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Pay Proper FITs!

 

 
Throughout the year, Good Energy is in touch with key MPs, officials and policymakers in Westminster to put across what we think the Government should be doing to help the UK move to a 100% renewable energy future. The energy market is always a hot topic in Parliament, and not just when the Big Six decide to hike their price rises because of their over reliance on unsecure supplies of fossil fuels from abroad.

As part of this, we are always keen to speak out on the issues that our generators tell us are affecting them, and as a result one of the things we’ve been doing some work around of late is the ridiculous decision by Ofgem to pay FIT generators on a quarterly basis, rather than a monthly one as most people would expect.

Naturally we’ve spoken to the relevant officials, including the Ofgem Chief Executive Alistair Buchanan, but we’re not so sure they are quite getting the message. We know from speaking to many of our generators that this is a big issue for them, so we thought it might be a good idea to pull together some campaigning materials so that Good Energy customers can raise it with their local MP and get them to try and get Ofgem see sense on this issue.

A suggested template email is below and it tries to break down the problem to quite straightforward terms for your local MP, who more likely than not, will be unaware of the technical detail of FITs. Obviously it will require a bit of editing, to put in your own information and perhaps change one or two other parts of it, but otherwise we hope that it is very much good to go.

Sending this is pretty simple:

1. Find out who your local MP is by typing in your postcode to this website
2. Click on the MP’s name to go through to the page which displays their email address
3. Copy and paste the email address into a new email, along with the subject line and suggested text below, edited as you so wish.
4. Hit send!

We’d like to hear from you if you have any questions or what reply you receive from your MP, so please do get in touch via campaigns@goodenergy.co.uk

 

Our suggested email

Subject: URGENT - Frequency of microgeneration payments

[Your postal address – it is important you include this so to confirm to your MP that you are from his or her constituency, otherwise your email is likely to be ignored]

Dear [MP’s title and name],

I am writing to you as a constituent regarding the frequency of payments for renewable energy microgeneration projects. The nature of this concern is urgent as the Government is currently in the process of making a decision on this matter.

In [the year you started generating], I took the decision to install [the detail of the size and technology of your project] to take advantage of the Government’s “feed-in tariff” (FIT) scheme. This scheme aims to encourage ordinary householders and businesses to undertake their own microgeneration projects to help increase the uptake of renewable energy. The scheme works by guaranteeing that I receive a certain rate of payment, from my electricity supplier, for each kilowatt hour of electricity that I generate.

The Department of Energy and Climate Change, through Ofgem, is responsible for administering these payments. It currently does so by making them quarterly rather than monthly. Ofgem initially made the decision to do so on a temporary basis in order to speed up the implementation of the FIT scheme with the intention of moving to monthly payments at a later date, on the grounds that this timeframe forms the basis on which the vast majority of people of administer their financial affairs.

Like many microgenerators, the large, initial financial outlay for my generation equipment was debt-financed, secured on the basis that regular, guaranteed payments for generating electricity would make it easy to repay this sum on a monthly basis. It is my understanding, however, that Ofgem now plans to make its quarterly payment arrangement permanent. This is despite only the flimsiest of evidence to suggest that a change to monthly payments would like to an increase in the workload required to run the scheme. A decision to do so would be of considerable inconvenience to myself and the running of my financial affairs. I understand this concern is widely shared amongst others in the microgeneration community around the country, suggesting that any decision by Ofgem to retain quarterly payments would run contrary to its objective of safeguarding the consumer interest in the electricity market.

I do hope that you will be able to help with this matter. As my local MP, I would be very grateful for any assistance you might be able to provide in raising this issue, either verbally or in writing, with Ofgem Chief Executive Alistair Buchanan and Climate Change Minister Greg Barker, by urging a move to monthly FIT payments as originally planned, at the first opportunity.

I look forward to receiving your response soon.

Kind regards

Chris Huhne talks to Good Energy

 

 
The Delabole launch was a great opportunity to ask the Secretary of State for Energy and Climate Change for his views on renewables and other issues close to our hearts.

Is this your first visit to Delabole and the wind farm? What are your impressions?

It is an honour to visit the site of the UK’s first wind farm, and I am delighted to be able to attend the opening of the new wind farm with its new increased generating capacity. 

What role do you see onshore wind playing in the UK’s future renewable energy fuel mix?

