Thursday 23rd June 2005

The Micropower Council today expressed disappointment at a government consultation on a Microgeneration Strategy released today, describing it as a missed opportunity to inspire confidence in the industry.

The Council’s main concern is that without quantified targets, the necessary investment in the sector will not take place. Without investment, costs cannot come down and microgeneration cannot be available to all. The strategy also fails to fulfil the promise of a dedicated funding programme for photovoltaics (PV) made in the Government’s Energy White Paper, which has so far not been delivered.

Dave Sowden, Chief Executive of the Micropower Council said:

"The consultation document highlights the importance of targeted investment in new product development. Despite this, the document contains no mention or discussion of setting targets to stimulate this investment. We receive numerous enquiries from microgeneration developers wishing to scale up their production about how difficult it is to attract investment against such an uncertain energy policy background. The absence even of any discussion of targets is disappointing, given how much we have been pressing this point with Government over the last few years.

"Despite much progress made over the last few years with government and the regulator to make life easier for customers wishing to produce their own, low carbon energy, and a detailed understanding of the individual policy measures needed, this consultation does not move the debate forward. Instead it asks a series of open questions, the answers to which it, and we, already understand well.

"With emissions continuing to rise and the emergence of worldwide consensus on the harmful effects of global warming, we had hoped the government would move the debate forward and consult on the detail of individual policy measures to bring microgeneration to the mass market and help engage consumers in how they can play their part."

On behalf of the Sustainable Energy Partnership (an alliance of Non Government Organisations and Trade Associations) Andrew Warren, Chairman said:

"CO2 emissions are up and CO2 reductions are due to be missed by one third; warm words are in abundance but there is an absence of clear targets. This is not a serious strategy. We urge a major rethink".

For further information contact: Jane Vaus 020 7924 0795 or 077480 10447 jane.vaus@micropower.co.uk

Notes:

1. The government, under Section 82 of The Energy Act 2004, must publish and implement a Strategy to promote Microgeneration by April 2006. The first consultation document on this strategy was published today (23 June 2005) by the Department of Trade and Industry, and is available at www.dti.gov.uk

2. The government has been working closely with the industry and the regulator, Ofgem, for the last three years under the auspices of the Distributed Generation Coordinating Group. Through this and other work, a significant consensus exists amongst experts in the sector that the following measures are needed to remove regulatory barriers, provide financial incentives and stimulate investment:

1. National and local targets for the uptake of microgeneration.
   
2. The removal of substantial bureaucracy in the system for rewarding renewable electricity generation.
   
3. A fair system to reward customers who export power onto the grid.
   
4. Further fiscal measures to provide incentives for customers.
   
5. The removal of the requirement for planning permission for some microgeneration technology.
   
6. The inclusion in the Building Regulations of a requirement for microgeneration in future new build.
   
7. Fulfilment of the Energy White Paper’s commitment to a ten-year funding programme for Photovoltaic electricity generation.
   

3. The Micropower Council represents the collective interests of companies, Trade Associations and Professional Institutions with interests in sustainable heat and power production technology for homes and small businesses, including photovoltaics, micro-wind, micro-hydro, fuel cells, micro combined heat and power, solar thermal heaters, ground source heat pumps and biomass heating.

4. Members of the Sustainable Energy Partnership (SEP) are: Association for the Conservation of Energy, Association for Environment Conscious Building, Association of Coal Mine Methane Operators, British Biogen, British Hydro, British Energy Efficiency Federation, Combined Heat and Power Association, Cornwall Local Authority Support Programme, CPRE, Energy Conservation and Solar Centre, Friends of the Earth, GLOBE UK All-Party Parliamentary Group, Good Energy, Green Liberal Democrats, Green Party, Greenpeace, Help the Aged, London Energy Managers Group, National Energy Action, National Federation of Women’s Institutes, National Home Improvement Council, National Housing Federation, National Right to Fuel Campaign, PV-UK, PRASEG, RSPB, Renewable Power Association, SERA, SHELTER, Solar Century, Tenants & Residents Organisations of England (TAROE), Tory Green Initiative, TRANSCO, UK HECA Forum, UNISON, WWF-UK

5. Two MPs, Mark Lazarowicz and Alan Whitehead - who were successful in the annual ballot for Private Members' Bills yesterday introduced Bills to tackle climate change by:

1. requiring firm targets and new policies to promote microgeneration
2. establishing a ‘renewable heat obligation’
   
3. requiring government reports to parliament on these issues and on greenhouse gas emissions