The UK government consultation on whether “devastating” cuts to the Feed in Tariff should go ahead will close today.

Industry has urged the renewable sector to “make its voice heard” if it hasn’t already done so before the 11.45pm deadline tonight (Friday, October 23).

Greenpeace policy director Doug Parr said: “If this goes ahead the impact will be devastating, but right now, we’ve got a chance to push back.” He also added :

“The government cannot pretend cuts to subsidies for the nascent solar industry are necessary to save families money whilst throwing much more money at well-established technologies. The timing couldn’t be worse as the young and potentially booming solar industry is on track to go subsidy free but if these cuts happen, it will be too sudden, too soon and too dramatic and is likely to irrevocably damage the domestic solar industry losing thousands of jobs and millions in investment.”

For its part, the UK government said it wants to maximise value for money to British electricity bill payers by “reducing FiT expenses”. Last September, the U.K. Energy and Climate Change Secretary Amber Rudd, explained that the government had “overspent” on subsidies, pointing to the runaway success of solar under the FIT :

“Take-up has been so great that we expect to achieve our ambition (of supporting 750,000 installations by 2020) by the end of this year. But this has meant that the overall cost of the scheme has also exceeded expectations.”

Spanish Iberdrola has signed an agreement with the Young Farmers’ Agricultural Association (ASAJA) in Madrid to increase generation and use of solar photovoltaic energy in the agricultural sector.

The firms will jointly boost the Smart Solar Iberdrola service to allow customers to generate their own energy for consumption using solar photovoltaic technology.

The partners will conduct feasibility tests to boost the technology for the facilities, members, customers, and other points of supply represented by ASAJA, whose members include direct farm workers, with owners and lease-holders, and also families members related to farm activities.

A follow-up committee will be set up for the purpose, which will also deliver, publicise and carry out marketing for the service in this sector.

Smart Solar is a retail product by Iberdrola, which offers design, assembly and commissioning of a fully customised solar installation, besides delivering finance, advice, comprehensive maintenance, management and supervision of the facilities through web tools and innovative applications.

Iberdrola announced in February its intentions to invest for renewable energy sector in Scotland and the UK.

ASAJA is a professional agricultural organisation in the country, which is comprised of 200,000 members.

Italy’s renewable energy group Enel Green Power (EGP), and infrastructure fund F2i, have signed an agreement to open a photovoltaic (PV) joint-venture in the country.

The new joint-venture will have equal shares, controlled by both the companies, and will include a portfolio of 210MW of operating solar photovoltaic capacity.

Under the deal, EGP will contribute 105MW of assets from its Altomonte FV subsidiary to the new joint-venture. F2i will also contribute 105MW of assets held by its F2i Solare 1 and F2i Solare 3 units.

The enterprise value of EGP is €230m, while F2i’s assets are valued at €285m.

To ensure equal shareholding, EGP will also contribute €18m in cash, while transferring Altomonte’s investment in the new company. F2i can choose to contribute an additional 58MW of capacity by next year.

The value adjustment standard for this kind of transaction is expected to be carried out in 2016.

The new joint-venture focuses on bringing together different operating PV solar plants owned by various financial institutions and private operators in the Italian PV market.

EGP hopes that the joint-venture will create value by reducing operating expenses and optimising energy management with its assets and expertise.

Furthermore, the company is seeking to further optimise its debt in order to seize new financial opportunities in a new low-interest market environment.

EGP can choose to acquire an additional 2.5% of the joint-venture, which would give it control of the company.

The deal is expected to close by the end of this year, and remains subject to the approval of the EU antitrust authority.

Octopus Investments has secured £400m (€540m) in financing for its 522MW portfolio of UK solar projects.

The Royal Bank of Scotland (RBS) and Investec Bank have closed the syndication for the financing deal of the portfolio.

Projects under the portfolio consist of 74 operational ground-mounted solar projects that Octopus acquired from Lightsource Renewable Energy.

Located across the south-east and west of the UK, the projects are supported with 20-year fixed income tariffs under the UK Government’s Renewables Obligation.

Funding for the solar power portfolio invited interest from multiple banking and institutional investors and was closed oversubscribed.

Investec power and infrastructure lending head Olivier Fricot said: “We are delighted to have closed what is a landmark transaction for the sector with Octopus and Lightsource, two of our long standing relationships.

“It further endorses the expertise of our team in the UK solar and wider renewables sectors where we continue to see strong levels of lending and M&A activity.”

