Neta may be modified to help green sector says minister

3 April, 2002 – Britain’s energy minister, Brian Wilson, told a wind power conference in Paris yesterday that he was willing to see modifications to the Neta electricity market in order to encourage the renewable power sector which has been penalised under the current arrangements.

The government is keen to see the expansion of “green” power production such as wind, wave and solar power. It wants renewables’ share of Britain’s electricity generation to rise to 10 percent by 2010 from three percent currently. These generators have found it difficult to compete under Neta as the balancing mechanism operates against generators with unpredictable output.

“We are taking a very close look at impact of Neta and what it has done to CHP (combined heat and power) and small generation,” Wilson told the conference.

“If Neta is contrary to our policy on renewables and emissions, then something needs to be done about Neta. We are not going to change the policy on renewables or emissions.”

Neta has sent UK wholesale electricity prices to record lows but the government is worried about its impact on the green power industry.

The government recently launched a study into the impact of Neta on the renewable sector.

“We will reporting very soon on our initial study on Neta and we will closely monitor it,” said Wilson.

“I am absolutely determined that we should have a single and not two policies which are potentially in conflict with one another.”

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