Renewable Energy: DTI’s Role John Thorpe Renewable Energy Industry Development Eastern Region Renewable Energy Conference, 5 June 2003

Renewable Energy 5 June 2003 Background The 4 pillars of UK Energy Policy  Cut emissions  Maintain reliability of supplies  Competitive markets  Ending fuel poverty

Renewable Energy 5 June 2003 Carbon Savings 2050 target of 60% reduction By 2020, cuts MtC of which: MtC Energy efficiency 8-12 Renewables3- 5 Transport2- 4 EU carbon trading2- 4

Renewable Energy 5 June 2003 Energy efficiency Best way to meet our objectives is to use less Helps all our 4 policy objectives Since 1970, GDP doubled, energy use up by 15% But we still use more than we need

Renewable Energy 5 June 2003 Renewables Targets % of electricity generated from renewable sources Doubled by 2020 National targets backed up by regional targets

Renewable Energy 5 June 2003 Where we are now Renewables contribution – 3% Renewables eligible for the obligation – 1.8% Target is ambitious Requires step change in level of activity

Renewable Energy 5 June 2003 How do we get there Address the barriers Hearts and minds Practical steps  Renewables Obligations  Capital Grants  R & D

Renewable Energy 5 June 2003 Renewables Obligation Introduced 2002 Progressively higher levels of renewables Long term support – 25 years Review in 2005/06 By 2010, save 2.5 MtC

Renewable Energy 5 June 2003 Renewables Funding  Current spending review: £250m  2002 Spending Review – additional £38m  Announced in EWP – additional £60m TOTAL: £348m

Renewable Energy 5 June 2003 Hearts and Minds To increase Renewables we need:  engage communities  improve planning procedures  strategic partnerships at regional level  involvement of all

Renewable Energy 5 June 2003 The greatest journey starts with a single step