A consortium of Energy for Sustainable Development (ESD), Campbell Carr and the Energy Saving Trust has won a government tender to design mechanisms for implementation of two new renewable energy policies being introduced in two bills going through the UK parliament. The Utilities Bill provides for an obligation on electricity suppliers to source a percentage of their electricity from renewables, rising to 10% by 2010; and the Finance Bill allows electricity from renewables to be exempted from the Climate Change Levy on the business use of energy. The project is to be steered by the Department of Trade and Industry (DTI), regulatory body OFGEM (which will oversee the renewables obligation) and HM Customs & Excise (responsible for the climate levy). "There are going to a number of significant challenges to get a series of mechanisms that meet the needs of all those different interest groups," comments Christopher Crookall-Fallon of ESD. One of the key planks of the project will be how to make tradable green certificates work in reality, he explains. The mechanisms will also take account of the growing market for green electricity and export of renewable energy benefits to other European countries. The consortium is to consult with the UK's electricity suppliers as well as renewable generators. It has to design outline mechanisms by the end of June.
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