More than 80 MPs and Lords said last night that they would support an amendment to the Energy Bill that would introduce a "feed-in tariff" for renewable energy at an event hosted by the Renewable Energy Association (REA).
The Bill – complete with the new amendment – will be voted on by the Lords later this month before going back to Commons for a final vote by MPs.
The measure, which guarantees producers of renewable energy an above market price for any power they sell back to the grid, would provide a significant boost to onsite renewable generation, said Leonie Greene, spokeswoman for the REA.
"The government has a big business approach to electricity generation and feed-in tariffs would encourage more of a bottom up approach – it's a simple secure measure that is proven to attract investment from outside big business," she said.
Feed-in tariffs have proved successful at driving up renewable energy capacity in many other EU countries, most notably in Germany where the measure has been credited with cementing the country's position as Europe's leading provider of renewable energy.
The REA envisages that feed-in tariffs would help bolster community renewable projects, as well as domestic systems.
According to a recent study for the Department of Business, Enterprise and Regulatory Reform (BERR) community and onsite renewable technologies have the potential to contribute 30 per cent of the UK's power by 2050 if the right measures are put in place.
A previous amendment to the Energy Bill to introduce feed-in tariffs tabled by Alan Simpson MP was narrowly defeated in the third reading in the Commons, despite the largest backbench rebellion of Gordon Brown's time in office.
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