nextgen newsletter V2

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Nextgen page 10

Nextgen page 01

Latest Floorplan SEE PAGES 4 & 5

MCS Statistics Update

www.nextgenexpo.co.uk

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The UK’s largest bioenergy event

The UK's definitive microgeneration event

10th - 11th October 2012, Stoneleigh Park, Warwickshire

Govt acts to bring ‘certainty’ to renewable sector

Greg Barker MP Minister of State for Energy and Climate Change

The government has revamped the feed in tariff (FiT) scheme for renewable energies in a move it says will bring transparency, longevity and certainty to the sector. The news comes quickly on the heels of the announcement of the first successful applicants for another prong of the strategy, the renewable heat incentive (RHI). Climate Change Minister, Greg Barker, said the new-look FiT package will put the scheme on a ‘predictable, certain and sustainable footing’ for both consumers and suppliers of renewable technologies. “Instead of a scheme for the few the new improved scheme will deliver for the many,” he said. “Our new plans will see almost two and a half times more installations than originally projected by 2015 which is good news for the sustainable growth of the industry.” In January the first two successful applicants for the renewable heat incentive (RHI) - a Sheffield umbrella supplier and a group of holiday cottages in Yorkshire -

were announced. After Booth Brothers installed a 24kW water-source heat pump and Broadgate Farm Cottages a 4.3kW ground-source heat pump, both will receive quarterly payments of 4.5p per metered kWh of heat generated by their equipment over the next 20 years. Under the well-signalled reforms the new FiT of 21p/kWh (down from 43.3p/kWh) comes in from 1 April for domestic-size solar panels installed after 3 March 2012. But buildings installing solar panels on or after 1 April must have an Energy Performance Certificate rating of at least ‘D’ to qualify for a full tariff. Also from 1 April new ‘multi-installation’ tariff rates set at 80% of the standard tariffs will be introduced for solar PV installations where a single individual or organisation is already receiving FiT for other solar PV installations. The threshold is set at more than 25 installations. This will particularly affect those companies in the “roof for rent” sector.

Barker also announced there will be two further consultations looking at the FiT for both photovoltaic (PV) installations and the tariff for non-PV installations. In these consultations the government says it wants a programme of tariff regression of 10% every six months to allow for falling installation costs. But the government has also indicated its intention to raise the tariff for micro-CHP installations from 10.5p/kWh to 12.5p/kWh to encourage its development. “I want to see a bright and vibrant future for small scale renewables in the UK and allow each of the technologies to reach their potential where they can get to a point where they can stand on their own two feet without the need for subsidy sooner rather than later,” said Barker. continued on page 7.

Renewables- market growth rates and sectors expected to grow substantially over the next few years It is true to say that renewables have had mixed fortunes over the last 10 years. Changes in government tariffs, public perceptions and economics have all played their part in shaping the market as it stands today. That said, it is estimated that the total renewables market currently stands at £16bn and should grow at around £1bn extra per year to be a £23bn market by 2016/2017. Driving the market for renewables are the UKs binding obligations to reduce carbon levels and to have 15% of all energy generated from renewables by 2020. A late starter, the UK is now beginning to motor ahead. Recent sector specific cuts (PV solar) could lead one to think that renewables are not worth investing in, however the bigger picture is good, offering solid growth prospects and excellent returns on investment. Forecast Growths for the Renewable Energy Technologies from 2010-11 to 2016-17 by Market Value in £’millions

One area that should increase quickly to achieve its full potential is renewable heat. The new RHI (Renewable Heat Incentive) legislation provides an incentive for producing heat from renewable sources. The UK is the first government in the world to implement such an incentive for renewable heat, other governments are said to be watching its progress with interest.

Air Source Heat Pumps 15%

The main beneficiaries of the RHI are expected to be Biomass and Heat Pumps, both Air and Ground Source. See pie chart opposite:

Ground Source Heat Pumps 21%

CHP 9%

Biomas (including District Heating) 48%

Biogas 7% Solar Thermal 0%

Source: DECC

Biomass for public buildings, schools, hospitals etc is expected to continue apace as well as domestic, as many living off the gas grid (4 million UK homes) are expected to convert from Heating oil (over 1 million) to solid biomass - wood chip or wood pellets. Technology allows biomass to be easily deployed for heat and hot water with very little user intervention (cleaning and re-stocking periodically aside) Heat Pumps possibly offer one of the most simple “fit and forget” solutions for renewable heat. Again, emerging technology, falling prices and increased competition are helping to drive this market forward significantly. The above table factors in incentives but not sudden changes, e.g. the recent PV Solar growth is subject to change due to current FiT uncertainty, also, the impact of the RHI is not fully understood yet.

Subscribe to the newsletter at www.nextgenexpo.co.uk For stand and sponsorship opportunities please call Amel Sanders on 0207 348 5264 or email amel.sanders@closer2media.com

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For more information on Biomass or other microgeneration technologies, visit the microgen expo each October. Cutting edge seminars, case studies and technology specific sessions allow delegates to understand all the renewable options under one roof.

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