Renewable Energy: DTI’s RoleJohn Thorpe

Renewable Energy Industry Development

Eastern Region Renewable Energy Conference,

5 June 2003

5 June 2003

Renewable Energy

Background

• The 4 pillars of UK Energy Policy Cut emissions Maintain reliability of supplies Competitive markets Ending fuel poverty

5 June 2003

Renewable Energy

Carbon Savings

• 2050 target of 60% reduction• By 2020, cuts 15-25 MtC

of which:MtC

• Energy efficiency 8-12• Renewables 3- 5• Transport 2- 4• EU carbon trading 2- 4

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Renewable Energy

Energy efficiency

• Best way to meet our objectives is to use less

• Helps all our 4 policy objectives• Since 1970, GDP doubled, energy

use up by 15%• But we still use more than we

need

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Renewable Energy

Renewables Targets

• 2010 10% of electricity generated from renewable sources

• Doubled by 2020• National targets backed up by regional

targets

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Renewable Energy

Where we are now

• Renewables contribution – 3%• Renewables eligible for the obligation –

1.8%• Target is ambitious• Requires step change in level of activity

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Renewable Energy

How do we get there

• Address the barriers• Hearts and minds• Practical steps Renewables Obligations Capital Grants R & D

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Renewable Energy

Renewables Obligation

• Introduced 2002• Progressively higher levels of

renewables• Long term support – 25 years• Review in 2005/06• By 2010, save 2.5 MtC

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Renewable Energy

Renewables Funding

Current spending review: £250m

2002 Spending Review – additional £38m

Announced in EWP – additional £60m

• TOTAL: £348m

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Renewable Energy

Hearts and Minds

To increase Renewables we need: engage communities improve planning procedures strategic partnerships at regional

level involvement of all

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Renewable Energy

The greatest journey starts with a single step