Category Archives: Green Deal
Major industry Players back the Green Deal Finance Company as £244m funding package is ready to flow
The Green Deal Finance Company (GDFC) has confirmed a £244 million funding package to set-up Green Deal Plans that will enable providers across the country to begin work on the scheme.
The GDFC can also confirm the 16 organisations behind the stakeholder loan – all key players in the Green Deal. This package will provide very long-term and low-cost funding to enable householders across all parts of the country to finance energy efficiency improvements to their homes.
The 16 organisations behind the stakeholder loan are key players in the Green Deal, including energy suppliers, potential Green Deal installers and the Department of Energy and Climate Change. They are British Gas, Carillion, CertiNergy, CIGA, the Department for Energy & Climate Change, Domestic and General Insulation, EDF Energy, E.ON, Gentoo, InstaGroup, Kingfisher, Newcastle City Council, RWE npower, PricewaterhouseCoopers LLP, SSE, and ScottishPower.
The financing package consists of:
- committed funding of £69 million from 16 members of the company and other stakeholders in the Green Deal in the form of Stakeholder Loans and Junior Capital
- an additional Junior Capital Facility of £20 million and a Contingent Capital Facility of up to £30m provided by DECC
- a senior debt facility of £125 million provided by the UK Green Investment Bank
Mark Bayley, Chief Executive of the Green Deal Finance Company, said: “I am delighted to confirm the completion of the £244m financing package with our principal stakeholders, DECC and the UK Green Investment Bank. We can now offer Green Deal Providers a one-stop-shop to set up, finance and administer Green Deal Plans.
“By ensuring that householders can only borrow what they can expect to save in energy bills, and by offering a fixed rate for 10 to 25 years, Green Deal Plans will be affordable and widely available to over 80% of the population. No other consumer credit product offers a fixed rate for up to 25 years and is this inclusive.”
“I am also delighted to be making this announcement after very strong growth in Green Deal assessments of energy-saving measures requested by householders during March, well in excess of the 1,800 or so assessments carried out in February. Many of these assessments can be expected to convert into Green Deal Plans as householders install the measures into their homes.”
Commenting on the publication of the latest Green Deal statistics, Energy and Climate Change Minister Greg Barker said: “It is clearly very early days but the latest figures on the Green Deal show that this new market is gathering real momentum. 9,268 Green Deal assessments taking place in just over two months is very encouraging and shows a genuine interest from consumers.
“The Green Deal gives people the opportunity to improve the efficiency of their homes, make them warmer and protect themselves from rising energy bills.
“The number of businesses getting on board continues to rise steadily, underlining that the Green Deal offers fantastic new commercial opportunities.
“48 firms are now authorised as providers, with a further 831 registered to carry out installations and over a thousand individuals registered to offer assessments. Overall this is a really promising start for the Green Deal.”
What is your reaction to the £244 million funding for the Green Deal initiative that will finance energy efficiency improvements to people’s homes and boost the trades? Share your thoughts by commenting here or raise your voice on our Facebook and Twitter pages.
Nick Clegg has today transferred greater powers to local authorities across England to drive economic growth, build thousands of new homes and boost employment in the trades.
The Deputy Prime Minister has backed the ‘City Deal’ which aim is to grant more freedom, powers and tools needed for local government to shape their economic future and create new jobs.
Deputy Prime Minister, Nick Clegg said: “Even more places will be free from Whitehall control and have the tools to power their own growth. These deals help cities and their wider areas make once in a generation changes that will be felt by everyone across their region.”
Councils in England need to ease planning regulations and have greater control over funds to accelerate housing and residential developments.
According to Coventry and Warwickshire local authorities, the scheme is estimated to create around 30,000 jobs across the region and boost the trades.
The Coventry and Warwickshire Local Enterprise Partnership (CWLEP) that led the City Deal bid said it was pleased by the Government’s decision to drive economic development tand create new jobs in the area.
Sir Peter Rigby, chair of the CWLEP said: “This is great news for Coventry and Warwickshire and allows us to put our very exciting plans into place to do just what the LEP was established to do – to create jobs and economic growth and prosperity.”
The 20 cities and their outline proposals:
Black Country: want to use a City Deal to grow their high-value manufacturing sector. They want to build on the Black Country’s track record in designing, building and exporting components and products such as aircraft control systems, turbo technology and an extensive range of automotive components.
Bournemouth and Poole: want to use a City Deal to encourage a transition to a more balanced local economy by boosting Advanced Manufacturing (particularly marine and aerospace) as well as digital and creative industries.
