Climate change Bill passed

In June, the Bill - which aims to reduce carbon emissions and fuel poverty through a series of measures - passed its final stage in parliament and became part of UK legislation.

Among the measures was a clause requiring the government to report on the potential for dynamic demand technologies. As a result, it has just 12 months to publish a study outlining what potential it sees for dynamic demand and, if appropriate, what steps it should take to promote it.

As outlined in BSj 02/06, the technology could have a major impact on carbon emissions. The theory is that if electrical appliances are fitted with dynamic demand control to switch them on and off, it would help balance the load on the national grid, allowing power generators to operate at maximum efficiency.

In addition to supporting dynamic demand, the Bill carries a host of other climate change measures including better support for microgeneration such as micro-wind turbines, solar panels and other localised energy production technologies.

Utilities companies now have 12 months to come up with schemes that reward smaller scale generators for their exported power. In particular, licensed electricity suppliers may only supply electricity to a domestic customer if that supplier also undertakes to buy at market rate any electricity produced by that customer through microgeneration.

It is hoped that opening up the potential to earn money from the sale of electricity produced by these technologies will help to offset the cost of installation and will play a part in the expansion of the sector.

Other measures in the Act will make it easier for small generators to receive the financial benefits of trading renewable obligation certificates, the government's mechanism for the expansion of renewable energy production.