Heat industry queries low carbon plan

The heating industry is reviewing the fall out after the Secretary of State for Energy and Climate Change Ed Miliband unveiled the UK’s Low Carbon Transition Plan and Renewable Energy Strategy.

Many have welcomed the announcement which Mr Miliband described as a “route map to 2020” detailing the carbon savings targeted across each sector.

However, there are still concerns the Government is not moving fast enough on some issues such as renewable biogas and the Renewable Heat Incentive.

Baxi Group chief executive Mark Kelly said the commitment to introducing Feed-in Tariffs for electricity by April next year would help technologies such as the Ecogen micro-CHP unit, but finding a way forward on biogas was vital.

He said: “We need to keep pushing for biogas to be injected into the national gas network to make appliances even more carbon efficient.”

His views on biogas were backed up by the Renewable Energy Association. A spokesman said: “A report by National Grid showed the huge potential for green gas injection into the gas grid which could supply nearly half of domestic users.  There is no technical reason to delay introduction for a tariff for green gas.”

Neil Schofield, head of sustainable development at Worcester Bosch, said he was concerned that the Government remained focused on electricity while heating policy seemed to be “fixated” on biomass.

He added: “We have got the best gas grid in the world with fantastic coverage through the network. They seem to have woken up to that – which is brilliant as I think biogas in many ways is the probably the best long term and sustainable solution.”

He argued households also needed upfront help with installing energy efficient measures and the ‘Pay As You Save’ scheme proposed by the Conservatives and set to be piloted by the Government should be rolled out more quickly.

Alongside this he called for the launch of the Renewable Heat Incentive to be moved forward from its April 2011 launch date.

He said: “They keep saying it is a fragmented market and too complex, but that is simply not true.”

The Renewable Energy Association (REA) shared his concerns on the RHI: “The announcement that renewable heat projects being built today will be eligible for the RHI should help ease the paralysis in the renewable heat industry. However REA is still pressing for the RHI to be expedited, as heat is the biggest single use of energy in the UK and renewable heat still has no dedicated support..”

The REA said the announcement indicated a “step-change” in policy, but funding for measures remained a concern.

The spokesman said “The REA has found little mention of the serious project finance problems affecting industry.  We have been waiting for £400milion European Investment Bank money promised in the budget, which, when challenged, the Secretary of State said should be coming in the autumn.  Urgent action is needed.”

On fuel poverty the Government has promised to take action on forcing energy companies to deliver social tariffs to keep prices down for those on lower incomes. It is also extending Warm Front grants to ensure they cover the whole cost of an installation.

However, fuel poverty campaign group National Energy Action (NEA) is still concerned about the future of Warm Front and the impact on fuel bills of the transition plan.

A spokesman said: “Whilst the White Paper recognises the importance of Warm Front in assisting vulnerable households, NEA is concerned the reduction of funding for the next year has not been addressed which will lead to 50 per cent fewer households being assisted in 2010.”