Home

UK Chancellor Alistair Darling outlined plans to increase spending on energy efficiency and extend incentives for renewables as part of his Pre-Budget Report earlier this week.

The plans will bring forward £3 billion in capital spending projects from 2011/2012 to next year, of which £535 million will be earmarked for energy efficiency programmes, improving rail transport and environmental protection measures.

“[The plans] will put people to work, renovating infrastructure, modernising schools, and creating more fuel efficient homes,” Darling said in his statement to the House of Commons.

An extra £100 million and a further £50 million in spending will be brought forward to accelerate the Government’s Warm Front home insulation programme.

Darling also announced an extension to the Renewables Obligation (RO), which provides incentives for firms investing in renewable energy projects, to 2037.

Energy companies and industry organisations welcomed Darling’s commitment to extend the Renewables Obligation to at least 2037.

“This proactive move clearly demonstrates the Government’s continuing support to the renewable sector,” said Keith Anderson, managing director of ScottishPower Renewables. “This commitment will greatly strengthen investor confidence in UK renewable industry.”

Chris Tomlinson of the British Wind Energy Association (BWEA), speaking a meeting in London yesterday, commended the Government for the move.

The extension of the RO and the introduction of feed-in tariffs creates a good framework for renewables, added Steven Tindale of npower renewables. Now we just need to get on with it, he said.

However, environmental pressure group Friends of the Earth (FOE) says that Darling’s Pre-Budget Report has fallen a long way short of leading the country out of an economic downturn by investing in low-carbon technologies.

“Creating new jobs by insulating homes is a step in the right direction. [But] Ministers should have gone much further to slash energy waste and develop the UK’s massive renewable energy potential,” said FOE executive director, Andy Atkins.

For further information:
www.hm-treasury.gov.uk/prebud_pbr08_index.htm
www.scottishpowerrenewables.com/
www.bwea.com/
www.npowerrenewables.com/homepage/index.asp
www.foe.co.uk