2009, we had the opportunity to upgrade to a pre-launch version of the Mitsubishi i MiEV electric car. Big enough to take the whole family, travel further afield and fast enough to tackle motorways with ease, the Mitsubishi could genuinely be used as a main family car, relegating our petrol car to second place.
It was an instant hit: the kids adored it and it was fast, practical and fun to drive. Because it was so driver-friendly and cheap to run, it rapidly became the car of choice for almost every journey we made.
We kept hold of the G-Wiz when we took on the Mitsubishi. It meant our petrol car hardly travelled anywhere at all.
Meanwhile, the Mitsubishi became the cool car on the block. Neighbours wanted lifts, friends of our children wanted rides. Everyone was impressed by the lack of noise, the performance and the smoothness. Thanks to its instant performance, the car could out-accelerate most other cars in day-to-day driving. When people had a short demonstration run and could see how user-friendly and competent it was, many of them were convinced that electric cars could be a genuine replacement for petrol power.
We travelled an average of 22.5 miles a day and our most regular route was to the next village and back for the school run – a round trip of six miles. According to the Department of Transport, our car use was fairly typical. The average car journey is 6.5 miles and the average daily use is between 22-24 miles per day, while 93% of all journeys are less than 25 miles: ideal for an electric car.
We charged the car up each night using off-peak electricity. Each morning, the car was ready to go. The total electricity cost in our first year was a mere £80.
Of course, it was not perfect. The range of the car varied depending on the type of driving and ambient temperature. At the time, Mitsubishi stated a range of up to 80 miles (the latest production version has a range of up to 92 miles). That range could be achieved when driving in a city. But driving on a motorway, the range dropped to around 55 miles. Driving in the cold with the heater on, the range could drop to around 40 miles.
Public charging points started cropping up in more cities. It became possible to travel further afield and recharge the car while it was parked. From my base near Coventry I could drive to Birmingham, Stoke-on-Trent, Leamington Spa, Oxford, Milton Keynes and Leicester, knowing that I could charge my car up while it was parked.
Our lease on the Mitsubishi came to an end after one year. We replaced it with a brand new Tata Indica Vista EV. Built by Indian car maker Tata from a brand new factory in the UK, the Indica Vista EV provides us with more space, greater comfort and a longer range.
Meanwhile, our petrol car still sits idle with very little use. I suspect we may be ditching it completely in the not too distant future.
• Michael Boxwell is the author of The 2011 Electric Car Guide, published by Greenstream Publishing
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