Friday, February 18, 2011

£12bn For UK Councils Available; Green Subsidies


Green energy subsidies could alleviate the financial pressures of UK councils to the tune of £12bn in the next 20 years, according to UK think tank New Local Government Network (NLGN).

Its latest study found that an estimated pot of up to £12bn is available to councils in the country in the next two decades if they make greater use of green energy subsidies. The findings come at a time when some councils face budget cuts of nearly 9 per cent next year.

The Power and Money report highlights that although some authorities have accessed funding through the feed-in tariff (FIT) and Renewable Heat Incentive, a lack of regulatory clarity on the schemes and the early consultation has prevented councils making full use of them.

With only 275 community properties among the 20,000 FIT-funded installations accredited last year, there is a danger that the vast potential for green energy solutions across the local government estate will be left largely unfulfilled, it said.

NLGN’s report author Luke Hildyard said, ‘We estimate that the FIT and the Renewable Heat Incentive could represent an estimated £12bn investment in renewable energy. Local authorities will be able to access what could be a potentially vital source of revenue at a time of unprecedented budget cuts.

‘But by carrying out the review of the FIT earlier than planned and delaying the renewable heat incentive, the government has increased the risk factor for those planning to roll-out micro-generation installations locally. Renewable energy projects require costly and time-consuming planning and research, which councils may be reluctant to undertake in an uncertain environment.’

Green investment, the think tank said, can soften the blow of public sector job losses by creating new eco-friendly jobs in the private sector.


Source:http://www.newenergyworldnetwork.com/renewable-energy-news/by-technology/energy-efficiency/green-subsidies-could-release-12bn-for-councils.html

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