Microgeneration: Launch of new Government Consultation
Embargoed release: 00.01 Monday 12 July
Microgeneration: Cleaner energy begins at home - launch of new Government Consultation
The Microgeneration industry today welcomed the Government's root and branch review of Microgeneration policy in the UK and publication of a new Microgeneration Strategy early next year.
Climate Change Minister, Greg Barker MP, will launch the consultation process for the new Strategy at the Micropower Council Summer Reception in Westminster this evening.
Greg Barker said:
"I want to see more homes, communities and businesses generating their own energy. We can literally bring power back to the people. Microgeneration is a key part of this vision.
"By becoming more self sufficient we can create sustainable local energy economies. People and communities can save money on their fuel bills at the same time as generating an income and cutting carbon. I want to work with industry to overcome the challenges it is facing. Together we will create a marketplace for jobs and prosperity alongside products and advice which people trust."
Dave Sowden, Micropower Council Chief Executive, welcomed the initiative, but also warned the industry faces a confidence crisis if clarity is not provided soon on the Renewable Heat Incentive. He said:
"We're delighted the Government is embarking on the development of a new vision for a true mass market UK microgeneration industry and bringing sustainable energy self-production in reach of every citizen. Greg Barker, Chris Huhne and Charles Hendry have long supported this exciting new industry and we welcome the clear wish now they are in Government to see this industry thrive and grow through a brand new Microgeneration Strategy.
"Microgeneration is already a notable British manufacturing, servicing and export success story. It brings a unique personal touch for citizens to "do their bit" in tackling the country's energy efficiency and sustainability needs, as well as helping supply security, fuel poverty relief and creating thousands of green jobs in recent years. We look forward to working closely with the Government on a new policy framework to allow every citizen, business, school, hospital, community and other organisations to grow their own energy.
"However our warm welcome for a new strategy is overshadowed by an emerging industry confidence crisis because the Government has not yet formally announced it will proceed with the Renewable Heat Incentive (RHI). Investment and order books are now starting to dry up, and it will not be long before firms start shedding some of the thousands of jobs confidently created in the past year thanks to the strong support given to the RHI by Ministers when in opposition. We urge the Government to announce the RHI and its application to the Microgeneration sector without further delay so that we can confidently build this brand new British industry".
For further information or to register for the reception contact: Jane Vaus, 077480 10447 or jane.vaus@micropower.co.uk
NOTES
1. The Government is required by the 2009 Green Energy (Definitions and Promotions) Act, sponsored by Peter Ainsworth MP, to publish a new Microgeneration Strategy early next year. Today marks the start of a consultation exercise to develop that strategy.
2. The consultation process will be launched by Climate Change Minister Greg Barker MP at the Micropower Council Summer Reception at 7.00 pm, Monday 12 July, One Great George Street. The event is sponsored by EDF Energy and supported by Mitsubishi Electric UK.
3. The consultation on the Microgeneration Strategy will look at four key areas for development:
Quality: ensure consumers have confidence that equipment and installation is reliable and adheres to the highest standards;
Technology: examine how to improve products through more trialling of technologies new to the UK;
Skills: develop the microgeneration supply chain to ensure it is properly equipped with the right people to meet the expected rise in demand, as well as creating and sustaining jobs in the UK;
Advice: provide more accessible advice and information about microgeneration to homeowners, communities and small businesses.
4. The Renewable Heat Incentive (RHI) was supported by many Conservative and Liberal Democrat MPs during the passage of its enabling legislation in 2008, including Climate Change Minister Greg Barker MP and Energy Minister Charles Hendry MP, as well as a number of today's Cabinet Ministers.
5. The previous Government committed that any eligible installations taking place after 15 July 2009 would be retrospectively eligible to receive RHI payments. This led to considerable and confident investment in jobs, manufacturing and training. Much of this investment and these jobs now hang in the balance awaiting the Government's confirmation that the RHI will proceed.
6. Over 110 MPs have signed a Parliamentary motion (EDM) in support of early confirmation that the RHI will proceed, and many have raised the issue direct with Ministers, but so far the Government has not made any formal statement.
7. The term "Microgeneration" broadly refers to a range of technologies that non-expert users can use to produce heat or power from renewable or low carbon sources - the next step beyond cost effective energy efficiency measures such as insulation.
8. The government's own figures suggest that up to 7 million homes could have some form of microgeneration installed by 2020, making it an important contributor to EU targets for renewable energy and reductions in CO2 emissions.
9. The Micropower Council represents companies, trade associations and others with an interest in developing a mass market for the microgeneration sector. It is the only body representing the full cross-section of microgeneration technologies.