Renewables Bring £2.5bn Boost to Economy

Department of Energy and Climate Change — January 2012

Chris Huhne today revealed more evidence of the economic benefits of renewable energy as he reaffirmed the coalitions commitment to meeting EU renewable energy targets. This came as the UK published an update on progress to source 15% of all energy from renewable sources by 2020.

Latest research from DECC shows that so far this financial year, companies have announced plans for almost £2.5billion worth of investment in renewable energy projects in the UK, with the potential to create almost 12,000 jobs across the country.

A separate report to the European Commission on renewable energy progress that showed that the UK:

• Achieved a 27% increase in renewable energy consumption from 42.6TWh in 2008 to 54TWh in 2010 - representing 3.3% of total energy consumed.
• Increased wind generation by 46% from 7TWh in 2008 to 10.2TWh in 2010, and in 2010 achieved 5GW of offshore and onshore wind capacity; and
• Saw a threefold increase in the use of biofuels in transport from 1% of total road transport fuel supply in 2007/8 to 3.33% in 2010.

Chris Huhne, Energy Secretary, said:

“Renewable energy is not just helping us increase our energy security and reduce our emissions. It is supporting jobs and growth across the country, and giving traditional industrial heartlands the opportunity to thrive again.

“Our renewable target is less demanding than other EU member states, but the effect is bringing real jobs and investment.

“I do not want the UK to be left behind by turning our back on the green economy. The agreement to negotiate a global deal secured at Durban has reinforced major nations’ commitment to cutting carbon. We cannot afford to stand alone while the world wises up.”

Minister Looks Forward to “Prosperous 2012”

Department of Energy and Climate Change — January 2012

Energy Minister Charles Hendry set out his hopes for a “prosperous 2012” in the oil and gas sector, as he awarded 46 new licences to explore for hydrocarbons in the North Sea.

These awards were made as part of the 26th offshore oil and gas licensing round, which was originally announced in October 2010. This licensing round awarded 144 licences but held back a number of blocks from award due to the need for further assessment on Special Areas of Conservation (SACs) and Special Protection Areas (SPAs).

Charles Hendry, Minister for Energy, said:

“Oil and gas remains crucial to the UK economy — contributing around 2% to the country’s GDP. Our innovative licensing system continues to make the UK one of the most attractive places to do business.

“These further licences have been subject to rigorous examination, and we are now satisfied that initial exploration can go ahead.

“These continued high levels of interest, and the award today of these licences, gives me yet more reason to be optimistic for a prosperous 2012 for the UK oil and gas sector.”

The Green Deal Countdown!

January 2012

“The biggest home improvement plan since the second world war” — Chris Huhne, Climate Change Secretary

With the Christmas and New Year rush behind us for another 12 months we are already counting down to the next big event... The Green Deal.

Set to be the largest home improvement programme since the second world war, the Green Deal promises to drive billions of pounds of investment into energy efficiency over the next decade with the potential to create 250,000 jobs involving around £100bn of investment by 2020.

As bills rise and green subsidies are cut, politicians are looking for ways to reduce our bills - and emissions - at no or little cost.

By providing energy advice to an estimated 14 million homes and businesses within the UK and offering grants to all, the new innovative financial mechanism eliminates the need to pay upfront for these energy efficiency measures and instead provides reassurances that the cost of the measures will be covered and paid back through the savings on the electricity bill. The government have called this revolutionary proposal “The Green Deal”

The government have committed to invest £200 million this year alone to stimulate the “Green Deal” on its launch in the Autumn, with a further Â14 billion of private investment being predicted.

The goal of the Green Deal scheme is to have 14m UK households upgraded for energy efficiency, making the UK the European leader in reducing greenhouse emissions and supporting up to 250,000 new jobs within the green industry

Treasury to approve £200m Green Deal Funding

GDG - Janary 2012

The chief secretary to the Treasury Danny Alexander announced the approval of £200m to be used as an incentive for the public to pick up the Green Deal scheme when it is available for homeowners in October 2012.

