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Jun 22, 2006 -- M2 PRESSWIRE
Royal Assent was received late last night for a Government supported Private Member's Bill that will make it easier for householders who produce electricity from microgeneration technologies at their homes to sell unused power back to their supplier. The minister for energy Malcolm Wicks will welcome the Bill on to the statute books during a speech today at the Renewable Energy Association's annual conference in London. He will say: "The ability to produce clean, green energy from homes or businesses can help to lessen our carbon emissions and bring down fuel bills. "We, as individuals, must make a contribution to the fight against climate change, as we can't just expect big institutions or governments to solve the problem for us, we all have to make a difference. "A micro wind turbine will be installed on my own home shortly and I would like to see local level and community energy production like this becoming more commonplace. This will allow us get back in touch with where our power comes from and understand more about how much we are using or abusing. " The Act will make it easier for excess energy to be sold back to the utilities by encouraging energy companies to establish schemes that reward smaller scale generators for their exported power. This is a key plank of the DTI's recently published microgeneration strategy and is now legally underpinned by the bill's passage through the house. Opening up the ability to earn money for the sale of electricity produced by these technologies will help to offset the cost of installation and play a part in the expansion of the sector, bringing both environmental and economic benefits. Other measures in the Act will make it easier for small generators to receive the financial benefits of renewable obligation certificates - the Government's mechanism for the expansion or renewable energy production. It is also important to support microgeneration technologies that produce heat. These will now benefit from sections in the bill that call for the greater promotion of local level heat and power projects and a clause calling on community and parish councils to encourage energy saving measures in their area. A further provision added by the Government will help to open up the development of renewable energy projects on the Scottish islands by extending to 2024 a cap on electricity transmission charges. Without this potential cap the cost of connecting to the Scottish mainland could prove prohibitively expensive. With the bill now becoming an Act of Parliament the DTI will continue its work with the microgeneration industry, Ofgem, local Government organizations and other government departments to promote microgeneration. The objective is to create a realistic alternative or supplementary energy generation source for householders, communities and small businesses across the country. Notes to Editors * For more details on the DTI microgeneration strategy click here: http://www.dti.gov.uk/energy/energy-sources/sustainable/microgeneratio n/microgen-strategy/page27594.html * Renewable Obligation Certificates - The Renewables Obligation (RO) is an obligation, administered by OFGEM, on licensed electricity suppliers to provide a specified and annually increasing proportion of their sales from renewable sources. Generators can claim 1 Renewable Obligation Certificate (ROC) for every 1 MW of eligible renewable electricity generated. These are then sold to suppliers who can meet their obligation by presenting ROCs or by paying into the "buy-out fund" or a combination of the two. At the end of an obligation period the buyout fund is recycled pro rata to all suppliers who presented ROCs. Specific arrangements apply for microgenerators (those with a capacity of 50kW or less). In order to be issued with ROCs the microgenerator must first gain accreditation from OFGEM by completing a questionnaire, although ROCs will be issued for data which has been submitted prior to accreditation being obtained. In order to receive ROCs on an ongoing basis, generators must submit output information to OFGEM. Microgenerators have the option to submit their data on either a monthly or annual basis. ROCs are awarded on the basis of electricity generated. 500kWh - 1499 kWh earns 1 ROC, 1500kWh - 2499kWh earns 2 ROCs, and so on. These ROCs can then be sold to electricity supply companies to help them meet their obligation. The price of a ROC is subject to the market and is affected by different factors for example, the level of renewable generation or expected generation, but microgenerators could currently expect to receive GBP20-GBP30. M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com. News Provided By |
