26th June 2008

The Micropower Council, the umbrella body representing the interests of the UK Microgeneration industry, today gave a mixed response to the government’s Renewable Energy Strategy.

Government has recognised the importance of microgeneration in helping to meet the country’s carbon and renewables targets. It has accepted the importance of tackling home heating sustainably and that there is a case for new financial incentives for consumers wanting to produce their own heat or electricity sustainably.

Despite this, and contrary to recommendations from recent independent research, the Government has rejected “at this stage” the setting of microgeneration targets - a key measure that would give confidence to industry investors of where microgeneration fits into energy policy. In justifying its decision to delay setting targets, the government has selectively cited and as a result, misrepresented the true findings of the research on the effect statutory targets supported by policy measures would have.

Micropower Council Chief Executive, Dave Sowden said:

“The recognition that microgeneration can make a major contribution to our goals, the importance of sustainable home heating technologies, and the need for new incentives for microgeneration are welcome steps forward.

“However, the industry’s investors will not be convinced by the government’s decision to delay setting microgeneration targets. Statutory targets supported by specific measures are essential for investor confidence, especially in a world where microgeneration companies are competing for investment with other sustainable energy opportunities, all of which have clear targets. It is particularly disappointing that the government has used selective extracts from the evidence on targets to create the misleading impression, contrary to the same evidence, that investors do not consider them to be important.”

Notes

1. The Government’s Renewable Energy Strategy recognises that microgeneration can play a substantial role in meeting the government’s Renewable Energy target in 2020.
2. It recognises the importance of microgeneration heat technologies, particularly in existing household dwellings as a significant opportunity.
3. It also recognises the need for new financial incentives to encourage householders to take up microgeneration.
4. The government says in the document that it is not currently minded to introduce a specific target for microgeneration technologies at this stage in (the industry’s) development.
5. It misrepresents the research findings of Element Energy on this topic by stating that “The research was not able to uncover any discernible benefit of having a target on its own”. This refers to an irrelevant conclusion in the Element Energy findings as to whether non-binding targets, not supported by policy measures, would encourage investment. It ignores the more important conclusion from the same research that legally binding government targets for microgeneration, supported by concrete policy measures, would improve the confidence of those investing in the sector. It is the latter the industry has been calling for during the last five years.
6. The Micropower Council Press release on its calls ahead of the Renewable Energy Strategy publication.
7. The Micropower Council Press release on the findings of the Element Energy Research
8. See also, The Element Energy report referred to above.

For further information contact Jane Vaus at jane.vaus@micropower.co.uk