Renewable energy: made in Britain Jobs, turnover and policy framework by technology (2012 assessment) Demolition expert Civil works personnel Foreman Surveyor Structural engineer Civil engineer Quantity surveyor Biochemist Labourer Electrician Plumber Roofer Heavy equipment operator Sheet metalworker Operations Manager Office administrator

Health“Around and the safetyworld, from officer Shift manager General labourer AD plantChina operator to Germany, Supervisorour Accountant Purchaser Customer care competitorsCommunications are waging expert Sales person Logistics manager a historic effort to lead Architectin developing Solar new system design engineer Lawyer Project manager Financialenergy plannertechnologies… Economist Forester Electrical systems designer Nobody is playing for CHP secondplant place. operator These Port hand Physics engineer Environmental engineercountries E nvironmentalrecognise that consultant Meteorologist Programmer Aeronauticalthe nation that engineerleads the Agronomist Welder Machinist Skilled clean energy economy assembleris likely to leadMarine the technology design engineer Test technician Chemicalglobal economy.” engineer Materials engineer Semi-skilled worker ArchitecturalBarack Obama technician Planner Marine biologist Waste collector Turbine specialist engineer Wood recycler Crane operator Farm worker Power generation engineer Energy trader Policy expert Underwater diver Biomass power plant operator Marine engineer Turbine specialist engineer Metal worker Office manager Ship’s captain Rigger Pipefitter Helicopter pilot Chemist Energy manager Instrumentation engineer Scaffolder Panel cleaner Hydrogeologist engineer Reservoir engineer Environmental scientist Heating engineer Ecologist Subsea engineer Materials engineer Oceanographer Marketing manager Woodland manager Fluid dynamics specialist AD systems design engineer Biochemist Farmer Feedstock loader Truck driver Plant operator Maintenance technician Laboratory worker Vehicle designer Hydrologist Pump attendant Microbiologist Fuel and ash supervisor Labourer Maintenance manager Geologist Pump designer Geophysicist Drilling services manager Tanker driver Plant operative Pipeline engineer Product development manager Biotechnologist Agriculturalist Tanker driver Farmer Arboriculturalist Wood chipper operative Warehouse manager 2 Systems engineer Quality assurance manager Marine surveyor Renewable Energy: Made In Britain Gaynor Hartnell Foreword Chief Executive of the Renewable Energy Association (REA)

The Locomotive Act automotive industry’s status as the poorly articulated in Westminster – that of 1865 restricted flagship of German manufacturing’2. We is no longer the case in Scotland. Not steam engine vehicles draw huge inspiration from Germany, not before time, we hope this report will to 2–4mph and because it is one of the top performers put the spotlight firmly on renewable obliged a man waving on renewables in Europe – it isn’t by energy technologies in their own right. a red flag to walk 60 a long way – but because it sets out a We’re fiercely proud of our work at the paces ahead. British path the UK could follow. Like the UK, REA because we know our members engineers had patented Germany started from a low base – just are mobilising the most important combustion engine and electric motor 3% renewables as a share of total energy technologies in the world. vehicles by 1882 but they were not 12 years ago. Like the UK, Germany is a We’re delighted to have worked developed thanks to the powerful major economy with a large population. with Innovas and our Sector Groups railway and carriage industries’ success In just over a decade it has increased its to finally put a figure of over 100,000 at winning and maintaining such production of renewable energy nearly on the number of people employed highly restrictive legislation. Karl Benz, four fold. Joining-up energy, economic across the whole UK renewables meanwhile, started selling his motor and industrial policy is key to its success. industry and its supply chains today. vehicles in Germany in 1888. It wasn’t Their renewables sector today employs We want to triple that figure in the next until 1896 that the UK speed limit was over 370,000 people and invests around decade. Energy made in Britain means raised to a breakneck 14mph1, enabling €30 billion per annum – money that diverse jobs, rural and urban. It means the beginnings of a domestic market. circulates in the German economy. It safe and secure energy, a rebalancing The rest, as they say, is history. can be done. of our economy, new manufacturing Renewable energy promises a Indeed it must be done. The and export opportunities and a better technological transformation no less OECD estimates that without new balance of trade. We want to work radical today, and the above anecdote policies the world faces a 50% increase with the Coalition Government to put serves as a warning; established in greenhouse gas emissions. The renewable energy right at the heart interests can be strong enough to International Energy Agency warns of its growth, skills and employment stymie progress; politicians can tend to the window of opportunity to steer agendas. Together we can make the favour protecting existing, rather than away from the brink is closing. These leap. A renewable energy revolution promised, industries and employees. warnings come thick and fast and from means we can be confident that 100 But it also shows us that technological the mainstream. Yet despite the critical years from now there will not just be a advance is ultimately irresistible and role of renewable energy in our future proud history to be told, but a hopeful highly profitable for those brave enough prosperity, this vital sector remains future. to take the leap. marginalised in the broader UK policy

Germany is renowned for its quality framework. In emerging industrial policy, 1 www.direct.gov.uk/prod_consum_dg/groups/dg_ car-making, yet in its government’s own the high-tech agenda, skills and ‘The digitalassets/@dg/@en/@motor/documents/digitalasset/ dg_180212.pdf. words its renewables industry is now ‘on Plan for Growth’ renewables receive 2 Renewable Energy: Perspectives for a Sustainable the verge of challenging the German precious little attention and the sector is Energy Future, German Environment Ministry, 2011. John Sharp Managing Director of Innovas Solutions

The UK and devolved which began in summer 2008. On the billion. The UK renewable energy market governments are positive side it has focussed attention on is growing at a slower rate than most tasked with many the fault-lines in our economy and the of the developed and major developing responsibilities on UK has been searching for new sectors nations, where Innovas estimates global behalf of their citizens. to support which will bring both short growth across the sector and its supply The top responsibility and long term economic benefits. But chains is forecast to increase market these days is surely there have also been worrying signals value from £360 billion in 2010–11 to sustainable economic from part of Government that the green £770 billion by 2020. The increase in growth, supported by strong exports, a agenda cannot be afforded. Innovas’s global market value of £410 billion in secure energy system, a more balanced work on the booming low carbon that period (which is a conservative economy and employment of UK sector suggests the opposite is true. growth estimate) provides the UK with nationals across all skill levels. In the last few years the renewable additional opportunities to export This is challenging enough when energy sector has seen considerable its not inconsiderable expertise and times are good, but especially so growth over and above that seen in manufacturing capability. when navigating protracted stagnation the UK as a whole. This report shows following the economic eruptions in 2010–11 it was a sector worth £12.5 (continued overleaf)

3 Renewable Energy: Made In Britain

If the UK were to take a rather local level. This is in sharp contrast to specific skills training for UK staff very modest share of 3% of the increase other energy generation technologies difficult, as there is little long term in the global market value this would i.e. gas, nuclear, where much of the visibility for training organisations to provide an additional £12 billion in economic benefit will be seen overseas plan against. international trade revenues and rather then in the UK. It has to be said that the devolved potentially a further 90,000 jobs in When the UK gets it right, such as governments, in many ways, are more higher value manufacturing and service in offshore wind, long term support advanced in their thinking and have jobs. The UK could do even better. and planning is known and highly seen the opportunities provided by Other areas of the world are taking visible. Investment is then forthcoming renewable energies in economic and the lead in areas where the UK has the and companies work together to environmental terms more clearly than capability to develop its own world develop the area. However when UK national government, especially leading companies. Whether or not strategy and support is volatile (as in terms of jobs at a local level for they are interested in climate change with solar PV Feed-in-Tariffs), or people across all skill levels. Yet central abatement, what drives these countries technologies are hampered by lack of government is key to providing the is the compelling economic benefits, understanding or neglect, this creates enabling framework. This report hopes including jobs. There is no doubt that uncertainty and leads to investors to enrich understanding, technology by the majority of renewable energy moving to other areas where the value technology, of the renewable energy technologies provide long term jobs of their investment is more certain. sector as a major engine of growth and across all skill levels at a regional and It also makes the development of employment. Contents 5 introduction by Will Hutton 6 executive summary 8 nine recommendations 9 the UK renewables imperative Delivering jobs and growth UK policy landscape The fastest growing energy sector in the world Costs: fact over fiction Benefits and costs of 2020 target The skills time bomb Crisis or opportunity? (we decide) Integration with existing economic sectors, with Building Services Engineering as an example 22 By technology Onshore wind Offshore wind Solar photovoltaics Hydro Wave and tidal Anaerobic digestion – biogas Mixed waste-to-energy technologies Heat pumps Biomass CHP Solar thermal Deep geothermal Biomass power Solid biomass fuels Liquid biofuels Wood-fuel and stoves 52 made in Britain map 53 regional employment and turnover 54 Conclusions 55 methodology 56 acknowledgements

4 Renewable Energy: Made In Britain Will Hutton Introduction

This report could hardly be more timely. The government which aspired only two years ago to be the “greenest ever” is wobbling badly. In fairness it remains committed to ambitious targets to lower emissions. But it baulks at willing the means. While energy intensive industries complain at expensive tariffs, parts of the media – purporting to speak in the names of ordinary householders – drum up scare stories about sensible energy policies, from renewables to the Green Deal (or ‘conservatory tax’). On both the Government risks running up the white flag. Yet a number of inviolable truths remain. The age of cheap fossil fuels is over, and peak oil production has political and geological vagaries of either arrived or is close to arriving. fossil fuels. The combination of a rising world Renewables are part of that mix. population and rising living standards The report shows their variety and can only mean that we are collectively the strength of their growth. This is an on a path to burning unsustainable important industry in its own right that amounts of fossil fuels – unless energy deserves to be taken seriously – and sources are changed and the intensity for its obstacles to be recognised and of energy use reduced. as far as possible addressed quickly Declining fossil fuel reserves are and effectively. It is one of the hotspots not the only problem. Exponential for industrial and business innovation; growth of carbon in the atmosphere Britain must be part of it. will trigger a rise both in global In part this requires leadership temperatures and in the volatility of and conviction from Government, our weather. The victims will all too along with a readiness to stand up to often be the weakest in our society and cynical vested interests that find an the weakest countries internationally. all too ready ear from a media that The quest is on to produce power likes to create narratives – whether from other sources – and that must true or false. There is even an extreme include renewables, the subject of this narrative on climate change that states impressive report. it is a dishonest ruse got up by leftists This is too often presented as the and planners across the globe using preoccupation of a fringe who ignore dodgy science against the interests of the interests of the mainstream, but ordinary people. the logic of economics is relentless. One of the strengths of this report Supply is called forth by demand, and is the matter of fact way it dismisses demand for renewables exists at such such narratives and shows effectively growing levels not because of political that renewables are about diversity, correctness, but because business innovation and growth – a response to needs diverse sources of energy supply a market need. It would be perverse if at predictable and stable prices. One of many of the climate change sceptics the drivers of the Industrial Revolution who profess love of markets and was the certainty that come what may competition successfully use state people wanted to get from A to B faster power to suppress the growth of such and more reliably with cheaper clothes demand. That is the prospect – and to on their back – hence the case for counter it we need stronger voices from the railway and the cotton mill. There the mass of people and from business is another revolution in the making: arguing for common sense. This report come what may business and society will contribute to helping that voice need diverse and resilient sources of better express itself – and I very much energy that are independent from the welcome it.

5 Renewable Energy: Made In Britain Executive summary

The renewable energy sector the highest ratio of exports as a share However, the UK risks failing and its supply chains employ of UK sector turnover, at nearly 26% for to fulfil its potential 2010/11. On average, exports represent at least 110,000 people in the approximately 13% by value of the UK Renewable energy accounts for over UK today renewable energy sector’s turnover. 12% of energy across Europe, and over 16% of global energy supply. Yet Innovas data shows renewable energy Jobs in renewable energy are it accounts for just 3% of our energy employed just over 99,000 people in the nationwide and incredibly supply here in the UK. Most EU 2010/2011 financial year. This number countries intend to exceed their 2020 will have increased to over 110,000 diverse – from highly skilled to manual renewable energy targets. The Prime today, not least given the global and Minister’s assertions that ‘we are falling national boom in solar power last year. behind our competitors’ in delivering Innovas’ regional analysis shows a The total UK turnover for all renewables 21st century infrastructure and that we good distribution of employment and their supply chains in 2010/11 was need a ‘horizon shift’ is certainly the opportunities throughout the country. around £12.5 billion. Publicly funded case for renewable energy. It should not Regional initiatives can help to boost incentives for renewables deployment be like this given we benefit from both growth. From organic waste collectors have therefore been highly effective world-class renewable energy resources to electrical engineers; geologists at leveraging private investment. The and have a world-class engineering to biochemists; pipefitters to crane weighted average market value increase tradition on which to build. operators; welders to helicopter pilots; from 2009/10 to 2010/11 was 11%. This Some technologies require urgent salespeople to factory workers. The is far greater than national economic policy attention. Only offshore wind and sector’s need for diverse skills can satisfy growth rates of 1.4% over the same marine technologies are categorised in ambitious graduates and create new period. The total export value for all this report as ‘green’ (meaning broadly opportunities for the unemployed or renewable technologies was just under positive) in terms of satisfaction with those trapped in low-paid jobs. £1.6 billion in 2010/11. the policy framework. Of particular Projections are notoriously difficult, concern are policy failures, or lack of but based on Innovas’ conservative International evidence shows political support for: biomass CHP, assumptions and historical performance, current employment could onshore wind, solar thermal, liquid the sector’s turnover is estimated boom by 2020 biofuels, on-farm anaerobic digestion to reach over £24 billion by 2020. and deep geothermal. Likewise some If a direct proportional relationship important mid-sized investors, including between generation and employment is Germany, a similar sized economy the commercial and public sectors, assumed, REA estimates over 400,000 to the UK, employed over 370,000 risk falling through the emerging policy jobs are needed to deliver the legally people in its renewable energy sector framework which is polarised towards binding EU target of 15% of UK energy and delivered 11% of its total energy targeting either big utility or micro from renewable sources in 2020. The consumption from renewables in 2010. domestic investors. turnover associated with this rate of Renewable energy is the fastest growing There are many examples of the growth would be nearer £50 billion. energy sector in the world attracting UK failing to build on early leads on Offshore/onshore over $250 billion of technology renewable technologies and these and its supply chain account for most investment in 2011. Around 1.5 million failures cannot be afforded today. employment, at 31,400. Wind had people are employed in renewable However, even where a lead has been the greatest turnover, at just over £4 energy across Europe. lost, as the case studies in this report billion in 2010/11 and the highest value The decentralised nature of much prove, there are exciting opportunities of exports at nearly £500 million. In of the renewable energy sector for innovation and new manufacturing. terms of sector turnover, solar power means increasingly close linkages with had by far the largest growth rate from traditional sectors of our economy, 2009–2010 at 56%, which was dwarfed including farming, waste management, The benefits of renewable by growth from 2010–2011 estimated by forestry, energy management and energy must be understood REA at 280%. Towards the latter half of construction. As an example, almost and championed 2011, solar power is estimated to have a third of Building Service Engineering employed around 25,000 people. Taken companies are now involved in installing Renewable energy technologies and together, all bio-energy technologies renewable energy technologies. their broad benefits for the economy employ nearly as many as wind at SummitSkills estimates over 800,000 are still relatively poorly articulated 31,200, with a combined 2010/11 training opportunities are required in Westminster and Whitehall and turnover of £4 billion and exports of this decade in the Building Services this needs to be addressed urgently. £430 million. Mixed waste-to-energy Engineering sector alone to ensure This report has been produced to technologies and hydro saw the lowest the UK has a workforce able to meet improve understanding of the breadth 2009–2010 market growth at 2.6% and the demands of a low-carbon built of renewable heat, power, gas and 2.8% respectively. Solar thermal had environment. transport technologies and their

6 Renewable Energy: Made In Britain

employment and broader economic energy falls short with respect to and broader national investment case benefits. recruiting women and ethnic minorities. that better articulates to the public the Major economic benefits are not myriad of benefits of renewable energy, being routinely quantified. For example, There is a far more inspiring made in Britain. the UK is increasingly dependent on story to tell a supportive imports of fossil fuels. Meeting the Perceptions of renewable renewable energy targets will therefore public – so tell it! energy can lag behind reality. deliver a balance of trade benefit Public support for renewable energy This is the fastest growing and estimated at £60 billion cumulative by remains high despite distortions in most innovative energy sector 2020. This is money that, instead of the media and political discourse in the world. REA and its 950 being spent overseas importing oil and fostered by well-resourced vested members are keen to help gas, could be more wisely invested here, interests and anti-renewables groups. improve understanding of the delivering domestic jobs in renewable The renewable energy targets, ageing renewable energy sector and the energy generation as well as improving infrastructure, diminishing energy many benefits and opportunities our energy security. Such pronounced security, poor economic growth and it offers UK citizens. We hope economic benefits need to be routinely high unemployment are a circle crying this report helps. If you need understood and communicated out to be squared. The Government’s more information get in touch. alongside costs. ‘balanced energy mix’ narrative We are particularly keen to hear Parts of the media, and some doesn’t do justice to the power of from decision-makers and from politicians, persist in equating the renewable energy agenda for educational establishments renewable energy solely with climbing economic and social transformation. including schools, colleges, household energy bills. Both nationally The renewable energy industry wants universities and training centres. and globally, renewable energy to work closely with the Coalition Contact: [email protected] receives far less subsidy than fossil Government to develop a stronger fuels receive in subsidies and tax breaks. Renewables draw relatively modestly on household energy bills compared to fossil fuel driven price inflation. Credible analyses, including DECC’s own 2050 Pathways Calculator, show that a renewable energy pathway is not more expensive than one which follows business-as- usual. From a macro perspective, the benefits already outweigh the costs.

The threat of acute skills shortages needs to be transformed into a national opportunity

Skills shortages are a major challenge for the sector. BIS could transform this threat into a vast national employment opportunity. Given market failures, the current approach to the skills challenge is inadequate and risks failing to optimise employment benefits for UK citizens at a time of worrying outlook for unemployment. At the high-skills end of the renewable energy sector we face a demographic time bomb. More care is needed to provide clear career entry paths into renewable energy for young people, unemployed people and those transferring from the traditional energy industries. As with many engineering and infrastructure sectors, renewable

7 Renewable Energy: Made In Britain Nine recommendations for Government

Go (much) bolder and broader No.10 should ensure cross-departmental join-up 1 Government provides good leadership on 6 offshore wind, where there is a level of join-up Relaunch the Office of Renewable Energy with industrial policy. Leadership works; major Deployment (ORED) as a cross-departmental investors, including manufacturers, are being office chaired by the PM and DPM. It should work attracted to the UK. This approach now needs to hand in glove with the Devolved Administrations expand right across the renewable energy sector, and ensure renewable energy receives specific under a framework for integrating renewable and joined-up policy attention from DECC, BIS, energy, industrial, skills and economic policy like Defra, DCLG, HMT and DfT. The Office of Low the one set out below. Emission Vehicles provides a template.

Treasury should audit and report Government must expedite stability on benefits 2 and confidence for the industry 7 HMT should audit and report on the benefits, The UK has one of the most challenging not just the costs, of renewable energy renewable energy targets in Europe yet the policies. This should include employment, tax industry is still waiting for key parts of the policy revenues, balance of trade benefits, industrial framework to come into focus. DECC’s policy and export opportunities, market diversity and proposals are worryingly complex. Government competitiveness, and energy security. Failure also needs to pull in one direction to secure to quantify benefits results in misconceptions, investor confidence. weak advocacy and detachment from important broader national objectives. BIS needs a Minister with a 3 renewable energy remit ORED should enforce the long view A Minister with responsibility for renewable 8 As the Business Secretary concedes, the short- energy is needed at BIS, along with dedicated term political cycle can work against sectors civil servants, to put renewable energy at the requiring a longer-term strategic focus. The heart of the growth strategy. public interest is not served when short-term political pressure on costs combine with poor understanding of benefits to suppress investment Monitor renewable energy offering better medium or long-term value and employment security. ORED should enforce a long-term 4 perspective on infrastructure investment and If you don’t measure it, you can’t manage it; report annually to the PM. ORED should be employment in renewable energy should be supported in this by a cross-party consensus. monitored by the Office of National Statistics (ONS) to inform Government policy and Empower people, communities and communications. 9 organisations to act Publish a national strategy for The Government, while retaining sensible controls renewable energy skills on expenditure and public value, should remove 5 the illogical and inflexible spending cap on the small scale Feed-in Tariffs (FITs), which drives BIS should publish a skills strategy within the year. complex and risky policy-making. Phase 2 of As with Green Deal, the Sector Skills Councils the Renewable Heat Incentive (RHI) should be need to form a specific alliance on renewable expedited. Companies and organisations whose energy. Clear training pathways will help mainstream activities lie outside the energy unemployed and low-paid people and people industry play a major role as investors in renewable transferring from the traditional energy sectors. energy overseas. Here in the UK, the complexity The very low representation of women and of many policies (FITs, the Renewables Obligation, ethnic minorities in the sector requires action, the Electricity Market Reform proposals and the including by the industry. Carbon Reduction Commitment) can serve to alienate these important investors.

