Jonathan Scurlock

Opening Address

Transcript

1. Dr Jonathan Scurlock Chief Adviser, Renewable Energy and Climate Change, National Farmers Union
2. The NFU champions British farming and provides professional representation and services to its farmer and grower members Welcome to Day 2 Dr Jonathan Scurlock Chief Adviser, Renewable Energy and Climate Change National Farmers Union of England and Wales Energy Now Expo Telford International Centre, 14 Feb 2013 The NFU champions British farming and provides professional representation and services to its farmer and grower members
3. • climate change – Lord Stern at Davos 2013 said: “I underestimated the risks”; IMF boss “worse than debt crisis – we will be roasted”; Peter Kendall “fresh thinking needed”: global weather disruption towards 2020 and 2050, with agriculture in ‘front line’ • volatile oil prices, shaky energy security: 2008 $147/bbl, now steady at ~$115 despite recession • an end to declining producer prices? – at last food security is important due to globalisation and new non-food markets (biofuels/bioenergy) • ‘Perfect storm’ of climate change, energy and food security, converging to drive policy – a threat (increasing input costs and red tape) – or an opportunity? (self sufficiency, diversity) Should farmers be worried about these? Oil price $/bbl 2010–2011 rise The NFU champions British farming, and provides professional representation and services to its farmer and grower members
4. The NFU champions British farming, and provides professional representation and services to its farmer and grower members • climate change  GHG emissions reduction, international and national policy (despite weak worldwide agreement from 2015, targets are 80% reductions and 2 C limit for global temperature rise by 2050) • renewable energy - challenging 2020 EU and UK targets – incentives for electricity, transport fuels, and now heating • farmers offer ‘part of the solution’ to energy security, food security and tackling CC • retail sector also becoming an important driver: growing demand for “low-carbon” food; support for ‘green growth’ from CBI and others • invest now in renewables  stable energy costs, diversification of income, lower C footprint Why this is important for agriculture Energy industries Manufacturing and construction Transport Agriculture UK GHG emissions Agric = 8.5%
5. A huge choice of renewables for farmers
6. Growing range of government incentives, gradually improving but with confusing and sometimes negative signals to investors • Renewables Obligation – tradeable ROC certificates to fulfil growing obligation – from 3% in 2002 to 21% in 2014 (ending 2017). Best suited to large electricity generation projects with risk-based finance • Feed-In Tariffs – introduced April 2010 for solar PV, wind, hydro- electric and anaerobic digestion up to 5 MW. Index-linked, govt- backed and low-risk, modelled on schemes elsewhere in Europe. Successive tariff reductions in 2011 and 2012, now “degression”. • Renewable Heat Incentive – delayed introduction in late 2011 (with some drawbacks and omissions). Relatively high reward rate (up to 12% gross) to grow supply chain and deployment rapidly, in two phases – focus initially on commercial sector • Renewable Transport Fuels Obligation – since April 2008, amended 2009 to 5% by 2013/14 - mandatory sustainability since Dec 2011, but rewards not yet linked to C savings so investment progress slow The NFU champions British farming, and provides professional representation and services to its farmer and grower members
7. The greatest diversification opportunity in a generation? A variety of technologies – at small, medium and large scale – can supplement farm incomes and sustain rural livelihoods, directly and indirectly Renewables can meet on-site electricity needs for heating, feeders, ventilation, etc. – as well as exported power
8. The shift towards a low-carbon economy • ‘Green is the Colour of Growth’ – transition from 20th © embedded fossil carbon economy (goods, materials and energy), to 21st © sustainable natural resource economy • ‘Keeping the Lights On’ – as old power stations are retired • NFU policy encourages farmers to diversify into low-carbon energy services – our aspiration is that every farmer could be an clean energy exporter – ‘Farming Delivers’ up to 25% of clean energy • One in 3 farmers are already diversifying into renewables • bioenergy (many kinds) and wind are probably the largest land- based renewable energy resources; solar PV catching up fast! • agricultural buildings and land are ideal platforms for solar energy capture and small-to-medium wind power • on-site energy needs only, or also export of renewable electricity, plus heat services and fuels? The NFU champions British farming, and provides professional representation and services to its farmer and grower members
9. Large-scale solar farms: a dual land-use challenge Britain’s 2011 installations set high standards for the future; Large-Scale Solar Strategy due Spring 2013
10. The NFU champions British farming, and provides professional representation and services to its farmer and grower members Midi-scale solar power for poultry and pigs? • solar PV falling in cost, likely to be subsidy-free by 2020 • users with summer peak electricity needs expected to become economic first • e.g. £500k for 500 kW, generating 400 MWh/year • if only 50% on-site use, this is worth £20,000 @ 10p/unit, plus £9000 @ 4.5p/kWh exported • £29k on £500k = 5.8% ROI • Simples! 800kW, Germany 1 MW, Lincolnshire
11. Renewable Heat Incentive: a turning point? • From end November 2011 for commercial sector (domestic sector to follow in 2013). Low biomass tariff >1 MW • Just 400 projects successful in first year (<90MW), 1000s more in pipeline • rural communities expected to benefit, since many 'off-grid' homes and businesses have limited and expensive choice of fossil fuels • many forms of low-carbon heating have a natural fit with the diversity of agricultural enterprises • NFU concerns persist that DECC and Defra have not yet recognised the potential of agriculture to supply a wide range of sustainable bioenergy feedstocks (straw, wood fuel, perennial energy crops, silage maize for AD) The NFU champions British farming, and provides professional representation and services to its farmer and grower members
12. The NFU champions British farming and provides professional representation and services to its farmer and grower members New NFU Farm Energy Service Formally launched at NFU Annual Conference February 2012 – CALL 0870 844 5700
13. The NFU champions British farming, and provides professional representation and services to its farmer and grower members Opening thoughts – the best is yet to come! • Farmers and growers are not just ‘in the front line’ of climate change: we are reducing GHG emissions and delivering clean energy • Agriculture/horticulture can harness abundant natural energy resources: on-site power, fuels/heat, energy export to other sectors • Government policy and consumer trends  low-carbon products from agriculture, including both food and energy services Dr Jonathan Scurlock Chief Policy Adviser, Renewable Energy and Climate Change National Farmers’ Union Stoneleigh Park Warwicks CV8 2TZ jonathan.scurlock@nfu.org.uk Powered by British farm-grown veg oil !