The Department of Energy and Climate Change (DECC) has published its business plan for the course of the current parliament, 2011-15, outlining its priorities and establishing a timeline for the roll out of its key policy proposals including key reforms such as the potential establishment of a full Feed-in Tariff (FiT).

The plan, which is released alongside similar plans for all other Whitehall departments, highlights the department's vision of "a thriving, globally competitive, low-carbon energy economy" and sets out a timetable for policy announcements in four key structural reform priority areas.

These priorities include delivering secure, affordable energy in a transition to a low-carbon energy future, saving energy with the Green Deal and supporting both domestic and business consumers, driving ambitious action on climate change both at home and abroad, and managing the UK's nuclear energy legacy safely and cost-effectively.

In terms of timescales, DECC says it will consult on electricity market reforms in December 2010 until March 2011, potentially including a mechanism to reduce revenue uncertainty for low carbon generators by establishing a full system of FiTs. It also says it will publish a White Paper setting out reforms to the electricity market in May 2011.

Renewable Energy

Looking more specifically at renewables, DECC outlines that it will respond to the Committee on Climate Change's recommendations on the role of renewables beyond 2020 between April and July next year.

Highlighting incentives, DECC will:

* Complete development of regulations for a new Renewable Heat Incentive (RHI) scheme to provide financial support for renewable heat, and lay before Parliament by June 2011

* Implement the RHI by June 2011

* Start Work with the Department for Communities and Local Government to allow communities that host renewable energy projects to keep the additional business rates they generate  by November 2010

* Undertake first major review of FITs for small-scale renewable energy by April 2012

* Complete four-yearly review of Renewables Obligation (RO) Banding (levels of financial support for different technologies) to ensure that the RO provides the correct level of support to maintain investment in large-scale renewable energy generation by 2013.

Expenditure

The business plan confirms DECC's planned expenditure over the Spending Review period, as agreed with the Treasury.

This includes a freezing of administration spending at £0.2 billion until 2015.

An initial reduction of capital spending from £1.7 billion in 2010/11 to £1.5 billion in 2011/12 followed by a year-on-year increase from £2.9 billion this year to £3.7 billion by 2014/15.

Related links:  DECC business plan