8 Renewable Energy: Made In Britain The UK renewable energy imperative

companies, sector turnover, global partly involved or for which servicing the Delivering jobs and market turnover, and export value renewables supply chain forms over 20% growth for each technology. The current UK of their business. Where there is a large policy framework for each technology cross-over with other business activities The major driver for UK renewable is assessed and awarded a red, amber – for example in the Building Services energy policy is the European Union’s or green status. A regional breakdown Engineering sector – care has been taken 2009 Renewable Energy Directive, is included to allow stakeholders to see to best estimate Full-Time Equivalent which set a target for the EU to achieve the jobs and opportunities in their area. employment in renewable energy. 20% of its energy consumption from Employment in the renewable This means that our figures, for renewables sources by 2020. Because energy industry is not currently defined example, for wind energy are larger it started from a very low base the UK in ONS statistics (see recommendation than recent estimates because target is 15%. DECC’s Renewable Energy 4 opposite). Innovas datasets are based the data catches a wide range of 1 Roadmap, published in July 2011, sets on data for the financial year 2010/11 . companies involved in not just turbine out how this target will be met, with The datasets are built from the bottom- manufacturing, but in enclosures, contributions from electricity, heat and up, from individual company data. cabling, gear box and drive chain transport. The most recent UK data They capture employment not only in manufacture, grid entry switching from 2010 showed that renewables firms exclusively involved in renewable systems, lubricating oils, towers and contributed 54.3TWh, or 3.3%, of energy, but employment in firms either gantries etc. gross final energy consumption. To achieve the 2020 target, renewables Renewable Energy Employment (2010/11) consumption would need to increase by 16% every year over this decade – an n Wind ambitious challenge, but one that is 31,400 n Deep geo 200 achievable if Government puts the right n Hydro 4,950 framework in place. The industry has n Wave and tidal consistently shown that, given the right 800 support, it can gear up rapidly and rise n Heat pumps to the challenge. 7,300 The REA has long recognised the n Biofuels need for a comprehensive analysis 3,500 setting out the economic opportunity n Biomass presented by the industry, and, crucially, power the current and potential employment 3,350 n Solar PV across the whole UK renewable energy n Biomass CHP 15,650 2,190 sector. The REA, working with Innovas, n Biomass boilers provides here the most up to date 4,530 information on the renewable energy n Solar thermal sector in the UK. The report presents 7,550 n Solid biomass fuels n Waste to energy n AD 8,950 the current employment, number of 6,000 2,650

9 Renewable Energy: Made In Britain

Solid Tech- Wave & Heat Biomass Stoves & Solar Solar Mixed Hydro Biofuels Wind AD biomass nology tidal pumps power boilers Thermal power waste fuels Growth from 2.8% 5.5% 5.2% 3.9% 4.6% 5.0% 6.2% 56% 7.1% 3.0% 2.6% 5.4% 09–10

As the datasets are commercially increase from 2,000 to 4,000. Overall The total UK turnover for all focussed they do not include R&D in there were a total of around 6,500 renewables and their supply chains in academia or EU-funded employment. companies working in renewable 2010/2011 was just over £12.5 billion. This means that associated research energy and its supply chains across the The total export value for all renewable in R&D, which is significant in many UK in 2010/11. technologies was just under £1.6 billion areas, is not included in these figures. All sectors exceeded the UK in 2010/11. Projections are notoriously For wave and tidal, where R&D forms national growth rate over the same difficult but based on conservative the cornerstone of the industry, we period (April 2009–April 2010) of 1.4% assumptions2 Innovas estimates sector have included these figures, based on (and 0.5% the year after). The weighted turnover in 2020/21 at over £24 a recent analysis. There was no dataset average growth across the sector billion. Innovas projections include for deep geothermal so these figures during this period is 11%. This was historical growth rates, which are have been provided by the REA’s Deep before the introduction of FITs and the clearly insufficient to meet the 2020 Geothermal Sector Group, whose RHI. With economic growth projected renewable energy targets. If a direct members account for most of the UK at just 0.8% this year, the renewable proportional relationship between industry. See the methodology chapter sector is growing at an average rate generation and employment is for further information and where we at least 10 times faster than national assumed, and if growth continues post invite input to continually improve growth rates. There is the potential to 2020, REA estimates over 400,000 jobs understanding of the sector. perform much better. For example, are needed to deliver 15% of UK energy Overall employment across REA estimates in 2011/12 sector from renewable sources in 2020 (see renewable energy and its supply chains turnover in the UK solar power industry conclusions). stood at just over 99,000 people in increased 280% compared to 2010/11. The job types across the industry are the UK in 2010/11. This number has Alongside dramatic developments tremendously diverse. The supply chain increased to at least 110,000 today in the international market for solar and employment types are set out for given sector growth over the past modules, this growth helped to each technology. year, including the national boom in drive down costs to the point where solar power which saw the number of utility-scale solar is developing under 1 solar firms registered with Renewable the same subsidy as offshore wind, April 2010 to April 2011. 2 Multiple sources, cross-referenced with historical Energy Assurance Limited (REAL) biomass CHP and AD. trends and likely market responses to cost reductions.

2,500 Number of companies involved in renewable energy in 2010/11

2,000

1,500

1,000

500

0 Hydro Wave Heat Biofuels Biomass Biomass Biomass Solid AD Waste to Solar Solar PV Wind Deep and tidal pumps power CHP boilers biomass energy thermal geo fuels

10 Renewable Energy: Made In Britain

The Government’s reticence by individuals, farmers, municipal The UK policy to recognise solar PV as a major governments and private project framework contributor in the 2020 energy mix, developers. REA is concerned that despite exceptional cost reductions, many of these important new investors illustrates its resistance to transformative are being squeezed out of a UK policy new technologies. Renewables can framework which is polarising between “Business is telling me transform ownership. The graph below an old-fashioned utility model and that the UK is missing shows the breakdown of investors domestic investors. in Germany under its FIT scheme. The Renewable Heat Incentive big opportunities in the Investment is dominated almost entirely (RHI) is essential if our mandatory global market place because we have swung 60,000 55,000 too far away from 50,000 industrial policy.” 45,000 Private individuals 40,000 Dr Vince Cable, 35,000 30,000 Farmers BIS Secretary of State Capacity (MW) 25,000 Commercial/industrial 20,000 15,000 Project planners 10,000 Banks/funds Policy stability is essential for any new 5,000 Utilities technology to establish itself. Risk, 0 2004 2005 2006 2007 2008 2009 2010 or perceptions of risk, adds to costs of finance. Two years into the new Graph showing highly diverse ownership of German renewable electricity Government, when it has been vital to generation. €25 billion was invested in renewable power in Germany by these sustain momentum, we are still waiting diverse investors in 2011. (Alexa Capital) for key parts of the policy framework to come into focus. The Government has set out how it intends to reform the electricity market from 2013. The Electricity Market Reform (EMR) proposals involve replacing the Renewables Obligation (RO) as the key financial incentive for the deployment of larger scale renewable . A four fold expansion of renewable electricity generating capacity is needed over the next eight years, and the curtailing of the RO and lack of clarity on what will replace it is profoundly disturbing for the sector. Investment has stalled in biofuel manufacture because of lack of forward clarity over targets. Renewables must account for 10% of our transport energy consumption by 2020, yet we have no trajectory set out for achieving this target. Government has refrained from setting out the targets because of concerns over sustainability, yet the UK industry has been exceptionally environmentally responsible and innovative in biofuel production. The widely-reported difficulties with solar under the Feed-in Tariffs (FITs) have not helped confidence across the renewable energy sector. However, Governments around the world faced immense challenges dealing with the unprecedented price reductions in solar power. Going forwards, it is essential that investor confidence is rebuilt.

11 Renewable Energy: Made In Britain renewables target is to be met, and out renewable power and locking the renewable technologies took place covers some of the cheapest forms UK into fossil fuel infrastructure against in 2011. The 2011 global solar market of renewable energy available. It is the advice of the International Energy is estimated at $92 billion. Illustrating a novel mechanism, and the UK has Agency and others. The UK increasingly the dramatic price falls in crystalline been rightly proud to hold it up as an looks like it is clinging to the technologies solar, total installations rose 69% while example policy for others to follow. It of the past. And doing so without having revenue rose 29%. Wind attracted must be allowed to flourish, and not taken sufficient care to understand the the second largest share of global be impeded by misplaced concern that technologies of the future. investment at $72 billion, with China the budget will be rapidly overspent as accounting for 40% of the market, was the case with the FITs. The fastest-growing followed by the EU. The UK industry needs not only The Intergovernmental Panel on greater stability in DECC’s policy energy sector in the world Climate Change (IPCC) estimates that framework, but far greater cross- solar, biomass, geothermal, hydro, departmental collaboration. In The European Union now employs wind and marine can meet 80% of Germany, industrial, energy and around 1.5 million3 people in renewable world energy supply by 2050. The economic policy are considered in energy with an estimated €130 billion International Energy Agency will publish the round. In the UK, energy policy of sales4 in 2010. According to the latest its first market report on renewable is considered solely through the lens studies renewables could employ nearly energy in July. With over 16% of global of competition and carbon emissions three million people by 2020. The UK energy supplied by renewable energy, reduction, although there is welcome has a lower renewable energy target the UK (on just 3%), should realise that appreciation of the industrial potential than most of its European neighbours. the renewable energy age has arrived. of marine renewables and offshore Most EU countries not only have higher Renewable energy has entered the wind. Too often efforts to engage targets but their National Renewable mainstream. BIS and Treasury are frustrated while Energy Action Plans detail how these mainstream energy sectors (i.e. oil and targets will be exceeded. Renewables 1 Strategy for National Infrastructure, HMT & gas) are courted. now supply 12% of energy supply across Infrastructure UK, March 2010. 2 Infrastructure Delivery Update, HMT Budget 2012. 11GW of and oil plants will close Europe, 47% of energy in Sweden, over 3 EmployRES, Final Report, European Commission, 2009. 4 by 2015 and 7GW of nuclear capacity 30% in Austria and over 11% in Germany5. The State of Renewable Energies in Europe, 11th EurOberv’ER Report, 2011. will reach the end of its operating life by An estimated £211 billion was 5 EUROSTAT and EurObsev’ER. 20181. 6.7GW of new gas CCGT plants invested in renewable energy globally 6 Global Trends in Renewable Energy Investment, UNEP 2 in 2010 – an increase of 32% on 20096. & Bloomberg Finance, 2011. were given planning approval in 2011 . 7 CleanEdge 2012 & Bloomberg New Energy Finance At this rate gas clearly risks crowding $250–$260 billion7 of investment in 2012.

12 Renewable Energy: Made In Britain

analysis shows that between 2004 and insufficient to limit temperature rises to Costs: fact over 2010, low-carbon energy policies were 2°c. fiction responsible for an increase of just 6.5% The success of vested interests in energy bills8. (often anonymous) at running highly The IEA estimates that for every $1 negative campaigns against renewables “What’s particularly of investment not made in the power in parts of the media often says more sector before 2020, $4.3 needs to be about politics and resources than baffling is that while spent post-2020 to compensate for sensible argument. As the Prime Minister government support increased emissions9. said recently12: “in any political argument The German Government puts about the allocation of resources, the given to environmentally Reserves-to-Production Ratios (RPR) voice of the present can be a lot louder beneficial renewable for conventional oil at 42 years. When than the voice of the future.” The US non-conventional oil is included, this fossil fuel industry spends over 20 times power sources is subject is increased to 58 years. more on lobbying than the renewables to seemingly endless has an RPR of 63 years and uranium, industry does13. without reprocessing spent fuel, just media and political 30 years10. The German Government What are the benefits scrutiny, the 500% larger accepts that peak oil will occur within five to 20 years for conventional oil and and costs of meeting our subsidies given to oil, gas it anticipates ‘considerable’ price rises11. 2020 targets? and (to a much lesser Using public money to temporarily extend the era of fossil fuels through Countless credible reports show that extent) coal rarely get expensive investment in Carbon renewable energy is no more expensive much attention.” Capture and Storage, tar sands and than business as usual. These include shale gas is sub-optimal investment at the McKinsey study for the EU 2050 Fatih Birol, best and environmental and economic Roadmap14, the European Commission’s Chief Economist, folly at worst. own recent roadmap to 2050, Ofgem’s The need for urgent action is stark. Project Discovery and Professor David International Energy Even under the IEA’s ‘New Policies MacKay’s ‘2050 Pathways Calculator’ Agency Scenario’ the world is on a trajectory to modelling for DECC. temperature rises above 3.5°c. Global The higher upfront capital costs of energy demand grows a third by 2035. renewable energy are offset by the fact Passenger car numbers double to 1.7 that many renewable technologies have Fossil fuels benefit from six times the billion. Coal use increases 25% on 2009 no fuel costs because they use free and global subsidy of renewable energy. figures. A new ‘golden age’ for gas is readily available ambient energy. The The International Energy Agency (IEA) estimates that global subsidies have risen to over $400 billion in 2010 and will rise to £660 billion by 2020 – 0.7% The British public YouGov survey for Friends of the of global GDP1. The UK fossil fuel Earth and Compass in February subsidy is estimated at £3.63 billion wants more renewable 2012 shows 70% of the public in 20102, mostly in the form of VAT energy would support new legislation breaks. This is considerably more than on energy companies to reduce the £1.4 billion subsidy for renewable Despite the difficult economic dependence on imported gas and energy in the same year3. A further £3 situation and negative media coal and increase energy from billion in tax breaks for the oil and gas campaigns, opinion polls domestic renewable sources, even sectors was announced in this year’s consistently show public support when told ‘opponents say this budget. for renewable energy is as strong would require too much public Nuclear decommissioning and as ever. A YouGov/Sunday Times investment and there are more waste management cost taxpayers £7 poll in November 2011 revealed important things to spend money billion in 2010. A recent special report overwhelming public support for on at the moment’. Research by by The Economist entitled ‘the Dream renewables. 76% of respondents Cardiff University and Ipsos MORI that Failed’4 stated the obvious: ‘nuclear believe the Government should be in 2011 shows climate change has been getting more expensive ‘looking to use more’ solar power, is ‘an underlying and long-term whereas renewables are getting and 56% felt the same way for wind concern for the public’. While 7 out cheaper.’ – while 60% believe Government is of 10 people are concerned about Renewable energy added £20 to right to subsidise wind, compared climate change, 8 out of 10 are household energy bills in 20115. During to 26% against. A survey by The concerned the UK is growing too 2011 average energy bills rose £1616. Guardian in January 2012 shows dependent on imported energy. Analysis by Ofgem7 and the Committee 60% of the public would actively The public backs ambitious on Climate Change shows these bill support the development of wind investment in renewable energy. increases were overwhelmingly due energy in their locality, while only The question is – do Westminster to fossil fuel price rises – not least the 27% would actively oppose. A politicians? 40% rise in gas prices last winter. CCC

13 Renewable Energy: Made In Britain

projections. However, REA is keen to Don’t ignore big target will result in avoided exports see the Coalition Government routinely of £11 billion in 2020 and £60 billion assess benefits, not just costs. benefits: the UK cumulative to 2020. The UK can One important example is balance balance of trade either choose to spend these vast of trade benefits. See box. sums of money on increasingly The German Government routinely REA has calculated the balance of unpredictable overseas imports, assesses both the benefits and the trade benefits to the UK as a result or it can create domestic added costs of its renewable energy policies. of meeting the renewable energy value by investing in UK skills and From a macro perspective it asserts that target. This calculation builds on enterprise. Renewable energy ‘the benefits of renewable energies are research previously carried out for made in Britain promises to greatly already greater than their costs today’. the REA by Delta17. improve our balance of trade deficit, Money previously spent overseas on We estimate, based on DECC’s while boosting local employment, imports now stays in the region. An current ‘high’ fossil fuel scenario that economic growth and energy estimated additional €9 billion accrued meeting the UK renewable energy security. to local authorities in Germany in 2010 as a result of employment, profits, £60 billion taxes and rental revenues generated by Cumulative spend on fossil fuel imports to 2020 renewable energy. The further benefits of renewable 12 energy investment are too wide to do justice to in this report. These include;

10 tax and export revenues; energy security and geo-political relationships (including defence spending); a lower 8 inflation economy18; increased market competitiveness and innovation;

6 potential network savings from a greater balance of distributed power; increased consumer choice and empowerment, Annual fossil fuel value (£ billion) Annual fossil 4 as well as climate change mitigation benefits. The UK Government has barely begun to understand, yet alone quantify, 2 many of these benefits. That needs to change. 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

1 World Energy Outlook 2011, IEA 2012. 2 The Guardian, using OECD data, www.guardian.co.uk/environment/2012/feb/27/wind- transition is from a fuel-based to a more power-subsidy-fossil-fuels. infrastructure-based energy system. The 3 Guardian figure checked by REA. PQ by David Mowat UK must take great care to embrace this 19/01/2 to Gregory Barker DECC shows RO £1.3 billion subsidy 2010/11 and FIT £14.4 million subsidy. RTFO characteristic of renewable energy, or subsidy £421 million supplied to REA by DfT, and with it risks clinging to the past and failing to only 22% supporting UK biofuels in 2010/11 the figure is accurate. comprehend the future. 4 The Economist, March 10th edition, 2012. When the UK’s Renewable Energy 5 Ofgem data supplied to REA. 6 Strategy was published in 2009, the Calculated from Rising Energy Bills Briefing, Save the Children, December 2011. Government estimated that meeting 7 www.ofgem.gov.uk/Media/FactSheets/Documents1/ our 2020 targets would cost, to 2030, Why%20are%20energy%20prices%20rising_ factsheet_108.pdf. a cumulative £60 billion more than 8 Household Energy Bills, The Committee on Climate the cost of conventional energy. This Change, 2011. 9 World Energy Outlook 2011, IEA 2012. estimate was based on DECC’s “Central 10 Renewable Energy: Perspectives for a Sustainable scenario” fossil fuel price projections Energy Future, German Environment Ministry, 2011. 11 for 202015. Given the dramatic rises in Renewable Energy: Perspectives for a Sustainable Energy Future, German Environment Ministry, 2011. conventional energy prices in the last done in recent years we will soon get to 12 Speech to Institution of Civil Engineers, 19th March, two years, these 2020 estimates now a position where renewables represent 2012. 13 No similar analysis is available for the UK that we are seem obsolete. an economic saving compared with aware of. www.energyboom.com/policy/clean-energy- It appears that we are heading for fossil fuels. lobby-dwarfed-billion-dollar-fossil-fuel-expenditures- DECC’s ‘High’ fossil prices scenario REA would welcome clearer washington. 14 www.roadmap2050.eu. in 2020 and, by DECC’s own assessment of renewable energy costs 15 Of $80/bbl for Brent crude oil, 67p/therm for natural calculations16, this reduces the additional from Government – these can be hard gas and $80/t for coal 2020 estimates are in 2008 prices. 16 See Table 4, page 19 of the Impact Assessment of UK cost of renewables by a factor of four to decipher from complex Impact Renewable Energy Strategy (URN 09D/683). from £60 billion to £16 billion, i.e. Assessments, which often overlay new 17 This calculation is available on request from REA. 18 around £12 per person per year. If fossil policies over existing policies making Energy prices are one of the biggest drivers of inflation – many renewable sources of energy are prices continue to rise as they have it hard to determine overall cost inflation-free.

14 Renewable Energy: Made In Britain The skills time bomb

“Many of the new (low carbon) industries are complementary to Britain’s industrial heritage, and they therefore offer those who have lost out through deindustrialisation the chance to return to high quality highly paid jobs.” Low Carbon Cluster Sector Skills Assessment Report

There has been no dedicated seriously affected by skills shortages in 1. There is increasing competition assessment of employment and skill the energy sectors and in engineering for Science Technology Engineering needs across the whole UK renewable more broadly. The audit categorises and Maths (STEM) skills with other energy industry to date. However, the shortfall in professional technical technology sectors. Equivalent STEM relevant reports leave no doubt that, roles in the gas, electricity and process skills at Levels 4 and 5 are needed without determined intervention, manufacturing sectors as highest across a wide range of engineering skills shortages will be acute. Analysis priority, requiring urgent action. disciplines. Technicians at Levels 2–4 are suggests over two million new These are some of the most relevant required across the energy generation engineers are needed across the categories for renewables. So too are sector. The lack of STEM qualified economy in the next five to 10 years, skilled trades in the built environment individuals is identified as both a critical for example1. Shortages are already felt sectors, which are also categorised as short and long-term issue by the Low in some areas of renewable energy top priority. Science and engineering Carbon Cluster study3. generation. This major challenge to professionals with specific expertise the delivery of the renewable energy in low carbon energy generation are 2. Large numbers of highly skilled agenda also presents huge new categorised as high priority where it people are retiring at a time when employment opportunities. From is important to tackle skills shortages. significant capital investment plans are organic waste collection to biogas The gas and electricity sectors are being implemented – this presents a vehicle design, from assembling solar also identified as sectors with not only ‘double whammy’ of high replacement panels in a factory production line to the greatest skills deficiencies, but the demand at the same time as substantial pioneering laboratory research applying greatest significance for the vitality of expansion demand. biotechnology or nanotechnology the wider economy. – the jobs on offer are exceptionally Looking forwards the renewable 3. Restrictions on immigration may diverse. The challenge for Government energy sector faces considerable impact on parts of the renewables sector. is to offer leadership and to work with challenges recruiting these urgently Flexibility is needed to help address these industry and relevant agencies to ensure needed skills, and on a number of skill shortages, which are often needed at this tremendous potential is realised. fronts as outlined below. (Note that the short notice. Restrictions on immigration The UK Commission for Qualification and Curriculum Framework makes it more difficult for employers to Employment and Skills (UKCES) carried categorise skills from Levels 1–8, where cope with peaks and troughs in domestic out the first national strategic skills e.g. 1 and 2 are basic apprenticeships/ skill availability. audit in 20102. The audit identified the NVQs, Level 3 is A-Levels, an ‘low carbon’ agenda as a key driver Undergraduate Degree is Level 6: a 4. To further add to recruitment of change but one that stands to be Postgraduate Degree is Level 7, etc.) pressures, the number of 16–21 year

15 Renewable Energy: Made In Britain

olds entering the labour market is forecast to decrease through to 2020, according to ONS population statistics.

5. Progress in improving home-grown talent is patchy. While the number of students taking science GCSEs has tripled over the past decade, there has been a recent drop in relevant apprenticeships. Vocational skills qualifications are dominated by lower level qualifications. The number of engineering degree graduates has increased over the past eight years, however the number of graduates with electrical engineering degrees is on a slightly downward trajectory4. Nearly a third of graduates are overseas students. There has been an impressive Spotlight on skills The skills required by the sector increase in the number of relevant over the coming decade are already for wind and marine post-graduate degrees taken, however proving difficult to recruit from the proportion of UK graduates is renewables within the UK labour market. EU falling. Skills produced evidence to the Research conducted by Energy Migration Advisory Committee on BIS’s new Skills for Sustainable Growth & Utility Skills and RenewableUK5 engineering-related skills shortages Strategy prioritises a ‘bottom up’ suggests direct employment could in the wider UK power sector. The approach to addressing the skills reach as much as 72,000 by 2021 National Employers Skill Survey challenge in which ‘employers must in a high-growth scenario (based on reports that skills shortage vacancies take greater responsibility for ensuring 51.8 GW of generating capacity) with are most commonly found in skills needs are met’. The strategy an additional 42,000 indirect jobs associate professional and skilled has apprenticeships at its heart and created. The largest growth areas trades occupations – precisely those it commits funding for the training being operations and maintenance most in demand in wind and marine of young people and those who of onshore wind capacity and energy. Therefore, the development are unemployed. Beyond this the the design and manufacture of and promotion of appropriate entry Government is looking to partner offshore capacity (jobs growth in routes and progression pathways at with clusters of businesses to co-fund the operation and maintenance of Levels 3 and above are crucial to the training as part of an employer-led offshore capacity also increases current and future development of approach. rapidly from around 2016). this sub-sector of renewables. As BIS’s own Skills for a Green Economy report makes clear, there Summary of Wind and Marine Energy Employment Projections across three is a serious risk of market failure in Scenarios for 2021, contrasted against 2010 Baseline. this sector. Stronger and broader

140,000 Government intervention is needed to Indirect ensure skills are in place when they are Direct needed. The continued emphasis on 120,000 apprenticeships (Levels 2 and 3) and graduates (Level 6) means that there is a gap in the progression pathway. The 100,000 renewable energy industry has a huge 43272 need for skilled technicians at Levels 80,000 4 and 5. The Technical Council’s 18 32732 month review has recently reported that 450,000 skilled technicians are needed 60,000 across the economy by 2020. Its Employment (FTEs) recommendations must be heeded. 40,000 The Government’s approach 15506 72579 presents specific difficulties for 55551 the renewable energy sector. The 20,000 10555 sector is thinly stretched and scarce 28683 resources are being consumed by a 10579 highly complex and uncertain policy 0 2010 – 5.5GW Low – 25.7GW Med – 41.5GW High – 51.8GW framework. Before we can engage with future skills needs, REA has prioritised

16 Renewable Energy: Made In Britain the production of this report to to finance, than engaging strategically 1 The UK engineering sector is vast, generating a quarter improve basic understanding of existing with employer groups on future of all business turnover in 2010 and employing 5.6 million people. The Skills Councils estimate that over 2 employment across the industry. Many skills needs. For small and innovative million new engineers are required over the next 5–10 of our members are likewise coping companies staff turnover can be high years to meet demand, not least as large numbers are with a policy framework in which and there can be a reluctance to invest retiring. Engineering UK 2012: The State of Engineering, scarce resources in personnel that may Engineering UK, 2012. determination to minimise subsidy, with 2 Skills for Jobs: Today and Tomorrow: The National potentially self-defeating haste, appears be poached by competitors. Where Strategic Skills Audit for England 2010, UK Commission to be the only certainty. This leaves no growth is strong, and it needs to be for Employment and Skills, 2010. 3 Low Carbon Cluster, Sector Skills Assessment Report, 2009. ‘fat’ to invest in skills. in renewable energy, staff are needed 4 Pers. Comm. EU Skills, 26/03/12. Out in the real world our SME urgently – companies cannot afford for 5 Working for a Green Britain: volume 2, Energy & Utility Skills and RenewableUK, 2011. Please note this uses members are more likely to be dealing new recruits to undertake months of a different methodology for assessing employment with pressing problems, such as access training. across the supply chain to Innovas.

