UK government looks for advice on helping independent generators

Posted at July 10, 2012 » By : » Categories : News » Comments Off on UK government looks for advice on helping independent generators

The UK government last week launched an appeal for advice on how to address the barriers facing small independent renewable generators looking to join the country’s energy market.

The call for evidence will look specifically at Power Purchase Agreements (PPAs), which independent generators require to guarantee they have a buyer for the power they will generate before debt can be raised to build their renewable installation.

Some generators are reporting a decline in the terms they are being offered for PPAs, which they are concerned to lead to a decline in renewables investment.

Any impediment to investment in renewables and new generating capacity is being taken seriously as some £110 billion of investment is required in low-carbon power generation over the next decade to keep the UK’s lights on as the country’s older generating facilities come to the end of their lives.

The government has also repeatedly said that it wants to see a more diverse electricity market and reduced barriers to new, independent entrants to the market.

More recently, concerns have been raised over the complexity of the government’s proposed electricity market reform, particularly the Contracts for Difference (CfDs) system replacing Renewables Obligation Certificates (ROCs).

Giving evidence to the Houses of Parliament about the proposals last month, Ecotricity’s director Asif Rehmanwala said CfDs could put small suppliers out of business, dissuade new entries into the market and impact the building of new green energy.

But the government now says that responses from the call for evidence will be used to “refine” its proposals for the Energy Bill.

The call for evidence will be open until August 16th.

For further information:

Related stories:
UK reports 36% growth in renewables capacity in 12 months (2-Jul)
UK government publishes long-awaited Energy Bill (23-May)
Queen’s speech promises reform of UK electricity market (10-May)

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