Both the business community and NGOs welcomed this announcement as another step towards the successful roll out of the Green Deal scheme.

While the primary goal of the Green Deal scheme is to increase energy efficiency of UK homes and business buildings to reduce the carbon emissions associated with climate change and to reduce energy costs, there are other benefits of the Green deal scheme.

The government estimates that in the long term the scheme, if successful, will create thousands of new jobs and lead to £14b in new investment from the private sector. Additionally, energy companies are mandated to assist with energy improvements for low income households.

The goal of the Green Deal scheme is to have 14m UK households upgraded for energy efficiency, making the UK the European leader in reducing greenhouse emissions.

Experts state that the success of the Green Deal program is dependent on the experience of those homeowners who take up the scheme early, thus there must be great attention to the details of the program so that all goes smoothly.

While the details of how the £200m will be disbursed to early adopters of the scheme, experts agree that using this money for a reduction in the council tax or the stamp duty tax will be a powerful tool to motivate homeowners to take up the Green Deal within the first year. The government is considering this proposal as well as others for the distribution of the funds.

Rental Sector Welcomes Green Deal

EAToday - December 2011

New incentives such as £150 to consumers who take up the Green Deal scheme are to be announced, with more sweeteners to be unveiled in a matter of weeks.

Energy secretary Chris Huhne says the impact of the Green Deal will be to drive down household fuel bills by 7percent, or £94, by 2020. He said: “Britains homes will be cheaper to heat and to light than if we did nothing in this parliament and in the longer term.”

The providers will be able to apply for an Energy Company Obligation subsidy where applicable to allow them to supply products that would not otherwise meet the golden rule on repayments. Instances where this will occur would typically be on older terrace properties with single brick skin construction that makes it impossible for cavity wall insulation in other words, many classic rental properties.

Energy Company Obligation funding will be open to private landlords whose tenants will be responsible for repaying the Green Deal costs through their utility bills but will exclude social housing.

David Salusbury, chairman of the National Landlords Association, said: The Green Deal represents a good opportunity for landlords and home owners to increase the energy efficiency of their properties. By enabling landlords to make necessary improvements at no direct cost, it overcomes the obstacles which have constrained previous initiatives, at the same time offering a real benefit to households.

A recent survey by the NLA found that over two-thirds of landlords would consider taking advantage of the Green Deal.It is our aim to support landlords through this process.

The Government has worked to engage with all stakeholders in order to come up with a proposal which we believe has the potential to work for the private rented sector. We look forward to continuing to work with government to bring about energy-saving improvements.”

Peter Bolton King, chief executive of the NAEA and ARLA, said: The NAEA and ARLA have been working closely with the Department for Energy and Climate Change on the detail of the Green Deal policy.

For the Green Deal to work it needs to be easy to implement and clear, so that tenants and prospective home buyers have the information they need when buying or renting a new home.

We look forward to examining the full detail of the consultation, and will be responding to the Government in due course.

Homes and Economy to Benefit From Energy and Climate Policies Chris Huhne

DECC - November 2011

£14 billion worth of private sector investment in home energy improvements over the next decade will help insulate households from rising global energy prices and create thousands of jobs in the British insulation and construction sector, Chris Huhne said today.

A consultation on the Green Deal, which will provide home energy saving upgrades to householders at no upfront cost, was published as part of the Energy and Climate Change Secretary's Annual Energy Statement to Parliament. He also published a new government analysis showing that homes will on average be cheaper to heat and light in future than if the Government was not pursuing policies to keep the lights on and emissions down.

Chris Huhne,Energy and Climate Change Secretary, said:

The Green Deal is about putting energy consumers back in control of their bills and banishing Britain's draughty homes to the history books. By stimulating billions of pounds of private sector investment, the Green Deal will revolutionise the way that we keep our homes warm, making them cosier, more efficient - and all at no upfront cost.

The Green Deal is also a massive business opportunity for firms up and down Britain, helping to power the economy and creating jobs. From one-man bands and local authorities, to the big supermarkets and DIY stores, we want as many providers getting involved as possible because that's what will give consumers the best deal.

