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Renewable energy companies 'in a difficult position'
Published:  04 April, 2011

Kensa Engineering says the government needs to do more to stop the demise of renewable energy companies following the closure of a rival company.

Kensa Engineering's managing director, Simon Lomax, has expressed sympathy for rival heat pump manufacturer Earth Energy following its closure. Cornwall-based Kensa was established in 1999 and says it expects to report

Lomax said: "News of Earth Energy's collapse is no surprise. There is no doubt that the slow-down in the housing market and the more recent spending cuts have created a challenging business environment and the government's continued delay in the launch of its flagship Renewable Heat Incentive has placed many companies in a difficult position."

This follows the government announcement that it was to bring forward a review of the tariff levels currently available for purchasers of technologies that generate electricity.

Kensa's chairman, Richard Freeborn, said: "They should have got it right at the outset. Now it would appear that the government intends to reduce the Feed-in Tariff levels for certain types of installation.

"Unduly generous tariffs, which have been available for almost a year, have contributed to a slow-down for many in the ground source heat pump sector because there is a heightened interest in technologies where an incentive is already available."

Freeborn added: "If the coalition wants to live up to its promise as being the 'greenest government ever', it needs to create a level playing field and provide some certainty to those investing in the sector."