2020 Renewable Energy Targets & The Green Investment Bank

Europe has set itself a target share of energy usage from renewable sources of 20% by 2020, with the UK’s target contribution 15%.  But by 2010, we had reached just one fifth of our target.

To hit this target, the UK is adopting a three pronged approach – increasing electricity production from renewables to 30% of total capacity from the current 8.6%; growing renewable heat to 12% from its current 1.5%, and quadrupling the use of renewable fuels in our transport sector.

But do we have the right policy mix to drive the switch to renewables and do consumers still have the appetite for change, given the stuttering economic recovery and rising energy bills?

The Renewables Obligation (RO), which forces energy suppliers to source an increasing percentage of generation from renewables, has succeeded in raising the percentage of electricity generated from renewable sources to 8.6% from 1.8%, when first introduced.

Things changed again last year with the introduction of feed-in tariffs for small scale renewables, with generous tariff payments prompting rapid growth in solar PV developments. The success of this scheme has seen the government reduce the tariffs.

Renewable heat is less advanced. The government announced the Renewable Heat Incentive (RHI), which makes payments to renewable heat installation owners and bio-methane producers over a 20 year period, with the tariffs delivering a healthy 12% return. However, its introduction was delayed after wrangles with Europe over state aid rules and tariff levels. 

All of these renewables policy measures have a unique context in the UK, given the Climate Change Act 2008, which sets a legally binding target to reduce carbon emissions by at least 80% by 2050 – perhaps an opportunity for the UK to ‘lead from the front’ internationally.

The UK created the CRC Energy Efficiency Scheme to meet the EU target to save 20% of primary energy consumption by 2020 through energy efficiency. It encourages large energy consumers to adopt energy management strategies to reduce consumption and although criticized for being over complex, it has certainly enlivened the energy efficiency debate.

We need hard cash to provide new energy infrastructure, but will the new Green Investment Bank deliver? With £3bn initial government funding, it will invest in green projects and hope to attract £15bn private sector investment to accelerate the de-carbonisation of energy production - a modest start towards the estimated £110bn needed to de-carbonise the power sector.

Urban Energy

Urban Energy are delighted that nearly half the population would like to install renewable energy technologies; what worries us is the lack of awareness surrounding it. To bridge the Green Gap it’s essential we continue to educate consumers and break down some of the myths surrounding the Green Deal, energy efficiency and microgeneration.

Urban Energy has earned a reputation as the south’s leading renewable energy specialist. This has been achieved by ensuring that from the initial point of client contact we offer 1st class customer service and care.

We only install products that lead the way within the renewable energy industry and that are renowned for their high quality and ecologically sound production. This reflects our own high standards and quality assurance.

We understand that introducing a renewable energy system to either your home or business is an investment that lasts for many years. With our in-house electrical and plumbing division it is our promise to you the customer that your satisfaction and peace of mind throughout this period is our number one priority.

For further information about Urban Energy products and services:

Call: 0800 232 1624

Email: info@urbanenergy.org.uk

Website: http://www.urbanenergy.org.uk/