Policy News

Friday 02 July 2010

The UK‘s NREAP estimates that onshore wind will provide the most renewable electricity capacity by 2020, with 14.89GW

The UK can meet its 15% renewable energy target for 2020 with domestic action and financial support for technologies, according to the UK's National Renewable Energy Action Plan (NREAP).

The Department of Energy and Climate Change (DECC) submitted the UK's report to the European Commission yesterday (July 1), in accordance with a requirement in the Renewable Energy Directive for all EU Member States to send detailed plans of how they will meet their legally binding 2020 renewable energy targets.

While a spokeswoman from DECC confirmed that the UK's Action Plan was sent a day late, due to awaiting full government clearance, the UK is one of only four EU Member States to have so far submitted their plans to the Commission, along with Sweden, the Netherlands and Denmark.

In the UK's plan, current and proposed regulatory schemes aimed at encouraging renewable energy generation, such as financial support mechanisms like the Renewables Obligation (RO), are set out, along with a trajectory of estimated capacity for 2020 coming from each renewable energy source.

DECC precedes this with a statement stressing that the history of energy production in the UK has been based around natural resources of fossil fuels and as such means that it ‘has not been as active in our exploitation of our renewable resources'.

The Department claims that the result of this is that the UK is starting form a very low level of renewable energy consumption compared to many other Member States, making the challenge to meet the targets even greater.

However, the UK's plan says that following its lead scenario will allow it to achieve the 15% target through domestic action and financial frameworks supporting renewable technologies.

Capacity

According to the document, in 2020 renewable technologies are estimated to provide the following capacities of electricity:

• Hydro - 2.13GW;
• Solar PV - 2.68GW;
• Wave and tidal - 1.3GW;
• Onshore wind - 14.89GW;
• Offshore wind - 12.99GW;
• Biomass - 4.24GW

This would take the total capacity to 38.21GW.

Measures

The UK plan notes that the following measures have been implemented, or are under consideration, in an attempt to boost renewable energy generation:

• Introduction of Feed-in Tariffs for electricity - possibility of extending the scheme for larger generation projects to operate alongside the Renewables Obligation (RO);
• Maintenance of the banded Renewable Obligation Certificates (ROCs);
• Possible introduction of Renewable Heat Incentive;
• Review of the Renewable Transport Fuel Obligation;
• Creation of a Green Investment Bank to help fund the introduction of renewable energy;
• Opportunities for community-owned renewable energy schemes;
• Developing a smart grid.

The document also highlights that offshore wind is a key area for development and that in order to help develop it further the UK government will work to develop an offshore electricity grid to "support our continuing commitment to being world leaders in this technology".

The development of marine energy is also mentioned as a key focus area for the UK, with the plan setting out how the government plans to create a network of marine energy parks to push the sector forward.

In terms of delivery, the document outlines that the Office for Renewable Energy Deployment (ORED) is responsible for ensuring the UK meets its renewable energy targets and that the government is also working closely with devolved administrations.

Responsibilities

The UK's action plan goes on to set out who is responsible for areas such as consenting, planning and regulation and explains the timeframe for determining planning applications in England.

According to DECC, 71% of major planning applications in England determined by district councils in 2008/09 were decided within 13 weeks and 76% of minor applications within eight weeks. Where county councils were the determining body, 45% of all major county matters were decided within 13 weeks and 69% of minor applications within eight weeks.

The report also details that there are currently no installations constructed awaiting connection to the UK grid, however claims that there is around a 71GW queue, including 19GW of capacity from renewable sources, of proposed new generation capacity seeking connection to the GB transmission network.

DECC states in the NREAP that the UK government recently held a consultation on the reform of grid access arrangements on an enduring basis, with a new approach set to be implemented this month (July 2010).

REA

Responding to the NREAP, chief executive of the Renewable Energy Association (REA), Gaynor Hartnell, commented: ""We have heard that this government intends to be the greenest ever and we certainly welcome that sentiment, but there is a limit to how long the industry can hold its breath.

"The government needs to prioritise renewables policy and there is no evidence this is happening. There are still many questions hanging in the air - can new power projects move ahead in confidence that their revenue streams won't be undermined by a move to feed in tariffs? Can businesses start planning for the introduction of a renewable heat policy next April? Will new homes have to be zero carbon by 2016? The industry needs to know, and soon. This document could have set out commitments, but it simply lists those areas where key decisions are still to be made."

She added that some reviews were essential, for example claiming that the RFTO needs to set clear targets to implement the Renewable Energy Directive and ensure good biofuels are rewarded, but claimed industry has already waited over a year for the government to come up with specifics.

The REA said that the Action Plans would be now be scrutinised by the European Commission for efficacy.