APPENDIX 9
Letter to the Clerk of the Committee from
Alan Moore, Chairman of the Board British Wind Energy Association
The British Wind Energy Association (BWEA) welcomes
the opportunity to contribute to the Committee and provides this
memorandum on behalf of the UK wind energy industry.
BWEA was established in 1978 and is the representative
body for companies active in the UK wind energy market. Its membership
has grown rapidly over recent years and now stands at 250 companies,
including 98.8% of all grid-connected wind energy now installed
and every company with a lease to develop offshore (see http://www.bwea.com/members/GenericList.asp).
BWEA welcomes the general thrust of the Energy
White Paper and the adoption of the objective to reduce carbon
dioxide emissions by 60% by 2050. The key role of renewables in
meeting that objective is correctly recognised and BWEA is confident
that the Government's expectation that wind power will play the
largest part is correct.
After one year of operation, early signs are
that the Renewables Obligation is proving successful in promoting
new development. More wind projects have been developed and consented
since its introduction than during the previous decade of NFFO
incentives.
BWEA welcomes the aspiration to broadly double
the 10% Obligation by 2020. However the importance of firm targets,
or equivalent financial support mechanisms, will increase with
time and will become critical to future investment by the time
the 2005-06 review of the Obligation takes place. BWEA would be
happy to discuss possible future options with the Committee.
BWEA anticipates that Government will be looking
for evidence that the Renewables Obligation is delivering the
expected levels of renewables during the 2005-06 review. Whilst
there is the possibility of adjusting the mechanism at that time
to further incentivise the development of renewables, BWEA believes
that the most likely constraints to delivery by 2005-06 are likely
to be institutional. The principal barriers are well known: planning,
aviation issues, grid network constraints (both distribution and
transmission) and public awareness. Indeed, they are all correctly
identified within the White Paper.
The 2005-06 review, and the need to demonstrate
delivery at that time, places a renewed urgency on the need to
address these vital issues. To be more specific:
— The wind industry is anxious for
the ODPM to put in place the revised PPS22 Planning Guidance for
Renewables in England. Its programme is already running late and
it currently looks unlikely to surface much before the end of
2003. Its impact on 2005-06 delivery is clearly going to be limited.
Similar guidance in Scotland was published more rapidly and has
already proved beneficial in promoting planning consents.
— Radar and restrictions on wind farm
siting from low-flying military aircraft are continuing to prove
problematic. There are numerous technical and organisational issues
involved. BWEA believes there needs to be a greater political
will to break this log jam which is constraining both onshore
and offshore wind projects.
— Access to the grid at reasonable
cost is critical to generation projects. Constraints are already
becoming apparent and these will rapidly become more severe. DTI
and Ofgem are working with distribution networks operations to
fundamentally rethink the way their networks are operated and
developed. This work needs to be completed in good time to enable
Ofgem to build in the necessary commercial incentives within the
2005 Distribution Price Review.
— Last, but not least, the "hearts
and minds" campaign to inform and win over the public decision-makers
to the need for renewables is, BWEA believes, key to the successful
acceleration of renewables capacity. Government has a key leadership
role to play here and BWEA welcomes and encourages the work which
has started under the auspices of the Renewables Advisory Board.
BWEA welcomes the capital grants which have
already been awarded to those consented "Round One"
offshore wind projects: consideration needs to be given to continuing
capital supports for the remainder of "Round One" projects.
The 2005-06 review would be an appropriate time for the Government
to consider the form of support required for "Round Two"
and future offshore wind projects.
To summarise, all these issues have been correctly
identified within the Energy White Paper. BWEA welcomes this recognition
and now urges Government to rapidly progress their resolution
so that targets and aspirations can be achieved, with particular
focus on demonstrating significant progress in time for the 2005-06
review of the Renewables Obligation.
BWEA would be pleased to clarify any issues
raised and offer any further information the Committee may require.
March 2003
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