Government finally takes control of renewables drive

The government has today announced it will intervene directly to accelerate the rollout of renewable and low-carbon technologies as part of its wide-ranging Low Carbon Transition Plan.

Presenting the new strategy to the House of Commons, energy and climate change secretary Ed Miliband said that he would exercise powers in the Energy Act that allow the government to take direct control over the grid access regime that manages how renewables projects are connected to the grid from Ofgem.

"The new rules should be in place within 12 months and instead of waiting for over a decade for grid connections as can happen now, we can get the fast access to the grid the renewable projects need," he said.

In a further tacit admission that the energy industry watchdog has struggled to deliver on the government's renewable energy agenda, Miliband said that Ofgem's remit would be extended so that it has direct responsibility for addressing carbon emissions and renewable energy targets.

He also announced that the new renewables strategy would seek to address long-standing concerns over planning delays, pledging to provide more than £11m in new funding to help local authorities speed up renewable energy planning decisions and create a new dedicated Office for Renewable Energy Development within DECC to further speed up the rollout of low-carbon energy technologies.

And in a move designed to further bolster confidence in the renewables sector, the government announced a new consultation on the future of the Renewables Obligation subsidy mechanism, including proposals to extend the scheme to at least 2037.

The new Renewable Energy Strategy (RES) cements the government's 2020 targets for renewable and low-carbon energy, setting a goal of generating 30 per cent of the UK's electricity from renewables and a further 10 per cent from low carbon sources such as nuclear and clean coal plants.

The proposals secured a ringing endorsement from the renewable energy industry, who praised the government for ignoring calls from the nuclear energy industry for a shift away from wind energy.

"We welcome the government's commitment to delivering on the 2020 targets," said Maria McCaffery, chief executive of the British Wind Energy Association. " They have rightly ignored the siren calls to abandon wind as the driving force for reaching the targets."

Her comments were echoed by Gaynor Hartnell, director of policy at the Renewable Energy Association, who praised a demonstration of "notable political leadership" from the government. "The renewables industry has had a tough time in the UK for many years and it has missed out on technologies where it should have led the world," she said. "What we heard from Mr Miliband today shows a level of understanding and political leadership that suggests that may be about to change."

As well as a major boost for the wind energy industry, the new strategy unveiled a shortlist of five projects for the proposed Severn Estuary tidal power project and plans for a new smart grid policy backed by an additional £6m in research and development cash. It also reiterated the government's commitment to rollout smart meters to every home and business by 2020 as part of a major energy efficiency drive.

Miliband played down the likely impact on energy bills of the raft of new policies, insisting that when the full impact of the government's climate change policies are taken into account – including energy efficiency gains as well as increased investment levels – energy bills for households and business will rise by an average of eight per cent by 2020, which is equivalent to a £92 increase in household bills.

Speaking following his address to the Commons, Miliband insisted that the new strategy would deliver wide-ranging benefits as well as costs.

"We have been very open about the costs, but if we don't make the transition to a low-carbon economy we will leave ourselves more reliant on energy imports, " he said, adding that in the long term a low-carbon economy will make the country more secure, prosperous and modern.

He also sought to draw a line between the government and the Conservatives on renewable energy policy, labelling the opposition's pledge to scrap the Infrastructure Planning Commission as "a retrograde step" that could slow the development of renewable energy projects.

In addition to the raft of new investments announced this morning as part of the Low Carbon Industrial Strategy, the government said further support is in the pipeline for businesses in the form of a major new campaign to help small and medium-sized firms cut emissions.

Miliband added that new initiatives to improve the UK's low carbon skills base are also being prepared and will be announced shortly.

"It is important that we do more on low carbon skills," he said. "They often involve an addition to existing skills, but we realise it is an area where we need to do more and we will be making further statements in this area in the coming months."

Green groups lined up to lavish rare praise on the government, although many also counselled that the proposals now needed full support from across Whitehall and the wider political spectrum.

"Ed Miliband appears to be winning important battles in Whitehall," observed John Sauven, executive director of Greenpeace. "But it's crucial that these plans now get full cross-party support and more backing from the chancellor. The renewable energy industry is too important to become a political football and this strategy for green jobs deserves more than the current paltry sums being offered by the Treasury."

Tracy Carty, senior policy advisor for business group the Green Alliance praised the white paper as "the biggest breakthrough we've had yet" on the development of renewable energy in the UK. "The plans are ambitious and aim to overcome significant barriers such as getting renewables connected to the grid and delays caused by the planning process," she added.