Made in Wales: a brilliant career

Sara Morgan BSc (Hons) MRes After graduating I worked as a Since I joined, TEL and its AIEMA, Development Manager at research technician at the University of parent company Eco2, have Tidal Energy Limited Wales, Swansea, and I was seconded to more than doubled staff numbers a tidal stream developer, before joining to keep up with their growing Whilst studying for my bachelor’s Cardiff-based Tidal Energy Limited (TEL) renewable energy development degree in Geography at the as Development Executive in 2008. I portfolios. There are several female University of Wales I became was promoted to Development Manager managers at Eco2 and TEL, with increasingly interested in the and played a key role managing the degrees ranging from Mechanical interactions of society with the environmental and planning consents Engineering to Environmental environment. Growing up in elements of TEL’s Delta Stream project Sciences. The diversity of talent Swansea, I was in close proximity to in Ramsey Sound, which has received adds to our effectiveness. The the South Wales Valleys where coal funding from the European Regional expansion of the renewables mining and the energy intensive Development Fund through the Welsh industry has the potential to metal industries are etched into its Government. I am currently identifying generate long-term, skilled history. The emerging renewables and developing sites for the next phase employment for the UK and it’s sector, with its potential to meet of TEL’s development; a pre-commercial fantastic to be part of a company society’s demands whilst using clean array project up to 10MW, which the that is at the forefront of renewables resources, captured my interest. company plans to install by 2017. innovation in Wales.

17 Renewable Energy: Made In Britain

the footprint of many Sector Skills Championing is also needed of less Crisis or Councils. BIS needs to bring them obviously attractive sectors such as opportunity? together specifically to address this waste-to-energy or biomass. As a sector’s needs. recent study shows2, a traditionally (we decide) Is it surprising that traditional poor image of the waste industry has energy-related courses across hampered recruitment, yet the sector is Europe have had difficulty attracting increasingly high value. potential students6? Young people While Government initiatives such “Our competitors are concerned about climate change. as the Low Carbon Roadmap seek around the world have Women account for only 8.7% of to inspire, the Government is guilty professional engineers in the UK – the of sending mixed messages and already recognised the lowest proportion in Europe – yet little sometimes encouraging a negative value of technical skills is being done to attract them. The perception of renewable energy. Low Carbon Cluster Skills Assessment Recent examples include the 100 and are taking action identified under-representation MPs publicly damning wind power to get at the forefront of women and black and ethnic and the Chancellor’s identification minorities as an important part of the of gas as ‘cheap’ in the 2012 Budget of technology and recruitment problem. That is a situation while renewables were (incorrectly) innovation.” the UK and the renewable energy equated with threatening increases industry cannot afford to tolerate. to household energy bills. This leads Steve Holliday, We might speculate on the reasons, to confusion, rather than confidence, CEO, National Grid but BIS needs to research why this about the Government’s commitment. situation exists and take steps with the It undermines any sense of ‘great industry to address it. purpose’. Vision and leadership is key. Policy stability and confidence Higher prioritisation is needed in skills In the REA’s view the absence remains the bottom line. It is no for the renewable energy sector, of a sufficiently well-articulated accident that the areas where the skills and more resources are needed to Government narrative on renewable agenda is best articulated – offshore ensure the UK does indeed maximise energy is creating inter-related wind and marine – are the areas opportunities for its own citizens – problems. Better communication of where Government is providing strong an objective of the Skills for Growth a compelling national vision for the leadership and adequate financial strategy. The Green Deal Skills Alliance renewable energy sector, and the very support. provides a model that needs urgently diverse employment opportunities it Creativity is needed to harness to be replicated for renewable energy. presents, is likely to inspire and inform the renewable energy opportunity to Renewable energy cuts across new generations of young people. answer broader political concerns.

18 Renewable Energy: Made In Britain

The Institute of Public Policy Research Given the renewable energy a specific remit in renewable energy. If (IPPR) has identified the opportunity targets, ageing infrastructure, pressing the UK is to transform these profound to help low-skilled workers trapped in energy security concerns, the need to challenges into a national opportunity low-paid jobs. Given one million young rebalance the UK economy and high this needs to be addressed. The people are now unemployed, they too levels of unemployment, it is surprising alternative is surely crisis on several should be prioritised. With over 70% that this glaringly obvious circle is fronts. REA looks forward to working of the 2020 workforce having already not being vigorously squared. That is with the Government to set out a much completed tertiary education, the re- certainly happening overseas. The UK more positive and compelling vision. skilling of workers from the traditional Commission for Employment and Skills 1 energy sector should also be a priority. (UKCES) has been given an enhanced Trends and Drivers for Change in the European Energy Sector, European Monitoring Centre for Change, 2008. There is a need for clear pathways remit for ‘inspirational leadership’ but 2 The UK Waste Management and Recycling Industry, for retraining here, not least to help there is now no Government Minister 2010 Labour Market Investigation, Energy & Utility Skills, 2011. overcome resistance to change from with a ‘Green Skills’ remit and precious 3 The Future’s Green: Job’s the UK’s Low Carbon the incumbent industries3. few BIS officials, we understand, with Transition, Lawton K & Bird J, IPPR, 2009.

Tackling aims to train people, including local The Centre features fully- long-term unemployed people, to give functioning heating installations and unemployment and them the skills required for a career in energy efficient and microgeneration training nearly 2,000 green energy. The Heads of the Valleys, technologies to provide the best people per annum in where the centre is located, has the possible hands-on practice. Among lowest employment rate in Wales; 64% the rapidly growing green technologies green energy compared with 71% nationally. on show at the Centre are smart gas Developed in partnership with and electricity meters, solar thermal Case study: British Gas the Welsh Government, JobMatch, panels, solar photovoltaic panels and Jobcentre Plus, SummitSkills and ground-source heat pumps. In 2011 In May 2011, the British Gas Green Blaenau Gwent County Borough nearly 2,000 people were trained at the Skills Training Centre in Tredegar, Council, the state-of-the-art centre centre. This included 963 British Gas South Wales, was officially opened employs 38 people and offers training staff and 143 unemployed people. by Carwyn Jones AM, First Minister and qualifications for installers of new 433 school children also visited of the Welsh Government. The green technologies, as well as up-skilling throughout the year to learn about centre is a first for the UK and opportunities for British Gas engineers. careers in green skills.

19 Renewable Energy: Made In Britain

role in the decarbonisation of the built Table 1: Predicted training requirements Growing environment. If the huge potential for by technology 2010–2020 integration with onsite carbon emissions reduction is be to be realised, including through Part L existing economic of the Buildings Regulations, the Green Technology Total number Deal, Feed-in Tariffs and Renewable of learning sectors Heat Incentive, significant numbers of opportunities required Renewable energy builds on a proud new and existing employees need to be engineering base in the UK so it offers trained in the installation and operation Solar water (SW) 74,013 to engage with traditional engineering of these technologies. and manufacturing heartlands. It also SummitSkills’ Indicative Training 3 reaches across a wide range of well- Needs Analysis Report (Stage 2) covers Photovoltaic (PV) 97,154 established sectors in our economy training requirements over this decade. including farming, forestry, waste Table 1 shows the potential training Anaerobic 41,602 management, construction and energy needs for the sector for the UK. digestion management. It is beyond the scope SummitSkills therefore anticipates that by 2020, over 800,000 ‘learning of this report to set out the skills needs GSHP 87,764 for each of these sectors but below the opportunities’ will be needed to meet projected demand for these growing skills demands placed on the ASHP 87,764 Building Service Engineering sector is technologies. This does not mean that presented in detail. 813,514 individual people will be trained because many companies intend to CHP 75,104 Skill needs in the Building Service specialise in three or four technologies Engineering sector – meaning that the same individual may Bio-fuel (BF) 49,189 therefore benefit from three or four Since 2006, SummitSkills has been learning opportunities. SummitSkills Biomass (BM) 49,189 collecting data on companies in the therefore takes care to differentiate Building Service Engineering (BSE) between ‘learning opportunities’ and Micro-hydro 41,600 sector that are involved in installing individual learners. renewable energy technologies. To support the delivery of training Micro wind 41,600 Figure 1 shows the percentage of needs, SummitSkills in association BSE companies installing specific with the Skills Funding Agency and Rainwater 74,407 environmental technologies from 2008- employers in the BSE sector, created harvesting 20111. (Data for anaerobic digestion the National Skills Academy for and mechanical heat recovery is only Environmental Technologies (NSAET). available for 2010/11.2) SummitSkills has identified a serious gap Fuel cell 20,115 SummitSkills’ analysis shows a between potential demand for these general increase with almost a third of skills and their likely availability, given Mechanical heat 74,0134 the BSE industry now getting to grips the current training curriculum. Table 2 recovery with renewable energy technologies. shows the potential gap in the English This is an extremely promising start regions and devolved nations between Total 813,514 for the construction sector and its 2010 and 2020.

35% 30% 25% 20% 15% n 2008/09 10% n 2009/10 5% 0% n 2010/11 Biofuel Biomass Solar water Micro wind Micro Micro hydro Micro Photovoltaic Mechanical heat Combined heating Anaerobic digestion Anaerobic Ground source heat source Ground Fuel cell technology cell Fuel Rainwater harvesting Rainwater Air source heat pumps heat Air source

Figure 1: Percentage of BSE companies involved in the installation of environmental technologies between 2008 and 2011. Base = 6,700.

20 Renewable Energy: Made In Britain

Table 2: Gap analyses between potential demand and current supply of environmental technology qualifications for the BSE sector by English regions. Figures in red show where there is a shortfall between the number of current learning opportunities and potential demand.

East East of London North North South South West Yorks and Northern Wales Scotland Midlands England East West East West Midlands Humber Ireland

2010 2,700 777 1,856 5,935 318 3,504 4,183 588 3,277 356 284 4,683

2011 3,620 8,634 7,520 1,664 9,121 8,224 3,078 8,818 5,250 3,064 3,497 4,438

2012 9,757 17,913 16,076 2,397 18,180 19,510 9,833 16,831 13,292 5,711 7,264 13,283

2013 9,887 18,287 15,676 2,390 18,284 19,673 9,710 17,037 13,239 5,784 7,461 13,468

2014 7,211 14,336 11,370 792 14,273 13,188 6,298 13,567 9,653 4,633 5,899 9,604

2015 3,987 9,395 7,010 1,439 9,430 7,627 2,802 9,217 5,416 3,232 3,874 4,882

2016 1,574 5,607 3,578 3,067 5,889 3,504 254 6,029 2,230 2,165 2,344 1,386

2017 989 4,709 2,793 3,478 4,992 2,476 400 5,238 1,435 1,906 1,973 510

2018 565 4,134 2,326 3,780 4,344 1,765 870 4,695 881 1,714 1,731 99

2019 481 3,968 2,153 3,832 4,231 1,618 945 4,576 772 1,713 1,665 220

2020 310 3,698 1,938 3,975 3,920 1,278 1,175 4,315 505 1,635 1,550 513

Total 35,681 89,904 68,584 25,591 92,346 75,359 24,402 90,911 49,396 31,913 36,974 42,056

If SummitSkill’s demand projections Before the development of the all the English regions and the devolved nations. The data is also cut by the four main industries associated are correct then demand for skills will NSAET, the total gap between existing with the BSE sector, namely plumbing, electrotechnical quickly outstrip supply. This could provision and potential need for learning (electricians), air conditioning and refrigeration lead to serious consumer issues with opportunities stood at over half a engineers, and heating and ventilation engineers, although in figure 1 all this data is combined. inappropriately or insufficiently qualified million. Around 56,000 courses are 2 A full copy of this report will be available to purchase tradesmen or ‘rogue traders’ seeking to therefore needed by 2020 given a staff through the National Skills Academy for Environmental Technologies in the near future. ‘cash in’ on potentially lucrative business to student ratio of 1:10. 3 This report is available free to download at www. opportunities. The NSAET is responding summitskills.org.uk within the research section. 4 to this challenge by building a network 1 This data is derived from telephone interviews Mechanical Heat Recovery has been added to data with over 6,000 BSE companies of every size, from collection later, and is assumed to required a similar of approved providers across England, micro businesses to large contractors with over 250 engagement to that of SW so identical data has been to seek to meet this demand. employees. The companies were statistically cut by added here for completeness.

they can be filled through on-the-job roles where more dedicated up- Jobs across the training. Examples include Demolition skilling is required. This is also the renewable energy expert; Civil works personnel; Foreman; case for many Building Service Surveyor; Structural engineer; Civil Engineering roles. Roles dealing industry engineer; Quantity surveyor; Labourer; specifically with renewables in the Electrician; Plumber; layer; Roofer; financial and insurance industries The renewable energy sector Carpenter; Heavy equipment operator; are also emerging along with needs to expand rapidly. There Sheet metalworker; Security. The strategic positions in the public are many skills that are specific general management and administration and private sectors. There is also to the renewables sector and necessary for the ongoing running of significant ongoing research and require specialist training, some of the businesses can be added to this. development (R&D) activity being which are detailed in the following The types of jobs to be found here undertaken, not only within the technology sections. include Plant and Operations Manager; supply chain, but also in academic However, for most technologies Office administrator; Health and safety institutions throughout the there are many common roles manager; Environment officer; Shift country. across the supply-chain, both in manager; General labourer; Supervisor; The creation of these support the installation or construction Accountant; Purchaser; Customer care; jobs should be viewed as of equal of the technology, as well as in Communications; Sales; Marketing and importance to the more specialist ongoing support functions. These Logistics personnel. roles as they are essential in jobs can be general in nature and Architect, Architectural technician ensuring the continued growth of either do not need up-skilling or and Planner are common professional the sector.

21 Renewable Energy: Made In Britain

Onshore wind (power) “Whatever the anti- Background, current wind brigade may status and outlook say, public support for For centuries windmills harnessed onshore wind remains the UK’s abundant wind resource for irrigation, pumping and grain milling. consistently high.” Using wind power to generate electricity Jonathon Porritt was first patented in 1891 by Scottish Professor James Blythe. Exactly 100 years later, in 1991, the first modern onshore wind farm in the UK was developed by pioneering farmer Peter Edwards of Deli Farm in Cornwall. The UK was active in supporting R&D in wind energy in the 1980s but the late introduction of a policy to encourage its bioenergy it is the second largest permission but they do not offer the deployment resulted in the UK losing the contributor to UK renewable electricity same efficiency. opportunity to lead on the manufacture supply. Each year onshore wind Internationally the cost of wind of wind turbines to Germany, Denmark generates power equivalent to the needs energy has fallen, however planning and Spain. However, the wind industry of over two and a half million homes. barriers in the UK have increased both has recently seen improved prospects With around eight thousand the time and cost of development and for domestic turbine manufacturing, components in a , our discouraged the use of larger turbines, driven by strong political commitment to analysis shows the wind industry which are common across Europe, offshore wind. , GE, Vestas and is supporting a wider range of UK and which would bring the costs of Gamesa have been attracted to the UK, employment across the supply chain generation down even further. largely because of the huge ambition than is generally appreciated, from The maturity of this established under the Round Three offshore the manufacture of lubricating oils to sector means there is less potential for licences. Mabey Bridge, an established gearboxes and cabling. Operations and job growth compared to offshore wind specialist supplier of modular steel maintenance are becoming increasingly and wave and tidal energy. However bridging and heavy plated steelwork, important in employment as wind onshore wind forms an important base based in Wales, has diversified into the capacity expands. from which these newer sectors can be construction of wind turbine towers. Smaller turbines and turbine developed, and therefore it is essential Onshore wind is one of the cheapest clusters up to 5MW in size have been that investor confidence in onshore low carbon energy technologies. significantly boosted by the Feed-In wind is maintained. This requires local Secure, proven and quick-to-build, it Tariff. The UK excels in the manufacture support, grid availability and much is essential in meeting our renewable of small wind turbines so this offers more consistently positive advocacy by energy targets and carbon reduction significant opportunities in certain Government. objectives cost-effectively. Onshore markets, such as for rural communities, 1 wind now contributes over 27% of businesses and schools. Smaller 1 DUKES 2011, onshore wind generated 7,137GWh in renewable power generation. After turbines are more likely to get planning 2010.

Current UK policy organised anti-wind campaigners and by 10% from April 20133. A reduction mixed messages from UK politicians of 40% in support is proposed for framework risk this affordable technology failing the smallest wind turbines under to reach its potential. The situation the Feed-In Tariff. In the current Onshore wind has fared well is better for schemes over 50MW climate, these proposals, combined under the Renewables Obligation which are decided upon by Ministers with complex and uncertain reforms (RO) although there has been a rather than local authorities. All four to both the planning system and slow-down in planning approval qualifying schemes were approved the electricity market, are cause for rates, with just 26% of proposed in 2011. Approval rates are also more concern. capacity approved in England in favourable in Scotland and Wales, 2010/112. Investor confidence is although there are difficulties with 2 State of the Industry Report, RenewableUK, wavering in the midst of policy the Welsh Government’s position on October 2011. uncertainty. Public opinion polls upgrading the grid infrastructure. 3 DECC, October 2011, Consultation on proposals consistently show strong public for the levels of banded support under the Government proposes to reduce Renewables Obligation for the period 2013–2017

RED support for wind power, but support for onshore wind under the RO and the Renewables Obligation Order 2012. Status: Status:

22 Renewable Energy: Made In Britain British firm is one of the world’s leading Jobs in onshore wind independent developers Design and development: Design engineer; Lawyer; Project manager; Case study: Renewable Energy Financial planner; Economists; Electrical systems designer; Physics Systems engineer; Environmental engineer; Environmental consultant; RES, a British family-owned firm, is one Meteorologist; Programmers and of the world’s leading independent modellers; Aeronautical engineer; Communications expert. renewable energy developers with Manufacture: Electrical engineer; operations around the globe. From the Welder; Metal worker; Machinist; Group’s HQ in Hertfordshire, RES has committed to ensuring its wind farms Skilled assembler; Test technician; been at the forefront of wind energy deliver tangible benefits to the British Quality controller; Chemical engineer; Materials engineer; for three decades, building its first wind economy. For example, two thirds Mechanical engineer; Semi and non farm in Cornwall in 1992. Since then, of civil engineering work in the past skilled workers. RES has constructed more than 100 two years was contracted locally or Construction and Installation: projects around the world. regionally. Planning and environmental consultants; Project management The RES Group, which is active Despite the recent challenging and construction workers; Electrical in a variety of renewable energy economic climate, RES has grown engineer; Power generation technologies, employs 468 people significantly. Employee numbers have engineer; Project manager; Turbine in the UK, 315 of whom work wholly, more than trebled in the UK since specialist engineer; Tower erector - crane operator; Health and safety or in part, on onshore wind. They 2007 and they will continue to rise as manager. have developed 32 wind farms the company goes from strength to Operations and maintenance: across the UK, providing around strength. The total turnover for 2011 for Electrical engineer; Power 10% of the country’s installed wind RES onshore wind activities was £177 generation engineer; Energy traders. capacity, with a further 680MW under million and this is expected to more construction or consented. RES is than double by 2020.

Wind turbine towers instead of being required to import wind South Wales region to date. turbine towers from other countries. Since signing a preferred supplier manufactured in Wales In May 2011 Charles Hendry MP, the agreement with REpower, one of the UK’s Minister for Energy and Climate Change, biggest suppliers of wind energy, it has Case study: Mabey Bridge officially opened Mabey Bridge’s £38 entered into a number of further supply million state-of-the-art wind turbine tower agreements with other major wind turbine Based in Chepstow, South Wales, manufacturing facility in Chepstow. The manufacturers and Mabey’s towers have Mabey Bridge can be traced back company funded the investment in full now been delivered and installed at a to the construction of Brunel’s Wye and has created 197 skilled jobs in the number of wind farm sites across the UK. railway bridge in 1849. Since then it has become a world-renowned specialist supplier of modular steel bridging, highway bridges, railway bridges and other heavy plated steelwork. It recently moved into the renewable energy market where many of the machines and skills required to build turbine towers have parallels with bridge construction techniques. By adapting to new market opportunities and transferring its construction expertise to the green energy sector, it has given UK energy companies the chance to buy British Key facts (2010/11) Onshore wind employment across supply chain: 15,200 Number of onshore wind UK companies across supply chain: 730 Onshore wind sector turnover: £2 billion Total value global market offshore and onshore wind: £130 billion Export value offshore and onshore wind: £500 million

23 Renewable Energy: Made In Britain

Offshore wind(power)

Background, current “Offshore wind alone status and outlook could support 50,000

The first commercial–scale offshore direct and indirect jobs in wind farm was commissioned in 2003. Scotland by 2020.” The sector has since developed rapidly, with the UK surpassing Denmark Minister Fergus Ewing, to become the largest generator of Scottish Government offshore wind power in the world. The UK has relatively shallow waters and truly exceptional wind resources. This, along with strong government support, has provided ideal conditions for the development of this technology. In February 2012, the largest offshore wind farm in the world at 370MW was built by Dong Energy off the coast of Cumbria. This will be dwarfed by the 1GW London Array, developed by a consortium of Dong Energy, E.ON and Masdar. The first phase of construction should be complete by the end of this year. Currently, the installed capacity for offshore wind is 1.7GW, with around 7.4GW under construction and in planning under Rounds 1 and 2. Combined, this will be sufficient to meet the power needs of all the homes in anticipates only 14GW installed by 2020 capacity. The uncertainty introduced by Scotland and Greater London. is insufficient. Industry wants to see the Electricity Market Reform proposals Up to 25GW of capacity is an annual installation rate of 3 to 4GW also needs to be resolved as quickly as anticipated under Round 3 when the each year by 2016/2017, along with possible. technology will move into deeper ambitious targets through to 2030. This Offshore wind presents a significant waters which are more challenging will secure cost reductions, a mature opportunity for skilled job growth, if the and expensive to develop. Government supply chain (including UK turbine UK can rise to the skills challenge. Major has established an Offshore Wind Cost manufacturing), servicing vessels, grid manufacturers including Siemens and Reduction Taskforce which aims to infrastructure and an improved skills Gamesa have recently been attracted reduce costs to £100/MWh by 2020 base. to the UK and are developing new types and which is due to report this spring. It is vital that momentum is of turbine here. Four new testing and Industry is working with government maintained, and the volume of projects demonstration sites were announced on this objective, but successful cost coming through the pipeline increases. by the Crown Estate last year, adding reduction requires a substantial market There was disappointment when to the existing testing capabilities of the to secure sufficient learning, investment Ministers failed to approve an onshore National Renewable Energy Centre and and innovation. Government’s substation in Little Dunham, essential Vestas’s new R&D facility on the Isle of low offshore wind scenario which for connecting over 500MW of offshore Wight.

