On Farm Electricity Moves Closer

Those who have been following the UK energy review, and have looked at the levels of support available to farmers on the continent for renewable energy projects, may have missed a small but significant change in policy proposed by DTI.

Whilst the closest market opportunities for members clearly lie in the field of renewable heat, which got little more than lip service in the Energy Review, there is ONE piece of especially good news amongst the commitments to further consultation and reviews of policy.

CLA has been arguing for 5 years that the Renewable Obligation (RO) which offers the same support to any qualifying renewable electricity producer, does not recognise the additional benefits to rural communities and businesses of biomass electricity over wind power. CLA has put the arguments to DTI direct, in our response to the Energy White Paper in 2003, in every consultation on the drafting of the RO, and in our response to the current energy review as well as in the CLA policy report timed to influence the Energy Review "More than Wind".

A better price for biomass power, as is available in Germany and many other neighbours, transforms the market opportunities for on farm bio-digesters and small scale woodchip CHP units, like that recently installed at Harper Adams by Talbotts.

The Energy Review confirms that DTI has accepted our arguments, and will adopt a new scheme, and consult on the details, to bring in "banding" in 2009/10.

"We are simply delighted that Government has accepted our arguments" said David Fursdon, CLA President "and we will certainly be pushing DTI to adopt a banding scheme as soon as may be feasible. There should be no problems over State Aid rules, as the UK is the only EU country that has a one size fits all policy on renewable electricity."

"we are also pleased to see a review of the costs of connection and charging for the use of the system for renewables" he added " as many members have found that regional electricity network owners are less than helpful on new connections"

"Whilst a duty to connect, as applies in many European neighbours, would be ideal, there is a considerable amount of work to be done before we get to that point".

Oliver Harwood FRICS – Chief Surveyor

Responsible for national land use policy issues, and lead author of the draft renewable energy policy. Also provides advice to members on land use issues, including farming, alternative enterprise, minerals and wayleaves and easements.

Phone: 020 7460 7940
FAX: 020 7235 4696
Email oliver.harwood@cla.org.uk