Brighton and Hove: want to use a City Deal to realise the economic potential of their eco-tech sector. This is a new, and growing, sector in Brighton & Hove. The universities have developed specialisms in this area. Brighton and partners want to build on this and encourage more innovation and business growth.
Greater Cambridge: want to use a City Deal to unleash the next wave of the “Cambridge Phenomenon”, which is a cluster of high-tech firms that focus on biotechnology, software and electronics around Cambridge, many of which have links with Cambridge University. Greater Cambridge wants to spread the “brand” of Cambridge over a broader area by creating better links between the science and business parks (e.g. Babraham Research Campus), the city centre (where Cambridge and Anglia Ruskin Universities are based), strategic transport routes and key residential sites (including the new town development of Northstowe), as well as the Enterprise Zone at Alconbury.
Coventry and Warwickshire: want to use a City Deal to capitalise on existing strengths in advanced manufacturing and engineering and to support the expansion of this sector. Coventry and Warwickshire want to grow these sectors by raising the skill levels of the workforce by increasing the number of people with intermediate and high level engineering skills and encouraging greater innovation in the sector.
Hull and the Humber: wants to use a City Deal to maximise the potential of the Humber Estuary. The estuary is already a home to a chemicals and processing sector worth £6bn and has the highest tonnage throughput of any UK port. Humber now wants to grow the “Energy Estuary” by maximising these opportunities and the benefits of offshore wind investment – and to ensure that local people have the necessary skills to take up these opportunities.
Ipswich: want to use a City Deal to equip local people and businesses with the skills they need to take advantage of significant expansion in high value jobs through development of Sizewell and Felixstowe.
Leicester and Leicestershire: want to use a City Deal to accelerate the growth of key sectors in the economy (notably manufacturing and logistics) and to encourage greater commercialisation of research emanating from the three universities in the area (Loughborough, Leicester and De Montfort).
Milton Keynes and the South East Midlands: want to use a City Deal to deliver significant, sustainable growth in housing. Over the longer term, this will allow the local area, and South East Midlands, to attract and find homes for high-skilled workers to drive economic growth. In the shorter term, providing confidence to private sector developers will create jobs in construction and industry supply chains.
Greater Norwich: wants to use a City Deal to accelerate the growth of the internationally-recognised environmental and life sciences industry within the Greater Norwich area by focusing on the potential of Norwich Research Park.
Oxford and Oxfordshire: want to use a City Deal to accelerate the growth of the knowledge economy by building on the strong base (including significant clusters in bio-sciences, space technology and cryogenics), two world-class universities (Oxford and Oxford Brookes) and internationally-recognised ‘Big Science’ research centres (eg Culham Research Centre and Harwell Laboratories).
Plymouth: wants to use a City Deal to build on its strengths in advanced engineering and design, marine renewable energy, maritime and sub-sea operations and supporting technologies. It seeks to do this by increasing the commercialisation of research in these areas and increasing exports from its high growth companies.
Preston: has seen significant private sector growth in the last 10 years, largely driven by growth in small and medium sized businesses. Preston want to build on this and sustain further growth, particularly in the aerospace and advanced manufacturing sector by investing in infrastructure.
Reading and Central Berkshire: want to use a City Deal to ensure that local people have the skills they need to access local job opportunities. Reading wants to focus on ensuring that people have skills in the growing sectors (particularly construction, logistics and knowledge intensive areas) and to ensure school leavers have the soft “employability” skills businesses need.
Southend and South Essex: want to use a City Deal to increase investor confidence to increase the supply of good quality office space and housing which will accelerate business expansion.
Stoke and Staffordshire: want to use a City Deal to build on strong heritage to become the internationally competitive home for Advanced Materials businesses in Europe. They want to grow the advanced materials (metals, ceramics, polymers, etc.) sector and to promote the use in advanced manufacturing.
Southampton and Portsmouth: wants to use a City Deal to drive the growth and diversification of the maritime sector in the area. They are seeking to do this by supporting growth in the associated sub-sectors of transport and logistics, defence and advanced manufacturing, the visitor economy and the complex supply chains linked to research and innovation.
Sunderland and the North East: want to use a City Deal to expand their manufacturing base and to diversify and grow the city’s economy.
Swindon and Wiltshire: want to use a City Deal to capitalise on the strong military presence in the area. They seek to do this by increasing the number of spin-offs firms from developments in military technology and to harness the skills from ex-servicemen/women.
