Blair Energy Bill Promotes Renewables

LONDON, UK, November 28, 2003 (ENS) - Measures to enable the generation of more environmentally friendly power and to deal with the UK's nuclear legacy are contained in a a new Energy Bill heralded by the Queen's speech on Wednesday and introduced in the House of Commons today.

The bill is intended to help create a low carbon economy and ensure that 10 percent of the UK's electricity comes from renewable sources by the year 2010. Core themes of the bill are sustainable energy, dealing with the nuclear legacy, and competitive energy markets.

Energy Minister Stephen Timms said, "The policies we are putting in place today are not merely for the here and now. Future generations will reap the rewards of cleaner, greener power.

The proposals will encourage sustainable energy by enabling projects such as wave and tidal power developments to be built beyond British territorial waters.

Energy Minister Stephen Timms (Photo courtesy Office of the Minister)

For the first time, the legislation creates a single body - the Nuclear Decommissioning Authority - that will have complete responsibility for the decommissioning and cleanup of the UK's civil nuclear sites, and effective management of nuclear waste. Currently, the Department for Environment, Food and Rural Affairs, the Department of Trade and Industry, the Nuclear Safety Directorate and others have responsibility for various functions in this field.

The bill introduces the new British Electricity Trading and Transmission Arrangements (BETTA). These will establish a single wholesale electricity market for Britain, making energy markets more competitive.

Timms explained that BETTA will also help the growth of renewables, by spreading the cost of grid reinforcement - which is needed to accommodate renewable energy - across all users throughout the country.

A number of technical provisions aimed at ensuring competitive and reliable energy supplies are also included in the new bill

The measure will implement several commitments made in the government's Energy White Paper published in February. Timms said, "The White Paper stated our aspiration for renewables to meet 20 percent of our electricity needs by 2020, and by 2050, we are working to cut our CO2 [carbon dioxide] emissions by 60 percent."

The UK is making quick progress in opening more renewable energy generating facilities. The country's first offshore wind electricity flowed ashore from the North Hoyle wind farm on November 21, generated by the winds off the North Wales coast. The facility will produce enough clean electricity for up to 50,000 homes each year.

Six of North Hoyle's 30 wind turbines located about five miles off the North Wales coast between Rhyl and Prestatyn (Photo courtesy National Windpower)

Backed by Prime Minister Tony Blair and environmental group Greenpeace, the wind farm was developed by National Wind Power, sister company to npower, which supplies renewable energy to more UK households than any other company.

Stephen Tindale, executive director of Greenpeace UK, said North Hoyle’s construction marks an important first step towards a cleaner future for the UK. "This is the beginning of mainstream offshore wind power development and the dawn of a new era. Global warming is the greatest threat facing the planet, but the power flowing ashore today demonstrates we have the solutions to tackle it. It’s great news for all our futures.”

Coal has not been forgotten in the interest of renewable and nuclear energy. The government intends to secure more than 4,000 coal mining jobs in the UK and create a further 300 jobs as part of a £52m investment package announced today.

Under the new Coal Investment Aid scheme, 12 projects at mines in Northumberland, Nottinghamshire, Warwickshire, Yorkshire and South Wales have been awarded up to 30 percent of their total costs for development projects.

The funding package aims to unlock the potential of coal reserves that may otherwise remain untouched by providing a large chunk of the investment costs. If the funding is accepted, a total of £175m will be invested into the UK coal industry.

"Today's announcement demonstrates that, despite some difficult times in the past, there are encouraging signs for the future of the coal mining industry in the UK," Timms said.

The funding will help secure the future of coal mining to 2008 and beyond, he said. Two 12 successful applicants have until the end of February 2004 to accept these offers.