Current UK policy proposes reducing the subsidy by is still lacking. Without long-term 5% per annum from 2015. Whether investor confidence, manufacturers framework these cost reductions can be will go to countries with attractive achieved depends partly on ambitious and well-defined support schemes. Government increased support commitment to strong industry growth. A confident, clear and well- for offshore wind following an Offshore wind farms have a very resourced consenting process is emergency review of the RO in long lead time, and therefore it is also essential. Industry wants more 2010 due to significant increases in essential that developers understand co-ordination in the process of costs caused by the supply chain and are comfortable with the Electricity connecting offshore windfarms, as and market factors. Government Market Reform proposals. Much detail this will reduce costs. Status: Status: g reen

24 Renewable Energy: Made In Britain Offshore wind creating market is considered. SMD has already built extra production facilities to help Jobs in offshore wind demand for subsea cope with the predicted demand. trenching SMD is also using its subsea Design and development: knowledge and manufacturing know- Planner; Lawyer; Financial planner; Economist; Electrical systems Case study: SMD how to help build marine energy designer; Physical engineer; Project converter prototypes (such as the manager; Environmental engineer; SMD, based in , is the 1MW Atlantis Turbine) and associated Meteorologist; Programmer and world’s leading supplier of subsea technologies such as connector modeller; Aeronautical engineer; Communications expert. trenching systems. SMD supply all the and cable management systems Manufacture: Design engineer; major offshore installation contractors, (essentially underwater plugs). It is also Electrical engineer; Welder; as well as companies focussed on developing new technologies such as Metal worker; Machinist; Skilled entirely on the offshore wind market subsea drilling rigs to help install the assembler; Semi and non skilled worker; Test technician; Chemical such as MPI and General Cable. technology. engineer; Materials engineer; The growth in demand for the next Mechanical engineer; Quality generation of SMD trenching vehicles assurance. is fuelled in part by the huge growth in Construction and installation: Planning and environmental the offshore wind market. Each offshore consultant; Underwater diver; wind turbine needs to be connected Project management and by cable to export the electricity and construction worker; Marine this cable needs to be protected in Engineer; Electrical engineer; Power generation engineer; Turbine someway, very often by burial with specialist engineer; Tower erector; trenching machines. Crane operator; Health and safety When looking at the total predicted manager; Specialist shipping and installed capacity in the UK alone, port personnel. Operations and maintenance: demand for SMD’s specialist and proven Electrical engineer; Sea and subsea trenching technology is likely air transport personnel; Power to grow and that is before the global generation engineer; Energy trader.

Joint venture Ventures on the 270MW Lincs wind farm, shown here, which is currently partnerships on offshore under construction off the East coast wind could power of England. When completed Lincs will meet the electricity demand of around millions of homes 200,000 homes. Centrica Energy also has a strong Case study: Centrica Energy development pipeline; it is currently awaiting consent decisions on two Centrica Energy is responsible for projects; Race Bank and Docking securing gas and electricity supplies Shoal, off the Lincolnshire and Norfolk for millions of British Gas consumers coasts. Centrica Energy’s development across Britain. To enable this, Centrica opportunities also include the Round Energy is involved in gas exploration 3 Irish Sea Zone which has a potential and production, power generation capacity of 4.2GW. In March 2012, and energy trading. Over the last few Centrica Energy and DONG Energy years Centrica has become a leading announced the creation of a joint player in offshore wind development, venture partnership named Celtic with interests in three operational wind Array Limited. Celtic Array will work to farms which together produce enough develop, construct and operate wind electricity to power around 220,000 farms within the zone, which has the homes. potential to generate clean, secure Centrica Energy is in partnership electricity for around three million with DONG Energy and Siemens Project homes. Key facts (2010/11) Current employment across offshore wind supply chain: 16,200 Number of UK companies across offshore wind supply chain: 790 Current sector turnover: £2.1 billion Total value global market offshore and onshore wind: £130 billion UK export market value offshore and onshore wind: £500 million

25 Renewable Energy: Made In Britain

Solar photovoltaics (power)

Background, current “The largest technical potential status and outlook of all energy sources.”

The UK enjoyed an early lead on Intergovernmental Panel photovoltaic (PV) technology in on Climate Change the 1970s but most UK R&D was abandoned after the oil shocks abated. Even so, in the late 80s the UK was the lead on commercialising solar technology internationally. BP Solar had its headquarters in the UK and was recognised as the leading global research centre. In the 1990s the world’s first building- integrated solar façade was built in the UK, and we boasted the largest commercial building array in the world at Ford Bridgend. The technology was developed for use in space by NASA and in remote off-grid applications in the 70s and 80s. In the 90s it was driven by major public support programmes, first in Japan and then later in Germany. When Germany the world in 50 years’ time. Research installation of solar PV, with around launched its 1000 solar roof project in by the Intergovernmental Panel on 60 further companies involved across the mid 1990s the UK was left behind. Climate Change also spotlights solar the manufacturing supply chain, from Germany’s successful Feed-In Tariff as the biggest potential contributor mounting system manufacture to solar- model has now been emulated by over for tackling climate change. Wind powered transport research. 50 countries around the world putting power is complemented by the annual The domestic PV industry had a PV on a trajectory to reach ‘grid parity’. generation profile of PV, so they are volatile start as the UK Government, PV has delivered a consistent 20%+ increasingly pursued in tandem in along with many others, struggled to price reduction with every doubling of countries like Germany and Japan. respond effectively to dramatic cost capacity. Mainstream analysts1 expect Installation accounts for around 80% reductions. At the utility scale, the cost PV to deliver cheaper power than retail of employment in the sector. The panels of solar power has fallen to that of prices for grid electricity before 2020, in themselves account for around 40% of offshore wind and anaerobic digestion, nearly all applications. the total costs of a domestic system. and the price continues to fall. Despite More PV capacity was installed than Asia is taking an increasing share of the proving itself, the outlook for domestic any other renewable across Europe global manufacturing market, although solar power remains worrying this last year and the UK has the fifth largest modules can be assembled in the UK, year, largely because of its continued potential solar power market in the or cells can be remanufactured into constraint under a Treasury-imposed EU. The International Energy Agency innovative building integrated products spending cap. has more than doubled its forecasts, suitable for domestic and EU markets.

predicting PV could become the major The UK currently has around 4000 1 Ernst and Young, IEA and the German Government, electricity generating technology in companies involved in the supply and for example.

Current UK policy was installed in 2011/2012 making expenditure2 could well be the UK market the sixth largest in the insufficient to safeguard a market framework world. DECC now recognises PV as a of sufficient size to stabilise the technology which will make a significant industry. Solar now faces particularly From a modest 30MW of installed contribution and plans to update its poor treatment under writing-down capacity prior to 2010, solar power Renewables Roadmap later in the year allowances3. boomed with the introduction of to reflect this.

the Feed-In Tariff scheme (FITs) Concerns about current policy 2 Impact Assessment – Comprehensive Review introduced after a successful proposals for FITs persist, due to Phase 2a. 3 From April 2012 Solar PV receives the special rate campaign by REA and Friends of Government imposing a rigid spending of 8% writing down allowance rather than the main the Earth. Over 1GW of solar power cap on the policy. This year’s projected rate of 18%. Status: Status: am b er

26 Renewable Energy: Made In Britain Visionaries in glass partner with Chinese Jobs in solar power manufacturer Manufacturing and design: Design engineer; Systems engineer; Production manager; Case study: Romag Production supervisor; Electrical engineer; Laboratory technician; Romag is a leading glass processor Quality assurance; Assembler line based in in the North personnel; Chemist; Surveyor; Materials scientist; Warehousing/ East of England. The company has logistics personnel. specialised in architectural, security and Installation and maintenance: transport glass since 1943 and it is now Planning and environmental a subsidiary of Gentoo Group. supported throughout the supply chain. consultant (ground mounted schemes); Roofer; Electrician; Romag anticipated future Over the past year Romag invested Instrumentation engineer, Controls opportunities and developed a around £1.5 million in a completely and electrical systems technician; successful range of top quality solar new state-of-the-art PV production line, Installation engineers; Installation products in mono and polycrystalline trebling its production capacity. 20 new supervisor; Scaffolder; Service engineers; Panel cleaners; Security. cells. Its product range includes staff members have been employed building-integrated solar tiles and and Romag is moving towards 24-hour its new stunning ‘glass-glass’ which operations to meet customer demand. and welcomed by Energy Minister embeds solar cells in a glass that can In an industry first, Romag recently Greg Barker. This illustrates the huge also reduce solar heat gain and control signed a partnership agreement potential for commercial partnerships light transmission and shading. with Chinese solar giant LDK to whereby Chinese solar cells can be re- Around 180 highly skilled staff are supply, research, develop and design manufactured in the UK into innovative currently employed in manufacturing photovoltaic products and raw and aesthetic products for the growing its product range and many more are materials. The deal was witnessed domestic market, and for export abroad.

Passion, ambition and within the industry from scratch. All new for technical excellence and employees undergo induction training professionalism. EvoEnergy is looking to professionalism and there are in-house courses. There develop its business for the long term. is an ongoing, internal management It is diversifying to offer solar thermal Case study: EvoEnergy training scheme and more than 40 staff systems and it plans to become a Green are currently on this programme. Deal provider. Turnover next year is In just five years EvoEnergy expanded Quality training has helped the expected to reach £46 million, and from a one-man start-up to a company company to build a reputation £100 million per year within three years. employing more than 200 staff and a turnover of £25.5 million per annum. Young entrepreneur Dr Kevin Hard started the business by investing £30,000 from the sale of his own house. EvoEnergy now has offices in Nottingham, London, Bristol, Halifax and Cornwall. It has installed solar systems on homes from the Orkney Islands to Penzance and carried out some of the country’s largest commercial installations. The workforce is young, enthusiastic and well-qualified. The average age is 32 and more than 60% of staff are graduates. EvoEnergy has invested in its own training academy, developing a career path Key facts (2010/11) Employment across supply chain: 15,650 (25,000 estimated by end 20114) Number of UK companies across supply chain: 2,200 (4000 installers registered with REAL by end 20115) UK sector turnover: £1.8 billion (£5.4 billion REA estimate 2011/12) Global market value: £28 billion UK exports value: £315 million

4 REA analysis based on REAL data. 5 REA analysis based on DECC forecast deployment set out in Comprehensive Review Phase 2a and REA/Innovas research.

27 Renewable Energy: Made In Britain

Hydro (power)

Background, current status and outlook

This mature technology was developed over 150 years ago. It is the world’s largest source of renewable power, “Our rivers and generating around 20% of global streams are a electricity and employing 2.7 million people1. Modern hydro schemes are great untapped over 90% efficient with a very long life source of power.” time. It is estimated that less than a third of the world’s potential capacity Energy Minister has been developed2, yet there is little Greg Barker, potential for expansion of large scale in the UK, where it currently provides DECC 1.3%3 of our electricity demand. New schemes are being developed across scale ‘micro-hydro’ or ‘pico-hydro’ of runners, despite the fact they can last Europe, however, and existing schemes schemes under 100kW capacity a hundred years. Hydro can often be are being upgraded. (mostly in the 10–15kW range) which in a location with sparse grid networks, The UK has further development can be implemented without the risk adding to connection costs. potential in modern run-of river of significant environmental effects on But it is the restrictive environmental hydro, including new high-head sites. small high-head watercourses. These licensing conditions, often requiring Watermills were a common feature can bring benefits to rural landowners extensive civil works, that present the of the Medieval British countryside and communities. greatest barrier to the expansion of with 5,624 recorded in England in A wide range of turbines are river-hydro. The EU Water Framework the Domesday Book. They helped manufactured in the UK. Manufacturers Directive has been interpreted by UK to power the industrial revolution, include Gilkes & Gordon which designs environmental agencies as requiring particularly in its early stages, alongside and supplies larger turbines; Ecowave adaptations or constraints on the level coal. It is estimated that potentially in Somerset which makes ‘crossflow’ of abstraction that, in some instances, 1000 traditional mill sites could be turbines for low to medium head reduce efficiency and greatly add to brought back into use. The Environment schemes; Hydrover Turbines which costs. The outlook for the sector is ‘up Agency has identified over 25,000 makes ‘turgo’ turbines for medium to in the air’4 and in some conflict with the existing structures in rivers, such as high-head schemes; Evans Engineering anticipated 16GW of new small hydro weirs and locks, which provide further and Power Company which makes anticipated across Europe by 2020. hydro power potential; the combined ‘pelton’ turbines, and NHT engineering. Planning permission is contingent on capacity of these sites would be over As well as providing a boost for securing a licence which in turn can 1GW. The Agency recommends the manufacturing, the FITs have enabled take over a year to negotiate and involve development of half this potential in significant growth in installation expensive environmental monitoring 5,000 sites, where a scheme could also companies. and extremely expensive engineered help improve ecological conditions for Each project is unique and hydro solutions, including fish passes. fish. There have been similar studies in therefore does not benefit from Scotland identifying further considerable economies of scale. Hundreds of 1 Advancing Sustainable , International potential for small to medium scale former mill sites could be brought back Hydropower Association, 2011 Activity Report. schemes. into use; however, the eligibility criteria 2 According to the British Hydropower Assocation. 3 DUKES 2011. There is also a largely untapped for refurbished schemes are excessive – 4 The State of Renewable Energies in Europe, 11th potential for hundreds of very small for example, requiring the replacement EurObserv’ER Report.

Current UK policy deployment. Government proposes evidence that aquatic life is likely to to cut support under the RO in half. be harmed. Permitted development framework The FIT currently encourages hydro rights for planning purposes for Large-scale hydro is largely exploited schemes to downsize to 100kW hydro are under consideration and and little further development is schemes and under to maximise this is welcome. There are some anticipated. River-hydro is supported revenue, which is a perverse incentive. anomalies in business rating for under the Feed-In Tariff and the REA would like to see a hydro, which should be addressed. A Renewables Obligation (RO), presumption in favour of consent for fairer and more enabling framework although the support for schemes small and micro river hydro schemes, is needed if the UK is to fulfil its river RED

Status: Status: above 2MW is too low to stimulate with interventions taken if there is hydro potential.

28 Renewable Energy: Made In Britain Hydro and software innovators set for expansion

Case study: Ecowave

Ecowave started designing and manufacturing micro-hydro equipment in 2009 from its workshop in Clapton Mill, Somerset. Ecowave’s small team completes much of the work in house, although they do sub-contract locally, and source materials locally whenever possible. This regular stream of work is greatly appreciated by local companies. In 2010 Ecowave formed a partnership with UK-based control system engineers CIS and developed its own, and the UK’s first, industrial company perceives a nationwide Ecowave sees considerable scope standard micro-hydro control system, shortage of installers and, more for expansion in the industry and is using cutting-edge software. Ecowave importantly, training courses to develop investing in its manufacturing capacity has already exported turbines to the multi-disciplined skill set a hydro in readiness. Ultimately, for this Ireland and anticipates great further installer needs. innovative start-up, it will be factors opportunities in the export market. In 2012 Ecowave is investing outside its control which will govern Ecowave has seen substantial significantly in new production the speed of expansion. Addressing the growth in the number of installers facilities, which will enable it to take many barriers to hydro will allow this starting in this area. However, the on more staff and bigger contracts. young company to thrive.

Reducing barriers off sites are now being revisited for Jobs in hydro development. to hydro with the MPCL employs seven staff, plus Manufacture and design: Design engineer; Hydrogeologist; Marine Archimedes screw agents in Scotland, Ireland and southern biologist; Electrical engineer; England. Due to increasing demand, Machinist; Welder; Metal worker; Case study: Mann Power Consulting another local firm, TWS Fabrication Structural engineer; Marine engineer; Ltd (photo left) Ltd, has rapidly developed expertise in Reservoir engineer; Resource manager. fabricating and installing the sluice gates Installation and maintenance: MPCL introduced the Archimedean screw and walkways for Archimedean screw Planning and environmental as a hydro generator to the UK in 2004 systems. consultant; Project management; and quickly became the leading specialists As these installations spread, so Construction worker; Project Manager; Electrical engineer; Power in the sector. Given the low-head nature too does the web of subcontractors generation engineer; Maintenance of many British rivers, and a history of fish- involved in each design, from marine engineer; Installation technician; protection issues preventing micro-hydro biologists to steel fabricators. MPCL Supervisor; Environmental and developments, the technology’s potential provides support throughout the project planning consultant; Environmental scientist; Ecologist; Service engineer. was immediately obvious. cycle, from feasibility study, design, MPCL’s extensive (and expensive!) and project planning, to construction, environmental impact monitoring installation and commissioning. and fish-passage studies convinced In the last financial year, MPCL the Environment Agency to allow paid over £90,000 in salaries and over Archimedean screw systems to run £250,000 to subcontractors nationwide. with minimal screening, significantly Quite a step up from one man knocking reducing capital costs. Consequently, on doors offering to do feasibility studies literally hundreds of previously written- for free. Key facts (2010/11) Employment across supply chain: 4,970 Number of UK companies across supply chain: 260 UK sector turnover: £544 million Global market value: £13.7 billion UK export value: £57 million

29 Renewable Energy: Made In Britain

Wave and tidal (power)

Background, current “Britannia really could rule status and outlook the waves when it comes to

Seagen, built by Marine Current marine renewable energy.” Turbines, is the world’s first accredited Tim Yeo MP, tidal stream . Pelamis Chair, DECC Select exported the world’s first array of wave energy generators to Portugal. The UK Committee and industry has fought hard to retain its President of REA global lead in this nascent technology. Its resolve has been rewarded by increasingly strong and well-informed political backing. The UK boasts a third of Europe’s wave resource and half of Europe’s tidal resource and the country punches above its weight when it comes to innovation in wave and tidal devices. We also have existing strengths along the supply chain, including a creative engineering base, and established expertise in marine foundations and moorings. The European Marine Energy Centre, based in the Orkneys, and Wavehub in Cornwall, have 11 leases were awarded by the reflecting the work-intensive nature enabled the proving of commercial- Crown Estate in the first round of of R&D and testing for emergent scale prototypes in the field. Major licensing in Orkney and the Pentland technologies. Most devices operating international engineering companies are Firth, with a total potential capacity of in the UK were manufactured in the now investing in the UK sector including 1.6GW. Companies are conducting UK and RenewableUK estimates half Siemens, Rolls-Royce and ABB. site assessments and baseline of EU marine energy projects have 6MW of wave and tidal capacity environmental surveys in preparation been designed and manufactured is installed in the UK, with the great for first deployments. The Crown here2,3. Excluding controversial large majority in Scotland. The Scottish Estate has committed £5.7 million in tidal barrage schemes, seven out of the Government has been particularly ‘enabling actions’ to accelerate and de- world’s eight commercial wave and tidal proactive in encouraging the sector. risk project development. The Scottish devices are installed in the UK4. The Carbon Trust estimates that if the Marine Roadmap anticipates 1–2GW UK industry can successfully build on of wave and tidal power by 2020. 1 Marine Renewables Green Growth Paper, Carbon Deployment is expected to accelerate in Trust, 2011. its existing lead and achieve strong 2 RenewablesUK Membership Consultation 1/3/2011. cost reductions, it could seize almost a the next decade with The Carbon Trust 3 Because the Innovas datasets exclude academic and quarter of the world’s potential market1. forecasting an optimum potential for EU-funded employment and include large controversial tidal barrage schemes e.g. the Sihwa lake tidal power This would be worth an estimated £29 around 27GW of wave and tidal power plant in Korea, we defer to analysis by Cambridge billion per annum to the UK economy by 2050. Econometrics et al for RenewableUK and E&U Skills in the employment figures. in 2050, and it would support 68,000 Relative to its electrical output the 4 The Future of Marine Renewables in the UK, DECC jobs. sector has high levels of employment, Select Committee, 2012.

Current UK policy provide support to the industry, such The Government proposes to as public financing, grid connections, increase financial support under the framework planning and consents. The Strategic RO, from 2 to 5ROCs/MWh for wave Environmental Assessment for England and tidal from April 2013, for projects The Government established a and Wales has been completed and up to a maximum capacity of 30MW. Marine Energy Programme Board last indicates no major issues. A Marine There is some concern that the year to ensure policy coherence for Energy Array Demonstrator fund of Green Investment Bank will not be the sector so that device prototypes £20 million has recently been launched investing in more high-risk innovative can move as smoothly as possible to to enable tests on the performance projects over this Parliament, as it commercialisation. This will address and interactions of an array of several was hoped it could assist the wave areas where the Government can devices. and tidal industry. Status: Status: g reen

30 Renewable Energy: Made In Britain Award winner for wave The first full-scale 315kW Oyster was officially launched at the energy innovation – and European Marine Energy Centre for best employer in Orkney in November 2009. The device has withstood two winters Case study: Aquamarine Power in the harsh Atlantic waters and delivered over 6000 hours of offshore With its HQ in Edinburgh, Aquamarine operation. Power employs over 60 people and it is The next-generation Oyster 800 one of the world’s leading wave energy builds on this with improved power companies. Its innovative Oyster wave generation, reduced cost of power power technology has put wave energy production, a simplified marine on the map. Aquamarine Power has installation process and easier routine successfully raised over £70 million maintenance. Aquamarine Power towards the commercialisation of its has secured seabed leases totalling Oyster technology, through major 240MW off the coast of Scotland as multinational backing. well as major financing towards the Not only has the company won further development of the device. numerous awards for technological This includes a pioneering loan from innovation and leadership but Barclays Corporate to be repaid through Jobs in wave & tidal Aquamarine Power was named as one Oyster 800 revenues. These milestones Planning and development: of the best small companies to work represent significant steps towards the Environmental and planning for in the UK in the Sunday Times Best commercialisation of innovative wave consultant; Marine biologist; Marine Companies list of 2012. energy technology. surveyor; Subsea engineer. Design and manufacture (including Technology R&D): Design engineer; Electrical systems designer; World-first innovators With headquarters in Bristol, MCT Project manager; Environmental currently employs 30 people and it will engineer; Environmental consultant; acquired by Siemens Oceanographer; Programmer and be expanding to circa 50 people later this modeler; Fluid dynamics specialist; year. As part of MCT’s expansion, a test Communications and control Case study: MCT facility and other technical facilities will engineer; Electrical engineer; be constructed in 2012. MCT’s current Power generation engineer; Marine engineer; Electrical engineer; Welder; Marine Current Turbines Ltd (MCT) business plans are to install an 8MW tidal is the world’s leading tidal energy Metal worker; Machinist; Skilled array in Kyle Rhea Scotland, and a 10MW assembler; Test technician; Materials device developer. Its SeaGen project in tidal array at the Skerries, Anglesey. Both engineer; Mechanical engineer. Strangford Lough was the world’s first are scheduled to be operational by 2015. Construction and installation: Planning and environmental commercial tidal flow turbine and it is The company is also currently working now used as the industry benchmark consultants; Project management with other project developers in the UK, and construction workers; Marine world wide. The SeaGen is a 1.2MW tidal North America and Asia. Engineer; Electrical engineer; Power turbine. It was installed in April 2008 and generation engineer; Quantity the device regularly generates 20MWhs surveyor; Turbine specialist engineer; of electricity per day. Health and safety manager; Specialist shipping and port personnel; Divers; Siemens fully acquired MCT in Controls engineer; Project manager; February 2012 after a comprehensive Marine installation crew; Health and assessment of all competitive tidal safety manager. technologies. Siemens is one of the Support services and other: Device maintenance crew; Electrical world’s largest suppliers of eco-friendly engineer; Marine engineer; Power technologies. The MCT acquisition is generation engineer; Energy sales therefore a powerful endorsement of people; Divers. the commercial potential of cutting- edge UK innovation. Key facts (2010/11) Employment across supply chain5: >800 Number of UK companies across supply chain: 33 UK sector turnover: £86 million

Global market value6: (£2.1 billion) UK export value: £8 million

5 Innovas 2010/2011 figure is 570, however this does not include academic or EU funded R&D which is an important component of this sector. We have therefore deferred to Working for a Green Britain: Employment and Skills in the UK Wind and Marine Industries, RenewableUK and Energy and Utility Skills, 2011. 6 As above, Innovas datasets include global tidal barrage schemes that the UK industry would not recognise as part of the global wave and tidal industry.