RBS infrastructure and structured finance director Craig Love said: “We are glad that our sector and execution expertise, along with our international distribution network, were able to help deliver the right result for Octopus and its investors.” Then added :

“RBS has been at the forefront of the UK solar market since its inception in 2010, has funded 1.2GW of projects to-date and, despite recent regulatory changes, retains a strong pipeline of solar projects going forward.”

The EU accounted for only 5.8% of the world’s energy production in 2013, compared to China with 19.2% and the US with 13.8%, according to the EU’s latest statistical energy pocketbook. Meanwhile, the EU consumed 12% of the world’s total energy, China accounted for 22.4% of energy consumption and the US 16.1%.

The latest statistics reveal that, in 2013, Ireland, Cyprus, Luxembourg and Malta were the most fuel import dependent EU countries with over 80% of their energy imported. Denmark, Estonia and Romania were the least import dependent with less than 20% of their energy imported.

Other figures show that in 2013 the EU imported 39% of its natural gas from Russia, 29.5% from Norway and 12.8% from Algeria. For crude oil, 33.5% came from Russia, 11.7% from Norway, 8.6% from Saudi Arabia and 8.1% from Nigeria. Overall in 2013, the EU’s import dependency for all energy products was at 53.2%, rising to 65.3% for natural gas alone and 64.6% for hard coal.

In 2013, the renewable energy share in gross final energy consumption reached 15% for the whole of the EU, and the primary energy intensity – a measure of energy efficiency calculated as units of energy per unit of GDP in 2010 – decreased by about 15.6% from 2005 levels.

The 2015 statistical pocketbook covers a whole range of energy statistical data and indicators including energy intensity, carbon intensity, renewable energy shares, energy efficiency, employment and EU country profiles.

RenewableUK and the Solar Trade Association have initiated a joint campaign urging the UK Government to rethink its decision to reduce financial support for small-scale renewables, such as wind turbines and solar panels.

Titled ‘People Power’, the campaign has called for members of the public, as well as the thousands of renewable energy employees, to petition the UK Government to provide steady support to the maturing sectors.

The petition is a response to government consultation published in August, which proposed incentive cuts for solar photovoltaic, wind and hydropower through the feed-in tariff scheme from January 2016. It is expected to be organised through social media and by writing to local Members of Parliament.

Proposed plans may result in substantial job losses across the renewable energy sector, as it would deprive several local communities of the financial support they receive for clean power generation from suppliers.
This could cause multiple green energy projects to shutdown, thereby making domestic electricity inaccessible for ordinary households, farmers and small businesses.

“Don’t wreck an industry, which for the first time has given people the power to control their own energy supply.”
RenewableUK consents and intelligence policy director Gemma Grimes said: “This campaign is about sending a simple message to government: don’t wreck an industry, which for the first time has given people the power to control their own energy supply.

“Small-scale renewables is an extraordinary success in the UK, creating thousands of new green jobs and allowing local communities to generate their own clean energy.

“The feed-in tariff provides a lifeline to the rural economy, allowing farmers and small businesses to diversify their income and save on their electricity bills, especially during tough economic times. The government’s actions are in danger of consigning this great work to the past.”

Solar Trade Association External Affairs head Leonie Greene said: “Poll after poll shows the great majority of the public strongly supports local renewable energy.Yet government proposals for feed-in tariffs are extreme and they will stop families and communities from investing locally in clean energy all over the UK.”

Then added : “The Action for Renewables website makes it easy for people to contact their MP and urge them to fight these proposals and protect people power.”

In contrast to the UK proposal, Scotland has decided to retain Renewables Obligation (RO) guarantees for solar investments in the country.

Renewables outstripped coal as a source of electricity in the UK during a full quarter for the first time ever, government data published Thursday shows.

According to the report, a combination of higher wind speeds, more installed solar panels and a 19.5% increase in rainfall — which resulted in record output at hydroelectric power stations — all contributed to renewables accounting for over 25% of generation in the second quarter of 2015.

Gas-fired power stations provided the most electricity – 30% – with renewables second. Nuclear power was third with 21.5%, while coal fell back to fourth, with 20.5%.

According to industry body Renewable UK’s chief executive, Maria McCaffery, new technologies such as solar and wind power have now become Britain’s second largest source of electricity, generating more than a quarter of the nation’s needs.

“The new statistics show that Britain is relying increasingly on dependable renewable sources to keep the country powered up, with onshore and offshore wind playing the leading roles in our clean energy mix,” she noted in an e-mailed statement.

Howether, on a global scale, coal is expected to overtake oil consumption from 2017, according to a report from the International Energy Agency (IEA) released in 2012.

