Coalition government to end easy energy franchises with a guaranteed return

What fantastic news ! Greg Barker is going full steam ahead in ending the oligopoly culture of Britains generators.

If these global companies are allowed to make guaranteed returns from low risk high reward simple businesses then we as individuals or communities should be allowed to graze at the oasis of energy.

We have to create a more local, decentralised energy system


When David Cameron became Prime Minister he pledged that the new Coalition would be the greenest government ever. As Climate Change Minister my job is to help deliver this promise.

By Greg Barker, Climate Change Minister

However, I am glad to say that the old debate of green energy versus energy security has become increasingly irrelevant. That is because in the 21st century energy security and climate change are two sides of the same coin.

At a time when historic production levels in the North Sea are declining, cutting Britain's dependence on expensive and volatile imported oil, coal and gas will increase our energy independence and be good for the environment.

It will take more than Jam and Jerusalem to create David Cameron's Big SocietyRenewable electricity, ranging from small-scale CHP (Combined Heat and Power) to large-scale offshore wind turbines, as well as new nuclear and clean coal, can help reinforce the frontline of Britain's energy security defences as well as cutting dangerous CO₂ emissions.

However, the old dominance of the energy economy by a few large corporations is also being challenged. Our homes, businesses and communities can also become dynamic players in the new energy economy by producing their own green electricity and selling it back into the national grid. New feed-in tariffs – a system of financial incentives to encourage households and communities to produce their own electricity – are at the heart of our efforts to "green" Britain and empower consumers and to create a more local, decentralised energy system.

With interest rates providing little return on financial investments, the domestic and community scale feed-in tariffs provide some of the best secure investment returns available in the market.

Not only can you now make money by producing your own energy at home, but by cutting your domestic carbon footprint you would also be doing something for the next generation and energy security at the same time.

We must also show a greater sense of ambition to lead the world in marine renewables. Thanks to our coastline, this country is blessed with huge potential for a range of exciting new offshore wind, wave and tidal energy technologies. We are determined to create the right environment so that developers of marine power see the UK as the best place to invest and grow. It cannot happen instantly but there is no doubt that by the 2020s we could be tapping the seas around our island for a much greater share of our energy needs. Britannia may no longer rule the waves, but she should lead the way in harnessing their energy.

Since 2002, the Renewables Obligation – a mechanism to boost renewable energy – has supported large-scale renewable electricity generation. But to meet the 2020 target to produce 15pc of all our country's energy needs from renewable sources, we need to raise our game even more and increase renewable electricity by a mammoth six times the current levels. In doing so, we must constantly be mindful that consumers and businesses will want to focus on where the returns will be greatest.

However, whatever changes we implement to increase the level of large-scale renewable roll-out, investors can be certain that there will be no surprises or retrospective policy changes as we recognise that investor confidence is key to deployment.

Thanks to the dire state of the public finances bequeathed to us by Gordon Brown's government, we are having to make tough choices in terms of how we allocate public sector funding to support emerging technologies. But support for the growth of both renewable electricity and renewable heat remain a priority. However, robust public policy for the long term is also a vital part of the equation.

So I want to send a clear message to industry and international investors: If you invest in the UK, whether it is in micro-hydro or huge offshore wind, you can expect plenty of 'TLC' – transparency, longevity and certainty in the new Government's energy policy.

The energy sector is entering a period of extraordinary change and investment but new green technologies must seize the financial and job opportunities this offers and help us grow out of recession and rebuild a more resilient and broadly-based economy.

Green Britain is open for business and with a new sense of purpose we can lead the world.