31 Renewable Energy: Made In Britain Anaerobic digestion – biogas (power, renewable fuel for transport, green gas (biomethane) injection, combined heat and power)

Background, current “Biogas has status and outlook benefits on so

The UK produces over 100 million many fronts.” tonnes of food waste and animal slurry Janine each year. Food waste and livestock production each account for 3% of UK Freeman, greenhouse gas (GHG) emissions1. By National Grid capturing the biogas potential of organic wastes through bacterial fermentation in closed vessels, anaerobic digestion both the deployment of AD and in the and 27 on-farm plant have planning (AD) can reduce the escape of development of enhanced applications. consent and another 80 are in the damaging methane emissions into the Of around 70 commercial AD plants planning system. atmosphere. In addition, AD produces a currently operating in the UK, there are AD provides a very broad range by-product, called ‘digestate’, which is a only two biomethane-to-grid plants and of employment opportunities, from natural fertiliser, creating an alternative almost no examples of AD generated manual work collecting waste, to market to fossil fuel fertilisers which biomethane in use as a vehicle fuel. highly specialised engineering in its are estimated to contribute nearly 5% This compares with nearly 6,000 AD many applications including the use of to UK GHG emissions2. On a unit of plants in Germany, which account for compressed biomethane in dual fuel energy basis, AD can therefore dwarf over 2% of total electricity supply, and (gas and diesel) trucks. UK engineering the emissions reduction potential of all an estimated 40 biomethane-to-grid has perfected advanced dual fuel other energy generation technologies3. projects being built in 2012. German engines which are being used by two AD is not a new technology – it AD plant are soon to be incentivised major truck manufacturers (Volvo and can be low-tech, as used by 20 million by a new ‘flexibility premium’ to Mercedes Benz). The huge potential Chinese households to produce gas generate power on demand to aid grid is recognised by the Department for for cooking. However, producing balancing. Transport in a new Technology Strategy biogas at scale requires professional Around 20 UK companies currently Board competition to develop the management. Biogas has many design and build AD plant, with around infrastructure for duel-fuel trucks. applications which are increasingly 80% of components sourced from 1 The CCC estimate agriculture is responsible for high-tech, for example it can be purified the UK. Home-grown UK companies around 9% of total UK CO2e emissions with 36% of and injected into the existing natural such as Biogen Greenfinch and Monsal these emissions from animal manure and digestive gas grid. National Grid has estimated have also developed AD for 100% processes www.theccc.org.uk/sectors/non-co2-gases/ agriculture. that biomethane produced from AD food waste – an area where the UK is 2 CCC data, 55% of agricultural emissions are estimated plants could provide around a quarter leading in technology development. to come from fertiliser use. 3 Renewable Energies: Perspectives for a Sustainable of the UK’s domestic customer heating Cost reduction is also underway in Energy Future, German Ministry for Environment, Nature requirements4. small-scale AD applications. The UK Conservation and Nuclear Safety, 2011. 4 The Potential for Renewable Gas in the UK, National Compared to other major EU sector may be small but it is vibrant and Grid, 2009. Quoted here is our estimated proportion economies the UK currently lags in ambitious; a further 78 AD waste plants from AD only.

Current UK policy future RO support for biogas electricity get ‘green’ gas to consumers. Under in line with support for offshore wind, the REAL Green Gas Certification framework yet the technology is entirely different scheme5, customers can track the and delivers cost savings for consumers green gas used, preventing double The Government committed in other areas, particularly waste counting on green claims when the to ‘huge’ expansion of AD in its disposal and pollution abatement. Heat gas is used in applications such as Coalition Agreement. However, a from biogas is supported under the CHP with district heating or in dual- range of barriers still prevents AD Renewable Heat Incentive (RHI), but fuel trucks. from fulfilling its huge potential only for plant below 200kWth. REA is It is possible to earn double – including the low ambition for pressing for this limit to be removed so Renewable Transport Fuel AD set out in the Feed-In Tariffs that far more plants can benefit. Certificates from biogas if it is made consultation. The injection of biomethane into the from waste but the current incentives Power from AD biogas gas grid is also supported under the RHI do not make this financially attractive combustion is also supported under and is environmentally attractive in that compared to the other options. the Renewables Obligation (RO). The it uses the existing gas grid (which has 5 Status: Status: am b er Government proposes to reduce enjoyed £20 billion of investment) to www.greengas.org.uk

32 Renewable Energy: Made In Britain Innovations for efficient and affordable on-farm Jobs in AD AD Manufacturing: Design engineer; Electrical systems designer; Case study: Marches Biogas Environmental engineer; Environmental consultant; Power generation engineer; Electrical Marches Biogas boasts a team of engineer; Welder; Metal worker; 11 highly skilled AD designers and Machinist; Skilled assembler; mechanical and electrical technicians. Materials engineer; Mechanical engineer; Biochemist; Biologist. It recently moved into larger premises Construction and installation: in Ludlow, Shropshire. Over the past Planning and environmental 25 years it has built broad expertise productivity of a conventional digester. consultant; Project manager; working with water companies on Shown here is their smaller ‘Plug construction worker; Electrical engineer; Mechanical engineer; sewage digestion facilities, the repair and Play’ AD system, which can Laboratory technician specialising and maintenance of existing AD plants, be installed either below or above in digestion and digestates; CHP and the design and build of large scale ground and which also digests on- technician. AD plants and R&D facilities. farm slurry. The Plug and Play digester Plant operation: Waste collector; Farmer; Feedstock loader; Truck The team has turned their expertise is a cylindrical insulated tank that is driver; Plant operator; Maintenance to solving the lack of interest in small manufactured as a complete unit at technician; Laboratory services; scale on-farm AD, which is given their manufacturing facility. The unit Quality Assurance. only modest FIT support. It has been is delivered directly to site and can be Biogas applications: Vehicle design and manufacture; Pump awarded the Shell Springboard Award combined with other units to increase attendant at fuelling stations; for their Agri Digestore. This innovation capacity. There is no mechanical Biomethane-injection plant allows slurry storage tanks already equipment within the digester tank construction and operation; used by farmers to be transformed apart from the heat exchanger making CHP construction and operation; Digestate packaging and into anaerobic digesters. This brings the system easy to maintain. With distribution. down the cost of implementing AD policy stability, Marches’ innovations on farms without sacrificing the mean on-farm AD should take off.

Pioneering compressed diesel for trucks, offering the prospect of equivalent gas can be extracted and reductions in CO2 emissions and import dispensed to vehicles at Crewe. CNG ‘green gas’ for truckers costs as natural gas is currently less than Services can track its green gas from on the M6 half the cost of oil on an energy basis. anaerobic digester to the filling station to CNG Services is now pioneering their customer vehicles. To increase their Case study: CNG Services biogas to vehicle fuel. Biogas produced green gas offer, it is now working with a from AD is upgraded to biomethane number of anaerobic digester plants that CNG Services runs the UK’s largest and injected into the gas grid. Using are developing the capability to inject Compressed Natural Gas (CNG) filling the Green Gas Certification scheme biomethane into the gas grid. station. The station in Crewe is ten minutes from junction 16 off the M6. It is open round the clock and has the capacity to fill more than 500 dual-fuel tractors and trucks a day. Crewe is the first station in a proposed network of CNG filling stations that can support the "Organic Waste to Vehicle Fuel" concept. Natural gas from the grid can be compressed into high pressure storage vessels which can rapidly fill vehicles designed to run on either CNG or on dual-fuel (namely CNG and diesel). CNG is a lower cost, lower emission alternative to Key facts (2010/11) Employment across supply chain: 2,650 Number of UK companies across supply chain: 140 UK sector turnover: £320 million Global market value: £8.8 billion UK export value: £28 million

33 Renewable Energy: Made In Britain Mixed waste-to-energy technologies (combustion, pyrolysis, gasification, landfill gas for CHP, heat and power)

Background, current “Strong performance in waste status and outlook management and recycling can go hand

The UK generates nearly 32 million in hand with the use of energy from tonnes of household waste and 58 million waste as part of an integrated strategy.” tonnes of commercial and industrial waste each year1. Waste needs to be Professor Jan Bebbington minimised and as much useful material St Andrews University recycled as possible. The different types of residual waste can then safely be dealt with through a range of technology The UK’s historical reliance on landfill number of home-grown companies options, which are at very different stages has at least resulted in a successful are looking to manufacture, build, and of maturity and deployment. Landfill gas, landfill gas sector. There are 334 landfill operate patented technologies in the UK, sewage gas and controlled combustion gas power generating sites in the UK, and they are already attracting interest of residual waste are well established which today contribute nearly 20% of from other countries. These technologies technologies, whereas gasification and total renewable power production3. can not only generate heat and power pyrolysis are emerging. The Institution of Output is now declining as waste is today but have the potential to produce Civil Engineers and REA collaborated on a increasingly diverted away from landfill. biomethane, chemical feedstocks, report back in 2005, which estimated that Modern waste-to-energy plants using biofuels and even hydrogen. The first residual wastes could contribute as much controlled combustion are achieving projects will prove the technologies and as 17% of total electricity consumption good levels of efficiency in terms of waste provide investors with confidence. We in 2020, and 10% of the UK’s total to energy conversion and emissions can then expect the more innovative energy needs by 20202. control. Overall efficiency can be second generation projects to follow. The experience of other EU improved further if plants are operated in REA estimates that in excess of countries demonstrates energy combined heat and power (CHP) mode. 800MWe of capacity is currently under generation is a vital part of waste Gasification and pyrolysis technology development in the UK. management. Too often recycling and is still evolving and the first plants are just waste-to-energy are perceived to be in being built. The UK is at the forefront 1 Industry estimates, REA 2011, Energy from Waste: conflict in the UK, but this is not borne of the development of these new Guide for Policy Makers. 2 Quantification of the Potential Energy from Residuals out by the evidence; Sweden, Denmark technologies and has an opportunity (EfR) in the UK. The Institution of Civil Engineers and and several other EU countries have to achieve a market lead in this area, the Renewable Power Association, March 2005. (The Renewable Power Association was rebranded as the very high proportions of both waste-to- with global investors looking to invest Renewable Energy Association in December 2005). energy and recycling/composting. and develop the technologies here. A 3 Calculated from Dukes 2010 data.

Current UK policy provides little incentive for the industry. methane emissions. Furthermore Mechanisms and incentives for heat from the combustion of framework delivering CHP from waste-to-energy landfill gas for power generation The policy framework for energy facilities are weak and impractical – yet is currently being wasted, yet a from mixed wastes has been half of waste-to-energy facilities on the significant quantity could potentially challenging and uncertain. Thermal continent are CHP. be captured4. Projects at locations waste plants are difficult to take New definitions for gasification with a potential market for the heat through planning and permitting. & pyrolysis were introduced in 2009 would be incentivised if landfill gas Uncertainty with the current but less than three years later a new were made eligible for the RHI; support mechanism has not helped definition has been proposed which whereas at sites with no potential investors take on the added risk of a changes qualifying criteria and potentially heat market (as is often the case at plant, particularly for the emerging cuts support by 75%. It is an unnerving landfill sites) the waste heat could technologies. Conventional development for an important emergent be used to generate extra electricity. combustion only receives support for industry, even for those not directly The Organic Rankine Cycle is a waste power generation when combined affected by the proposed changes. heat to power technology, which with heat recovery. Government Support for landfill gas was reduced could boost electricity output from proposes to halve this to 0.5ROC/ by 75% in 2009 and it is proposed to landfill gas engines by around 10%5. MWh from 2013. This low level withdraw all support for new projects of support combined with the from 2013. This is a mature technology, 4 REA estimate around 6,000GWh. 5 challenge of demonstrating the but there is still potential in smaller sites, The RO does not currently facilitate the expansion of waste heat to power generation from landfill gas Status: Status: am b er biomass fraction in waste residues which should be optimised to prevent projects.

34 Renewable Energy: Made In Britain

Jobs in waste-to-energy

Manufacturing: Design engineer; Boiler engineer; Welder; Electrical engineer; Metal worker; Quality assurance; Chemist. Installation and maintenance: Planning consultant; Environmental consultant; Project manager; Construction worker; Electrical engineer; Boiler engineer; Pipefitter; Welder; Electrician; Heating engineer; Electrical/electronic technician; Plant operator; Mechanic; Waste collection operative; Ash supervisor; Site supervisor.

Pioneers in pyrolysis and close proximity to the waste arising and reliance on shore side facilities and used in combination with an existing time spent in port off-loading stored gasification boiler to provide heating, hot water or waste. Four units were supplied to the absorption chilling. Queen Elizabeth Aircraft Carriers and Case study: DPS & Ethos Energy The technology has been one containerised version for the US demonstrated for eight years in trials Army. DPS is a major global innovation and on many difficult wastes including: The development of the unit process engineering group. Its Bristol clinical, pharmaceutical & hazardous has already created 12 jobs locally based group and Ethos Energy have waste; sewage sludge; tyres and meat and expansion is likely to double recently launched the ST150 – a products. The unit can process over this. In addition, a number of jobs small scale compact and innovative 1,200 tonnes of waste per annum to will be created in the operation and technology based on a pyrolysis, produce a clean synthetic gas. maintenance of the units, as well as in gasification, and high temperature It is in use on HMS Ocean to handle manufacture and assembly. oxidation process. It can be located in mixed solids waste, reducing the ship’s

Getting maximum value waste recycling centres. The company plans out of waste to invest a further £1.5 billion in UK infrastructure Case study: Viridor investment in the next five years. Part of the FTSE 250 Pennon Group, Runcorn EfW CHP Viridor transforms over two million facility will be one of the tonnes of materials into high quality largest and most efficient in recyclate each year, and yet more into Europe with a total capacity 130MW of renewable energy. In total of 70MW of electricity and it safely manages over eight million 51MW of heat, treating tonnes of recyclables and waste up to 850,000 tonnes of materials for customers from all sectors SRF from residual waste across the UK. each year. The plant will Viridor employs over 3000 provide heat and power employees and operates more than to the adjacent INEOS ChlorVinyls manufacturing is in decline, is helping 320 facilities across the UK including chlorine manufacturing site, significantly to secure much-needed jobs for the 26 Material Recycling Facilities, three reducing its reliance on fossil fuels. region. The construction project has Energy from Waste Plants with a further Investment in the Runcorn facility, employed a daily average of 325 people, four in construction and 83 household during a recession and at a time when rising to 700 at its peak. Key facts (2010/11) Employment across supply chain: 6,020 Number of UK companies across supply chain: 330 UK sector turnover: £786 million Global market value: £23 billion UK export value: £99 million

35 Renewable Energy: Made In Britain

Heat pumps (air, water and ground source heat)

Background, current “Heat pumps are future- status and outlook proof, allowing us to heat

Heat pumps extract heat from the buildings efficiently with environment via a heat exchanger. electricity from any source.” Typically, for every one unit of electricity used to run the pump Professor David MacKay, another three units of renewable Chief Scientist, DECC warmth (or coolth) can be extracted from the ground, air or water. The greener the power they run on, the better their environmental performance. They must be accurately sized to meet the heat demand of a building, and buildings need to be highly energy efficient to ensure the heat pump can work efficiently. Air source heat pumps have been extensively used in the commercial sector where day-time occupation suits air temperature patterns. Ground source heat pumps use the more stable temperature of the earth, a fairly constant 11°c at depths of just a couple of the 1970s, and heat pumps’ suitability to 20 years. However, the domestic of meters. Their installation is more in off-gas grid locations, led to strong market is seeing more rapid growth labour-intensive, (typically 10 man- growth. Across the EU the number due to tighter Building Regulations days1) however, they are well suited to of installed heat pumps passed the and local planning requirements. Over domestic needs. one million mark in 2010 and around 21,000 domestic heat pump units were Professor David MacKay, Chief 100,000 are installed per annum in an installed in the UK in 20105. The quality Scientist at DECC, is a notable heat EU market estimated at £2.7 billion4. of installers is already recognised as pump enthusiast and heat pumps Heat pumps have been in use in the an important issue for the sector – feature among DECC’s eight key UK since the 1950s. The technology the Sector Skills Council is close to technologies for meeting the UK’s 2020 is mature and widely available, sharing finalising a new professional standard. renewable energy target – and in its many components with the refrigeration The industry is making strenuous recently published Heat Strategy2. It is and air-conditioning industries. Major efforts to improve the knowledge expected that 100,000 new heat pumps manufacturers are based here including of the installer base to ensure best- could be installed by 20203. Calorex, Carrier, Daikin, Danfoss, Danyo, practice is followed. A future where buildings are largely Dimplex, Eaton-Williams, Fujitsu, Hitachi, heated by heat pumps is one of the Kensa, Midea, Mitsubishi Electric, 1 Annual Survey on GSHP market growth 2010, Geo Nibe, TEV, Toshiba, Trane, Viessman, Trainet, Feb 2011. scenarios in DECC’s 2050 Roadmap. 2 The Future of Heating, DECC, 2012. That is already the case in Sweden Worcester Bosch, and many others. The 3 UK Renewable Energy Roadmap, DECC, 2011, where the great majority of new build traditional boiler manufacturers are also However confusingly, please note we are advised BSRIA data shows the UK commercial market is estimated to homes incorporate heat pumps. starting to design and build heat pump already have a legacy of over 1 million terminals already Sweden has lower average temperatures products for the sector. installed, illustrating the need for better data and more ambition. than the UK and it has the largest heat The commercial/industrial market 4, 5 The State of Renewable Energies in Europe, 11th pump market in Europe. The oil shocks has grown steadily over the last 15 EurObserv’ER Report, 2011.

Current UK policy heat pumps will be added in 2013. provided as of February 2012. In the meanwhile, domestic air and As the regulatory environment framework ground source heat pumps receive for new build drives us towards zero support from the Renewable Heat carbon developments, heat pumps The Renewable Heat Incentive Premium Payment scheme in off- will become increasingly wide-spread. (RHI) currently only covers gas grid areas. Overall take-up under They also have a vital role to play commercial/industrial buildings and the premium payment scheme has reducing carbon from the existing includes only ground source heat been disappointing, but heat pumps building stock, potentially through the pumps. It is hoped that air source accounted for over half of grants Green Deal, but vitally through the RHI. Status: Status: am b er

36 Renewable Energy: Made In Britain Fast-growing complete- service provider

Case study: Myriad CEG

Myriad CEG Ltd typifies the new breed of smaller, fast growing companies within the renewable energy sector. Formed in 2010 from the merger of three smaller companies the business now turns over £23 million and employs over 100 people. Myriad is one of the UK’s leading installers of onsite renewable energy systems. Based in Melton Mowbray, Leicestershire, the company provides all the key onsite renewable technologies including biomass boilers, ground and air source heat pumps, solar PV and and employees over the coming years. 500 small and medium wind turbines; wind turbines. For example, Myriad The business is backed financially by and 150 PV installations. With industry has recently installed a 240kW ground the Wates family, owners of Wates leading capability in each technology source heat pump, using 18 boreholes, Construction. Myriad offers a complete solution in the prestigious £80 million Fitzrovia The company operates mainly to its clients. Myriad deals with all Apartments redevelopment in London. in the commercial sector and has aspects of the design and installation The company has grown rapidly over completed over 1200 installations to process from initial feasibility through the last few years and expects to see date comprising; 400 biomass systems; to installation, commissioning and continued strong growth in revenue 250 ground source heat pumps; over aftercare services.

First class training 17,000 industry professionals each year renewable technologies, including to benefit from a number of advanced its Greensource ground source heat for high professional features geared towards offering an pumps and its Greenstore air source standards authentic training experience. heat pumps. As well as offering Dedicated training bays ensure domestic courses, there is also an Case study: Worcester, Bosch Group delegates are guaranteed first rate extensive range of training courses training on every model of Worcester’s available on commercial products, Founded in 1962, Worcester, Bosch award-winning Greenstar boiler including gas absorption heat pumps Group is a market leading manufacturer range as well as its growing range of and CHP technologies. of domestic heating and hot water systems. Pioneering the latest in Jobs in heat pumps energy-efficient boiler solutions, its Manufacture and design: Design passion for renewable energy has led engineer; Heat pump engineer; to the development of a wide range Electrical engineer; Skilled and semi of innovative and sustainable heating skilled assembler; Welder; Machinist; products. Metal worker; Hydrogeologist; Geologist; Mechanical engineer. Worcester’s long standing Installation and maintenance: commitment to the professional Project manager; Construction development of the heating industry’s worker; Electrical engineer; Pipefitter; installers, specifiers and merchants led Electrician; Heating engineer; Electrical/electronic technician; to a £1.5 million investment in a new, Plant operator; Plumber; Drilling Training and Assessment Academy at engineer; Drill rig operative; Operations its headquarters in Worcester in 2011. maintenance engineer; Heating The state of the art facility enables over engineer; Pipefitter; Service engineer. Key facts (2010/11) Employment across supply chain: 7,320 Number of UK companies across supply chain: 380 UK sector turnover: £935 million Global market value: £23.4 billion UK export value: £69 million

37 Renewable Energy: Made In Britain

Biomass CHP (heat and power)

Background, current “This highly efficient method status and outlook of biomass use is specially Combusting biomass to produce heat promoted by the EEG and power (CHP) delivers an energy conversion upwards of 75%1 making [Renewable Energy Sources CHP a highly efficient use of biomass Act].” resources. However, CHP technology has long suffered from a lack of German Environment Ministry political support in the UK, largely because of an historic neglect of supply-side efficiency given decades of abundant gas. Furthermore our relatively mild climate has also meant that district heating networks, which broaden the potential for CHP, have not been routinely constructed from the outset in urban development as they have been in Scandinavia, for example. Heat networks are well established on the continent where they are enjoying major growth – the volume of heat generated from biomass into heat networks increased by nearly 25% between 2009 and 2010 blocks and public buildings), and a heat customers reduce or cease their across Europe2. range of commercial and industrial demand, unlike with electricity, there CHP plant are designed to meet a applications. is no automatic alternative customer. particular heat load, with surplus power There is tremendous potential to This makes it all the more important exported to the grid. Industries that are deploy CHP in areas where there is a that the policy framework is supportive suited to CHP are those with a high high density of heat demand. DECC’s and flexible. This is far from the case, demand for heat, including oil refineries, new Heat Strategy5 offers welcome and the exceptionally complex policy chemical plants, paper mills, breweries recognition of the potential for heat framework for biomass CHP needs and greenhouses (which can further networks to facilitate the expansion of urgent attention. Perversely this highly benefit from the CO₂ output). Suitable CHP. District heating infrastructure has efficient use of biomass is the least buildings include prisons, hospitals, a long life-time, facilitates many sources incentivised. universities, hotels, leisure centres and of renewable heat and offers a solution residential flats. to limited space in urban homes. 1 Renewable Heat (RHI decision document), DECC, District heating networks provide However, while DECC identifies its March 2011. 2 The State of Renewable Energies in Europe, 11th 3 less than 2% of the UK’s heat demand . ‘potential to play a significant role’, cost EurObserv’ER Report, 2011. These networks are currently estimated is flagged as a barrier. 3 Poyry (2009): The Potential & Costs of District Heating 4 Networks, April 2009. to supply 172,000 domestic buildings Developing CHP projects is more 4 BRE (2008) Heat Metering Cost Benefit Analysis. (predominantly social housing, tower difficult than power-only projects. If 5 The Future of Heating, DECC, March 2012.

