Government on target to meet renewables pledge – but consumers could suffer
The Government is on target to meet its aim of generating 10 per cent of Britain’s energy from renewable sources by 2010, but there could be a cost to consumers.
A new report from the National Audit Office suggests that electricity prices will be pushed up by around five per cent in order to increase green electricity production.
It concludes that the Government is on target to meet its commitments on renewable energy, but that renewable energy is a costly way to reduce emissions.
Wind farms, particularly those in Scotland, are expected to generate the majority of Britain’s green power and new plants will cost billions to build and link to the national grid.
The report recommends that the Government make it easier for renewable projects, especially wind farms, to get planning permission and ensure the national grid is upgraded to cope with increased energy from renewables.
Head of the NAO, Sir John Bourn, said: “The Renewables Obligation is increasing the level of renewable generation, and thus helping reduce carbon dioxide emissions, though at a price to the electricity consumer.”
He added: “The department needs to keep track of the scheme’s progress in improving the commercial viability of renewable generation and ensure that consumers benefit from reductions in generation costs.”
The Renewable Obligation aims to encourage greater electricity production from renewable sources by giving generators an income over and above the current market price of electricity.
Friends of the Earth spokesperson Neil Crumpton said: “We are encouraged that the UK appears to be on course to meet its renewable energy target. But the Government is still not doing enough to combat climate change.
“Carbon dioxide levels have not fallen since Labour came to power, and unless it takes tough and urgent action on transport, coal-fired power stations and energy efficiency it will not meet its promise of cutting emissions by 20 per by 2010.”
He dismissed concerns about price rises for consumers, saying: “Domestic energy prices are over 20 per cent cheaper in real terms than they were in 1990. Scientists warn that climate change could have a devastating impact on people and wildlife unless action is taken now.
“A small increase in energy costs is certainly a price worth paying.”
Tim Yeo, Shadow Secretary of State for the Environment, said that the report showed that Labour was ‘all talk’ on renewable energy.
“We need a much more diverse portfolio of renewables. The mechanisms we have now have failed to give adequate support to less developed renewable energy technologies, such as wave, tidal and solar. Britain should have a natural advantage in these marine renewables,” he said.
“In addition, Labour have failed to support CHP and renewable heat, which offer real carbon savings, and have completely neglected the issue of embedded micro-generation, which would allow individual householders and communities to participate in helping to combat climate change and keep their fuel bills to a minimum.”