It’s one of the more cost-effective and established renewable technologies. Onshore wind farms are flexible in size: they can be deployed effectively on a small scale by local communities or individuals, or on a much larger scale as part of a commercial generator’s portfolio.

We have to make sure electricity consumers don’t pay more than is necessary to decarbonise UK electricity supplies. Supporting onshore wind as part of the overall mix is a great way to do so.

At the moment there’s about 4GW of installed generating capacity in the UK. To ensure onshore wind is viable for developers, we provide them with financial support through the Renewables Obligation, which pays out only for the electricity generated by each turbine – so there’s no upfront payment to cover capital costs, for instance.

As a result, generators have an incentive to look for the windiest spots in the UK to locate turbines, because that’s the most cost-effective – their profits are directly related to wind speed.

We regularly review the banding levels under the Renewables Obligation. One of these reviews is under way at the moment, and we will go out to consultation this summer on our proposed bands.

How do you think communities should benefit from supporting renewable technology projects and how do you think developers should engage with communities near to those projects?

Communities hosting renewable energy projects should be rewarded for the contribution they are making to wider society. That’s why, in the Coalition Agreement, we announced that local authorities in England will be able to retain the business rates generated by renewable energy developments on behalf of individual communities.

I’m very pleased that the wind farm industry recently agreed minimum standards for the contributions that developers will make to community development in England.

Financial contributions might include investment in energy efficiency measures to reduce electricity bills, or cheaper electricity prices. That’s on top of any direct benefits to those living in the area, such as rent paid to landowners.

Why do you think there is often such vocal opposition to wind farm developments in the UK, particularly in certain press,  whereas other countries like Germany are proud of their wind farms?

Many people in the UK are actually in favour of onshore wind farms and recognise the benefits they can bring – for the environment, security of supply and the local economy.

But I know this isn’t true for everyone. England is particularly densely populated, so there are usually lots of people living near any new wind farm.

It’s important that wind farms are sited appropriately, and that developers are required to carry out a rigorous analysis of the impacts that their projects are likely to have on the local environment. When the Environmental Impact Assessments don’t add up, wind farms can be turned down.

But I think one of the main reasons for the level of opposition to wind farms has been that in the past people have sometimes felt that they have been imposed on their communities – rather than being developed through a process of close engagement. 

That’s why the Coalition Government is committed to changing the relationship between wind farm developments and the communities that host them. We’re reforming the planning system to give communities more power to determine the shape of places in which they live. 

How can individuals and communities benefit from small-scale renewable generation projects, such as solar panels?

Generators who qualify for feed-in tariffs (FITs) get paid for the electricity they generate -  and for any electricity they export. If they use any electricity onsite, they also save money on bills. We’re keen for local authorities to work with other partners and community scale renewable electricity schemes that can be supported by FITs.

Solar electricity will make a real contribution to meeting our challenging 2020 renewables target - to generate 15% of our energy from renewables. The South West has more solar energy than other regions in the UK.

A typical home photovoltaic (PV) system could save around 1 tonne of CO₂ per year – or 25 tonnes over its lifetime. For a well sited installation of under 4kW capacity the generator could receive about £900 a year. And even though the upfront costs are high, electricity bills will be reduced. A typical domestic PV system can produce around 40% of the electricity a household uses in a year.

There has been a lot of interest  in large-scale solar farm developments in Cornwall – how do you see the future for large-scale solar in the UK developing?

Large scale solar installations weren’t anticipated under the FITs scheme we inherited.  They could soak up money intended to help homes, communities and small businesses generate their own electricity.  There is a risk that an increasing number of large scale solar farms could push FITs costs off track.

Last Monday (7^th February) I announced a comprehensive review of FITs, along with fast-track consideration of large scale solar projects. We’ll make any changes to tariffs as soon as possible.

What are your  top three green tips for Good Energy customers?

• Insulate your home: Over half of the heat in an uninsulated home is lost through the walls and roof. Most UK homes don't have the recommended amount of insulation, so think about insulating both your loft and your cavity walls. 
• Turn Appliances Off Standby: The average household wastes around £40 a year simply by leaving appliances on standby. Remember:
  - you can't switch most electronic goods off just with the remote control
  - to turn off an appliance completely, use the power switch on the appliance itself or turn it off at the plug
  - if a charger or power pack is warm or has a light on, it's probably using power
• Buy Energy Efficient Appliances: Energy efficient appliances are easy to find and aren’t necessarily more expensive. Look out for appliances that carry the ‘Energy Saving Trust Recommended label’ which are among the top 20 per cent most efficient available; or the European Union energy label.  EU energy labels on fridges, freezers and washing machines show how energy efficient an appliance is on a scale of A to G. A is most efficient and G is least efficient.

