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Introduction
Welcome to our spring alert and in this edition we look at the latest update of the CRC Energy Efficiency Scheme, the issues businesses face when connecting to the grid and a discussion as to the problem of installing 47 million smart meters in the UK by 2020.
On 16th February 2011 we held a seminar on the much discussed topic of the smart grid. This was the second in our series of energy seminars and was co-hosted with investment bank GP Bullhound. The event was extremely well attended, and included three separate sessions each with a speaker and discussion panel. Key themes covered were the types of technology needed to obtain a smart grid and the financial investment needed to achieve it. There was much panel discussion around what smart grid means to different people, with conclusions that there is certainly not one concrete definition. One common view is that the "smart grid" is actually not all that smart or complicated! All key stakeholders were represented at the event, including speakers from Scottish & Southern Energy and GE Energy and panellists from IBM, T-Systems, RWE nPower, Onzo, WHEB Ventures and Climate Change Capital.
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We are also pleased to announce the addition of Elizabeth Belsey to our Energy and Utilities team in London. Elizabeth is a projects lawyer, principally in the energy, defence and infrastructure sectors, and her work in the energy sector focuses on all types of renewable energy, in particular wind, landfill gas and biomass. Elizabeth has also recently been advising various developers, investors and contractors on solar PV projects in the UK. Elizabeth also spoke at our first series of energy seminars on the topic of issues and obstacles in connecting to the grid.
We also welcome Dr Matthias Lang to our Dusseldorf office. Matthias has an in-depth understanding of the energy sector and regularly advises on infrastructure projects such as renewable and conventional energy generation or planning procedures for extra high voltage lines. He also writes the section on permitting of conventional power plants and wind farms in the Berlin Commentary on Energy Law.
The London office has been particularly busy in the solar pv/photovoltaic sector as a result of the FIT tariff, advising on both stand alone solar PV developments and the placing of panels on the roofs of buildings, both commercial and residential. From an international perspective we recently advised Gajam India Private Limited on its incorporation in the UK and the obtaining of a grant from the Shell Foundation. Gajam is looking at various projects in rural India, including the provision of solar lanterns, smoke-less cooking stoves and water purifiers. A further example of our recent advice, and which shows the breadth of our experience, concerns Greenvironment plc. We advised the company, which is a technology leader and system integrator for innovative CHP plants, on its acquisition of shares in Greenvironment Oy by way of a reverse takeover. The transaction was effected to enable Greenvironment Oy to obtain a quotation on the Frankfurt Stock Exchange.
Stop Press
Solar power subsidies: Energy companies developing solar farms have hit out at a review aimed at removing green subsidies from commercial ventures, claiming that they represent better value for money than household solar panels. The Government recently announced that it was reviewing the feed-in tariffs scheme amid concerns that large solar electricity schemes were cashing in on the incentives designed to boost small scale use. The tariffs are financed by small increases in household energy bills.
We also saw the European carbon-trading market close in February following an alleged cyber attack which led to the theft of €50 million worth of carbon permits from national registries. This resulted in severe disruption to the Emissions Trading Scheme causing the price of carbon to rise to more than €15 a tonne and will have increased costs substantially for companies that need to buy emission permits under the scheme.
The CRC Energy Efficiency Scheme - latest position
by Linda Fletcher
The Coalition Government's Spending Review in October 2010 quite dramatically altered the CRC Scheme by removing the whole recycling payments aspect. The Government stated that the changes were in response to requests to simplify the scheme and reduce the burdens on businesses but the change has certainly not been well received. In addition, the Government confirmed that the first sale of allowances for 2011/12 emissions will take place in 2012 rather than 2011, so postponing the financial requirements of the CRC Scheme for participants. The CBI commented that although the announcement of a further consultation (see below) was welcomed much more needed to be done and in particular it is critical that the CRC Scheme becomes an effective tool for encouraging energy efficiency, and not just another tax.
Smart Meters and Smart Grids in the UK: the promise and the problems
by Jeremy Robinson
Ten billion pounds is the price for installing 47 million smart meters in the UK. A small proportion (£500 million) will come from the Government (Low Carbon Networks Fund). The rest will come from suppliers, and ultimately, consumers.
Access to the Grid: still a major barrier to renewable energy generation in the UK?
by Elizabeth Belsey
Ed Milliband stated in June 2009 that access to the electricity grid was one of the key barriers to the generation of renewable energy in the UK. In August 2009, there was 17GW of new renewable generation capacity awaiting a grid connection. Improving and speeding up grid access (in order to meet the 20-20-20 renewables targets) became one of the Labour Government's key objectives.
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Contact Us
If you have any questions on this Alert, please do contact a member of our Carbon, Climate Change and Sustainability Team.
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The content of this update is of general interest and is not intended to apply to specific circumstances. The content should not, therefore, be regarded as constituting legal advice and should not be relied on as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly.
BIRD & BIRD Bird & Bird is an international legal practice comprising Bird & Bird LLP and its affiliated and associated businesses. Bird & Bird LLP is a limited liability partnership, registered in England and Wales with registered number OC340318 and is regulated by the Solicitors Regulation Authority. Its registered office and principal place of business is at 15 Fetter Lane, London EC4A 1JP. For details of Bird & Bird, our offices, our members, the use of e-mail and regulatory information, please see twobirds.com and, in particular, twobirds.com/english/Legal_Notices.cfm. The word "partner" is used to refer to a member of Bird & Bird LLP or an employee or consultant, or to a partner, member, director, employee or consultant in any of its affiliated businesses, who has equivalent standing and qualifications. A list of members of Bird & Bird LLP and of any non-members who are designated as partners, and of their respective professional qualifications, is open to inspection at our London office address. All such persons are solicitors, registered foreign lawyers or non-registered European lawyers. |
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