The Secretary of State for Energy Chris Huhne announced at the beginning of February that the Government was intending to carry out a fast track consultation on proposed changes to the Feed in Tariff which provides financial support for renewable electricity production at local level.  Today’s announcement of the timetable for the consultation means that the Council has just six weeks to persuade the Government to reconsider this proposal.  

The changes being considered by the Government include making a dramatic 100 fold cut in the rates for solar electricity technologies from what is currently a top level of 5MW to only 50kw  (n.b. 1000kw = 1 MW). This would make any scheme over this vastly reduced limit ineligible for the Feed in Tariff from 1 August this year.

“Making these changes will have a major impact on the UK’s renewable energy programme at a time when world events such as the disaster in Japan are leading to serious questions being asked about the Government’s nuclear energy plans”  said Tim German, the Council’s Renewable Energy and Partnerships Manager.  “They will also affect the Council’s plans to develop solar energy projects as well as preventing major investment into businesses and communities in Cornwall.”

The Council began developing its plans to set up a 5MW solar park on land at the edge of Newquay Airport last year following the Government’s decision to introduce new legislation allowing councils to produce and sell electricity derived from renewable technologies.

Like many other local authorities, the Council was hoping to use income generated from selling green energy from its solar parks to the national grid to help support its activities and services at a time when it has been forced to make savings of £170 million over the next four years as a result of a 30% reduction in Government funding.

Julian German, the Council’s cabinet member responsible for the green energy programme, says the Government is giving confusing messages to local councils. “The Council has followed Government’s guidelines which allow us to generate green electricity and then sell it.  It is hard to believe that only six months after creating the legislation which allow us to take this route, they are now considering taking away the incentive that made it so financially viable“.

“We are extremely disappointed that on one hand the Secretary of State announced that local authorities have the opportunity to generate and sell electricity from renewable technologies, and yet now, on the other hand, they are planning changes to the feed-in tariff which is central to the profitability of our plans to take up this opportunity’.

Over the past few weeks the Council has held meetings with both Chris Huhne and Greg Barker, the Minister for Energy, to raise its concerns about these proposals.  Council leader Alec Robertson has also written to Greg Barker expressing the Council’s wish to work with the Secretary of State and his teams at DECC to ensure that Cornwall can effectively utilise its resources for renewable energy generation, low carbon business, jobs, skills and research.

“We feel that the activity which is being led by the Council in this area complements the Government’s ambition to be the ‘greenest government ever’ said Julian.  “I believe we have put a strong case to the Government and we will continue to do this during the forthcoming consultation period”.

Cornwall has the highest levels of solar irradiation (the most sunshine) on mainland UK.  This has generated huge interest in PV development from a large number of companies over the past few months.  One of the Council’s key concerns is that these proposals will prevent developers of solar parks from accessing the Feed in Tariff and, therefore, stop projects which could bring millions of pound of investment into Cornwall.  This will also have an impact on local communities and businesses which were set to benefit from community trust funds set up by the developers.

The Council has already demonstrated its commitment to developing photo voltaic energy projects by installing solar panels on the roofs of some of its buildings.  It also has plans to develop other initiatives which, it believes, will demonstrate renewable energy leadership and keep energy income in the local economy.

Carolyn Rule, the Council’s cabinet member for Economy and Regeneration, shares the concerns over the impact of the changes.  ‘It is estimated that energy costs Cornwall, its businesses and communities, well over £1billion a year.  We know that only 4% of the profits from the energy used in Cornwall actually remains in Cornwall and we need to reduce this amount of financial leakage in order to support our own economy’. 

With the Government putting a cap on the Feed in Tariff, Cornwall is hoping that negotiations to use Cornwall as an Observatory, and their support for a Government for renewable energy, will open up negotiations regarding the implications of this cap for Cornwall.

“So far not one commercial size solar farm has been built in the UK and, following these changes, I doubt if many will ”added Carolyn Rule.  “However we are looking for some flexibility in the Government’s plans and are suggesting that certain things should happen Cornwall before the guillotine falls on the PV Feed in Tariff as this will destroy a huge marketing opportunity for Cornwall as well as the rest of the UK, not to mention delivery against the target for PV agreed at European level. 

“Cornwall Council has all the mechanisms in place to ensure delivery of a low carbon society.  With planning, economic development and proposals around achieving a low carbon economy already in place in Cornwall , we are calling on the Government to devolve some of those responsibilities and share the opportunities with us. ”

“These opportunities are here and we need to act now.  We need to generate electricity and make money from it – for the Council, for Cornwall and for the country”.

ends

Trisha Hewitt

Communications Manager (Media Relations)

Cornwall Council

Tel: 01872 32 2186

Mobile: 07785 956 865

phewitt@cornwall.gov.uk 

Room 201, New County Hall, Treyew Road, Truro TR1 3AY

www.cornwall.gov.uk