Current UK policy rewarded under the RHI. However, biomass CHP and develop gas CHP support levels proposed for plant over projects instead. framework 1MW under the RHI are lower than the There is no additional payment current RO ‘uplift’. There are further under the RHI for heat produced via An extra incentive for CHP was fears as to whether there is sufficient CHP, compared to production of heat introduced under the Renewables budget available under the RHI, given alone. In addition, the RHI is paid out Obligation in 2009 to encourage its relatively small overall budget. The only on heat delivered to buildings heat capture alongside power CHP uplift under the RO therefore rather than generated – any heat lost generation; biomass heat received needs to remain in place until 2017 in pipes is deducted. While one would a CHP ‘uplift’ of an extra 0.5ROCs/ to allow current projects, which have not wish to reward schemes with MWh. It is proposed to withdraw a long lead-in time, to proceed. This poor energy efficiency, the overall this uplift in 2015 for new projects destabilising policy framework is causing result is that this is effectively a penalty

RED and instead heat from CHP will be many REA members to abandon for district heating. Status: Status:

38 Renewable Energy: Made In Britain

across Wales, Scotland and England Major player forges Jobs in biomass CHP ahead with biomass CHP work in close partnership with local communities and companies. The Design and development: Design investments made by RWE in the UK are engineer; Project manager; Materials Case study: RWE renewables creating substantial new job opportunities, engineer; Electrical systems designer; developing the supply chain and, very Mechanical engineer; Environmental engineer; Environmental consultant; RWE npower renewables is the UK importantly, helping the UK Government Fuel handling systems designer; Heat subsidiary of RWE Innogy and one of achieve the target of supplying 30% of network design engineer. the UK’s leading renewable energy electricity from renewables, by 2020. Manufacturing: Design engineer; developers and operators. RWE Innogy RWE npower renewables is currently Project manager; Welder; Labourer; Sheet metal worker; Chemist; Electrical pools the renewable energy expertise constructing its first biomass CHP engineer, Mechanical Engineer. of the RWE Group. RWE Innogy has power plant in Scotland (shown left). Construction and Installation: a current pan-European pipeline of The 49MW biomass CHP plant in Planning consultant; Rigger; 17.3GW. The UK is a significant territory Markinch, Fife, due to be completed Environmental consultant; Project management and construction within this. The intention is to have in early 2013, will be the largest of its workers; Electrical engineer; Power 1GW of operational renewable energy kind in the UK. It will provide steam and generation engineer; Heat network capacity in the UK by the end of 2012. electricity to the neighbouring Tullis specialists; Health and Safety manager; RWE npower renewables operate Russell Paper Mill, reducing the fossil Pipefitter; Welder; Electrician. Operations and maintenance: 21 hydroelectric power schemes, 25 fuel carbon emissions of the site by Agricultural specialist; Microbiologist; onshore wind farms and two offshore 250,000 tonnes per annum, as well Biochemist; Fuel sourcing manager wind farms, including the UK’s first major as exporting electricity to the grid. and negotiator; Electrical engineer; offshore wind farm, North Hoyle. In 2011 Approximately 40 permanent jobs will Power generation engineer; Heating engineer; Energy trader; Boiler the company invested over £0.5 billion in be created by RWE npower renewables engineer; Welder; Electrician; Service new renewable energy projects in the UK, as a result of the new biomass plant engineer; Electrical/electronic and plans to invest a similar sum this year. and fuel processing facility, with technician; Plant operator; Mechanic; From development, to construction 400 temporary jobs created during Fuel and ash supervisor; Labourer; Maintenance manager. and operation, its 453 staff in area offices construction.

Using renewable energy distilling process, helping distilleries to Each of Estover’s CHP plants boosts expand. rural economies by creating up to 20 to distil Scotland’s finest Estover’s CHP plants will be permanent jobs onsite and a further 20 whisky exclusively fuelled from wood produced directly related new jobs in transport and from local sustainable forestry. In forestry, often in remote areas. Up to 100 Case study: Estover Energy Scotland there are millions of acres of temporary jobs are created during the two commercial forestry but limited local year construction period. Each plant also Scotch whisky accounts for a quarter markets. In some areas this wood is adds 10–15MWe of renewable electricity of UK food and drink exports. It is sold being exported due to lack of local to the grid to help Scotland meet its target in more than 200 markets worldwide, demand. of 100% renewable power by 2020. earning £3.45 billion in 2010 and supporting more than 25,000 jobs across the supply chain. Energy is typically the largest cost for a distillery. In recent years gas prices have been volatile and distilleries are experiencing interruptions in the gas supply with increasing frequency. Estover Energy is working with some of Scotland’s best known whisky brands to heat and power distilleries using locally sourced wood instead of gas. Biomass CHP provides a secure, low-carbon and cost-effective supply of steam for the

Key facts (2010/11) Employment across supply chain: 2,190 Number of UK companies across supply chain: 140 UK sector turnover: £331 million Global market value: £9.3 billion Export value today: £45 million

39 Renewable Energy: Made In Britain

Solar thermal (heat)

Background, current “The technical potential of status and outlook solar energy for heating

A vibrant market in a rudimentary solar purposes is vast.” thermal system bloomed in California Intergovernmental Panel at the end of the 19th century – only to be wiped out by the discovery of natural on Climate Change gas in the 1920s. Cycles of innovation and market development in response to volatile fossil prices have driven the conditioning. Using thermally driven cheaper aluminium rather than copper sector forward ever since. Israel turned chillers, solar thermal can meet rising and individual modules are growing decisively to solar thermal in response demand for cooling without adding larger. Efficiency gains have led to cost to oil scarcity in the 1950s and over to summer electricity peaks and CO₂ reductions per unit of energy. There has 90% of Israeli households now rely emissions. been significant R&D to enable easy on solar thermal for their hot water The European market boasts the installation. Finally costs can be further requirements. Today 200GWth of solar most diverse applications of solar reduced when volume increases to a thermal are installed worldwide1. thermal including new innovations in level where the supply chain can be fully The technology has advanced solar air-conditioning, heat storage, optimised. considerably and the market is broadly desalination plant and combi-systems Across Europe major markets in split into flat plate collectors, which with heat pumps that provide both hot solar thermal have contracted in recent are relatively cheap and give good water and space heating. In several EU years as the economic crisis caused a performance for lower temperature countries space heating is becoming slow-down in the construction sector applications, and evacuated tube the most important application. There – and because solar PV enjoys stronger collectors which can achieve higher are around 150 large solar thermal incentives. Nevertheless the EU sector temperatures. Temperatures of 250°c systems with a combined capacity of had a turnover of €4 billion in 2010 will shortly be achievable for industrial 160MWth across Europe. The largest is and employs around 50,000 people3. process heating. Intelligent Energy a 13MWth system in Denmark feeding in The market is believed to have grown Europe’s ‘SoPro’ project aims to catalyse to a district heating network. again last year as gas and oil prices rose. the take-up of solar process heat in The oil shocks of the 1970s Germany has the largest area of solar targeted countries. 27% of total EU final stimulated domestic enterprise and AES, thermal collectors in Europe with over energy demand is for heat consumed by the UK’s oldest manufacturer based in 14 million m2, displacing the equivalent industry and at least a third of this could Scotland, began manufacturing solar of 500 million litres of heating oil4. potentially be supplied by solar thermal. thermal systems in 1979. Today other Even in northern climates solar UK manufacturers include Atmos, 1 IEA Solar Heating and Cooling Programme, Newsletter thermal can provide between 50–70% Viridian Solar, Kingspan and Solartwin. January 2012. 2 Building Research Establishment. Viridian Solar – 2 of hot water needs over the year . System prices have fallen over recent Clearline solar thermal field trial, 2008. Rising global temperature is driving years and innovations will enable this to 3 The State of Renewable Energies in Europe, 11th EurObserv’ER Report, 2011. a marked increase in summer-time continue. Manufacturers are increasingly 4 Renewable Energies; Perspectives for a sustainable electricity consumption from air making key components out of energy future, German Environment Ministry, 2011.

Current UK policy built to higher ‘Code for Sustainable exports over 25% of production. Homes’ standards. Without these drivers This is the highest proportion of all framework building developers would be unlikely renewable technologies as a fraction to use solar thermal. The cost of large- of the UK market value. The greatest non-financial barrier scale solar thermal systems can be In the domestic sector installers to solar thermal is poor awareness considerably lower so it is surprising that of solar thermal can receive a small and poor understanding of the first phase of the RHI only supports grant of just £300 – a fraction of the technology and its diverse solar up to 200kW in size. Financial public support for solar PV. It is applications in the UK. The Solar support for heat from solar thermal has hoped that the second phase of Trade Association will be seeking been capped at the level set by offshore the RHI, which will cover domestic to fill this knowledge gap when it wind, somewhat inexplicably, and it is applications, will take a more serious shortly publishes a report into the therefore failing to stimulate the level of approach to the highly innovative technology’s potential here in the UK. growth and innovation needed to bring solar thermal industry. The new-build sector is largely prices down and to realise the industrial driven by local planning requirements opportunity. Given such poor support 5 And ‘Merton Rule’ policies which specify that for renewables such as the London for the domestic market it isn’t surprising developments over a certain size must source a percentage of their energy requirements from 5 Status: Status:

am b er Plan , as well as social housing being that the UK solar thermal industry renewables

40 Renewable Energy: Made In Britain Successful manufacturing Jobs in solar thermal innovation Manufacturing and Design: Component manufacture; Solar energy systems designers; Systems Case study: Viridian Solar engineer; Electrical engineer; Laboratory technician; Quality After three years of market research and control technician; Collector product development Viridian launched assembly worker; Chemist; Surveyor; Materials scientist. its Clearline range of roof-integrated Installation and maintenance: solar heating panels in 2007. Keen to Roofer; Electrician; Plumber; keep production in the UK, the team Instrumentation, controls and came up with an innovative moulded electrical systems technician; Scaffolder; Installation engineer; design for rapid manufacture. The Installation supervisor; Service product competes well with alternatives engineer; Semi-skilled labourer for imported from countries with much weather-tightness, durability, wind cleaning collectors. Logistics: Driver; Packer; lower labour costs. resistance and fire safety of the installed Warehouse Staff Close collaboration with product. construction professionals during the The company has grown rapidly, development led to a product that with early success in the UK new-build of a solar heating system for high rise installs neatly and simply, with excellent market followed by strong international apartment blocks (Cirrus), a wireless aesthetics. Viridian Solar was the first sales. Clearline solar panels are solar thermal energy display (Clearline company to test its solar panels as a currently exported to Sweden, Ireland Aura) and a range of photovoltaic construction product, achieving the and the Netherlands with further panels to match the roof integration first ever British Board of Agrèment expansion planned. The story of detail and aesthetic of the thermal certification which assures the roof innovation continues with the launch panels (Clearline PV).

1970s idealism drives a hospitals and commercial offices. and this unique Scottish manufacturer Systems can be up to 2,400 square continues to bring novel solar thermal commercial success metres in size. AES was selected to products off its production line. install the solar thermal system that However, the fragile support for the Case study: AES Solar Systems supplies 60% of the hot water needs domestic industry means expansion in the prestigious Scottish Parliament plans must be carefully considered. AES AES began in 1979 in the ecological building Holyrood. have developed often thanks to strong Findhorn community where its Today R&D is increasingly important orders from overseas. determined founder Lyle Schnadt created his first panels in a small shed. In those pioneering early years few people believed that solar thermal was a viable alternative to traditional heat generation. Dogged perseverance secured success. Today AES manufactures a wide range of light-weight and highly efficient flat-plate collectors from its growing workshop in Forres. It employs 10 people with a turnover of £1.5 million. AES is one of the ten fastest growing companies in the Grampian and Highlands area. AES can design solar water heating projects for all applications including domestic panels to systems for social housing, schools, swimming pools, Key facts (2010/11) Current employment across supply chain: 7,550 Number of UK companies across supply chain: 340 Current sector turnover: £830 million Global market value: £28 billion UK export value: £215 million

41 Renewable Energy: Made In Britain

Deep geothermal (heat and power)

Background, current “All the benefits of nuclear – status and outlook but none of the problems.”

99.9% of the earth’s mass is over 100°c, Damian Carrington, a temperature maintained by natural The Guardian radioactive decay. This abundant source of heat has been exploited since Roman times, and the UK provides examples today in Bath and Southampton. The technology for power generation has been around for over 100 years and the UK is due to start its first heat and power scheme shortly (see right). Recent developments in drilling technology and geophysical techniques mean it is now possible to engineer temperatures to the UK, has also exporting drilling rigs at €20 million systems in ‘hot rocks’ at depths of up invested significantly in the technology. each. Kenya has recently announced to 5km. This expands the available 150 geothermal heat and power plants that Kenya Electricity Generating resource well beyond that found in are in planning in Germany, representing Company Limited is to raise $12 billion shallow resources, such as in Iceland. a €4 billion investment, supporting over for investment in new geothermal The REA’s Deep Geothermal Group is 9,000 jobs. The German Geothermal plants. However, without domestic working with consultants to reassess the Association says geothermal power investment in the UK sector, there is a UK’s potential and will publish a report in could meet Germany’s electricity needs real danger we will not be in a credible the near future. 600 times over. position to export skills or equipment to After a decade of inactivity in the DECC has provisionally calculated the booming global market. 1990s, the sector is experiencing that, using existing technology, deep US analysis shows deep worldwide growth. Deployment is geothermal could supply approximately geothermal has particularly high rates expected to double over the next 10% of the UK’s baseload electricity of employment2, delivering quality 10 years from 10GWe to 20GWe, supply – this would technically result jobs, including in rural areas. The REA representing a global investment of $40 in renewable heat equivalent to 30% is pushing for a target of 200MW of billion. Geothermal power plants are of UK heat demand. However, the UK heat and power by 2020, which would widespread across Europe with over is lagging behind, with no contribution deliver 1640 jobs3. Deep geothermal 400MWe of new electricity projects anticipated from this technology to can boost indirect employment in in planning adding to the 1.6GWe in 2020 in the UK Renewable Energy related enterprises including spa and operation. Strategy. resort management, food processing, Geothermal also provides large The UK is well-positioned to develop district heating installations, aquaculture, amounts of heat from an existing this sector because of the synergies with horticulture and Heating, Ventilation and 10GWth of installed thermal capacity oil and gas technology and because of Air Conditioning (HVAC) technicians. across Europe. They are ideal for urban its strong history of deep geothermal locations: Paris, for example, has 17 research1. There are substantial 1 The Hot Dry Rock project. geothermal heat plants in operation opportunities to export both the 2 Geothermal Industry Employment: Survey Results and with an installed capacity of 240MWth, knowledge and equipment to an ever- Analysis. 3 For each MW installed, four direct jobs are created sufficient heat for 170,000 homes. expanding global sector. For example, during construction, 1.7 direct jobs and 2.5 indirect jobs Germany, which has similar sub-surface Germany is already manufacturing and during operation.

Current UK policy support for deep geothermal power. it a tailored level of support in the Proposed support is around half of that expansion of the RHI due in 2013. framework available in Germany, which already Finally, deep geothermal exploration boasts an established industry. The is capital intensive and for initial The deep geothermal industry in UK industry is at the same stage of projects exploration risk insurance is the UK had largely been dependent development as marine renewables and often required for private investment. on grant support which was cut in it requires similar support. Such schemes are well developed in half by Government in 2010, just Deep geothermal heat is included France and Germany and it has been as activity across Europe escalated. in the RHI, but only as part of the suggested the Green Investment The recent RO Banding Review heat pump tariff. This is a stop-gap, Bank could restructure this risk in RED

Status: Status: consultation proposes no extra and Government is looking at giving the UK.

42 Renewable Energy: Made In Britain British company set to where temperatures are expected to exceed 180°c. These will be the drill first geothermal deepest on-shore wells ever drilled in power station in the UK the UK. The £53 million scheme it is set to be commercially operational by Case study: Geothermal Engineering 2016 when it will supply up to 10MW Ltd of baseload electricity to the National Grid and 50MW of renewable heat for Geothermal Engineering Ltd was local use. founded in 2008 by Dr Ryan Law who Over the next 25 years, Geothermal has 10 years’ experience in geothermal Engineering Ltd has plans to deliver energy, primarily working with the up to 300MW of clean, sustainable global engineering consultancy Arup. geothermal electricity and up to 1GW Geothermal Engineering’s technical of renewable heat for communities board includes Dr Tony Batchelor across the South West. Geothermal who ran the UK’s pioneering ‘Hot Dry Engineering Ltd also aims to build Rock’geothermal research project knowledge and job opportunities between 1976 and 1991. with Exeter University by developing The team has successfully secured a national centre for geothermal grant support, funds and planning excellence. permission to develop the UK’s first commercial scale geothermal power plant at United Downs, near Redruth Jobs in deep geothermal in Cornwall. Drilling will start this winter using a drilling rig like the Manufacture: Design engineer; Electrical engineer; Welder; one pictured here. Three wells will Metal worker; Machinist; Skilled be drilled to approximately 4.5km, assembler; Test technician; Chemical engineer; Materials engineer; Mechanical engineer. Heating the biggest deep geothermal energy in the UK, Scheme Design and development: ideally situated to exploit the great Project manager; Planner; Lawyer; business park in Europe Financial planner; Economist; quantities of heat produced by the Electrical systems designer; Physical ‘Weardale Granite’, a huge mass of high engineer; Reservoir specialists; Case study: Cluff Geothermal temperature rock sited entirely below Geologist; Environmental ground. engineer; Environmental consultant; Drilling engineer; Pump Cluff Geothermal is a UK company Cluff’s borehole will be a few designer; Programmer; Modeller; developing geothermal energy projects kilometres deep and capable of Communications expert; Academic in the UK and Africa. Cluff’s international providing continuous, renewable heat to staff. team is based in London, Nairobi local customers. The borehole should Construction and Installation: Project manager; Construction and Addis Ababa. The company has produce sufficient energy to heat (and/ workers; Drilling manager; strong links with Newcastle University, or cool) buildings on the adjacent Geologist; Drilling crew; the UK’s foremost academic centre Cobalt Business Park – the largest office Hydrogeologist; Electrical engineer; of geothermal expertise. The photo park in Europe – and local housing Geophysicist; Power generation engineer; Drilling services manager; (left) shows Cluff’s Michael Feliks developments. Drilling services staff; Generator with Professor Paul Younger at the The company has big plans for its engineer; Pump installer; Health University’s Science Central borehole. Shiremoor project to be merely the first and safety manager. Cluff will drill a borehole near the of many across the North East. Building Operations and maintenance: Heat and electrical engineer; Power village of Shiremoor, , on this and their Africa projects, Cluff generation engineer; Geologist; to supply heat to local homes and Geothermal intends to establish itself Hydrogeologist; Academic staff; businesses. The North East is one as a leading developer of geothermal Service engineer. of the most promising areas for projects in the UK and worldwide. Key facts (2012 estimates) Employment across supply chain: 200 Number of UK companies across supply chain: <25 UK sector turnover: <£10 million Global market value: $3 billion4 power only (growing to around $40 billion for power in the next ten years) UK export value today: <£1 million

4 Renewable Energy Generation from Conventional, Enhanced Geothermal Systems, and Co-Produced Resources: Market Analysis and Forecasts, Pike Research, 2011.

43 Renewable Energy: Made In Britain “Sustainable biomass Biomass power generation... is reliable and cost-effective, and Background, current will help us to meet our status and outlook renewables target.” Prime Minister Overall bioenergy1 is the largest contributor to the UK renewable David Cameron electricity supply and around 20% of this is supplied by 15 biomass power stations2. These range between 1MW and 50MW in size and combust a range of fuels including virgin and waste wood, forestry residues, straw and other agricultural residues. A number of new dedicated biomass power stations are in the development pipeline with outputs from 1MW up to 350MW. It is also possible to convert existing fossil fuel power stations to run entirely on biomass. Biomass power is set to play delivers significant greenhouse gas its priorities8. Biomass power generation an important role on account of its savings over the long term. and biofuels are anticipated to form a affordability and potential to diversify There are 255 biomass power substantial component of this stream fuel supply and contribute to energy and CHP stations in Germany, which of its £3 billion of funding. The Bank security. Biomass power provides together generate 11.8GWh per annum4 is already in dialogue with a number predictable on-demand generation for – roughly over five times5 current UK of biomass project developers and is base-load or peak-load, complementing generation from biomass power. The looking to make its first investments the growth of variable renewables like UK Renewable Energy Roadmap6 from April 2012. wind, wave and solar. anticipates biomass power will be one From 2013, support for biomass of the eight key technologies in meeting 1 Bioenergy includes energy from waste, landfill gas and power generation will be conditional the 2020 renewable energy targets. It biomass stations. 2 UK Renewable Energy Roadmap, DECC, 2011 on meeting sustainability criteria. The is anticipated that electricity from all 3 For more details, see www.decc.gov.uk/en/content/ fuel used must not come from certain bioenergy sources will make a similar cms/meeting_energy/bioenergy/sustainability/ sustainability.aspx. 7 types of land of high biodiversity or land contribution to offshore wind . 4 Renewable Energies; Perspectives for a Sustainable that was formerly high carbon stock, Securing a reliable and sustainable Energy Future, German Environment Ministry, 2011. 5 such as primary forests, peatlands and fuel supply at an affordable price is Estimated from DUKES 2011, table 7.4, in 2010 biomass generated 2TWh of electricity. wetlands. The fuel must also deliver a a particularly significant challenge 6 Department of Energy and Climate Change, (2011). 7 minimum 60% greenhouse gas saving developers of biomass power plants The UK Energy roadmap central view range of deployment in 2020 for offshore wind is between compared to electricity generated must overcome. 33TWh and 58TWh, and 32TWh and 50TWh for from fossil fuel3. The industry strongly The Green Investment Bank is Biomass Power. 8 supports the development of a mature Its five priorities are offshore wind, waste recycling and looking to invest 20% of its funds in infrastructure, energy from waste, the Green Deal, and and sustainable fuel supply chain that areas other than the five which it lists as non-domestic Energy Efficiency.

