WWW.WATERPOWERMAGAZINE.COM DECEMBER 2010 45
COMMENT
T
HE new UK coalition government is committed to pro-
duce 15% of our energy needs from renewable sources by
2020. However this is a huge challenge given that we cur-
rently stand at around only 3%. We expect the majority
of this huge growth in renewable generation to come from onshore
and offshore wind and biomass, but the scale of the challenge is
such that we will need all forms of renewable energy to contribute,
including hydro, solar and wave and tidal.
I believe that hydro has a small but useful contribution to make
to our overall ambitions and, given constraints on public spending
and other competing priorities, we will endeavour to assist its further
deployment across the whole country.
In 2009, installed hydro capacity in the UK was around 1.6GW,
generating some 5000GWhr of electricity, equivalent to 1.4% of elec-
tricity demand. This may not sound much, but it translates into the
electricity use of more than one million homes or the output of one
new generation nuclear power plant.
We are unlikely to see any new large-scale hydro schemes being
developed because of the economic and environmental constraints,
so this means that future exploitation of hydropower in the UK will
focus on micro and small scale hydro schemes.
A number of studies have been undertaken in recent years to try to
estimate the remaining hydro potential in Scotland, England and Wales.
We estimate that there could be a remaining viable hydro resource of
around 1GW, with the potential to contribute up to a further 1% of
current UK electricity demand. This is a prize worth ghting for, and it
might be possible to develop half of this over the next ten years.
FIRST THINGS FIRST
The rst thing the Government is doing to realise this potential is
to make investing in this established technology more attractive by
providing nancial incentives. The Renewables Obligation, which
benets small and medium scale schemes up to 20MW, has been in
place since 2002. After a slow build up, it has routinely been reward-
ing hydro generators with an average £90M (US$144M) of income
a year, with a total of £730M (US$1172M) since it began. This is a
considerable llip to any industry, and even more so to a small sector
like hydropower.
However, ROCs are sometimes not suitable for micro-scale hydro-
power. That’s why the feed in tariffs (FITs) for low carbon microgen-
eration schemes were introduced in April this year. I am conscious that
the introduction of FITs has not been straightforward, because micro
hydro is still a nascent industry and there are some circumstances that
are specic to hydro and its developers. But my department has been
working exibly to provide wider eligibility for FITs, without com-
promising the standards which will build consumer and community
condence in a sector which has the opportunity for rapid expansion.
We have also been working hard on developing the Microgeneration
Certication Scheme (MCS) standards with industry. MCS transi-
tional and installer standards, agreed by the majority of the MCS
working group, have been published, and listed installer companies
and products already have access to FITs. Work is ongoing to nal-
ise an affordable MCS product standard using test data from other
installations, including from Europe. This is to ensure that consum-
ers and developers wanting FITs receive accurate information on the
likely durability and performance of their installation.
The introduction of FITs has stimulated a huge increase in applica-
tions for environmental permits and planning consents. In England
and Wales alone, the Environment Agency used to receive an aver-
age of 10 applications a year, but in 2009 this increased ten-fold to
around a hundred. In 2010, they are expecting a further doubling to
200, and they expect that level of demand to continue, largely due to
FITs. Similar levels of interest have been experienced in Scotland and
Northern Ireland, though we will have to wait to see how much of
this interest converts to new schemes on the ground, and how much
it will add to our hydro generating capacity.
Government also has a role to play in helping to address some of the
potential barriers to renewables deployment such as environmental
permitting, planning consent and access to the grid. My department
has been working very closely with the Department of Environment,
Food and Rural Affairs (Defra) and the Environment Agency over
the past year on the Hydro Permitting Review and other initiatives to
facilitate the deployment of sustainable micro and small-scale hydro
schemes in England and Wales.
The Environment Agency has already started implementing some
of the changes, which my department has been involved in. The inten-
tion behind the review is to provide a more user-friendly application
process, which also makes the most effective use of agency resources
at this time of increased interest in hydro.
Other initiatives the EA have been pursuing are the updating of the
Hydro Good Practice Guide for developers, the second phase of the
hydro resource mapping study, and the further training of their staff
to deliver a better service to hydro developers and stakeholders.
ENTHUSIASTIC DEVELOPMENT
Since taking up my post in May, I have been impressed by the enthusi-
asm shown by mill owners, communities and commercial developers
to bring dormant and new sites into use generating clean, sustain-
able and affordable electricity. I have been particularly struck by the
number of new organisations entering the eld, such as the Forestry
Commission, the National Trust, British Waterways and a number
of National Parks, albeit on a smaller scale to the traditional players
– the energy companies and the water utilities.
In their hydro resource mapping survey the Environment Agency
identied some 4-5000 ‘win-win’ sites, where the development of
hydro schemes could go hand in hand with the enhancement of the
river environment, particularly for sh. This may sound a lot, com-
pared to the 400 or so registered sites in the UK as a whole, but if we
look back a thousand years the Domesday Book listed some 6000
water mills in England alone.
I see a bright future for hydro in the UK, provided we all work
together to make it happen.
The UK coalition government’s Climate Change Minister,
Greg Barker, sees a bright future for hydro, and urges the
country’s industry and all players to work together to make
it happen. Although Barker acknowledges that hydro’s
contribution may be small in the scheme of things, he emphasises
that it is still very useful and a prize worth ghting for
Worth fighting
for
IWP& DC