Renewables Industry comments on IPPR study, Renewable Energy Association
Release Date: 2009-04-14
REA response to Institute for Public Policy Research report.
The REA, the UK's largest renewable energy trade association, has responded to a report by the Institute for Public Policy Research which says that the opportunity to create up to 70,000 UK jobs in the offshore wind industry could be lost due to a lack of government support.The report identifies banding under the Renewables Obligation (RO), building strategic infrastructure and proactive measures on supply chains, manufacturing and skills as key.
REA Director General Philip Wolfe said, "The UK renewables sector has yet to receive any targeted support from government during the recession and we are on tenterhooks for next week's budget. The IPPR report illustrates exactly why, in the midst of recession, targeting measures at the renewables industry makes economic, as well as environmental sense. 70,000 jobs could be created in the offshore wind sector alone, if government offers clear leadership including removing regulatory barriers for renewables and investing strategically in UK skills and manufacturing. Across the entire renewables sector the employment figure would be nearer 200,000, with vast export opportunities."
In addition to the blockages identified by IPPR, the REA is also concerned that government tackles the difficulties for renewables attaining project finance and immediate action is vital. A recent REA survey of members showed that three quarters of respondents faced major difficulty in gaining access to loans and investment.
REA is currently consulting its members on options to strengthen the RO for new installations for 2010. This is including Offshore wind where REA has proposed a banding of 2 ROCs per MWh, rather than the current 1.5 ROCs with an adjustment to the buyout price to ensure existing installations don’t suffer.
The REA has already set out its budget demands, see below, including a proposed immediate spend of £625m to safeguard the UK’s existing renewables industry; to ensure the UK benefits directly from future jobs and manufacturing; and to ensure the 2020 renewables targets can still be met. A total green energy stimulus package of around £10bn is needed to match the aspirations of other countries and meet investment levels recommended by Stern.
Other critical budget measures proposed by the REA include £230m to deliver 70,000 installations and 10,000 jobs in the decentralised energy sector, streamlined consent for renewable projects and related infrastructure, upgrading the UK’s energy infrastructure and essential skills training for 10,000 new and reskilled workers in the energy and building services sector.
| Type: | NORMAL |
| Company: | Renewable Energy Association |
| Country: | United Kingdom |
| Url: | http://www.r-e-a.net/info/rea-news/090214IPPRReport/ |