Government must commit to renewable energy policy in wake of cuts, says leading green energy firm
to overview
RENEWABLE energy giant Stiebel Eltron is calling on the Government to clarify its policy on green energy after this week’s announcement that the Low Carbon Building Programme (LCBP) is to be scrapped.
Wirral-based Stiebel Eltron, which manufactures a wide range of green energy products, says it is vital that the Lib-Con Coalition reiterates its commitment to UK renewables following cuts of £85m from the Department of Energy and Climate Change (DECC).
£3million of these savings will come from the closure of the LCBP, which has provided 20,000 grants since the programme started. The grants supported the installation of microgeneration equipment such as solar thermal, ground and air source heat pumps, and geothermal.
John Felgate, Stiebel Eltron Technical Director, said the cuts could have severe detrimental effects on the renewable industry unless the Government gives it assurances over future growth policy.
“This is a crossroads for the renewable heat industry and we need robust and intelligent leadership if we are to meet the target of renewables producing 12 per cent of the UK’s heat by 2020.
“It is a worrying time for the renewable heat industry, when we should be looking forward and pushing the green energy agenda. The lack of either certainty or a clear Government policy can only hamper the good work currently being undertaken across the sector, and we cannot afford to see years of progression going to waste.
“The LCBP was an extremely valuable funding stream and was important in the run up to the introduction of the Renewable Heat Incentive legislation. The RHI is due to come into effect in April 2011 (see background) but legislation is still needed and the Government is yet to offer its commitment to passing it through. This leaves the renewable heat industry in limbo and could put jobs at risk.”
The DECC shut the LCBP on Monday to all new applicants, although its existing commitments will be honoured.
Leading trade bodies including the Renewable Energy Association (REA) and the British Electrotechnical and Allied Manufacturers Association (BEAMA) have also expressed their disappointment and concern over the cuts.
Mr Felgate added: “We understand the Government’s need for cuts and to reduce the deficit, and hope that despite scrapping the LBCP they do remain committed to the growth of the renewables industry.”
The UK currently has one of the worst records on renewable heat Europe, making up just 0.6 per cent of the nation’s heat market.
Stiebel Eltron background
STIEBEL ELTRON provides convenient technical solutions for every aspect of renewable energies, hot water, air conditioning and central heating. Founded in Germany in 1924 by Dr. Theodor Stiebel today it is one of the world’s leading specialists in heating, ventilation, air conditioning and systems technologies. It has a worldwide turnover of 475m Euros and employs 3000 staff.
Stiebel Eltron opened its new UK office on Wirral International Business Park on Merseyside in February 2008 having previously been based in Northampton. Visit: www.stiebel-eltron.co.uk