Current UK policy generation was increased substantially future support levels and industry is in DECC’s Renewable Energy Roadmap, now waiting to find out the level of framework and DECC will publish its Bioenergy support for projects commissioned Strategy this spring. after April 2013. It is proposed that The policy landscape for biomass Dedicated biomass plants are new biomass power will continue power has presented a complex set currently eligible to receive 1.5ROCs/ to receive 1.5ROCs until 2016, of challenges to resolve for both MWh. Government decided to after which new plants will receive industry and government over the “grandfather” bioenergy plants in 2010, 1.4ROCs. Decisions on the banding past few years. Industry has invested meaning that once commissioned they review of the RO are due this spring/ in developing projects and bringing are guaranteed to receive this level of summer. them through the consenting support for 20 years – bringing them The industry hopes that the phase with the understanding into line with other technologies in forthcoming UK Bioenergy Strategy that Government was in principle the RO. This decision was critical for will articulate a clearer vision supportive, despite the sector securing investor confidence in project and ambition for the growth of often being subject to review. returns and was welcomed by industry. sustainable biomass energy in the Status: Status: am b er The ambition for biomass power However, uncertainty still exists over UK.

44 Renewable Energy: Made In Britain Sustaining British ports with biomass power Jobs in biomass power Design and development: Design Case study: Renewable Energy engineer; Project manager; Systems Materials engineer; Electrical systems designer; Mechanical engineer; Environmental engineer; RES’s two large-scale biomass projects Environmental consultant; Fuel currently in development at North Blyth handling systems designer. in and Alexandra Dock Manufacturing: Design engineer; in Liverpool represent the company’s Project manager; Welder; Labourer; Sheet metal worker; Chemist; first investment in dedicated biomass Electrical engineer, Mechanical power generation in the UK. engineer. Around 200 to 300 employees Construction and Installation: will be required during the peak of Planning consultant; Rigger; Environmental consultant; Project the three-year construction period management and construction and around 40 permanent staff once workers; Electrical engineer; each plant is operational. A wide Power generation engineer; Health variety of skills will be required, ranging and safety manager; Pipefitter; Welder; Electrician. from specialist steel workers to office Operations and maintenance: administrators, technicians and plant Agricultural specialist; managers. There will be opportunities Both Alexandra Dock and North Microbiologist; Biochemist; Fuel for local consultants, contractors and Blyth are located at existing ports which sourcing manager and negotiator; Electrical engineer; Power engineers, and knock-on benefits to will be used for the transport of the generation engineer; Energy trader; service providers in the area. fuel, helping to diversify and secure Boiler engineer; Welder; Electrician; Community funds will be established their economic future. It is expected Service engineer; Electrical/ for both projects. For example, at North that each project will cost in the region electronic technician; Plant operator; Mechanic; Fuel and ash Blyth the fund is likely to be in the region of £300 million to commission – a supervisor; Labourer; Maintenance of £100,000 per annum to be spent on significant investment into the local and manager. good causes decided on by the local regional economies of North Blyth and community. Alexandra Dock.

Managing energy for part of Dalkia’s business. The Chilton over 70 years , shown here, Case study: Dalkia received planning permission in May By applying energy management 2009 and started services Dalkia has been helping generating power businesses and communities reduce in October 2011. It energy consumption and costs for over delivers electricity 70 years. Now a multinational in 42 to 23,000 homes countries, Dalkia in the UK was started and reduces CO2 in 1966 by Lord Ezra to provide design, emissions by 115,000 build, operation and maintenance of tonnes per year – onsite energy plant, including district equivalent to taking heating. It operates over 390 biomass 40,000 family cars off energy plants worldwide saving over the road. two million tonnes of CO2 per year. The plant uses around 120,000 local jobs during the construction Providing dedicated biomass tonnes of waste wood biomass. phase, followed by permanant electricity and heat to communities, Opened by Energy Minister Charles employment on the site and across the commerce and industry is an important Hendry MP, the project created many supporting supply chain. Key facts (2010/11) Employment across supply chain: 3,330 Number of UK companies across supply chain: 170 UK sector turnover: £450 million Global market value: £18.1 billion UK export value: £86 million

45 Renewable Energy: Made In Britain Solid biomass fuels

Background, current “Getting all our woods working, so that status and outlook they provide the wealth of renewable

The total available biomass resource resources and rich variety of wildlife from wheat and barley straw, oil they are capable of supporting, is vital.” seed rape, miscanthus, short-rotation coppicing, underutilised woodland Dr Gabriel Hemery, and non-agricultural land is estimated Our Forests at around 15 million oven-dry tonnes1. Wheat and barley straw, once bailing enabling consumers to make an woods tend to be dark habitats which and livestock needs are met, account informed choice. These schemes build do little for butterflies or birdlife, for for over half of this resource. The NFU on a range of EU-wide standards4 example. A mature wood-fuel supply sees far greater potential for both currently under development and chain in the UK would bring more energy crops and straw to provide new dissemination across Europe. woodland back into active management market opportunities for farmers. 197,000 tonnes of wood pellets for the benefit of wildlife and the Wood-fuel represents only around and briquettes were estimated to have public. The RHI presents a tremendous 8% of biomass energy currently used been manufactured in the UK in 20105. opportunity not only to breathe life for renewable energy fuel2. This most Around 25 pellet mills now operate back into UK forests but to create traditional of fuels is expected to here6. By early 2012 the wood pellet momentum to expand forest cover undergo a renaissance under the RHI. industry had grown to almost 550,000 – the UK is one of the least densely Unlike in the past, today it can fuel tonnes of production capacity. With forested countries in Europe. In England highly efficient technologies. commercial demand in the UK currently the Independent Panel on Forestry is Wood-fuel is produced as logs, well below this capacity, manufacturers currently considering levels of woodland chips, pellets and briquettes. These have either been exporting to mature creation that may be appropriate in the can be manufactured from direct European mainland markets or future. The recent Natural Environment forestry, wood processing residues or supplying co-firing markets. White Paper suggests English woodland discarded construction materials. The The UK wood-fuel supply chain cover could increase from 9% to over UK produces around 1.5 million tonnes is still fragile and currently serves a 12% by 20608. of green wood-fuel each year. The small customer base. Low numbers of existing UK forest estate could produce workers are entering the forestry sector 1 Addressing the land use uses for non-food crops in around 5 million tonnes of wood-fuel, and up-skilling is required. The Forestry response to increasing fuel and energy generation opportunities, ADAS Rosemaund, 2008. while still supplying existing panel mills Commission is seeking to address this 2 DUKES, 2011. 3 and saw mills at today’s level2. through a Forestry Skills Action Plan Forestry Commission estimate. 4 Developed by CEN (the European standards body) in The quality of fuel is vital to the including Confor and REA’s Wood-fuel its technical committee 335. performance of modern biomass Supplier Group. For the rural areas in 5 37% of these pellets were produced from wood technologies. Fuel quality assurance particular the stimulus provided by the processing residues, 36% from arboriculture, 18% from forestry operations and 9% from recycled wood, schemes such as Wood Sure and RHI could provide a major boost for UK Wood Production and Trade (provisional figures), HETAS’s Quality Assured Fuels local economies and employment. Forestry Commission, 2011. 6 Woodfuel Implementation Plan 2011–2014, Forestry scheme guarantee low moisture A fifth of UK forests are managed Commission, 2011. content and the absence of chemical by the Forestry Commission. Of the 7 Progress report of the Independent Panel on Forestry, December 2011. contamination. These marks also remaining 80% in private ownership only 8 The Natural Choice, the Natural Environment White clearly list the country of origin half is actively managed7. Unmanaged Paper, Defra 2011.

Current UK policy Significant growth in the demand 2011, with a further expansion (including for wood fuel is expected, especially in for domestic heat) expected in 2013. framework the industrial and domestic wood use Stakeholders are working to ensure The policy framework for biomass sectors. Although the UK will still need the market can have confidence in power and biomass CHP needs imports – larger biomass power projects the quality and sustainability of the to stabilise to ensure UK farmers typically rely heavily on imports – it wood-fuel supply chain. The Forestry can benefit from long-term supply clearly makes sense to maximise the Commission is working with the contracts for straw and energy contribution from domestic production, private sector to test new approaches crops under attractive terms of which will also minimise impacts on to woodland management, and trade. Despite incentives to grow existing users of forestry products. To is investing in improving skills in energy crops, there is insufficient ensure that growth can be satisfied, sustainable forest management. The UK market pull. The NFU would also like agricultural colleges need to increase Forestry Standard is the Government’s biomass technologies included in levels of training in woodland-based skills. framework for ensuring sustainable Status: Status: am b er the FITs. The RHI was launched in autumn woodland management practices.

46 Renewable Energy: Made In Britain Making small private woodlands work Jobs in solid biomass fuels Growing and production: Case study: Wilderness Wood Farmer; Forester; Arboriculturalist; Agricultural specialist; Agronomist; Wilderness Wood is a privately-owned Truck driver; Labourer; Wood recycler. 62 acre woodland in East Sussex, Manufacture: Wood chipper acquired in 1979. The woodland is run operative; Mechanical engineer; as an example of rural sustainability in Heavy machinery operative; Plant action. It is visited by well over 30,000 operator; Biologist; Chemist; Microbiologist; Quality assurance; visitors each year, as well as around Warehouse manager; Distribution 10,000 locals who have free access to manager. the wood. The evolution of Wilderness Wood has been a key challenge for finding continuous cover mixed species forestry ways to balance the maintenance system. This has created woodland that of productive, responsibly managed is good for amenity, productivity and woodland (in a market where small- biodiversity. scale forestry is not commercially viable) When Wilderness Wood was first with attracting, involving and inspiring established as a business, local planning a broad range of visitors with widely inspectors stated that it would not varying interests. provide an income for two people from Two thirds of the woodland is sweet forestry activity. It is now the largest chestnut, now restored to the traditional employer in Hadley Down village, system of coppicing. The remainder was providing employment for 10–25 local converted from a pine plantation to a people (depending on the season).

UK wood pellet industry has a distribution network in place commercial customers. which can deliver individual pallets Verdo currently employs 50 full time ready for significant of pellets and briquettes anywhere staff in the UK. This figure is expected growth within the UK. It also offers a national to increase as the demand for wood bulk "blown" delivery service for pellets within the UK increases. Case study: Verdo Renewables

Verdo Renewables has production plants at Andover in Hampshire and Grangemouth in Scotland, each with an annual production capacity of 55,000 tonnes of wood pellets and 15,000 tonnes of briquettes. All Verdo products are manufactured from locally sourced timber within the UK, and the wood pellets conform with the latest European Standard ENPlus A1. At present, approximately 60% of Verdo’s pellet output is exported proving the ability of UK producers to sell into markets with tough quality standards. Verdo is well placed to support the rapid growth of pellet- burning biomass systems on the back of the Renewable Heat Incentive. It Key facts (2010/11) Current employment across supply chain: 8,940 Number of UK companies across supply chain: 520 UK sector turnover: £1.2 billion Global market value: £34 billion UK export value: £90 million

47 Renewable Energy: Made In Britain

Liquid biofuels (transport)

Background, current largest consumer of biofuels in the “Biofuels have a clear role EU, with consumption levels nearly status and outlook 3 to play in contributing to three times that of the UK . From 2015 Germany will align biofuels support The UK Government recognised energy security, to its contribution to the reduction of relatively early that biodiesel production particularly in the transport GHG. Second generation advanced could deliver a win-win; recycling biofuels, including biomass to liquid waste cooking oil and reducing sector, and in helping to and cellulosic bioethanol, will enjoy emissions. The 2002 Fuel Duty Rebate mitigate climate change.” favourable tax treatment. for biodiesel stimulated huge investor The UK sector remains surprisingly interest, including in oil seed rape. Nuffield Council innovative (see case studies). The Innovation in bioethanol production on Bioethics industry could be worth billions of ensued and in January 2005 the Fuel pounds to the UK economy by 2020 Duty Rebate was expanded to include if the policy environment encouraged bioethanol. Following the Bioethanol industry actors had achieved major investment in the sector and enabled Declaration in June 2005, investment progress on developing pioneering advanced biofuels, made from waste interest escalated in anticipation of sustainability standards for biofuels. and non-food materials, to come on the introduction of the Renewable The most recent confirmed figures stream. A strong biofuels sector would Transport Fuel Obligation (RTFO) in show 84% of biofuels produced also create significant employment in 2008. from UK feedstock met expected high value engineering, manufacturing This buoyant start came crashing environmental standards, with an and R&D and could provide long-term 1 down in 2008 when the ‘B99 splash ‘n average of 69% GHG savings . growth for parts of the UK that have dash’ scandal hit the biodiesel market. In the face of the media storm, been badly affected by recession, in This saw biodiesel routed to the UK via UK politicians failed to protect and particular on the East coast and in the the USA where it received American champion their domestic industry. North East of England. production subsidies, thus under- The result is that today the UK imports There is still hope that the cutting EU producers. This loophole 78% of its biofuel requirements, many production of advanced biofuels can was eventually closed by anti-dumping of them with poorer sustainability start well before 2020. The need for legislation, but much of the damage standards. Government performed sustainable biofuels for all modes of was done. Small emerging players a policy U-turn, delaying the date on transport, from road to aviation has were destroyed. At the same time, which the UK hopes to achieve its target been recognised by the Committee global vegetable oil prices rose and this, of 5% biofuels in road transport from on Climate Change’s recent Bioenergy together with technical problems, wiped 2010 to 2014. Review which states clearly that out some of the larger players in the UK Government has maintained a increasing volumes of sustainable industry. non-committal approach ever since, biofuels will be needed for at least the Just as the RTFO was introduced failing to set a clear trajectory for an next 20 years. in 2008, major NGO campaigns industry committed to innovation targeted biofuels. Many commendable and sustainability. Unsurprisingly examples of UK production were lost investors have focussed on Europe 1 Figures from Department for Transport, and apply to in a media storm that spotlighted and the US. Bioethanol has the 2010/11. The average performance for all biofuels over the period was 53% meeting environmental standards only appalling examples of biofuels highest market growth rates, but and a 57% GHG saving. production from around the world. biodiesel still dominates the EU 2 The State of Renewable Energies in Europe, 11th EurObserv’ER Report, 2011. Yet through the Low Carbon Vehicle market, accounting for nearly 80% of 3 Renewable Energy: Perspectives for a Sustainable Partnership, academics and relevant biofuel consumption2. Germany is the Energy Future, German Environment Ministry, 2011.

Current UK policy not be set much before 2014. More biofuel technologies can be than any other renewable the industry developed without impinging on framework story is fiercely political, yet the land required to grow food. What performance of the UK industry has is poorly understood in the UK is Investment remains stalled in policy been exceptional. that expensive innovation requires a fog. Although the RTFO came into As the German example shows, viable market today. The UK industry effect in April 2008, Government far more can be done to stimulate the has already proven its commitment has not set out a clear pathway for domestic production of biofuels within to high sustainability standards and meeting the Renewable Energy a framework that rewards continuous exceptional levels of innovation. Directive requirement for 10% of technological improvement. With 4 energy4 used in transport to be robust standards on sustainability This translates to a volume target of around 13%, as biofuels have lower energy content than the RED

Status: Status: renewable by 2020, and this may today, second generation advanced fossil fuels they replace.

48 Renewable Energy: Made In Britain Ambitious innovation animal feed products, with no waste. The company will be one of the delivers food, fuel and largest ethanol producers in Europe jobs (producing 420 million litres per year) and the largest single source supplier Case study: Vivergo Fuels of animal feed in the UK, producing 500,000 tonnes each year. Based in Saltend, near Hull, Vivergo Vivergo’s bioethanol will offer GHG Fuels was formed in 2007 as a savings in excess of 50% over standard biorefinery for the future. As a joint petrol, the equivalent of removing venture between AB Sugar, BP and 180,000 cars from the road each year. Its DuPont, this new £350 million business animal feed production will provide the will help to deliver about a third of the protein requirement for over 340,000 UK’s forecast biofuel demand once fully dairy cows every day, representing about operational later in 2012. 18% of the national dairy herd. Vivergo’s process will use 1.1 million Vivergo Fuels is creating around 80 Jobs in biofuels tonnes of locally sourced, feed-grade permanent, full-time, highly skilled jobs wheat (making the company the UK’s and is expected to support a further Design and development: Design engineer; Project manager; biggest single tip point) which will 1000+ jobs through the company’s Economist; Electrical systems be converted into bioethanol and supply chain. designer; Environmental engineer; Biotechnologist; Chemist; Agriculturalist; Environmental consultant; Feed-stock handling Pioneering commercial and 50 skilled, permanent jobs at the systems designer. plant. Manufacturing: Design engineer; production of biofuels Project manager; Welder; Sheet With the right Government support metal worker; Chemist; Agricultural from waste for sustainable biofuels, the UK could specialist; Microbiologist; potentially have five bioethanol-from- Biochemist, Electrical engineer, Case study: INEOS Bio waste refineries operational by 2020 Mechanical Engineer. Construction and installation: using the technology, producing Planning consultant; environmental INEOS has developed a unique 500,000 tons/year of bioethanol from consultant; Project management biorefinery technology that could waste. Because biofuels produced and construction workers; Electrical position the UK at the forefront of from waste count as double towards engineer; Power generation engineer; Project manager; Health renewable fuels production and waste EU targets, this would contribute and safety manager; Pipefitter; management. INEOS Bio technology one million tons/year towards the Welder; Electrician; Service turns carbon-based waste into Renewable Transport Fuels Obligation. engineer. biofuel and renewable electricity, and It would also save one million tonnes Feed-stock production: Farmer; Agricultural operative; Waste contributes towards the Government’s of CO2 per annum, create 250 skilled operative; Civil engineer; Water zero-landfill objective. Independent permanent jobs, 1500 construction engineer; Irrigation engineer; Process consultants Eunomia calculate that jobs, and safeguard numerous other UK engineer; Chemical engineer; INEOS biofuel delivers 100% GHG manufacturing jobs along the supply Electrical engineer; Field technician; Tanker driver; Warehouse manager. savings when used instead of petrol. chain. Operations and maintenance: The technology has Chemist; QC Laboratory staff; been demonstrated in the Electrical engineer; Power USA since 2003, and the generation engineer; Energy trader; Boiler engineer; Pipefitter; first commercial plant will Welder; Electrician; Service be operational in Florida this engineer; Construction worker; summer. INEOS now plan Electrical/electronic technician; to deploy this technology Plant operator; Mechanic, Project Manager, Fuel and ash supervisor; widely in the UK, beginning Labourer; Maintenance manager. with a plant at Seal Sands Distribution: Distribution manager; on Teesside. The Seal Sands Tanker driver; Blend operative; refinery will create 300 jobs Forecourt operative. in the construction phase Key facts (2010/11) Current employment across supply chain: 3,500 Number of UK companies across supply chain: 200 UK sector turnover 2010/2011: £485 million Global market value: £15.4 billion UK export value today: £25 million

49 Renewable Energy: Made In Britain

Wood-fuel boilers and stoves (heat)

Background, current status and outlook

Heating is our biggest national use of energy, yet the UK has a small renewable heat industry compared to our European neighbours1. Fortunately the UK market for renewable heat has begun a transformation. The traditional wood-burning stove market has “Cutting emissions from ignited in recent years, stimulated by the way we generate heat rising heating bills. But it is industrial and domestic boilers, driven by the is essential if we are to innovative Renewable Heat Incentive, meet our climate change which will propel what has been a cottage industry into the mainstream. and renewables targets.” The proportion of heat generated from renewable sources needs to increase Edward Davey, six-fold over the next eight years, in Secretary of State, DECC order to meet the 2020 renewable heat target. Wood-fuel boilers will play a key role in achieving this target – it is expected that over 60% of the renewable heat target will come from biomass heating. The majority of heat generation to escape volatile energy bills and Modern biomass boilers are highly from wood-fuel boilers is currently in price rises associated with fossil fuels. efficient, often automated, and use the non-domestic sector, and most The storage need for wood-fuel is quality-controlled wood pellets, chips installations are commercial scale2. typically no greater than the space or briquettes which offer a consistent The RHI retains this emphasis on the required for an oil tank, but adequate burn quality and reduce air-borne non-domestic sector as it is particularly storage facilities are an important emissions. The European boiler cost effective3, although it is intended consideration when specifying a market is well developed, particularly to support domestic-scale pellet boilers biomass boiler so rural installers are in countries like Austria, Sweden and and automated log boilers under the likely to dominate. Furthermore, UK Germany, which boast established and RHI in future, and these are steadily sourced wood-fuel and the resulting respected names. However, the UK gaining market presence. There is also incremental jobs in the wood-fuel has a significant stake in manufacturing considerable potential for combining supply chain will come largely from and new opportunities created by biomass boilers with district heating rural areas. the RHI will give the sector a major schemes. boost. Growth in the sector presents Due to the higher cost of oil and 1 The UK has the lowest contribution from renewable large employment opportunities LPG than mains gas, rural areas not on heat in Europe, except for Malta, on nothing. for installers, designers and service the gas grid are particularly suitable for 2 AEA ‘Biomass Boilers – Market size and direction’ – April 2011. engineers, as well as in the wood-fuel domestic wood fuel heating. Biomass 3 In terms of £/subsidy required to give a defined supply chain (see page 46). boilers offer a valuable opportunity internal rate of return.

Current UK policy undermined many of the projects then wood-fuel boilers. The interim grant in development. Unfortunately there scheme (Renewable Heat Premium framework will not be an opportunity to resolve Payments) gives some support in this in the near future given the lengthy the meantime, although uptake to The first phase of the RHI for non- timetable for introducing Phase 2 of date has been slow and is unlikely domestic installations started in the RHI. In the meantime the market to take off until there is clarity on November 2011. Its introduction for mid-scale boilers should take off. the longer term picture under the was delayed due to the proposed Installations over 1MWth are required to RHI. To ensure possible impacts on tariff for projects over 1MWth not report quarterly on the sustainability of air quality are minimal, emissions being compliant with European their biomass feedstock. limits will be implemented early in State Aid rules. The tariff had to The RHI is due to be expanded in 2013.

Status: Status: be reduced substantially, which summer 2013 to include domestic am b er

50 Renewable Energy: Made In Britain Investing for ambitious growth Jobs in wood-burning stoves and boilers Case study: Econergy Manufacturing: Design engineer; Boiler maker; Welder; Electrical Econergy is one of the UK’s leading engineer; Chemist; Agricultural suppliers of complete biomass specialist; Microbiologist; Biochemist, Building Services heating. It employs over 40 staff engineer, Electrical engineer, and had revenues of £7.5 million in Mechanical engineer; Quality 2011. Econergy provides design and assurance. installation guidance, and supplies wood Installation and maintenance: Project manager; Electrical boilers to a further 20 smaller installation engineer; Boiler engineer; companies. It also subcontracts the first three months of 2012 to that Pipefitter; Welder; Electrician; substantial amounts of work to received in the whole of 2011. The Heating engineer; Service pipework, electrical and civil contractors. company also plans to accelerate its engineer; Construction worker; Electrical/electronic technician; It is estimated that the jobs created in training of third party installers using Plant operator; Mechanic, related businesses may be two to three the established British Gas Academies. Project manager, Technical sales times those employed directly. It recently contracted with Stockport manager; Service engineer; Econergy was purchased by British Homes to deliver biomass community Chimney sweep. Gas at the end of the 2011 and it has heating to 1,050 flats in 18 tower blocks. very substantial growth plans for the This solution includes the provision of business. As an example, Econergy solid wall insulation to bring substantial received a similar level of orders in heat demand reduction.

