Thursday, December 06, 2012

Renewable energy industry welcomes Bill UK

Thursday, December 06, 2012
The Bill in the British electricity market for years marked the biggest shake up and leads new market mechanisms designed to promote investment.

Introduction the House of Commons on Wednesday, Energy Minister Ed Davey m/s said that "we are on the cusp of a Renaissance in British energy," and added that "the United Kingdom for investments in the energy sector is open."

The headline, which are aspects of the law, that it includes no carbon emissions target for 2030 - this until 2016 - been delayed was and a control framework levy was introduced, the utilities to raise ?7 billion by 2020--customers tariffs for low-carbon investments go allow.

Other important market mechanisms are to be introduced contracts for difference - a purchase price for each megawatt hour generated - for all generators of low-carbon energy, which is guaranteed by a Government-backed body, known as the counterparty.

RenewableUK, a trade body representative of the wind and marine energy, welcomed the long-awaited publication of the law.

Its Director Gordon Edge policy said that the Bill "would provide a strong framework for investments."

"The Bill provides that welcome clarity about as contracts for difference is allocated, the financial risk on the developer to reduce." We welcome also the changeover to a counterparty, to write to the treaties. Reduce this risk and lower the cost of capital."

The renewable energy Association welcomed the Bill. When the Chief Executive Gaynor Hartnell pointed out that "The devil is in the details to be" added they add: "If the new regime is sensitively implemented, consumers and green generators should both win.

"Electricity customers will pay only what is necessary to shift the UK towards a more sustainable and secure energy supply in the future." This is because, with these new contracts when the price of electricity increases, required the amount of subsidy, can fall.

"Generators should receive a stable price, unless they reach the fair market price for their electricity. Therefore, we have a route to market that guarantees this. "

Jeff Champman, Chief Executive of CO2 capture and storage associations, said the Bill "Much more confidence among companies, which develop the Foundation for a worldwide leading industry Britain's first CCS projects and give would."

Tony Ward, power & utilities partner at Ernst & young, said the promulgation of the law "marks the opening of the final chapter in the British electricity market of reform process" and added to the the fact that the Ministry of finance and the Department of energy "finally have an agreement that has retained much of the long-term intention behind the reform is welcome and will be a relief for potential investors and existing asset owners alike."

"The announced measures most keep the desire, reach our goals until 2020 emissions and renewable energy, meet and at the same time confirm the potential role of gas in our fuel mix and moderation of consumer Bill rises, the delicate balance," he said.

He conceded that the Bill "without doubt a certain compromises reflected" but said that "the UK seems finally back on track, environment the much needed stability and confidence in the energy policy framework to be."

He added: "it may not be until fall 2013 before this law code, so will be achieved maintaining confidence in the safe passage of vital importance."

"As ever and ever, be ironed out or completely articulated information." Is it inevitable that in the coming days, the questions about certain elements are raised such as just like the contracts for difference counter party work, whether the capacity actually used market and, if so, whether it is rewarding new simply existing assets or incentives? Government and industry should work together closely, to deliver on this information."

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