Companies want wind energy: if only they could get it!
16 May 2007
Red tape surrounding “green” wind energy is hampering UK companies looking to significantly cut their carbon dioxide (CO2) emissions.
That is the view of Co-operative Insurance which today (16 May) advised Alistair Darling - Secretary of State for Trade and Industry - that significant progress can be made in reducing carbon emissions from industry if “green” energy planning problems are tackled. 10 major UK companies, including Alliance Boots, Sainsbury’s, Scottish and Southern Energy and Reckitt Benckiser, keen to realise the benefits of wind and other renewable technologies, back the call.
As part of Co-operative Financial Services (CFS), Co-operative Insurance became the first UK company to enter into an innovative contractual agreement with green energy supplier Ecotricity. In return for a long-term commitment CFS was provided with guarantees on lower prices as well as helping it to reduce its CO2 emissions. As a result, Ecotricity was able to erect six new wind turbines. CFS parent company - the Co-operative Group – has also pioneered a number of renewable energy initiatives and was the first major retailer to power its 3000 plus outlets with energy from wind and water.
As a leader in responsible shareholding, Co-operative Insurance encouraged companies in which it invests to consider setting up similar arrangements for their energy needs. While there was significant interest in wind energy from the businesses it approached, a number of common problems were identified. Local bureaucracy, poor planning guidance for councils and the lack of a long-term energy strategy and infrastructure to encourage investment are among the stumbling blocks. These could also prevent the Government meeting its target of sourcing 10% of Britain’s energy from renewables by 2010, unless tackled by the forthcoming Energy White Paper.
Co-operative Insurance has now distilled the views of the companies into a ‘wish list’ and submitted it to the Government setting out commonly perceived problems and possible solutions. If these solutions are implemented the signatories to the ‘wish list’ believe that not just wind energy but other forms of renewables important in tackling climate change and energy insecurity could make a much stronger contribution to the UK’s energy mix. Business is responsible for approximately 40% of the UK's greenhouse gas emissions, and it is predicted that the UK will become increasingly reliant on imported gas in the future.
The ‘wish list’ has also been sent to Ruth Kelly - Secretary of State for Communities and Local Government – who announced on 4 April that planning rules are to be relaxed for members of the public wishing to install wind turbines, solar panels and other micro-technologies on their properties. While Government has recognised that similar problems exist for businesses, Co-operative Insurance would like a prompt accompanying drive to satisfy corporate demand to be supplied by renewables – where greater CO2 reductions can be won in a shorter time.
David Anderson, Chief Executive at Co-operative Financial Services, said: “Climate change is making UK businesses look at their environmental impact and explore ways to lower their carbon emissions. Switching their energy supply to green electricity is an important step but there is currently too much red tape putting companies off. “
“We strongly urge the Government to consider the practical experiences of companies when turning the forthcoming Energy White Paper and Planning White Paper into policy. In the interests of fairness, the solution must be multi-stakeholder, requiring co-operation between government at national and local levels, energy suppliers, customers and the public at large. Indeed, for alternative energy solutions to be economically attractive to the mainstream, investors have to be confident that these solutions are as robust politically as they are technologically.”
According to recent reports there is already three times more corporate demand for renewable energy in the UK for 2007 than the accredited renewable power generated in 2006. There is nearly five times more wind energy capacity bottlenecked in the planning system than the stated capacity of existing wind farms supplying power to customers. The irony of this ‘connection failure’ highlights the need for further work to tackle problems in renewable energy infrastructure. If the UK is unable to unblock this bottleneck there will be real problems meeting both its renewable energy and greenhouse gas reduction targets.
