ࡱ> ^`]%` 1.bjbjNN ?D,,P$:"8>$b,"=(=======?h5B=_!_!_!=4=;%;%;%_!B=;%_!=;%;%8< 3 ":*=l=0=:6 C#B C,< C<|;% d ==$j=_!_!_!_!""" """""" Introduction On 15th July 2009 the Department for Energy and Climate Change (DECC) published a wide array of consultation and strategy documents on decarbonising Britain. Rolton Group as members of The Micropower Council have produced with the Councils guidance and assistance these notes on Renewable Energy in relation to Micro-generation. A separate commentary on the proposals for the feed in tariff (FiT) concept which may have substantial impacts on the electricity micro-generation sector has been produced as Note No 1. This document also produced by Rolton Group from assistance and guidance of The Micropower Council highlights the other key policy measures and proposals for the industry. These proposals by government are aimed to create a culture where the consumers become part of the solution to the energy problem as opposed to being a major source of the problem. Rolton Group are able to advise analyse and design with regard to the application of the qualifying technologies and the commercial issues. Renewable Heat Incentive Renewable Heat Incentive (RHI) A key announcement was that all installations made from 16th July 2009 onwards will be eligible to claim the RHI when it comes into force in April 2011 although this will not be retrospective to the installation date. Importantly, however, any grants claimed under Low Carbon Building Programme (LBCP) will not have repaid if they are on a domestic dwelling. Those installations made on commercial buildings may have to be repaid and the Government intends to consult on this in the summer. Renewable Electricity Financial Incentives consultation The notion of linking energy efficiency to the Feed-in-Tariff (FiT), by making energy efficiency improvements a prerequisite for receipt of the FiT or opening access to a higher level of FiT, has been discounted. Instead, Government proposes to address energy efficiency directly via other policies such as CERT, the post-CERT supplier obligation and CESP rather than using the FiT as a vehicle to introduce and improve energy efficiency measures. It is proposed that generators should receive both generation and export payments to provide the additional incentive for energy efficiency. Low Carbon Transition Plan This includes details of pilot pay as you save schemes to help householders finance energy efficiency improvements. This shift from upfront payment to pay as you save models of long term financing for energy saving is due to begin in 2009 and is intended to facilitate whole house energy efficiency makeovers beyond the scope of CESP. Householders will be able to offset the costs of home improvements against energy bill savings. Government has earmarked 4 million for these pilot schemes and will work with the Energy Saving Trust, energy companies, Local Authorities, the Distribution Network Operators and others. Fuel poverty The Government is required by law to end fuel poverty in vulnerable homes by 2010 and in all homes in England by 2016, as far as reasonably practicable. Fuel poverty has been rising since 2004 and the consultation contains proposals to address fuel poverty more aggressively than at present. Under Warm Front the Government is increasing the maximum grant level to 3500 and 6000 where a low carbon or oil boiler is recommended. Private Rentals The issue of private rented accommodation is being consulted upon with the Government proposing that a register be made of all private landlords and to make the Energy Performance Certificate (EPC) particulars alongside housing details at the point of rental. Industrial and Skills Policy It is clear from the published UK Low Carbon Industrial Strategy that while the Government is committed to increase uptake of small scale and micro-generation installations, they do not see the sector as providing the UK best opportunity for building a long-term competitive industry for British based firms. Industrial policy is therefore focused at the moment on developing British capabilities in offshore wind, wave and tidal power, ultra-low carbon vehicles, renewable construction materials and renewable chemicals. It is notable that the Government does not appear to recognise that high tech innovative and skilled green jobs could be generated through a UK based micro-generation manufacturing sector. The strategy recognises that thousands of jobs will be dependent on the programme of transforming our energy infrastructure and meeting 2020 renewable energy and carbon emission commitments. Micro-generation supply and installations will obviously play a critical part in meeting these targets. Thousands more jobs will also need to be adapted to accommodate the move to decarbonise our industries and transport system. Unfortunately the current Skills Council structure means responsibility for moving to a low carbon economy is split between a variety of organisations. The Government therefore proposes to publish a National Skills Strategy by the end of the year with the intent that this will support Britain in an upturn in the economy by focusing on low carbon skills. Implementation of the strategy will be aided by the inception in 2010 of the Skills Funding Agency. Consumer engagement and guidance The renewable energy strategy indicates that Government wants to increase understanding and consequential behavioural change among individuals and communities to help reduce Greenhouse gas (GHG) emissions. Key additional support to help achieve this includes:- An extra 1m per year to help the Energy Savings Trust (EST) fund their advice centre network advice on how individuals can generate their own energy. A new how to guide be published to help anyone wishing to install renewable and low carbon heat and electricity generating technologies at the community scale. Green Villages Towns and Cities Challenge in which 154 communities will be selected to be test hubs with business, residents and the public sector working together to develop community-wide plans for areas including energy saving, clean energy generation, water and waste management and transport. The intention is that all Government departments will be encouraged to review the potential for onsite renewables within their estate. A future consultation on removing the restriction on local authorities from selling electricity when not generated from CHP. Monitoring of the awareness of and attitudes towards renewable energy among the public through the new body Office for Renewable Energy Deployment (ORED). Smart Grids Government has made clear in the UK Low Carbon Transition Plan that reforms of the grid access regime are vital in order to speed up the connection of new generation, ensure security of energy supply and meet carbon reduction targets. Government will be using the Energy Act 2008 powers to implement new grid access rules and has already taken steps to ensure that ready to go projects can connect on an accelerated timescale. The Government has also expressed an intention to commence the decarbonisation of the gas network through biomethane injection in the medium term. Interaction with other policies A main area of policy interaction is that of the FiT and RHI with other policies such as CESP and CERT. The proposed principle is that all these schemes, CERT, CESP, Voluntary Reporting Guidance and Planning consent restrictions, will operate alongside the FiT and RHI and will have full access to these. The one exception to this is Solar PV installations on new buildings which will receive a slightly lower tariff than for retrofitting. The FiT consultation notes that taxation on income from the FiT is a matter for the treasury. Renewable and CHP (where eligible) schemes under the FiT will be eligible for the issue of Renewable Energy and CHP Guarantees of Origin and for exemption from the Climate Change Levy. The issue of CHP and the FiT/RO/RHI interaction is addressed with two possible proposals for decoupling the electricity generation from heat generation from a support perspective. These are:- Retaining the RO uplift for CHP plants and providing further support under the RHI if minimum standards are exceeded Removing the RO uplift for CHP and applying a per-MWh support rate for heat output under the RHI (this could be a CHP-specific rate or the same level of support provided for heat-only plants using the same fuels). Permitted Development The Green Energy Bill has forced the Government to publicly address the issue of Permitted Development Rights (PDR). As well as extending such right for domestic installations of air source heat pumps and micro wind turbines, the Government has also listened to the requests to reduce planning barriers for the non-domestic sector, and for larger installations. The RES document states the Governments intention to consult on these issues soon, and to have the new regulations in place by April 2010. NOTE Rolton Group Ltd have prepared this note as a commentary on the matters referred to. The information offered is in brief form, is non exhaustive and may be incomplete in many aspects. No reliance should be placed upon any of the information or its application without formal appointment of and verification by Rolton Group Ltd.  Guidance for organisations on the measurement and reporting methodology for GHG emissions.  Consultation on Renewable Financial Incentives, DECC, July 2009. 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