 

Celebrating the second generation of onshore wind at Delabole

 

 
On Tuesday, we were delighted to welcome the Rt Hon Chris Huhne, MP, Secretary of State for Energy and Climate Change, to open our newly redeveloped wind farm in Delabole, Cornwall. Local residents and school children joined the Good Energy team, our customers and generators for the celebrations.

Secretary of State, Chris Huhne says: “Delabole was the first commercial wind farm in the UK and, in its new form, it remains at the forefront of best practice.  On top of generating enough green electricity for 7,000 homes, a community fund will be making a direct contribution to projects in the local area.

“All too often, local communities can see the windfarms but not the windfall. ‪ ‪Wind is an abundant, clean, home-grown alternative to fossil fuels. It can’t be blown off course by instability abroad, and so it’s vital that we use it for our low carbon, energy security.

“The coalition is squarely behind the renewables sector.  We’ll all benefit in the long run from more projects like Delabole, and moves to help local people feel more immediate benefits of hosting a windfarm are crucial.”

Since 2002 Delabole has been owned and operated by Good Energy, and we’ve invested £11.8 million to redevelop it. We’re very excited to be taking Delabole into its second generation of onshore wind power, and the increased capacity of the new turbines demonstrates how successful innovation in this field has been over the last two decades. The original 10 wind turbines have been replaced with four more powerful ones with a total combined capacity of 9.2MW, enough to supply around 7,000 homes with electricity – more than double the previous output.

Our CEO, Juliet Davenport, said: “We’re enormously proud of our investment in Delabole and are delighted to welcome Chris Huhne to officially open the new site. Delabole wind farm now accounts for around 20% of the total 100% renewable electricity supplied by Good Energy, and is the first in a pipeline of new wind energy projects we’re working on.

“We’d also like to thank the Delabole community for their help and support throughout the repowering process.  It’s wonderful to be able to celebrate its completion together.”

The UK is the windiest country in Europe, but wind power currently supplies only 2.2% of our electricity needs. Onshore wind clearly has a role to play in a 100% renewable future for the UK – but success depends on local communities having their say too. Our experience with Delabole demonstrates how effective consultation with the local community throughout the repowering process can help the planning process run smoothly. And we’ll be making sure that communities get the opportunity to benefit financially from this and our future wind farm developments.

More new wind farms – our future plans

 

 
Delabole is just the first in a pipeline of new Good Energy wind farm developments – we’re planning to add over 50MW of new capacity in the next five years, that’s enough wind energy to power a town roughly the size of Cambridge.

We’ve made good progress with several possible sites in different places around the country. We’re working closely with the landowners and hope to be able to share the locations of some of our prospective new wind farms very soon.

Most of these will be small to medium-sized developments and, as with all our sites, Good Energy will develop them in close consultation with the local community, as well as putting environmental considerations at the fore.

Delabole wind farm is a great example of how effective consultation helps the planning process run smoothly, ensuring that local communities are involved with the plans and are able to benefit from the development. We intend to apply everything we learnt from our positive experience redeveloping Delabole to our new wind farms.

These new wind farm developments are fantastic news for the future of Good Energy and our customers. Increasing the amount of homegrown energy we generate is better for the UK’s energy security, reducing future energy price risks and taking us a step closer to our goal of turning the UK’s energy 100% renewable by 2050.

How much we’re investing per customer in new sources of renewables

 

 
We are sometimes asked how much we invest in new renewables per customer we supply – a measure of greenness favoured by some energy companies.

So, we did some sums, and during 2010, we invested £455.56 per customer in our new wind farm – this works out to be around £0.70 for every £1 spent on customers’ bills. And we’ve got big plans to increase this in the future.

Good Energy also invests in new sources of renewable heat by supporting Solar Thermal generators through our award-winning HotROCs scheme (a precursor of the Renewable Heat Incentive); and investing in community biomass generation schemes on behalf of our customers on our certified electricity tariff.
In order to verify our green credentials, we’ve chosen to join the independent Green Energy Supply Certification scheme which guarantees the environmental benefit of your green electricity tariff – so our customers know it’s genuinely green.

