Businesses urged to look at energy costs

UNITED KINGDOM - Tesco's plans to build on-store wind turbines, have again highlighted the fact that climate change and energy costs are now firmly on the national agenda, according to a Birmingham lawyer.

He believes the move also emphasises the potential of local energy generation.

And Andrew Whitehead, head of the energy team at Martineau Johnson, says it needs to tie in with the Government's Energy Review, which has just been published.

"The time is right to look again at how the country meets its increasing energy needs, and in a way which contributes to the climate change agenda," he said.

"I fear that the current nuclear debate has over-simplified the issues, and focused attention away from the role of business and the contribution it must make as the source of around half of the UK's total carbon emissions.

"Businesses can take actions which have a positive impact on the bottom line, notably in the energy efficiency arena where there is the double win of energy cost reductions and carbon savings."

According to Andrew Poole, another energy law specialist at Martineau Johnson, the emerging "microgeneration" sector, which will roll out power generation for small businesses and domestic consumption, has huge potential.

Mr Poole said: "Microgeneration can now be delivered by microrenewables, ranging from biomass fuelled power and heat to wind turbines and solar panels.

"Microrenewables are important because for a business caught by the EU emission trading scheme, the challenge of keeping a lid on, let alone reducing carbon emissions looks set to increase. They also have the potential to create quick and significant savings in energy costs, whilst at the same time making a tangible contribution to carbon emission reduction targets, which are set to be tightened as part of phase two of the EU's emissions trading scheme."

The aim of the EU scheme is to deliver reduced emissions across Europe, with the cost borne as far as possible by those responsible for those emissions.

"Businesses need to be creative in the ways in which they think about energy efficiency and carbon reduction," said Mr Whitehead.

"New legislation means that the Government now has to publish annual microgeneration targets and plans to enable microgenerators to sell their surplus output. There is also an obligation on the Government to review the planning regime to facilitate the development of domestic microgeneration.

"These measures should make a difference, especially alongside the various grants and other direct support on offer from organisations such as the Carbon Trust.

"We should soon start to see a steep change in the levels of installed microgeneration, which will reinforce the importance of the smaller end of the energy production chain."

The Energy Review is tipped to back the replacement of the UK's ageing nuclear power stations, although the size of any new build programme will be affected by the extent to which the life of some of the existing ones can be extended.