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Feed in tariff proposals weak, say coalition

Posted: 06/11/2008

A coalition of trade bodies, unions and charities is calling for Government plans to introduce a feed in tariff into its Energy Bill to be significantly strengthened so that households, businesses, communities and local authorities are given real financial incentives to install small scale green energy systems such as solar panels, wind generators and water turbines.

29 organisations including the British Retail Consortium, Royal Institute of British Architects (RIBA), the Country Land and Business Association, Home Builders Federation, The Co-operative Group, TUC, Energy Saving Trust and Friends of the Earth have written to every member of the House of Lords expressing disappointment with Government plans to include FITs in the Energy Bill and urging Peers to support amendments that would considerably strengthen the proposals.

The groups warn that there are a number of flaws in the Government's proposed amendment to the Energy Bill and fear it will do little to boost the development of small-scale renewable energy projects.

A feed-in tariff is a guaranteed, long-term, premium price paid to households, communities and businesses for electricity they generate from renewable sources such as wind, water and the sun. Last month, following a year-long campaign, the Government agreed to introduce a feed-in tariff - but its proposals, published last week, fall a long way short of what is required.

Ed Matthew, Head of UK Climate Friends of the Earth - which has led the campaign for a UK feed-in tariff - said:

"A strong feed-in tariff is desperately needed to give homes, businesses, communities and local authorities a financial incentive to fit renewable energy systems and play a major role in tackling climate change. Unfortunately the Government's woolly proposals are fundamentally flawed and will not guarantee that an effective scheme will be introduced.

"Proposals for a feed-in tariff must be strengthened to ensure that the UK reaps the benefits of its abundant supply of clean, green energy."

Further changes to the Government's feed in tariff amendment have been tabled by Conservatives, Liberal Democrats and Labour peers. These would set a timetable for the introduction of a scheme and oblige the government to include the most basic elements of a feed-in tariff - which are common to schemes across Europe.

The cheif flaws identified by the coalition are..

• It lacks the basic elements of similar schemes across Europe. The Government must vary support payments to take account of different technologies and the size of installation. It must also allow payments to be set for a fixed contract length to give investors financial security.

• It only covers schemes up to three megawatts - Friends of the Earth says the threshold should be at least 10 MW to encourage investment in the full range of community and municipal schemes. This would work without damaging investor confidence in large scale renewable schemes which would continue to be covered by the existing Renewables Obligation.

• There is no timetable for action - Friends of the Earth says the Bill must put a duty on the Government to introduce a scheme within one year.

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