http://www.newenergyworldnetwork.com/renewable-energy-news/by-technology/energy-efficiency/uk-renewables-industry-warns-against-tender-system-to-meet-60-per-cent-emissions-target.html

The renewable energy industry has warned against proposals to introduce a UK government tender system for wind and carbon capture projects to meet ramped-up emissions reduction targets that were put forward by a government advisory body this week.

The Committee on Climate Change has recommended that the UK adopts a 60 per cent reduction in carbon emissions by 2030 compared to 1990 levels, a move which has been welcomed by the renewable energy industry.
However, renewable energy trade association RenewableUK has warned against introducing a tender system for low carbon capacity, underlining the need for further investment in renewable energy.
The UK government is due to issue proposals on new market reforms by the end of the year, which would encompass government tenders for long-term carbon capture and wind contracts as proposed by the committee.
Despite supporting increased emissions targets and further investment in low carbon technologies, RenewableUK points to the failure of previous tendering schemes under the Non Fossil Fuel Obligation and instead calls for increased investment in renewable technologies to drive down costs.
‘We very much welcome the committee’s carbon reduction announcement but we must warn against tendering of long-term contracts for low carbon capacity. Given our unsuccessful experience of tenders during the 1990s under the Non Fossil Fuel Obligation we would strongly urge the government not to go down this route,’ said RenewableUK director of policy Dr Gordon Edge.
‘Renewables have a key role to play in achieving these targets but investment will be needed to bring down the cost of these technologies. For example, significant investment will be needed in offshore technology over the next decade in order for it to deliver what is expected.’
If the 60 per cent target was adopted, an even steeper 62 per cent emissions cut would need to be achieved during the 20-year period beyond 2030 in order to meet the 2050 target set under the Kyoto protocol.
Although the proposed emissions reduction target is considered to be within current technological capabilities, the expectations of individual renewable energy technologies need to be defined, according to RenewableUK.
‘The 2020s will be a key decade in our journey towards decarbonisation of our electricity supply and we need clarity on the contributions of the various technologies so we can plan ahead and get the maximum benefit for the UK economy,’ said Edge.
The Committee of Climate Change’s carbon budget for 2023 to 2027 suggests that a 60 per cent slash in emissions can be achieved at the cost of less than one per cent of gross domestic product (GDP). It has also identified scope for cutting agricultural emissions by up to 20 per cent by 2030 through the adoption of more efficient farming practices for both arable and non-arable farming.
New carbon budgets are expected to be legislated by midway through 2011, under recommendations that budgets up until 2022 should be tightened to reflect a 37 per cent cut in greenhouse gas emissions by 2020 compared to the current 34 per cent target. The current target also looks to be raised to 42 per cent if the European Union adopts more ambitious targets.
Committee on Climate Change chair Lord Adair Turner said, ‘We are recommending a stretching but realistic fourth carbon budget and 2030 target, achievable at a cost of less than one per cent of GDP. Any less ambition would not be compatible with the 2050 target in the Climate Change Act [of 2008].’