Tees Valley: wants to use a City Deal to establish a global super cluster of petrochemical and processing industries to compete on the world stage. They want to build on Tees Valley’s current industrial complex, which includes over 50% of the country’s petrochemical and a significant percentage of the pharmaceutical sectors. Such a super cluster would have at its heart the production of cleaner energy, containing new developing, and associated, sectors such as biofuels from waste and other forms of renewable energy such as offshore wind.
Carillion has committed to create and sustain at least 360 jobs and also encourage its business partners to invest locally in a range of new green energy projects.
Under the BES scheme, Carillion will work with Birmingham City Council as its exclusive delivery partner to improve the energy and carbon efficiency of up to 60,000 households across the city, together with schools and other non-domestic council properties.
The scheme will give households affordable ways of improving their properties by fitting energy efficiency measures, such as insulation and new boilers, under the Government’s Green Deal.
The eight-year contract is estimated to be initially worth up to £600 million, but has the potential to be extended to the wider West Midlands area under a framework agreement worth up to £1.5 billion over eight years.
Now that the contract has been finalised, Carillion is embarking on a recruitment programme to hire locally-based energy assessors, who will evaluate properties and provide advice on the energy efficiency improvements they require.
Commenting on the newly signed deal, Carillion’s Chief Executive Richard Howson, said:”Birmingham Energy Savers is a genuinely ground-breaking scheme and we are delighted to have agreed this contract with Birmingham City Council.
“We believe that in order to reach its full potential, the programme must fully engage with the community and this is why the next stage will focus on recruiting local people and businesses to deliver the scheme.”
Cllr James McKay, Cabinet Member for a Green, Safe and Smart city at Birmingham City Council, added: “This programme represents a major milestone in Birmingham’s green ambitions, and demonstrates that the social justice and environmental agendas go hand-in-hand with each other.
“It will reduce energy bills for citizens by up to £300 per year – taking up to 40,000 people out of fuel poverty by 2015 – create jobs in the technology supply chain and ensure that there are less carbon emissions from the city.”
The Energy and Climate Change Secretary said that countries around the world had to make their contribution to reach closer to the implementation of the Kyoto Protocol, the Bali Action Plan, and the Cancun Agreements.
Last year, the UN agreed to adopt a universal legal agreement on climate change no later than 2015.
That would mean that each country has to cut its carbon emissions and focus on renewable energy resources, boosting the green economy and creating new jobs.
Energy Secretary Edward Davey said: “A global effort is needed if we are to achieve our climate goals – we need to pave the way for the new global deal while delivering more action now.
“Many developed and developing countries have already come forward with pledges under the UN framework to reduce their emissions by 2020. I want to encourage more to do so at Doha and beyond.
“The EU has led the way in calling for more ambition and in enshrining emissions reductions in law. I want to encourage it to move to a more ambitious 2020 emissions reduction target of 30%.
“Here in the UK we are driving forward our plans to move to a lower-carbon energy mix, and this week we will be publishing the Energy Bill which will enable this.
“I also want to see progress at Doha on achieving the global deal that all countries agreed to work towards in Durban last year. For the first time all countries agreed to sign up to a legally-binding deal to be adopted by 2015, and at Doha we need to agree a plan for these crucial negotiations.”
Speaking at the CBI’s conference in London, the Prime Minister said the Government will embark on radical reforms to speed up key decisions that will boost economic growth and “eliminate bureaucratic rubbish”.
In a wide-ranging keynote speech, Mr Cameron said the UK was in the “economic equivalent of war” but hailed signs that Britain was again “selling to the world”. “Frankly, we need this buccaneering, deal-making, hungry spirit now more than ever,” he said.
The prime minister said he had taken “massive steps towards leaner, faster government” but acknowledged that more needed to be done to speed up decision making.
“We urgently needed to get a grip on this,” he said. “Whitehall had become too risk-averse – too willing to say ‘no’ instead of ‘yes’”.
Mr Cameron said the Government would restrict the use of “time-wasting” judicial review applications and reduce the time limit for people to bring their cases as well as charge more for reviews.
He also pledged to stop a “new torrent of rules and regulations” from Brussels that threatened to slow the development of county’s economy, pledging to ensure that new roads and infrastructure projects are build more quickly and efficiently.
You can read the full speech of Prime Minister David Cameron from here.
John Cridland, the CBI director-general, has urged the government to invest £1.5 billion into major infrastructure projects that will boost the economy and create new jobs.
The CBI says that the government should back the construction sector, by introducing measures including investment tax breaks, and business rate reductions.
Such measures will encourage further financial investments and pave the way for more employment opportunities in the trades.
