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After two years in action the Renewables Obligation is proving popular with both the financial and developer sectors, according to energy minister Stephen Timms. The Renewables Obligation is one of the main tools for helping to achieve the 10% renewables target which will result in an estimated saving of 2路5 million tonnes of carbon a year. This is achieved by setting a target for electricity suppliers to source a growing percentage of their electricity from renewable generators.

Speaking at BRE's Resource 04 event, Timms said: "I was pleased to see it praised in a leader in the Financial Times to coincide with the international conference on renewable energy in Bonn.

鈥淭here were some early problems,鈥� he added, 鈥渂ut we have worked hard to solve them, and crucial during the year was the decision to extend the level of Obligation from 10路4% by 2010 out to 15路4% by 2015/16.鈥�

The Energy Bill is also currently being considered in the House of Commons. The Bill implements a number of commitments in the Energy White Paper, including the legislative framework for development of offshore renewable energy beyond territorial waters. It will also create a single wholesale electricity market for all generators, and reduced barriers to entry that will benefit small, independent generators.

While at Resource 04 Timms unveiled the UK鈥檚 first domestic fuel cell trial in which an alkaline fuel cell chp system will supply electricity to one of BRE鈥檚 full-scale test houses. 鈥淚n the medium to long term, we need to make a gradual transition to a hydrogen economy. We are funding further research and development into fuel cells and associated technologies , and the development of a hydrogen supply infrastructure.鈥