Letter to Rt Hon Charles Hendry MP, Minister of State for Energy and Climate Change

Letter to Rt Hon Charles Hendry MP, Minister of State for Energy and Climate Change

Charles Hendry MP

Minister of State

Department of Energy and Climate Change

3 Whitehall Place

London

SW1A 2HH

 

3rd July 2012 

 

Dear Charles,

I understand that Ministers are in the process of making final decisions on the Renewables Obligation Banding Review and that we should expect an announcement from DECC before recess.  During these final deliberations I would urge you to give the utmost attention to two key issues:

Ongoing support for onshore wind

Onshore wind is one of the most cost-effective renewable energy technologies available and will be essential to meeting the UK’s 2020 renewable energy target in an affordable way.  It is both proven and popular, with a recent YouGov poll for the Sunday Times[i] finding that 56 per cent of people want more wind, just 19 per cent want less, and 60 per cent think it’s right for government to subsidise wind farms to encourage more use of wind power.

Onshore wind must receive ongoing support. Crucially, there must not be any greater reduction than the proposed 10 per cent cut to 0.9 Renewables Obligations Certificates per MWh for onshore wind.

As reviews by Ofgem have shown[ii], in the past the wholesale market has disadvantaged small and intermittent generation.

Therefore the Renewables Obligation should not be seen as purely as a subsidy but also a second best remedy to deficiencies in the wholesale energy markets, which the current proposals for Electricity Market Reform are ignoring, and Ofgem is making glacial progress in addressing.

Furthermore, I am concerned that even this level of cuts will leave medium-scale projects, which often operate under a community ownership or cooperative model, at the margins of viability.

The Government must ensure that financial support mechanisms are specifically designed so that any community group who wants to benefit from a wind installation in their area is able to do so.

You will be aware of the industry’s response to media reports that a 25 per cent cut to onshore wind subsidies is under consideration.

The Renewable Energy Association have warned that anything more severe than the 10 per cent proposed would not only halt growth in the onshore wind industry and the thousands of jobs it supports, but would also put at risk many current and future investments in the UK’s other renewable energy sectors because of the increased policy uncertainty this would create.

In light of the relatively low cost of onshore wind compared with other renewables at present,  and the serious sustainability concerns in respect of the bioenergy sector as outlined below, DECC should be seeking to ensure the UK’s potential for onshore wind is maximised to the extent that it can be done sustainably and with public support.

Removing subsidies for unsustainable biomass

Bioenergy has a role to play in meeting the UK’s renewable energy targets. However, it must be produced sustainably, used in the most efficient way possible, and contribute to genuine emissions reductions. 

The Renewables Obligation Banding Review presents an opportunity for the government to get this right, by remove the existing financial incentives for unsustainably produced biomass electricity generation and redirecting this support towards genuinely sustainable renewable energy technologies and measures to dramatically reduce energy demand.   

Sustainable biomass is a limited resource and should therefore be used in the most efficient way possible. This means local production of biomass to minimise transport emissions and costs, and the incentivisation of combined heat and power plant.

Subsiding existing or planned large-scale biomass electricity power stations or co-firing of coal and biomass by large power stations without utilisation of heat is not a good use of taxpayers’ money.

These are inefficient and wasteful of fuel, typically having a conversion efficiency of 30 to 35 per cent compared to the EU Renewable Energy Directive's aspiration for biomass energy use to be at least 70 per cent efficient.

Mandatory sustainability standards must also be introduced to prevent production or extraction of energy biomass from land otherwise used for food production, pristine forests, lands with high carbon stocks and high nature conservation value such as wetlands and peat lands.

The current EU standards do not go far enough and must be improved through the addition of rules to mitigate indirect land use change and mandatory standards for water, soil and air protection  as well as social criteria. Compliance mechanisms must be robust and must not rely on self-reporting by fuel suppliers.

The Scientific Committee of the European Environment Agency’s advice[iii] underlines the crucial importance of strong safeguards to guarantee sustainability and genuine carbon savings, stating:  “legislation that encourages substitution of fossil fuels by bio energy, irrespective of the biomass source, may even result in increased carbon emissions – thereby accelerating global warming”.  

Given the particular reputation of palm oil as the epitome of environmentally destructive bioenergy, I would ask that you commit publicly to ruling out any subsidy for palm oil energy generation through the Renewables Obligation. 

Hard-pressed householders will not take kindly to hearing that even a small proportion of their energy bills could be contributing to the destruction of tropical forests and endangering the very existence of iconic species such as the orang-utan.

The public need to be confident that the Renewables Obligation will only support biomass that meets the highest sustainability standards in both production and use, in order to prevent environmental and social harm and secure genuine carbon reductions.

A number of my constituents have raised additional concerns regarding bioenergy and I enclose a summary of these. I would be grateful for your response to these points, as well as those set out in the body of this letter.

Thank you in advance for your ongoing consideration of these crucial issues.  I am copying this letter to Chloe Smith and I look forward to receiving a reply from both of your departments and to the imminent publication of the Government’s response to the Renewables Obligation Banding Review.

Yours sincerely,

 

Caroline Lucas, MP Brighton Pavilion  


 

Join The Discussion

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.