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UK Introduces Incentives For Small-Scale Green Power.
Wall Street Journal, February 1, 2010.

"LONDON (Dow Jones)--The U.K. government Monday introduced incentives for
small-scale green electricity generation and published its plans to
encourage low-carbon heating technologies, as it seeks to boost renewable
energy supply to meet European Union 2020 climate change targets.

 From April 1, householders and communities who install low-carbon
electricity technology such as solar photovoltaic panels and wind turbines
generating up to five megawatts will be paid for the electricity they
generate--via so-called feed-in tariffs--even if they use it themselves. The
level of payment depends on the technology and is linked to inflation. They
will receive a further payment for any electricity they feed into the grid.

The scheme is designed to increase the amount of green energy as part of a
wider plan to meet the U.K.'s target to source 15% of its energy from
renewable sources by 2020 from around 2% now.

However, Deloitte energy director Tim Warham said there was concern the
tariffs may not be high enough to encourage consumers.

The renewable heat incentive, which would be the first of its kind anywhere
in the world, is to come into effect in April 2011 and guarantees payments
for those who install technologies such as ground source heat pumps, biomass
boilers and air source heat pumps.

The renewable heat incentive will also offer long-term fixed payments for
every unit of renewable gas fed into the gas network.

According to the Renewable Energy Association, which represents the U.K.'s
renewables industry, demand for heat dominates U.K. energy use and is
responsible for 47% of the U.K.'s carbon dioxide emissions. The U.K. is also
languishing behind the rest of Europe on renewable heat, the REA said.

British Gas, the retail unit of U.K. utility Centrica PLC (CNA.LN), said
Monday it will go ahead with five biomethane demonstration projects to
inject green gas into the grid as a result of the renewable heat initiative.

Biomethane will help to decarbonize the gas grid by delivering renewable
heat to households through the existing gas network and central-heating
boilers. According to a study by U.K. gas and electricity network operator
National Grid PLC (NG.LN), biomethane could account for at least 15% of the
domestic gas market by 2020."

http://online.wsj.com/article/BT-CO-20100201-711940.html?mod=WSJ_World_MIDDLEHeadlinesAsia

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