Renewable Energy

In March 2007, the UK Government joined with other member states of the EU to agree binding targets for renewable energy, to deliver 20% of the EU’s total energy supply from renewables by 2020, and 10% of its transport fuels from biofuels. In July 2007, it published the Energy White Paper, with the Biomass Strategy and Woodfuel Strategy. The changes proposed therein represent the culmination of a long and protracted lobbying campaign, in which CLA is proud to have played a major part.

This website covers the CLA view on current policy on renewables, has links to external websites and also hosts the CLA commitment to Anaerobic Digestion (Biogas) through its work on the International Energy Agency Task 37: scroll down for more information and advice.

The Government's chief scientist has stated that climate change is perhaps the most serious challenge facing the planet. The UK is signed up to the Kyoto protocol, and has set itself on a path to meet the target recommended by the Royal Commission of Environmental Pollution, to save 60% of CO2 emissions by 2050.

In 2001, the Country Land & Business Association (CLA) published “climate change and the rural economy” which analysed the impacts and mitigation factors that would most affect the countryside.

Renewable energy, and in particular energy from the land, has always been high on the agenda for CLA and its members. Recent controversies over the increased numbers of wind farm proposals, and the lack of progress towards targets ( UK emissions increased in the last two years, after falling for a number of years).

CLA, following extensive research and consultation with members and experts, published its own policy analysis and recommendations in 2005, which are available in either summary or full form below.

Not a CLA member

Few organisations are actively working for those who own rural land and buildings and are interested in renewable energy. As a CLA member you can benefit from free advice on the options open to you alongside our other advice services on tax, law, planning, and the rural economy. You do not need to farm, or to own any significant amount of land to join - a high proportion of our members have a house, a few farm buildings, and a small amount of land. Others are professional and business members. Further benefits of membership can be obtained here or via the home page of this website.

Download "Renewable Energy – more than wind” summary and recommendations" (873 Kb)

Download the full policy paper- "Renewable Energy – more than wind” (1.1 Mb)

Government has taken up a number of the key recommendations made by CLA, not least in the area of Biomass Energy.

The Biomass Task Force reported its recommendations (available here) in 2006, and CLA is part of the Biomass |mplementation Advisory Group which is advising on, and monitoring the delivery of the Task Force recommendations.

The Government has finally agreed the CLA’s proposal to “band” the Renewable Obligation for electricity (details of banding and the underpinning rationale are set out in “more than wind”).

DTI has published the Microgeneration Strategy, which may be downloaded here

In March, CLA supported the Green Alliance and others in the design and launch of a strategy for sustainable heat, available here.

At the same time, the Forestry Commission, after consulting CLA and others, published its “woodfuel strategy” available here, calling for the release of 2 million tonnes of wood to be used for heating fuel, either in woodchip or woodpellets.

The Biomass Strategy, which sets out a path to delivery of up to 1 million hectares of land for energy crops - both biofuel and biomass, may be downloaded here .

CLA has warmly welcomed the sea change in the recognition by Government of the potential for renewable energy from the land.

In particular, the proposal to "band" the Renewable Obligation to offer double the support to biomass Combined Heat and Power, and Anaerobic Digestion (Biogas) installations is welcome. The work being undertaken by the Waste Resources Action Programme to deliver a digestate protocol to enable the output from biogas to be treated as biofertiliser rather than waste is welcome. Banding is described in more detail below.

However, in order to secure the investment needed, and to deliver the potential of carbon saving envisaged in the White Paper and EU Council agreement, more action is required:

As set out by the Sustainable Development Commission in its hard hitting report "Lost in Transmission" downloadable here, Government must take action to put carbon in equal first place in the Energy Regulator's objectives: only in this way can we expect Ofgem to require and reward electricity companies to connect up new renewables speedily and at low cost.
As described in "More than Wind" (referenced above) and in the Strategy for Sustainable Heat, Government must take steps to secure long term stable support mechanisms for the delivery of renewable heat. Current work by BERR and Defra is downloadable here at the BERR renewable heat page . CLA will be responding robustly to the current government consultation (Call for Evidence) on support for renewable heat, which closes on 11 March 2008.
More needs to be done to deliver micro renewables at a household level.

Biomass for heat and electricity

CLA continues to play its part, as a member of the Biomass Implementation Advisory Group, supervising the workstreams set out on the Defra renewable energy page which may be accessed here,

Biomass (both woodfuel from existing woodlands and energy crops such as miscanthus and short rotation coppice willow) is a carbon friendly fuel widely used in many other EU states for energy. CLA lobbies for support for the use of biomass, and advises members on the policy and practicalities.