Scotland will continue to offer Renewables Obligation (RO) guarantees for solar investments in the country, in order to eliminate energy uncertainty and boost investor confidence in solar developments.

This announcement by the Scottish Government is in contrast to a proposal by the UK Department of Energy and Climate Change (DECC), which aims to end guaranteed support for large commercial solar rooftops and solar farms across England and Wales.

Scrapping of ‘grandfathering’ in the UK, expected to be in effect from April next year, will be applicable for solar photovoltaic (PV) projects below 5MW capacity.

Scottish Energy Minister Fergus Ewing said: “The Scottish Government were not consulted on this matter prior to the consultation being published.

“I have written to the Secretary of State to express my concern about the impact of the proposal and disappointment at the UK Government’s failure to consult.”

The Scottish Government will retain the guarantee for the sector, according to Fergus Ewing who said the decision was made due to a need for ‘clarity and certainty’ in solar projects, in order to attract funding and reach a financial close.

Solar Trade Association Scotland chairman John Forster said: “This shows that the Scottish Government is fully committed to solar providing as much as possible of its 100% renewables target for Scotland.

“Solar projects in Scotland now know what level of support they are going to get, and that they will get it for the full 20 years.

“It won’t be possible to cut support for Scottish projects down the line in, for example, year 15 of 20.“

Scotland will continue to offer Renewables Obligation (RO) guarantees for solar investments in the country, in order to eliminate energy uncertainty and boost investor confidence in solar developments.

This announcement by the Scottish Government is in contrast to a proposal by the UK Department of Energy and Climate Change (DECC), which aims to end guaranteed support for large commercial solar rooftops and solar farms across England and Wales.

Scrapping of ‘grandfathering’ in the UK, expected to be in effect from April next year, will be applicable for solar photovoltaic (PV) projects below 5MW capacity.

Scottish Energy Minister Fergus Ewing said: “The Scottish Government were not consulted on this matter prior to the consultation being published.

“I have written to the Secretary of State to express my concern about the impact of the proposal and disappointment at the UK Government’s failure to consult.”

The Scottish Government will retain the guarantee for the sector, according to Fergus Ewing who said the decision was made due to a need for ‘clarity and certainty’ in solar projects, in order to attract funding and reach a financial close.

Solar Trade Association Scotland chairman John Forster said: “This shows that the Scottish Government is fully committed to solar providing as much as possible of its 100% renewables target for Scotland.

“Solar projects in Scotland now know what level of support they are going to get, and that they will get it for the full 20 years.

“It won’t be possible to cut support for Scottish projects down the line in, for example, year 15 of 20.”

Lightsource, one of Europe’s biggest players in solar photovoltaic (PV) farms, is understood to be planning to invest €500m to develop solar farms across Ireland.

The company aims to work with farmers, as well as property owners such as factories and retail outlets, to boost sustainable electricity generation in Ireland.

Lightsource believes that with the proper incentives, solar energy can generate 1.5GW of generating capacity by 2020.

This is enough sustainable and clean electricity to power more than 495,000 local households, easily meeting more than 5pc of Ireland’s electricity demand.

Lightsource, which is incorporated in the UK, is one of the leading generators of solar PV energy in Europe and one of the top-10 globally.

It employs 350 people full-time and has a growing office in Dublin.

“We are excited by the opportunity for solar power in Ireland. Lightsource is committing significant financial investment and resources towards realising this opportunity,” said Nick Boyle, Lightsource’s CEO and a native of Antrim.

“Any risks associated with the development of these solar projects, including installation costs, will be borne by Lightsource. This commitment will not only add to sustainable electricity generation in Ireland, it will also strengthen the local economy and supply chain.

“Our ground-mounted solar projects will provide much-needed land diversification for farming enterprises, and our rooftop systems will enable schools, businesses and community buildings to reduce overhead costs. It really is a win-win for local communities,” Boyle said.

Ireland’s renewable energy imperative

By 2030, 27pc of Ireland’s energy will need to come from renewable sources, according to the Government.

Over the coming months, the European Union will announce new renewable energy targets for member states.

In its report published in February, the Sustainable Energy Authority of Ireland said Ireland’s 2013 renewable energy production contributed 7.8pc of the country’s final energy demand, putting Ireland almost halfway towards the target of 16pc by 2020 set under the European Union’s Renewable Energy Directive.

The Government will shortly publish a new Energy Policy 2015-2030.

Last month, US President Barack Obama announced a major climate change plan and called on energy users to shift from traditional fossil fuels to cleaner alternatives, including solar power.