APSE Energy - Members briefing 18/15 (October 2015)
This is the APSE Energy Members Briefing of 30 October 2015.
1. APSE Energy Response to the Feed in Tariff Review – Briefing 11/15 EIS and SITR tax reliefs for community energy
APSE Energy has submitted a response to the Department of Energy and Climate Change (DECC) consultation on a review of the Feed-in-Tariff scheme which was issued on 27 August and closed on 23 October. A copy of our response to DECC is attached as APSE Energy policy briefing 11/15 for your information.
2. Enterprise Investment Scheme (EIS) and Social Investment Tax Relief (SITR) for community energy and Community Energy England survey on the FiTs policy impacts on Community Energy
We have also been notified by Dr Barbara Hammond MBE CEO Low Carbon Hub (Oxford) yesterday evening of a very late set of amendments made during the third reading of the Government’s Finance Bill on Monday 26th October. Amongst other things, these changes exclude community renewable energy projects from the Enterprise Investment Scheme (EIS) and Social Investment Tax Relief (SITR) tax reliefs. This runs directly counter to the Chancellor's announcements in the Spring Statement where he gave assurance that the EIS would remain for community energy until the enlarged SITR was in place, and that there would be a six-month overlap between the two in order to ensure continuity.
The exact reasons that these changes were made without consultation in this way is not at all apparent. Neither is the parliamentary process well enough understand to determine whether there is any possibility of challenging this decision.
There are many thousands of voluntary community hours and hundreds of thousands of pounds already invested in projects that will now struggle to raise the equity needed to build them. These are part of the response to the UK Community Energy Strategy (published in January 2014) which had the ambition of developing 3GW of community-owned energy projects by 2020. It is now difficult to see how this ambition can now be reached. APSE Energy will be writing to the Government lend support to representations from the Community Energy Sector who are also lobbying for this change to be overturned.
Community Energy England recently published a report by Quantum Strategy and Technology Ltd. who are associate consultants with APSE Energy entitled Community Energy: Generating More than Renewable Energy which was based on a survey of over 80 organisations. The report has been published as part of CES response to Government on the many policy changes which have affected the renewables sector since May 2015 and in particular the review of the FiT which proposes cuts of up to 87% in financial support for renewable technologies such as Solar PV. One of the key findings was that:
“The majority of respondents have said that they are now putting their projects on hold, or even cancelling them, as a result of the recent government policy announcements, consultations and generally negative attitude to renewable energy.
• 90% of respondents said their developing projects are completely (67%) or partially (23%) at risk due to the FITs review.
• This represents a capital investment of £127 million that is now not likely to happen.”
The report shows the damaging impact which recent government policy changes have had on the community energy sector which mirrors much of what has also happened to the municipal energy sector. A copy of the report is included with this breifing for your information.
3. Proposed procurement collaboration for Solar PV on council housing and other civic buildings – APSE Energy Briefing 12/15
4. Low Carbon England event and dinner, National Motorcycle Museum, Birmingham, Tuesday 1 December 2015
Please find attached an invitation to attend the Low Carbon England 2015: Meeting the Emissions Reduction Targets conference being held on Tuesday, 1 December 2015 at the National Motorcycle Museum in Birmingham. This unique conference will address England's current place in meeting the EU emissions reduction targets. Speakers from Innovate U.K. and the Green Investment Bank will also be joined by Industry experts to discuss and identify how public & private sector organisations working together in a joined up collaborative fashion can act as a catalyst to help both towns and cities to continue to lead the way in the transition to developing a Sustainable Low Carbon Economy.
APSE and APSE Energy Members can benefit from 2 FREE delegate places saving £999 delegate fee to attend www.low-carbonengland.co.uk. If you wish to take advantage of this offer which we have negotiated on behalf of APSE Energy members you can register for the conference online - CLICK THIS LINK.
5. British Hydropower Association Membership and Annual Conference
APSE Energy has recently become a member of the British Hydropower Association (BHA) and attached is a copy of the BHA newsletter Spotlight which covers the response of the BHA to a number of the policy changes announced by the Government which impact on Hydropower projects. We will ensure that resources and briefings from the BHA are available to APSE Energy members.
The BHA Annual Conference will be held on Tuesday 10th and Wednesday the 11th of November. The AGM will be on the morning of the 10th November. The venue is the Central Hotel, Cambridge Street, Glasgow. If you wish to attend this conference you can register here BHA Annual Conference 2015.
Director of APSE Energy
Tel: 0161 772 1810 Mobile 07796301502