We continue to work hard to help grow renewables in the UK, both by direct investment and by lobbying policy-makers.  In 2010, as well as investing £11.8m in our new Delabole wind farm, we supported over 1,700 smaller independent generators – a number which has tripled in just two years. One in every 20 of our customers is a generator and we are proud of our contribution to the growth of renewables in the UK. Our uncompromising commitment to green energy is reflected in our 100% renewable fuel mix which is unmatched in the industry.

Good Energy defies inflation to hold price freeze

 

 
  
18 February 2011: Good Energy, the UK’s leading 100% renewable electricity supplier, is delighted to announce that it is planning to hold its price freeze for both gas and electricity as part of its commitment to make 100% renewable energy accessible to all consumers.

Good Energy first announced a price freeze in December 2010 and, while all major energy suppliers have recently increased prices by up to 9 percent, Good Energy intends to maintain the price freeze beyond the winter months and, with a good following wind, until the end of 2011.

The 100% renewable electricity supplier hopes this will encourage consumers to switch to greener energy as the price differential with many fossil-fuel-based suppliers is reduced. In addition, Good Energy hopes people will also become more aware of their energy use and do more to become energy efficient, helping to reduce the impact on the environment and bring down the cost of bills further in the process.

Juliet Davenport, CEO of Good Energy, says:

“Renewable energy should be affordable to everyone and this price freeze takes us one step closer to making this a reality. Our decision has been made possible due to significant improvements in our weather forecasting techniques which in turn have improved our ability to trade renewable electricity efficiently.

At Good Energy, we believe it is possible to greatly reduce future energy price risks by turning UK energy 100% renewable by 2050. We’ve developed a pathway that sets out how we can achieve this, involving changes to UK energy at every stage of the process, from grid management to investment, and from R&D to transport.”

So far, more than 26,000 homes and businesses across the UK have switched to Good Energy and the company supports a pioneering community of more than 1700 independent renewable generators that use wind, small-scale hydro, solar power and sustainable biomass to generate homegrown energy.

More information can be found at http://www.goodenergy.co.uk/.

Hydro power on the river Avon

 
Wiltshire Council is looking into installing a new hydro-electric plant on the river Avon just down the road from our offices. The £1m scheme could provide half the power needed for the nearby council buildings, according to this report from the BBC.

Tapping into local resources to generate more homegrown renewable energy is a great idea, one that will help us to reach our goal of providing 100% renewable energy to the UK by 2050. Hydropower is a constant, reliable and long-lasting technology and comprised 17% of Good Energy’s 100% renewable energy mix last year thanks to generators like the one at Docker Nook in the Lake District pictured above.

Putting your money where your mouth is

 

 
In 1991, Peter and Martin Edwards, father-and-son farmers, began a long and pioneering association with wind power. What began as a wild idea over the kitchen table ended with the family selling its 150-strong dairy herd and milk quota in order to part fund the investment needed to set up the UK’s first commercial wind farm at Delabole, Cornwall. In 2002, Good Energy bought the wind farm, which gave the Edwards’ the chance to become shareholders and Martin became non-executive director of Good Energy Group. Shares were distributed to all members of the family, including Peter’s five grandchildren who are all avid supporters of renewable energy. Martin Edwards said: “As a family we believe in the need for a 100% renewable energy future, so putting our money where our mouth is the best way of making this a possibility, while still getting a reasonable return. Our children have all been given shares to stimulate their interest in a sustainable future.”

Another of our shareholders is Stewart Dodd, who runs the sustainable architecture practice Satellite Architects. Stewart is a long-standing Good Energy customer, who first switched his home supply to us in 2005, and subsequently his business. “We are concerned about all aspects of our business being sustainable, we design low carbon, low impact sustainable buildings so it’s imperative that we practice what we preach,” Stewart explains. “All the projects we specify are environmentally conscious and we suggest to every client that they sign up to Good Energy on completion of the project, as the only way to be truly sustainable is to have a green grid. Good Energy is the closest thing we have to this in the UK.”

 
From being a customer it was a short step to becoming a shareholder – Stewart and his wife, Kristin, bought shares in the company in our third share offering in 2007. “As a small ethical company with a good product, investing in Good Energy felt like an opportunity to make a difference - and it fits with  our ethos. We try to invest ethically as much as we can, including our child’s trust fund,” he says. “Being both a customer and a shareholder gives you a sense of commitment and there is no doubt that I recommend Good Energy more because I'm a shareholder, as I feel invested in more than just the good cause.”