The RPA has a draft proposal for a comprehensive educational programme in co-operation with other parties. This proposal is targeted regionally to inform the public and planning authorities on the overall Renewable Energy Planning issues. For more information, contact the RPA.

NETA is very complex and few people claim to understand it fully. However, it is acknowledged that NETA has disadvantaged renewable generators, a move which runs counter to Government policy to expand the use of green power sources

• NETA is performing well against the objectives set by Ofgem and DTI;
• NETA reforms – alongside other factors such as falling fuel prices, a generous capacity margin and increased competition in generation – have resulted in a 40% reduction in the costs of wholesale electricity since 1998;
• prices over the first year of NETA (March 2001-March 2002) fell by 20%;
• flexible governance has allowed significant changes to be made to the balancing and settlement rules;
• smaller generators who replied to Ofgem’s latest survey reported that output levels were slightly up compared with the previous year. This position is in contrast to the reduced output reported after two months of NETA operation in the last review in August 2001;
• prices for smaller generators compare reasonably with prices received by larger generators and in some cases, where they attract Government help, are better;
• most electricity is now being traded like any other commodity and market liquidity has continued to increase by more than 200% in the first year of NETA;
• modifications and experience of the new market have led to significantly reduced price volatility in the balancing mechanism; and
• participants’ imbalance costs make very little impact on overall wholesale electricity costs.

• ­Will the wind blow?
• Technology
• Development and construction
• Scale

• NETA
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• Impact of overbuild on future electricity
• prices
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• Credit quality of off-takers, PPAs
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• Value of Renewables Obligation
• Certificates
• Value of Climate Change Levy Exemption Certificates

• Performance of recent UK power project financings
• Basle II impact on profitability of project finance
• Post Enron attitudes towards structured finance

• Changes to regulation
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• Changes to ROC system
• ­Changes to Climate Change Levy

The RPA is also lobbying for a clear process by which uneconomic contracts can be terminated.

For more information contact the RPA.

• Planning in the UK is very democratic but the process is slow, expensive for developers and frustrates national policy, not merely at local level but from agencies such as the MOD.
• NETA still arbitrarily and unnecessarily discriminates against Renewable Energy development. A competitive marketplace where government policy to encourage Renewable Development has been ignored is not a success. Ofgem celebrates the reduction of market spread from £70/MWh to a mere £17/MWh. 'In which competitive markets is a 121% spread on selling price a cause for celebration' asks David Byers, RPA Chief Executive, 'especially given the added uncertainty of ROC values and network barriers?

• CONNECTIONbarriers increase the cost and complexity of Renewable energy developments, which can be remote from demand (eg offshore Scotland) or close to demand in rural areas. Commercial barriers remain where incentives do not exist for DNO companies to seek connection, and hardly any recognition is given to the commercial and technical benefit of imbedded generation.
• Finance is crucial to developers, yet the relative immaturity and market-based nature of the Renewable Obligation causes banks to be very conservative in lending or debt/equity ratios. 'The R.O. system is an invitation for balance sheets and six supply companies to control the market' comments David Byers “with huge discounts applied to headline renewable energy prices for generators.

• Governmental Support/connections: Not only may there be harmonisation issues within Europe, redefining what is 'renewable', but the bureaucracy even between UK departments is difficult for developers to navigate. The RPA seeks to establish a role unifying approaches to these diverse groups.
• Diversity Loss: Current UK policy seeks not to 'choose winners' and to demonstrate under EU law that market solutions are found at least cost within an overall policy. Grant structures seek to encourage longer term and 'out of market' technologies without addressing incentives which foster wider-based renewable contribution and global competitivity for UK manufacturers and production bases.

• Offshore Wind
• Energy Crops
• Community and Household
• Biomass Heat/CHP

The second link is to the Solar Grants home page, which is designed to introduce the Department of Trade and Industry's £20 million first phase of the major photovoltaic (PV) demonstration programme.