The Combined Heat and Power Association (CHPA) has responded to Owen Paterson’s speech to the Global Warming Policy Foundation.
While the CHPA welcomed the former Secretary of State’s call for a focus on CHP and demand management as a way to more cost-effectively deliver a low-carbon, secure energy system, it noted that it is “current energy policy, not the Climate Change Act”, which has held back progress.
Paterson’s call comes as the Government looks set to reject dedicated support for new gas CHP investment, despite its own analysis showing that it saves consumers money compared to current policy.
Responding to the speech, CHPA Director Dr Tim Rotheray said: “It is not the Climate Change Act but current energy policy that has led to unnecessarily high costs in meeting our energy goals. CHP saves carbon, improves energy security and cuts costs for householders and businesses. But current policy has almost entirely excluded more cost-effective, local, efficient energy generation.
“On one side we have a low carbon generation policy that ignores lower-cost carbon savings, and an electricity security policy, in the capacity mechanism, which has no regard at all for efficiency.
“Consumers are looking to Government to ensure we are achieving our goals in the most cost-effective way. We need to decarbonise and, if we are to retain the support of voters, we must do so at lowest cost.
“It is current policy, not the Climate Change Act, that is the real barrier.”