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16 Feb 2009 04:02:06

BT considers cutting wind farm project

BT considers cutting wind farm project
BT is considering abandoning its £250 million wind farm plan following the government's recent amendment to its Renewable Obligation Certificates (Rocs) scheme.

The Department of Energy and Climate Change announced changes to the Rocs credit plan which BT suggests will discourage firms from investing in renewable energy.

BT claims that changes to the way Rocs will be issued under the Carbon Reduction Commitment (CRC) cap-and-trade initiative means that it will not be able to use energy from the wind farm to reduce its carbon emissions.

A statement from BT read: "BT is concerned about the government's proposed carbon reporting requirements and the impact they might have on the viability of BT's plans to generate 25 per cent of its electricity from wind power by 2016.

"We are in active dialogue with the government on this issue."

The company originally announced plans to build a wind farm in October 2007. The planned development was designed to generate 25 per cent of the electricity used by the company by 2016.



Discussion Thread  

Rupert wrote:

17 Feb 2009

I am puzzled by this statement from BT. The Defra consultation paper from June 2007 quite clearly states that:

"The use of electricity generated by onsite renewables that is not used to generate ROCs will be ‘zero-rated’ and would not give rise to any obligation to surrender allowances. This is to give the appropriate incentives for the use of on-site renewables. However, green tariff electricity supplied by the national grid will not be treated differently from standard tariffs."

Am I missing something?

18 Feb 2009

I think the issue is that the government has said BT cannot claim the 'ROC Payments' and announce that they are reducing their carbon emissions, since the ROC's will be sold on to electricity providers to fulfil their 'Renewables Obligation'. Therefore they argue this is counting the emissions twice and 'double accounting'.

I feel they should provide BT with the ROC payments anyway, and also allow them to claim they are reducing their carbon. In my view, they can claim what they like, just do the project.

The problem here is the confusing 'ROC' scheme. The answer is to establish a strong feed-in tariff, and relax the conditions on the ROC's so that companies like BT can claim them. BT ought to be able to claim ROC's like everyone else.

With so much money being give to banks and car manufacturers these days, lets at least give something to support renewable energy.

Discussion Thread  


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