Extracts from the Sept-October 2001 edition of Renew
These extracts only represent about 25% of it

1. DTI’s announces plans for RO

The Department of Trade and Industry has revealed its proposals for the Renewables Obligation (RO) in a yet another consultation paper. Energy Minister Brian Wilson said ‘I’ve listened to the comments made in the last consultation and am satisfied that these policies will encourage generation from truly renewable energy sources’.

A key proposal is that pyrolysis and gasification will be encouraged as an alternative to mass burn waste incineration, and it is proposed that these techniques will only receive support under the RO for the biodegradable element of the waste. Energy from waste incineration and from fossil waste will not count towards the RO. But electricity generated from biomass (e.g energy crops) will be eligible (including some co-firing with fossil fuel until 2011). The paper also confirmed the ‘New Deal for Hydro’ announced recently. Wison commented "Energy from all new hydro power stations will be eligible for the Obligation, including those over 20MW. Also those of or under 20MW that have been built or refurbished since 1989 will now qualify, alongside smaller hydro-schemes (under 1.25MW) which do not have to be refurbished". This should appease Scottish Hydro (see later).

In parallel, details of the Scottish Renewable Obligation emerged. Both it and the RO are expected to come into effect early next year, subject to Parliamentary approval and clearance from the EC. For the RO, electricity suppliers will have to provide 3% of their electricity sales from renewable sources in the period to March 2003 (note the retreat from 5% by 2003) rising to 10.4% of sales for the year ending March 2011. The DTI says that ‘even more ambitious targets may be set’, for the longer term. The Scottish RO of course already has a much more ambitious target- 18% by 2010! Either way, the RO’s are meant to stay in place ‘until at least 2027’.

More Renew 134. Meanwhile see www.dti.gov.uk/consultations

Shell $1bn on Renewables

Shell Renewables has indicated that it may double its expenditure on renewables. In 1997 it said that it would spend around $500m on renewables in the five years to 2002, now it is looking to spend up to a total of $1bn over the next five years, with the focus on solar and wind energy, which are considered to be the fastest growing areas. In addition it is looking at biomass, and has set up a separate company to develop a hydrogen business. It is also looking at geothermal power. Earlier this year Shell formed a solar cell joint venture with German companies Siemens and Eon, to develop new, cost-effective, PV technology. Although Greenpeace pointed out that this new funding was still only around 2% of the group’s total capital investment on oil, it said it did widen the gap ‘between progressive energy companies like Shell and BP and redneck oil companies, like Exxon Mobil and Chevron, which are doing very little to develop renewables’.