Training apprentices in specialist manufacturing

Case study: Hoval

Hoval Ltd is a leading UK designer and manufacturer of energy efficient heating solutions, including biomass, gas and oil systems. Hoval’s investment in new technologies, combined with its legacy of manufacturing boilers and associated products in the UK since 1887, has earned the company a Royal Warrant as Boiler Manufacturers and Engineers to HM the Queen. Hoval boilers are installed at Buckingham Palace, Windsor Castle and Holyrood Palace. Based in Newark, Nottinghamshire, Hoval currently employs over 130 staff to take advantage of low-carbon has been sustained for many years, is though this number is rising rapidly. In opportunities and focuses on a ‘home evidenced by the fact that a number of 2011 alone, 34 new members of staff grown’ approach. A total of seven the company’s senior staff initially joined were employed in both manufacturing apprentices are employed across the as apprentices. The ‘home grown’ and office based roles, including business, each benefitting from a approach also means that the required apprentices and graduate recruits. tailored training programme to support specialist skills are passed on when older Hoval has recognised the need to their professional development. The staff retire, ensuring Hoval’s expertise develop appropriate technical skills advantage of this approach, which and excellent customer service. Key facts (2010/11) Employment across supply chain: 4,530 Number of UK companies across supply chain: 210 UK market turnover: £540 million Global market value: £11.9 billion UK export value: £57 million

51 Renewable Energy: Made In Britain Made in Britain map Employment and turnover by region 2010/11

52 Renewable Energy: Made In Britain Regional employment and turnover

Analysis carried out by Innovas shows It is the home of the Energy Technology 2003 and 2010. Outside of London, this the employment opportunities across the Institute, a partnership between industry densely populated region leads the UK in renewable energy sector are distributed and the UK Government to accelerate the employment in many of the renewable nationwide. Each region in the UK development of clean energy technologies. energy technologies including: anaerobic represents significant potential for growth digestion, energy from waste and wind. across a wide range of technologies and East of England Over 13,000 people are employed in the renewable fuels. renewable energy sector in the region, Over 7,730 people are employed across 475 falling just behind London for the top Scotland companies with sector turnover of £1.02 region for employment in the industry. billion. This prime agricultural region has the Turnover is £1.6 billion. Scotland has massive natural resources most companies involved in biomass fuels including 60% of the UK wind resource. in the UK, employing over 1,200 people. South West The Scottish Government has an ambitious A Regional Woodland Strategy, in place target to source 100% of its electricity from since 2003, has paid off as the region also The South West employs nearly 7000 renewables by 2020 and it is well on its way employs the largest numbers in biomass people in nearly 450 companies, turning to achieving its goal. Jonathon Porritt says fuel production. Notable landmarks include over close to £1 billion. Offshore resources the European Marine Energy Centre in the crops research at the John Innes Centre, are ample in the southwest which is the Orkneys ‘has no parallel anywhere in the an international centre of excellence in home of the North Cornwall Wave Hub. world’. plant science and microbiology and the The wave hub is the largest wave energy Overall sector turnover in Scotland Tyndall Centre at the University of East demonstration site with 8km2 of seabed is nearly £1 billion across over 500 Anglia specialising in climate change capable of producing 20MW of wave companies. Nearly 8,000 people were research. energy. This is supported by the Peninsula employed in renewable energy in 2010/11, Research Institute for Marine Energy with the wind sector the biggest employer. Greater London which boasts international researchers and Biomass boilers and biomass fuel also world-class facilities to help advance marine feature strongly. In addition there is The capital employs the largest number renewables. significant employment across Scotland’s of people in renewable energy in the UK, prestigious academic institutions. The with over 18,000 people employed turning West Midlands soon to be launched Green Investment over £2.4 billion in 2010/11. Many of these Bank will be located in Edinburgh, making people are involved in professional services. After London, the West Midlands employs Scotland not only a hub for renewables but The Greater London Authority’s London more people in the solar PV industry than also a hub for green finance. Plan appears to be driving significant any other region in the UK. Overall the deployment of onsite renewables in the region employs over 9,300 people in 690 Northern Ireland region; London boasts the highest figures companies turning over around £1.2 billion. nationally for employment in onsite In March 2012 The Co-operative launched DECC figures show exceptional recent renewables like solar, heat pumps and an Enterprise Hub to support Renewable growth in renewables in this region. This biomass boilers. It also has the highest Energy Schemes in the West Midlands. The is expected to continue with the Crown employment in energy from waste. programme has set aside £1 million to help Estate taking bids for a 800MW offshore community renewable energy scheme wind farm and a 200MW tidal stream North East which will see the demand for renewable energy project in the region. The region energy in the region increase. is also supporting leading research into Generation from renewables has grown anaerobic digestion technologies at the rapidly in this region. However, the region Yorkshire & the Humber Renewable Energy Centre at the Agri- employed the lowest numbers of people Food and Biosciences Institute (AFBI) in 2010/11 at around 3,600 people across DECC data shows renewable energy Hillsborough. The 2010/2011 workforce approximately 235 companies, primarily in generation in Yorkshire has remarkably base is 4,000 in the renewables industry solar PV and wind technologies. Turnover almost tripled between 2003 and 2010. and the regional sector turnover is nearly was nearly £0.5 billion. The region boasts Wind is the biggest employer and there are £0.5 billion. the National Renewable Energy Centre over 20 onshore and offshore wind farms () which drives technological in the region with major schemes under Wales innovation to advance the development, development. The region has a strong show deployment and integration of renewables. in solar, driven by pioneering councils like In 2010/11 almost 300 renewable energy Kirklees and the dynamic Yorkshire and companies in the region employed 4,700 North West Humber Microgeneration Partnership. people with a turnover of £0.57 billion. Over 6,100 people are employed in nearly Wind and solar each employ well over 1000 The region employs over 9,400 people 400 companies, turning over £0.8 billion. people in Wales. Wind contributes over across 611 companies turning over £1.2 £160 million to the economy. Wales boasts billion. After London, the North West the innovative Anglesey Energy Island and employs the greatest number of people the Sharp Solar Centre, which provides in the heat pump sector. After London education and training for the community. and the South East it has the strongest The Welsh Government won the British employment in wind. The Joule Centre Renewable Energy Region Award in 2011 for energy R&D is based here and is a for their pioneering Arbed scheme. collaboration between universities and research establishments within the region East Midlands and stakeholders in the energy industry.

There is strong employment in solar PV and South East wind technologies. The region employs over 8,000 people in over 550 companies, Energy generation from renewables in the with a regional turnover of £1.04 billion. South East more than doubled between

53 Renewable Energy: Made In Britain Conclusions

There’s a major success story to be told Projected UK employment growth in renewable energy sector for renewables; one of growth, jobs and to meet 2020 target opportunity for both businesses and 450,000 individuals. As the costs of energy from non-renewable sources continue their 400,000 relentless rise, the economic benefits of shifting to renewable sources become 350,000 ever clearer. For a modest investment in 300,000 support over the coming years the UK stands to reap significant benefits in the 250,000 longer term and has good prospects of becoming a major player in the growing 200,000 international green economy. 150,000 This report calls for a familiar circle of challenges to be vigorously squared: 100,000 energy security, rising fossil fuel prices, 50,000 climate change, unemployment, ageing infrastructure, skills shortages 0 and the renewable energy targets. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 A much sharper focus is required from Government to transform these and the range of opportunities for the put renewables at the heart of the UK’s individually difficult challenges into a UK industry to export its technology growth strategy and to monitor its collective opportunity – and if they do and expertise grows daily. Already in increasing benefits. We need the Treasury so, working with industry and other 2010/11 exports accounted for 12.8% to fully recognise and quantify the many stakeholders, it will be the opportunity of of UK renewables turnover and the economic benefits of renewables, rather a generation. The stakes are high. Failure prospects for this to increase over time than focusing entirely on their short term to address these challenges in the round are excellent. costs. We need the ONS to monitor may well result in crises on several One of the main attractions of renewables employment to inform a fronts. The 2012 Budget document, for renewables, as this report shows, is the clear focus on developing the training example, makes clear oil prices could very wide range of skills and jobs that the and skills that the sector requires in yet derail economic recovery. various technologies require. Renewables increasing amounts. We need a positive This report has made an initial attempt touch most areas of the economy and approach on planning, on building at quantifying the full-time equivalent jobs can provide interesting employment regulations, on transport, on agriculture across the full range of renewable energy to those most in need – those newly and on the environment. technologies in the UK and concludes entering the workforce, sectors in recent Only then will we benefit fully as a that there were almost 100,000 in decline (such as heavy engineering and nation from the huge opportunities that 2010/11, rising to at least 110,000 today, construction) and the rural economy. renewable energy, made in Britain, can not least given the recent surge in In addition the decentralised nature of offer. deployment of solar PV under the Feed- many renewables guarantees in Tariff scheme. The lead sectors are that these jobs are spread wind and bioenergy, with solar showing widely around the UK, with the largest recent growth. If the UK is to some of the regions most in achieve its target under the Renewable need of economic growth Energy Directive of meeting 15% of our benefitting from significant energy consumption from renewables renewables potential. by 2020, the renewables contribution The future is therefore will need to continue to grow by potentially bright but it will an average annual rate of 15.7%. It is not happen on its own. UK reasonable to assume that employment renewables policy has made will have a similar growth rate, as shown great strides in recent years in the diagram here, reaching well over but there’s still a long way 400,000 in 2020. We estimate that the to go to achieve the kind of UK market was valued at £12.5 billion in supportive, joined-up approach 2010/11 and that it could reach over £50 that is required. DECC cannot billion in 2020 at the above growth rate, do this alone, and certainly though we do expect cost reductions for not in conflict with other many technologies. departments. We need a BIS Renewables deployment is Minister to be given a clear expanding much faster worldwide renewable energy remit, to

54 Renewable Energy: Made In Britain Methodology

Standard Industrialisation Codes (SIC) rigorous assessment of the source data. data sets, Yellow Pages, proprietary are used to classify businesses according The model also measures activity in the databases, Euromonitor, Dun and Bradstreet to the type of their economic activity. supply chain for each sub-sector, totals are and Thompson. The methodology New sectors such as renewables are not aggregated from 2,300 discrete individual measures where the economic activity currently covered by the SIC categorisation product group lines for the whole low actually occurs and is reported, rather than in detail and this has led to a lack of carbon and environmental goods and just at the headquarters or main facilities. robust data on jobs associated with the services sector. Each of these lines uses Consultation with stakeholders: The sector. Headline data on the low carbon specific data sources and can be analysed analysis and data were then sense checked sector has been produced by Innovas for individually, unlike traditional studies which with industry participants, these included government however a detailed breakdown often group together data sources. some REA sector groups, REA sector heads, of the renewables sector by technology or The methodology mitigates against developers of certain technologies, and geographical area has not been published double counting risks by checking and expert members. until now. comparing the numbers over a period of Sector adjustments: The adjustments years, with multiple validated and verified to the data following consultation with data sources. The REA is planning to produce an annual stakeholders, or where the Innovas update of this analysis and data, although methodology was not used were: ‘Key facts’ ideally ONS would be providing this Deep geothermal: The REA’s deep information. We would welcome any geothermal sector group provided the Employment is a measure of the feedback and comments on the data in data for this technology using current estimated employment numbers across this report. Please send any feedback to industry knowledge and detailed analysis of all aspects of the supply chain – these [email protected]. Deep Geothermal employment for the US are direct full time equivalent jobs. Department of Energy. National, regional and other economic Marine issues: The global definition Definition of sector data sources have been used to estimate used by Innovas includes schemes the current employment levels. Where industry would themselves classify as large The Innovas methodology uses a broader employment information is scarce, or hydro. The consequence is that the figure definition of the renewable sector than where Innovas are estimating employment for the global share of the market would other studies, because it includes the for a proportion of a company’s sales, be much lower than existing estimates. contribution from supply and value chain they rely on comprehensive case study The Innovas methodology only includes companies. It relies on ‘bottom up’ data materials to provide sensible industry- commercially funded R&D, however based on what companies actually do, specific ratios and benchmarks, or for industry feel that publically funded R&D rather than what they are classified as some technologies REA’s sector groups is very relevant for this sector. This study doing under the SIC system. Innovas’s have contributed data (these are set out in therefore now uses an alternative study for definitions are consistent with (but additional adjustments). these estimates. not limited by) SIC and NAICS codes Number of companies is a measure Solar power: There has been a surge in and extend down to eight-digit code of the total number of companies in the the growth of solar since the introduction classifications which specify activities. region that match (or fit within) the activity of the small scale Feed-in tariff. The Innovas’s final data levels go beyond SIC headings for renewables sector. Due to reviews of the scheme have resulted in an code definitions. the limitations of using SIC codes the increased demand for solar systems, which methodology uses a unique analytical means that the Innovas data is significantly Data sources process to allocate companies to the out of date given 2011 growth. Hence up- renewables activity headings. The total to-date REA figures have been inserted in The study draws from over 700 sources. number of companies in this report has the relevant section. It includes activities undertaken by been arrived at by a bottom-up analysis of Heat pumps: The REA has scrutinised companies across the renewable company stock within the country/region the built environment link with heat supply chain including related network using such sources as: Companies House, pumps, where there is a complex overlap activity, commercial R&D1 only, through European credit agencies, British Telecom, with the air conditioning and refrigeration manufacturing into distribution, retail, institutional listings and UK credit agencies. industry. We are satisfied the figures are installation, and maintenance services. Sector turnover estimates are based representative of full time employees. Companies are included in the supply upon where economic activity takes place SummitSkills believes this could be an chain where 20% of their turnover is i.e. the location of the business rather underestimate. supplied into the sector, but only the sales than the location of the income earner. In Woodburning stoves: An area of activity relating to the renewable sector is the calculation of turnover value Innovas concern for the industry is a lack of included in the analysis. In order to limit the consider: turnover by sub sector within reliable data for the wood burning stove risk and error the numbers are informed postcode sets; capital asset adjustment by industry. It was not possible to separate by multiple sources. Innovas carry out a sub-sector within postcode sets; ONS GDP this technologies data from the wider sensitivity analysis with the aim to provide a calculations; supply chain procurement boilers data, but there is anecdotal confidence level of 80% within a range of value sub-sector by sub-sector by postcode evidence of strong growth in this sector, +/- 20%. sets; sub-sector specific sales reporting which is taking place outside the UK policy where available. framework. Model Global market value uses the same Onshore and offshore wind data: The methodology as above for each of the supply chains in these two sectors are The full sector analysis model is a main country markets with the largest 50 very closely linked and it is very difficult to bottom up, multi-staged model that uses markets by market value being analysed to separate the two. Innovas have provided econometric techniques sources and the same level of detail i.e. 2,300 discrete their best estimate for 3 Key Data lines. methods (such as data triangulation2) to lines. verify and enrich source data drawn from Regional data methodology: Having multiple sources. The approach uses data identified the total company stock in the 1 Government and European funded R&D is not from actual, live and accumulated business region, product and service outputs have included. cases and computes confidence levels been identified and verified by accessing 2 The gathering of data through several sampling for final reported numbers, based upon a further databases that include: institutional strategies in order to enhance confidence in results.

55 Renewable Energy: Made In Britain Acknowledgements

REA would like to warmly thank The lead author is Leonie Greene, with Kelly Butler; Stuart Elmes; Andrew the sponsors of this report for their Tricia Wiley. Contributions to the text have Raingold; David Atkinson; Dr Jonathan generous support and engagement: been gratefully received from Dr Michael Scurlock; James Sessions Hodge; Stuart SummitSkills; EU Skills; RES; RWE Hammond (SummitSkills); Robert Murphy Hayward-Higham; Dan Cooke; Richard npower renewables; Centrica and (EU Skills); Brittany Vogel; Johanna Doyle Stark; Chris Miles; Gavin King-Smith and Myriad CEG. Supporting contributions (RES); Gaynor Hartnell; Paul Thompson; Louisa Evans, as well as all contributing were also gratefully received from Mike Landy; Stuart Pocock and Dr Ryan case studies. Particular thanks must Estover Energy. The contents of this Law (who assembled key data for the go to; our partner John Sharp at report do not necessarily reflect the Deep Geothermal sections). A large Innovas; Nigel Hollett; Anna Stanford; views of sponsors. number of people need to be thanked Alan Simpson for invaluable input; our for their contribution to this report, they sponsors at EU Skills and SummitSkills Design is by Jeff Searle at Mulberry are; James Beard; Jan Sladek; Steve (who patiently helped us make sense of Design. The Made in Britain map is by Roberts; Emma Johnson; Stephanie a complex skills landscape); and to Greg Sarah Duke at Scruffy Duke. Design Merry; Clare Wenner; Stewart Boyle; Barker for his continually constructive template for the ‘Technology’ pages is Gerard Reid; Ray Noble; Anthony engagement with the REA on this by Tamsin Bosch. Battersby; John Baldwin; Terry Seward; project, among others.

Glossary RHPP Renewable Heat Premium Payment p38 © RWE npower RO Renewables Obligation p39 © Scotch Whisky Association AD Anaerobic digestion ROC Renewable Obligation Certificate p40 © Future Heating Ltd BIS Department for Business, RTFO Renewable Transport Fuels p41 top: © Viridian Solar; bottom: Innovation and Skills Obligation © AES Solar Systems BSE Building Services Engineering STEM Science, Technology, Engineering p42 © Cluff Geothermal CCC Committee on Climate Change and Mathematics programme p43 © Geothermal Engineering Ltd CHP Combined heat and power UKCES UK Commission for p44 © Dalkia CNG Compressed natural gas Employment and Skills p45 top: © RES; bottom: © Dalkia CRC Carbon Reduction Commitment p46 © Estover Energy DCLG Department for Communities Photo credits p47 top: © Wildnerness Wood; bottom: and Local Government © Verdo Renewables DECC Department of Energy and Cover, left to right: top row: © Mann Power p48 © Vireol Climate Change Consulting, © EvoEnergy, © TEL; middle p49 top: © Vivergo Fuels; bottom: DEFRA Department for Environment, row: © EfW-Infinis, © EMEC, © Argent & © INEOS Bio Food and Rural Affairs Petroplus; bottom row: © Greenpeace, p50 © Econergy DfT Department for Transport © RWE npower, © Dulas p51 top: © Econergy; bottom: © Hoval DPM Deputy Prime Minister p4 © Estover Energy p54 © Estover Energy EMR Electricity Market Reform. p7 © EvoEnergy Back cover: © Mike Landy FIT Feed-in Tariff p9 © EMEC GDP Gross Domestic Product p11 © TEL About the REA GIB Green Investment Bank p12 © Pelamis GHG Greenhouse gas emissions p14 © Greenpeace The Renewable Energy Association GW Gigawatt p15 © SummitSkills represents around 950 renewable energy HMT Her Majesty’s Treasury p16 © Dulas companies and is the voice of the renewable HVAC Heating, ventilation and air p17 © TEL energy industry in the UK. A not-for-profit conditioning p18 Courtesy of Centrica Energy industry association, the REA promotes IEA International Energy Agency p19 © British Gas the use of all forms of renewable energy, IPCC Intergovernmental Panel on p20 © Argent & Petroplus uniquely representing the full range of Climate Change p22 © Greenpeace renewable energy technologies across kWh Kilowatt-hour – a unit of electricity p23 top: © RES; bottom: © Mabey Bridge power, heat, transport and renewable gas. MW Megawatt p24 © Dulas Ever-increasing corporate membership NASA National Aeronautics and p25 top: © SMD; bottom: Courtesy of ranges from major multinationals and Space Administration Centrica Energy manufacturers through to service providers NPPF National Planning Policy Framework p26 © EvoEnergy and sole traders. The REA also runs a wide NSAET National Skills Academy for p27 top: © Romag; bottom: © EvoEnergy range of highly regarded seminars and Environmental Technologies p28 © Mann Power Consulting workshops. For more information see OECD Organisation for Economic p29 top: © Ecowave; bottom: © Ecowave www.r-e-a.net and for regular up-dates Co-operation and Development p30 © Aquamarine Power follow us on twitter @REA_News. ONS Office for National Statistics p31 top: © Aquamarine Power; bottom: ORED Office for Renewable Energy © Marine Current Turbines Ltd Deployment p32 © John Rennie & Sons Farmers Ltd PM Prime Minister p33 top: © Marches Biogas; bottom: © CNG PV Photovoltaic p34 © Viridor REA Renewable Energy Association p35 top: © DPS & Ethos Energy; bottom: REAL Renewable Energy Assurance © Viridor Solar Limited p36 © SummitSkills RPR Reserves-to-production ratio p37 top: © Myriad CEG; bottom: RHI Renewable Heat Incentive © Worcester Bosch

56 Demolition expert Civil works personnel Foreman Surveyor Structural engineer Civil engineer Quantity surveyor Biochemist Labourer Electrician Plumber Roofer Heavy equipment operator Sheet metalworker Operations Manager Office administrator

Health and safety officer Shift manager General“And what labourer is the cost AD plant operator Supervisor Accountant Purchaserof a reorientation? Customer We care Communications expert Sales person mightLogistics remind ourselves manager that to calculate the cost Architect Solar system design engineer Lawyerof Projectsurvival is perverse. manager Financial planner Economist Forester ElectricalNo systems doubt, a price designer has to be paid for anything CHP plant operator Port hand Physics engineerworthwhile: Environmental to redirect engineer Environmental consultant Meteorologisttechnology Programmer so that it Aeronautical engineer Agronomist Welder servesMachinist man instead Skilled of destroying him requires assembler Marine technology design engineerprimarily Test an technician effort of Chemical engineer Materials engineer Semi-skilledthe imagination and worker an abandonment of fear.” Architectural technician Planner Marine biologistE.F. Schumacher Waste collector Turbine specialist engineer Wood recycler Crane operator Farm worker Power generation engineer Energy trader Policy expert Underwater diver Biomass power plant operator Marine engineer Turbine specialist engineer Metal worker Office manager Ship’s captain Rigger Pipefitter Helicopter pilot Chemist Energy manager Instrumentation engineer Scaffolder Panel cleaner Hydrogeologist Boiler engineer Reservoir engineer Environmental scientist Heating engineer Ecologist Subsea engineer Materials engineer Oceanographer Marketing manager Woodland manager Fluid dynamics specialist AD systems design engineer Biochemist Farmer Feedstock loader Truck driver Plant operator Maintenance technician Laboratory worker Vehicle designer Hydrologist Pump attendant Microbiologist Fuel and ash supervisor Labourer Maintenance manager Geologist Pump designer Geophysicist Drilling services manager Tanker driver Plant operative Pipeline engineer Product development manager Biotechnologist Agriculturalist Tanker driver Farmer Arboriculturalist Wood chipper operative Warehouse manager 57 Systems engineer Quality assurance manager Marine surveyor “This report could hardly be more timely.” Will Hutton

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