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Report calls for ‘transparency’ on price consumers are paying to support renewable energy

Hydrogen Office, Methil. Pic shows the wind turbine which has been named Poppy after children from the local childcare centre had the chance to name the recent addition to the Fife skyline.
Hydrogen Office, Methil. Pic shows the wind turbine which has been named Poppy after children from the local childcare centre had the chance to name the recent addition to the Fife skyline.

Governments and power companies must make it clear how much of household bills is being spent on the development of renewable energy, a major new report says.

The report, commissioned by WWF-UK, claims that wind, solar, tidal and other sources of renewable energy will provide between 60% and 90% of the UK’s energy needs by 2030.

The Scottish Government has already set ambitious targets to generate 100% of Scotland’s electricity from renewable sources by 2020 and both Tayside and Fife are likely to benefit economically from increased demand for offshore wind.

According to the WWF report, domestic electricity bills have gone up by 63% over the past 10 years because of rising gas prices. However, around 3% of all electricity bills now goes to support renewable energy, either through investment in new technology or upgrading the National Grid.

WWF-UK says that renewable energy will eventually become cheaper as the technology becomes cheaper.

It states: ”Given the relative youth of the technologies involved there will clearly be a cost to consumers in supporting the commercial deployment of new renewable energy projects. Transparency about this is important.

”However, government statistics show that fluctuating wholesale gas prices have caused the overwhelming majority of consumer price rises in the last decade, including rises announced this summer.

”It is reasonable to assume that, given the falling costs of renewable generation and the rising carbon price during the 2020s, renewables will eventually become more economic than unabated gas…

”The impact of financial support mechanisms on consumer bills can be mitigated if the Government puts the same focus on improving energy efficiency as it intends to put on supporting low carbon generation.”

WWF-UK chief executive David Nussbaum said: ”This report is inspiring, but also entirely realistic. It shows that a clean, renewable energy future really is within our grasp.

”If we seize this opportunity, it will lay the foundations for a clean industrial revolution in the UK, with all the jobs and export opportunities that brings, as well as being a major step forward in tackling climate change.

”Investing in clean energy therefore offers us a means to tackle the two most crucial market failures that now confront the world the financial crisis and climate change.

”The only question that remains is, are we bold enough to take it?”

Mr Nussbaum added that, as well as protecting consumers from ever-rising bills, support for the renewable energy industry will also create thousands of new jobs across the country.

Scottish Government Energy Minister Fergus Ewing said: ”I welcome the publication of this WWF report and its contribution to the vital debate on our energy future.

”I agree with the report’s conclusion that a long-term commitment to renewables will be an essential part of a secure and sustainable low-carbon future that will continue to deliver jobs and investment across Scotland.

”The Scottish Government has made its long-term commitment to renewables clear and is working towards an ambitious, but achievable target of the equivalent of 100% of our electricity needs from renewables by 2020.

”The Scottish Government shares the WWF’s view that investment in renewables needs to be continued over the long term and that government policy and support mechanisms have an important role to play in maintaining the certainty necessary to achieve this and drive down long-term costs.

”Our track record on investment in renewable energy is strong and this week we have launched an £18 million fund to help developers of wave and tidal energy develop Scotland’s further commercial arrays.”