Microgeneration could rival nuclear power, report shows


http://www.guardian.co.uk/environment/2008/jun/02/renewableenergy.alternativeene\
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British buildings equipped with solar, wind and other micro power
equipment could generate as much electricity in a year as five nuclear
power stations, a government-backed industry report showed today.

Commissioned by the Department for Business, Energy and Regulatory
Reform (DBERR), the report says that if government chose to be as
ambitious as some other countries, a combination of loans, grants and
incentives could lead to nearly 10m microgeneration systems being
installed by 2020.

Such a large scale switch to microrenewable energy could save 30m
tonnes of CO2 – the equivalent of nearly 5% of all UK electricity.

The report estimates that there are nearly 100,000 microgeneration
units already installed in Britain. Nearly 90,000 of these are solar
water heaters, with limited numbers of biomass boilers, photovoltaic
panels, heat pumps, fuel cells, and small-scale hydroelectric and
windpower schemes.

If no action is taken, says the report, Britain can expect about
500,000 microunits to be installed by 2015 and 2-3m by 2020. But, with
the right incentives, nearly one in five buildings in Britain would
effectively become mini power stations, feeding electricity into the
grid, or generating enough to be largely self-sufficient. Some of the
greatest gains would be in combined heat and power units which are
suitable for large blocks of flats, estates and businesses.

Britain has been widely criticised for not doing as much as other
countries to encourage a mass market for small-scale renewables. The
few existing schemes have failed to kick-start the industry. But the
report says this could be swiftly changed: Germany has invested nearly
£10bn in photovoltaic technology and Sweden has made it very
attractive for consumers to install heat pumps.

The small-scale energy revolution will depend on the government
stimulating the market with a range of consumer-friendly financial
incentives schemes. "For widespread uptake of microgeneration to occur
in the UK, sustained policy support will be required," says the report.

Top of the proposed incentive list is a "feed-in" tariff scheme which
would reward people who invest in making their own electricity for
feeding excess power into the national gird. This has been introduced
in most European countries and is now a part of the Conservative
party's energy policy.

Other possible incentives include 50% grants to help people meet the
high initial cost of equipment and installation. If the government
subsidised 50% of the cost of the some of the technologies, Britain
would save 14m tonnes of CO2 a year, or 3% of all emissions for a cost
rising to £2.2bn a year by 2030.

A third option would be to provide mortgage-style discounted
low-interest "soft loans" payable over 25 years. This, suggests the
report, would lead to a massive 8m units being installed by 2020. But
it cautions that the life of the loan would probably exceed the life
of most power units.

It also proposes a scheme where consumers put up some of the cost of a
new electricity generating boiler in return for a long-term guaranteed
cut in their power bills.

The report comes at a critical point, with the government's energy
strategy due to be published soon and microgeneration targets due to
be decided later in the year. The outlook it thought to be favourable
because energy prices are expected to continue rising steeply as oil
and gas prices soar.

The energy minister, Malcolm Wicks, welcomed the report:
"Microgeneration has the potential to make a significant contribution
to overall energy use in the UK and, combined with energy efficiency
measures, will help towards reducing our carbon emissions. The
concerned individual can take an active role in the battle against
climate change."

The industry has called for binding targets which it said would lead
to greater certainty for investors and lower costs for consumers.
"This shows that with the right policies in place, citizens can save
money and make make a marked difference to tackling UK emissions and
future-proof their homes," said Dave Sowden, chief executive of the
Micropower Council.

One problem was not considered by the report, however. Conservative
leader David Cameron, Gordon Brown and Malcolm Wicks have all had
applications to erect wind turbines on their roofs turned down by
planning officers.