CLA lobbying continues to seek to persuade Government to introduce a Renewable Heat Obligation.

CLA argues that, like electricity suppliers fossil fuel heat suppliers (coal, gas, LPG and heating oil) should have an Obligation to supply an increasing proportion of their business from renewable energy sources.
Existing limited grant aid has failed to deliver a step change in the delivery of renewable heat. We lag far behind our EU neighbours and are missing the available opportunities, identified in the Energy White Paper (and daughter documents).
If enacted, the Heat Obligation should run parallel to the existing Renewable Obligation until 2027 with quotas being set for several years ahead (initially at least to 2015).

Benefits of a Renewabl Heat Obligation
An obligation on energy suppliers has proved to be an effective way of stimulating change, without imposing a financial burden on taxpayers.
The existing Renewable Obligation (RO), which covers only electricity, is the most cost effective way of delivering a step-change in renewables take-up and offers investors a long term stable mechanism which underpins investment.
An obligation of this type provides a market-based incentive, to which companies can respond, without the expense, lag-time and inertia in trying to stimulate change in the population at large.
Furthermore, the heat sector in particular would encourage the biomass industry, with substantial positive effects in agriculture and the rural economy. In particular it would work with the RO to stimulate combined heat and power systems.
It should also prove particularly effective in providing additional stimulus for building-integrated and micro-power solutions – both areas where existing policies have had limited impact to date.
Moreover, directly rewarding the delivery of renewable heat avoids wasted investment that may arise in under-utilisation of grant aided renewable heating equipment.

Comparison with the Renewables Obligation (RO) for electricity
The RO has two distinct features:
 an obligation on licensed electricity suppliers to source a rising percentage of their supply from renewables; and,
 an accreditation process that grants generators of renewable electricity with certificates matching their metered output in any given month.

It is possible to recreate these two features in the market for heat:
 The obligation would be placed on suppliers of fossil fuel heating fuels e.g. gas suppliers, coal, coke and oil suppliers. There is no one license that identifies these bodies, however, they are limited in number and easily identified as all have a relationship with Customs and Excise that would allow for their easy identification. Retailers of small volumes of heating fuels i.e. garage forecourts, would not be included in the obligation.
 A list of accredited sites could be set up and administered by OFGEM for metered sources of renewable heat. Any site could be accredited providing adequate metering systems are in place.
Ofgem, most energy suppliers, and a number of renewable heat generators are already involved in the RO, so already comfortable with the administration and operation of the applicable systems.

Biogas (Anaerobic Digestion)

CLA lobbies for better recognition of the widespread benefits of biogas. CLA, through its support of "Task 37 UK" the UK not for profit company set up to promote biogas in the UK through ensuring the latest technological and market advances from other countries in the International Energy Agency (IEA) are made available to UK investors. The IEA website may be accessed here.

Dr Clare Lukehurst and Oliver Harwood are directors of Task 37 UK, a company limited by guarantee, set up with support from CLA to promote and promulgate the latest biogas technology across the UK.

Clare, a CLA member, is also the UK representative on the International Energy Agency Task 37 which covers biogas.

Many other biogas proponents and businesses are also CLA members, and benefit from the lobbying, networking and advice CLA can offer.

We are delighted to announce that Task 37 UK has been successful in securing grant aid funding from the Esmee Fairburn Foundation to undertake a three year biogas dissemination programme under the name “Probiogas UK”.

The CLA is especially grateful to Clare for all her hard work, not least in organising biogas study tours to Northern Ireland, Denmark, Sweden and further afield, which many CLA members have benefited from.

The CLA is a strong and committed supporter of biogas technology, and fought hard to get it recognition in the Biomass Task Force report and the Energy White Paper. We continue to work with Government in the Biomass Implementation Advisory Group and look forward to the Governments conclusions on the best way to support renewable heat – a major output of biogas installations.

CLA emphasises the wide ranging environmental and other benefits of biogas deployment : we must all work together to secure deployment. This means addressing the barriers – not least of which are ignorance – and securing the necessary support for what is an infant industry in the UK, albeit one that is well developed elsewhere in Europe.

The Government’s Energy White Paper (published May 2007) confirmed the Government proposal to Band the Renewables Obligation in 2010. This follows more than 5 years of consistent and strong CLA lobbying for banding.

