Electricity Market Reform and Green Investment Bank introduced
REA responds to the Queen’s Speech...
The Queen’s Speech at the State Opening or Parliament today introduced Electricity Market Reform (EMR) [1] and the Green Investment Bank (GIB).
Gaynor Hartnell, Chief Executive of the REA [2], said:
“We look forward to seeing the details of the Energy Bill. This is of immense importance to project developers in renewables, as the measures it puts in place will eventually replace the Renewables Obligation. Many of the projects in development now are working to a timescale that takes them into the new regime, and they need to know the detail as soon as possible.
“The new arrangements aim to deliver a stable price for renewable electricity generators, irrespective of what happens to electricity prices. If all works as intended, it should make project development less risky and means that the public pays no more than it needs to for green power.”
We are also awaiting the Government’s conclusions on the subsidy levels coming into effect from April next year under the current policy, the Renewables Obligation. Gaynor Hartnell continues:
“It was originally intended that the legislation setting out how many ROCs [3] generators would earn for their power output from 2013 onwards would be in place a full year ahead. This would have given project developers absolute confidence to progress their plans. As it stands we could know the intended levels later this month but won’t see the legislation until the autumn.”
1. More information should be provided via an operational update to the EMR, which we understand may be published by the end of this month.
2. The Renewable Energy Association represents renewable energy producers and promotes the use of all forms of renewable energy in the UK across power, heat, transport and renewable gas. It is the largest renewable trade association in the UK, with 960 members, ranging from major multinationals to sole traders. For more information, see: www.r-e-a.net
3. ROCs = Renewable Obligation Certificates, worth around £45 per MWh or 4.5 pence per unit of electricity.