I want to insulate Britain's homes not just from the cold weather, but also from the chill winds of global fossil fuel prices. It's these that are pushing up consumer energy prices, and it's why our balanced package of policies aimed at achieving energy savings and shifting to more home grown alternatives is the right one for the economy and all of us who pay energy bills.

There are certainly costs to replacing our ageing energy infrastructure with modern, clean power stations, and we take very seriously any impact of our policies on what consumers and businesses pay. We've repeatedly taken steps to reduce this - by removing some planned levies on bills and making others more cost effective and within budget.

But a crucial and too often ignored priority of our whole strategy is to reduce the amount of energy we use in our homes.

The Facts and Framework

The Green Deal framework will be launched from October 2012. This month's consultation outlines the followingthree big benefits of the ground-breaking scheme - and asks for comments from industry and the public:

• Every British home and business will be able to install packages of energy-saving technologies such as insulation at no upfront cost, making their property warmer and cosier straight away,with repayments made over time out of the energy savings. Strict standards will be put in place to prevent consumers being ripped off by cowboys.
• A new requirement on energy companies to provide £1.3 billion a year to ensure everyone is able to benefit from the Green Deal - no matter their income or the type of house they live in. Additional help will be available to ensure the fuel poor get better boilers and fix draughty homes, while subsidy will also be provided to help tackle homes that are hard to insulate“includingsolid wall homes.
• The Green Deal is expected to kick start around £14 billion of private sector investment over the next decade

Up to £150 in cash back could be available for homes taking out a Green Deal - to be funded through private sector Green Deal finance as part of efforts to make the Green Deal as attractive as possible.

Separately, the Chancellor announced in Budget 2011 that the Government is committed to the success of the Green Deal and will act to encourage and incentivise take-up sothe Green Deal will appeal to households, businesses and prospective providers alike, before it is introduced in 2012.

The Green Deal - Impacts on Energy and Climate

The annual estimate of the impacts of energy and climate change policies on energy prices and bills, published this month, shows:

• By the end of 2011 household electricity prices will have increased by around 16% and household gas prices by 25% since the start of the year. This has been due mostly to global fossil fuel prices. Over the past year alone the global gas price increased by nearly 40%. Many experts expect global fossil fuel prices to continue to rise over the medium- and long term, meaning energy bills are likely to increase with or without policies.
• Government policies currently account for around 7% of an average household energy bill and have contributed very little to these recent price increases. In fact, accounting for the efficiency savings policiesalready delivered, the average household energy bill in 2011 is only 2% higher than it would have been if these policies were never introduced.
• In 2020 the average household bill will be 7%, or £94, lower than if the Government was not pursuing policies to achieve energy savings and incentivise the shift from fossil fuels to alternatives.A net saving will start to kick in from around 2013 and, over the remaining lifetime of this Parliament, average household bills will be lower than they otherwise would be,as a result of energy and climate policies. This assumes a central gas price estimate of nearly 70p/therm in 2020. If the gas price was to be higher, householders would be even better off.
• Government policies will enable more of the most vulnerable to heat their homes more affordably, as they will receive extra help through the new Warm Home Discount, existing energy efficiency schemes andthe Energy Company Obligation announced today.

UK Government earmarks £35m for energy efficiency measures

energy efficiency news - 22nd Sept 2011

Innovative measure that cut the costs of energy saving and reducing carbon emissions for homes and businesses are to get a £35m boost, UK energy secretary Chris Huhne announced yesterday.

In the spending review last year, the government earmarked more than £200m for low carbon technologies over the next four years.

A £35m share of that pot is now going to be devoted to reducing carbon emissions from buildings
Details of where and how the funding will be allocated to reduce costs of energy saving in domestic and non-domestic buildings will be announced later in the year.

Meanwhile, a new energy efficiency deployment office will be established within the Department on Energy and Climate Change (DECC) to create an energy efficiency strategy and strong programme management.

The office will have its own chair and director like similar offices for renewable energy, carbon capture and storage and nuclear power.