Banding the Renewables Obligation

What is banding
Banding applies different levels of support and incentives to different technologies. Put simply, CLA’s recommendation – now accepted by Government – is that newer higher cost technologies such as biogas generation should attract more support than lower cost, established technologies such as wind power. Banding therefore boosts emerging technologies providing all round benefits and enabling them to compete on an equal footing in the long term.

How will livestock farmers profit
Livestock farmers, faced with investment challenges in the Nitrates Vulnerable Zone review, may be able to use the reformed Renewables Obligation to develop a profitable enterprise, boosting storage capacity, making money from renewable electricity sales, meeting their needs for heat for dairy washings and more, at the same time as saving on fertiliser bills and helping improve water and air quality.

How did the CLA lobby succeed
• Responding robustly to each of the 3 energy reviews and to every consultation on the drafting of the Renewable Obligation.
• Making a strong response to the Energy review, backed up with meetings with DTI officials
• Carefully scrutinising the Utilities Bill and proposing specific recommendations
• Lobbying members of Parliament across all parties, and senior civil servants
• Convincing strong allies, such as The Royal Commission on Environmental Pollution, of our case, and providing evidence of the facts on the ground, drawing on wider European experience
• Setting out our reasoned analysis and recommendations for energy policy in a major report Renewable Energy – more than wind.

The lobby timeline

↑ 2007 The Government’s Energy White Paper is published in May 2007 confirming the Government proposal to Band the Obligation in 2010. It accepts the CLA’s argument for banding the Renewables Obligation stating:
“banding would best deliver the Government’s aims of bringing forward emerging renewable technologies; improving the overall cost-effectiveness of the RO; and preserving investor confidence by applying changes only to new projects.”
↑ 2006 CLA’s continues to campaign robustly through press and parliamentary lobbying.
↑ 2005 CLA publishes a major report with analysis and recommendations for energy policy, including banding. Copies of Renewable Energy – more than wind are widely distributed to all who have an interest in, and an opportunity to influence, government policy; a section on the CLA web site is devoted to CLA’s original policy ideas on renewable energy
CLA takes its campaign for banding to major events throughout the year and responds to both the Environmental Audit Committee Inquiry and the DTI Energy Review.
↑ 2004 CLA responds to the DTI consultation on Terms of Reference for the 2005-6 Review of the Renewables Obligation.
↑ 2003 CLA responds to the DTI consultation on the Renewables Obligation (amendment) Order 2003, warning that without banding the Government will not achieve its 2010 target for either renewable electricity production or GHG reduction.
↑ 2002 CLA continues to call for banding through its press and parliamentary work – briefing all members of both Houses on the Renewable Obligation Order and responding to consultations from both the DTI and the Cabinet Office.
↑ 2001 Government introduces the Renewable Obligation order – CLA President warns both the then Secretary of State for Agriculture and the Environment Minister that the Renewable Obligation will not promote biomass power.
↑ 2000 CLA briefs the House of Lords throughout the passage of the Utilities Bill, consistently calling for banding and proposing specific amendments with the support of Lord Jenkin of Roding.
↑ CLA evidence persuades the Royal Commission on Environmental Pollution to publish calls for banding in its Biomass report and to make this submission to the DTI Renewables Obligation Preliminary Consultation.
↑ 1999 CLA calls for a scheme supporting the emerging technologies of biomass energy in response to DTI consultation on new and renewable energy.

Biofuels

CLA supported the introduction of the Renewable Transport Fuel Obligation. Current lobbying seeks to ensure that imported biofuels match the sustainablility criteria demanded of those grown in the EU under the strict CAP regime that protects "Good Agricultural and Environmental Conditions" and both natural resources (soil air and water) and habitat in the EU. CLA supports the work being undertaken by the Low Carbon Vehicle Partnership, and welcomes the statement made in the House of Commons on 29 November 2007 by Mr Fitzpatrick for the Government as follows:

"The Government have asked the Low Carbon Vehicle Partnership to carry out a feasibility study into a possible sustainability labelling scheme for biofuels. The work is under way and we will publish our findings as soon as possible.

The rapidly increasing global demand for palm oil and other agricultural commodities for use in the food and other sectors has a number of environmental and social consequences. The biofuel sector currently accounts for a very small fraction of total global demand for these products. Current high cereals prices are due to global factors, including two successive lower world wheat harvests, low global stocks and increased demand for cereals from the food, feed and fuels sectors. Growing global demand for biofuels can be expected to increase crop prices but also the supply of crops in the future.