But the CBI chief also called for a focus on projects such as the Thames Tideway “super sewer” tunnel in London and the Hinkley Point nuclear power station in Somerset to give the economy an ‘Olympic-style shot’ in the arm.
“We need an industrial Olympics, with big schemes which can make a real difference,” Mr Cridland told the Evening Standard.
And in the Guardian he is quoted as saying: “Kennedy said at the start of the 60s that America would put a man on the moon by the end of the decade and it did, even though sadly Kennedy was not around to see it. We need the sense that we are just going to do these projects.”
Mr Cridland highlighted the need for improvements in the UK’s rail and road networks that are vital for strong economy and future growth.
Kier Services is the latest big builder to gain Green Deal accreditation from leading certification body NICEIC paving the way for employment in the trades.
Kier Services is now certified to carry out installer work and improve the energy efficiency of existing domestic and non-domestic buildings.
Green Deal is the Government’s flagship scheme to reduce energy emissions from homes and buildings across the UK. It is forecast to create thousands of new jobs in the building services engineering sector.
Last month the new Energy Company Obligations (ECO) was launched, with the aim of making up to 14 million homes more efficient through insulation, draught proofing, double glazing and other measures which are designed to reduce the energy usage.
Scott Murray, head of energy at Kier, said, “Kier has a great track record in providing repairs and maintenance in the housing sector, maintaining in excess of 300,000 homes – together with success in delivering similar government backed energy efficient and funded schemes such as the Community Energy Saving Programme (CESP) and CERT.
“As these current initiatives are phased out, Kier aims to be at the forefront of the Government’s new flagship initiative, not only helping to reduce carbon emissions by fitting energy efficiency measures, but by working with customers to consider changes in their behaviours to help combat the challenges of fuel poverty.”
NICEIC offer certification to any business wishing to become a Green Deal installer or advisor. The certification process ensures standards are maintained by any business undertaking Green Deal work for consumers.
Green Deal approval involves checks of all quality procedures within an organisation in addition to an ability to carry out the work. By going through these rigorous checks customers can have confidence in the firm they select to carry out the work.
Green Deal Project Manager at NICEIC, Nick Wright, said: “We are delighted to have worked with Kier on this important initiative. Green Deal installers will be responsible for carrying out the work which will see millions of homes across the UK upgraded to improve energy efficiency.
“It is vital that all firms carrying out this type of work have the correct and appropriate procedures in place. Consumers need to have confidence in the firms they employ to make Green Deal a success.”
A wind farm that will create new jobs and generate £30 million for the Highland economy has been approved by the Scottish Energy Minister Fergus Ewing.
The 85-megawatt project will have 25 turbines and generate up to the equivalent of the energy needs of 40,000 homes.
The wind farm, by developers RidgeWind, will employ 90 people for its two-year construction and three people directly and three indirectly once up and running.
Mr Ewing said: “The construction will provide a valuable boost to the local economy, injecting £30 million and creating 90 jobs.
“Once it is up and running it will save thousands of tonnes of carbon dioxide each year, and it is expected that the savings made will ‘pay off’ the carbon footprint of constructing the site in less than two years.”
The developer is set to provide five £1000 scholarships for local young people going on into university or technical college.
What is your reaction to the approval of the Invergarry wind farm that is set to bring economic boost to the region and create new jobs? Share your thoughts by commenting here or raising your voice on our Facebook and Twitter pages.
The European Commission found sufficient safeguards to avoid “crowding out of private investment” and ensure fair competition whilst the bank is offering funding to accelerate the development of the UK’s green economy.
The bank’s mission is to invest in innovative and environmentally friendly projects for which a market failure has been identified. It is set to help offshore wind, waste and non-domestic energy efficiency sectors.
The Commission said the Green Bank will be capitalised with £3 billion and will intervene by syndicating and underwriting junior, mezzanine and senior debt, by taking equity stakes or granting guarantees.
According to the Commission, the new initiative will allow green projects to materialise while minimising potential distortions of competition.
The bank is seen as a crucial element in funding the country’s transition to a low carbon economy and it began investing directly in projects earlier this year.
Green Investment Bank chairman Lord Smith said: “This is excellent news and a very important milestone as we transition to a low carbon economy and work to boost investment across the industry.
“We have already made significant progress in building our teams and the necessary infrastructure for the bank and we expect to be fully operational in the next few weeks.
“We clearly have challenges ahead but we have the people, the expertise and the capability to deliver on our priorities and create the foundation for a new climate of green investment.”
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