Energy white paper falls short

The government's White Paper on Energy has come under a stinging attack for failing to support renewables and for not tackling energy efficiency.

The White Paper, launched by Trade and Industry Secretary Alistair Darling, sets out the long-term framework for tackling climate change and maintaining stable and affordable energy supply. Measures announced include plans to consult on the role of nuclear power and development of carbon capture and storage.

However, the report has been criticised by the Renewable Energy Association (REA) for paying no more than lip service to local energy production and only addressing centralised power.

Philip Wolfe, chief executive of the REA said: "Yet again this document scores top marks for rhetoric, but must try harder to match this with effective action. It mentions important technologies like renewable heat, biomass and smart metering, but has no measures to bring them into the mix".

The White Paper was also criticised for its lack of proposals to reduce energy demand. The National Energy Foundation (NEF) said more focus should be placed on demand as well as on the supply side. "We should concentrate on reducing energy demand through energy efficiency and conservation measures," said Ian Byrne, deputy director of the NEF.

He went on to say that although the government says fine words about the need for energy efficiency, there are no real incentives for consumers to invest in simple measures such as installing more efficient heating controls or loft insulation.

"Both these incur VAT at the standard rate, but fuel supplied - that contributes to global climate change is taxed at a lower rate," he added.

Key announcements made in the White Paper include:

•  A requirement for new meters to come with a real-time display from 2008 and a short term offer of free displays from energy suppliers for households to 2010. In addition, the Government is encouraging the introduction of smart meters within the next 10 years.
• A consultation setting out how the energy efficiency of consumer electronics will need to improve.
•  A consultation to double energy suppliers' obligation to deliver energy efficiency measures to customers through a new 'Carbon Emission Reduction Target'.
•  A 'Distributed Generation' report is published including simplification of energy market and licensing arrangements for localised energy by the end of 2008 and clearer export tariffs from all six major energy suppliers for microgenerators to sell excess electricity.
• Publication of a biomass strategy as well as a response to 'Creating Value from Renewable Materials' - a two year progress report on the strategy for non-food crops and uses.