The Government take very seriously the potential risks associated with unsustainable biofuel production, including deforestation, reduction of biodiversity and any more particular threats to endangered species. We have developed a comprehensive carbon and sustainability reporting mechanism as an integral part of the Renewable Transport Fuel Obligation (RTFO) which is due to come into effect in April 2008. This is designed to encourage transport fuel suppliers to ensure the sustainability of their biofuels. We are also pressing the European Commission to introduce a robust mandatory sustainability framework for biofuels as a part of its forthcoming Renewable Energy Directive. We have said that we will not support any higher targets for future biofuel use until we are satisfied that effective sustainability standards are in place.

From April 2008, we will ask the Renewable Fuels Agency to report on a quarterly basis on the sustainability impacts of the RTFO. This will allow us to monitor very closely any adverse impacts of biofuel production. The Government will monitor how markets are affected by growing biofuel demand and will tailor policies accordingly."

Biofuels and crop prices

Jonathan Shaw MP, in reply to a Parliamentary Question on 26 November 2007 states as follows:

[holding answer 26 November 2007]: "As part of the Government’s Climate Change programme, a Renewable Transport Fuel Obligation (RTFO) will be introduced in 2008. It will require transport fuel suppliers to ensure that 5 per cent. of their fuel sales are from a renewable source by 2010.

It is unlikely that the RTFO has had any discernable effect on crop prices to date. Current high cereals prices are due to global factors, including two successive lower world wheat harvests, low global stocks and increased demand for cereals from the food, feed and fuels sectors. Growing global demand for biofuels can be expected to increase crop prices but also the supply of crops in the future.

Analysis by the European Commission assessing the impact of the 10 per cent. (by energy) biofuel target for 2020 indicates that prices for agricultural raw materials in the European Union (EU) would increase by 3 per cent. to 6 per cent. for cereals and 5 per cent. to 18 per cent. for oilseeds. This took into account, potential in the EU to increase production in response to additional demand, and a future contribution from second generation biofuels which can use non-food feedstocks, including waste.

The Government recognise that a balance is needed between using available land for food and non-food purposes. We will monitor how markets are affected by growing biofuel demand and will tailor policies accordingly."

CLA continues to argue for support for businesses that produce biofuels from waste cooking oil to be continued through the current fuel duty concession, rather than relying on the RTFO, and for more support for "flex fuel" vehicles which can use varying and higher percentages of biofuels.

CLA is particularly concerned that biofuel processors should use best available techniques for low carbon processing of the feedstock in order to ensure the best carbon savings. Prof Nigel Mortimer of North Energy Asociates has demonstrated the very large differences in carbon savings and the potential for carbon neutrality if renewables are used to power fuel processing. The paper he gave to the Agricultural Economics Society "carbon life cycle analyses" can be downloaded here

Small scale renewables

Obligation mechanisms are not well suited to support for micro renewables at a farm or household level. Grant aid, as has been delivered under various Government schemes in the recent past, has failed to secure a step change in deployment. CLA supports the proposals for the introduction of a "Feed in Tarrif" on a similar basis as is operated in Germany for microgeneration, and urges Parliamentarians to support the Early Day Motion no 890, below:

FEED-IN TARIFFS FOR RENEWABLE ELECTRICITY

05.02.2008

Simpson, Alan

That this House notes that massive expansion of renewable energy generating capacity is essential in order to cut the UK's carbon emissions significantly and to meet the EU renewable energy targets; further notes that the UK generates just five per cent. of its electricity from renewable sources; recognises that many European countries have adopted a feed-in tariff system with considerable success, paying a long-term, guaranteed premium price for renewable electricity exported to the grid; appreciates that a feed-in tariff has played a transformational role in Germany which now generates 13 per cent. of its electricity from renewable sources and employs 236,000 people in the renewable energy sector; further notes the finding of the Stern Review that `comparisons between deployment support through tradeable quotas and feed-in tariff price support suggest that feed-in mechanisms achieve larger deployment at lower costs'; believes that there is an urgent need for a feed-in tariff to support smaller scale renewable electricity schemes; recognises that a UK feed-in tariff could work alongside other policy mechanisms that support large scale renewable electricity generation; and calls on the Government to introduce the necessary enabling powers for a feed-in tariff in the current Energy Bill and give a commitment to introduce, following appropriate consultation, a UK feed-in tariff to support smaller non-merchant renewable electricity generation.

Contacts and Feedback

Oliver Harwood MA (Cantab) MRICS – 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