Renewable energy is here to stay, according to Mark Lee, partner in the real estate department at Stratford-upon-Avon law firm Lodders.
He believes the Government is right to press on with the expansion of wind power, solar panels, biomass and other initiatives.
“It is generally accepted that we must have a balanced energy policy and not put too many eggs in one basket,” said Mr Lee.
“That is absolutely vital if we are to maintain security of supply and not leave ourselves vulnerable to price hikes we cannot influence.”
Mr Lee said recent reductions in solar power feed-in-tariff levels were “disappointing” but would not significantly set back progress.
“Investments in these sectors will in my view continue to produce good returns.
“To hit our EU renewable energy target, we must generate 30 per cent of our electricity from renewables by 2020. That means a fourfold increase in deployment.”
Mr Lee said criticism that subsidies for renewables meant dearer energy was misleading. Recent electricity price increases were generally down to the rising cost of gas. Globally, subsidies for fossil fuels outstripped subsidies for renewables by a factor of five.
He said: “Solar, wind and biomass have a massive part to play in the future of power generation. Both the Government and public opinion are behind renewables.”
Lodders has a growing niche practice advising clients on the legal requirements involved in renewable power sources.
Headed by the firm’s senior partner David Lodder, it has advised on opportunities to develop “sun farms” – solar power farms – and on leases for such sites.
It has also advised on a number of wind farm proposals.
Mr Lodder added: “With our present teams of specialists in agricultural and rural business matters and tax we can provide much needed crossover of experience on all layers of business advice needed in areas such as the renewable energy industry.”
And he praised the Government for its announcement that on-farm renewable projects would be allowed to be built without planning permission.
It would help farmers find alternative sources of income from farm and forestry waste products via biomass burners, on-farm anaerobic digesters and hydro turbines.
“This will really benefit the rural economy,” said Mr Lodder.
And he also hailed a new Government grant initiative.
The Rural Economy Grant Scheme, launched earlier this year, is worth up to £60 million in total.
Aimed at SME and micro businesses, it is designed to complement the Farming and Forestry Improvement Scheme (FFIS) brought in last November.
REG grants will range from £25,000 to about £1 million.
Schemes need to relate to various themes including farm competitiveness, water resource management, animal health and welfare, rural tourism, forestry and agri-food.
Successful applicants are eligible to receive up to 40 per cent of the cost of projects.
“It is well worth a look,” said Mr Lodder. “Many farms have under-used land and buildings. This could be the chance to diversify with money-generating new initiatives.”
