UKDEA Media Release
The UK District Energy Association - "a good day for district energy"
21st October 2010
Hidden amongst all the bad news of the Comprehensive Spending Review is some extremely good news for district energy.
The UK District Energy Association (UKDEA) looks forward to the introduction of the RHI for 2011/12 and for it to be funded by government spending, rather than the previously mooted levy on fossil fuel users; though there is lots of detail still to come. One interpretation of the “efficiency savings” for this programme is that the tariffs are set at a lower level than previously expected, though this will become clear in due course.
More effective technologies are expected to get relatively better levels of support under FiTs; though it seems that lower tariffs on average should be expected after the first review, which is currently planned for 2013.
As DECC position themselves towards an “enabler” rather than a “default provider”, there may certainly be scope for opportunities in the decentralised energy sector, though those who stand to benefit most are likely to be businesses concentrating on insulation and other energy saving measures.
The Government is committed to focusing the available resources where they will be most effective in tackling the problems underlying fuel poverty. The Government intends to initiate an independent review of the fuel poverty target and definition before the end of the year. The impacts of this review will certainly be of interest to the energy industry, particularly where decentralised energy solutions can assist in meeting fuel poverty targets.
Revenue generated by the CRC was originally expected to go to high achievers in the CRC league table but is now going to the public finances instead. Whilst this will make the CRC easier to budget against, it is clearly now only offering the “stick”, instead of the “stick and carrot” approach originally planned.
There is still little information, at this stage, on what form the new Green Investment Bank will take and the prioritising of the most cost effective technologies is hopefully an indicator of a more pragmatic, and less renewables-dogmatic, approach.
The way government departments meet their environmental obligations will be of interest to the whole of the UK and could even provide an opportunity to act as a showcase for decentralised energy. The policies of the Government wide carbon plan in 2011 will therefore be eagerly anticipated.
Further afield from DECC’s view of the Spending Review, DEFRA’s removed funding for seven waste PFI projects could act as further incentive for Energy from Waste schemes
Simon Woodward, Chairman of the UKDEA said: “The spending review’s conclusions for energy and climate change show a positive outlook for all forms of low carbon generation, not least because of the forthcoming Renewable Heat Incentive, which the UKDEA fully supports.
Despite no longer rewarding those at the forefront, the Carbon Reduction Commitment will still act as a catalyst for many energy consumers, to assess how best to reduce and meet their demands. District energy will offer an important part of the most cost effective solutions for many.
The outlook is positive, a good day for district energy.”
Notes to Editors:
The partners, owners and operators of the largest district energy schemes in the UK have aligned themselves in the creation of the UK District Energy Association (UKDEA); with the aim of not only promoting district energy as a means to deliver significant carbon savings, but also to establish a direct link between the Government and the industry's small market base.
The Association is a not for profit association of companies and public sector organisations involved or interested with these major schemes. The UKDEA initially comprised of the representatives of the 6 main District Energy Schemes in the UK today:
Birmingham City Council,
Veolia Environmental Services Limited,
Southampton City Council (SCC),
Thameswey Limited and
Cofely District Energy Limited.
Together these six organisations represent the: Birmingham, Milton Keynes, Nottingham, Sheffield, Southampton and Woking district energy schemes.
The UK District Energy Association’s aim is to represent current and potential owners, developers, consumers, partners, operators and product suppliers of District Energy schemes throughout the UK.
For more information contact:
Chris Tanner, Secretary of the UKDEA
Thames Head Wharf, Tetbury Road, Cirencester, Gloucestershire, GL7 6NZ
Tel: 01285 770615
Mobile: 07773 457941