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BWEA Press ReleaseThursday 8th July 2004Political consensus on renewablesCross-party agreement on future of Renewables Obligation legislationFront bench energy spokesmen from the three main political parties yesterday agreed that there could be no doubt of the importance of the role of renewable technologies in achieving security of UK energy supply and helping to address climate change. The parties also agreed that the Renewables Obligation will be maintained into the future as the delivery mechanism for increased generation from renewables. 
The consensus emerged from a debate chaired by Jonathan Dimbleby as part of the UK wind industry's 26th annual conference, held in Manchester. Laurence Robertson, Shadow Minister for Energy, stressed his party's support for the current legislation on increasing the green share of the energy mix, saying that "under a Conservative government the Renewables Obligation would continue" adding that "Wind will play a significant role in our future energy supplies." He went on to argue the case for renewables as part of a balanced energy policy, suggesting equal billing be given to renewables and nuclear to achieve 40% of supply thus securing carbon-free generation. Andrew Stunell, Liberal Democrat Spokesman for Energy, said that his party is committed to renewables as a dominant provider in an energy efficient future portfolio. He agreed that political parties should have consensus on the overall direction of energy policy while ensuring a healthy debate on the means to get there. 
The debate ended with Energy Minister Stephen Timms reaffirming the Government's position on renewables as outlined in the Energy White Paper. The Minister also emphasised that the Review of the Obligation scheduled for 2005/6 will not be a fundamental rethink of this critical policy: "We are not in the business of reopening or ripping up the very foundations of the renewables framework that we have put in place" and spoke further of the need to maintain confidence in the mechanism. The news will be greeted by both the renewables industry and the financial players who are keen to invest in this growth sector, as it reduces the political risk which could threaten the future of the industry at this critical phase in its development. Yesterday's developments were welcomed by Peter Calliafas, Head of the Environmental Services Team at Barclays. "The consensus from the three main political parties with respect to the renewable energy agenda and their commitment it, should help mitigate some of the perceived uncertainty from investors looking to finance projects in this sector." Barclays is the main sponsor of the BWEA26 conference. Others from within the finance world, such as Vivek Mittal, Director of Project Finance at the Bank of Scotland, were equally pleased at the news. "From a financier's point of view these statements are a much-needed confirmation of political support for a sector that is expected to remain dependent on government policy for the foreseeable future." Tony White, Head of Research at Climate Change Capital, said "This is the most important policy statement I've heard this year. It is something we've been after for 18 months and this consensus gives us confidence that the RO Review should not be viewed as threatening the future of the renewables market place." The wind industry was further heartened by the clear recognition by of all parties that there should be a cross-party consensus to advance renewables. In the words of Laurence Robertson, "Security of supply is a big issue: it's something which should unite us as far as we can be united. But even more important than that is the emissions issue and the global warming issue because the survival of the planet, I think I can safely say, has to be the most important political issue on the agenda. There can't be anything more important than that." Notes:
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