Renewable Energy:

The United Kingdom’s Approachg pp

Gavin D.J. Harper - B.R.A.S.S,Gavin D.J. Harper B.R.A.S.S, Vilnius, Lithuania

12th February 2009

UK Renewables – Room For Improvement

Quota based systems do not work as well as Feed-In Tariffs.

UK approach based on “Renewables Obligation” to energy suppliers. Scheme was introduced in 2002 and relies upon the “trading” of Renewable Obligation Certificates (ROCs) that are allocated for every MW of clean power Ob ga o Ce ca es ( OCs) a a e a oca ed o e e y o c ea po eproduced.

EU directive: 2010 target for electricity from renewables (%) including and g y ( ) gexcluding large hydro:

•UK 10% by 2010 (inclusive of hydro) – 20% by 2020 [DBERR]•UK 9.3% (exclusive of hydro)•Currently only 5% of UK’s energy comes from renewables.•The projects stuck in the planning system could supply 7.5% of our energy from windpower alone [Greenpeace]

UK Renewables – Room For Improvement

Quota based systems do not work as well as Feed-In Tariffs.

The Renewables Obligation was ‘designed’ to mandate a fixed proportion of energy from renewables, without adding to consumers’ bills.By creating a competitive market for renewables, the cheapest options get y c ea g a co pe e a e o e e ab es, e c eapes op o s gedeveloped first.

HOWEVER: the projects that have been developed have had to charge a p j p g“premium” to compensate for the lack of certainty about future prices.The highly competitive market that the R.O. has created hasn’t delivered the ‘low prices’ promised.

Renewable Energy Feed-In Tariffs as used in Germany and other EU countries – a direct subsidy, guaranteed market price approach has proven to be FAR more effective in stimulating the uptake of Renewable Energy.

UK Renewables – Room For Improvement

REFIT vs. R.O.

UK’s Renewable Obligation delivers electricity at €96 / MWhGermany’s* Feed-In Tariff delivers electricity at €66 - €88 / MWh

Spain’s Feed In Tariff delivers electricity at €64 / MWhSpain s Feed-In Tariff delivers electricity at €64 / MWh

*[Revised Version – Energy Law 2000]Figures from Prof Dave Eliott Open UniversityFigures from Prof. Dave Eliott, Open University

"Feed in tariffs have the potential to play an important role in promoting renewable energy in small-scale generation, and we plan to bring in an gy g p g

amendment to the Energy Bill to make this happen.“Rt. Hon Ed Miliband MP, October 2008

UK Renewables – Room For ImprovementWe have the best renewable energy potential of any EU member-state…gy p y

…so why aren’t we making better use of it??

• R.O. Creates lack of certainty as to the future value of R.O.C’s• This lack of certainty makes raising capital hard

• Poor planning system.•The projects stuck in the planning system could supply 7.5% of our energy from windpower alone [Greenpeace]

• New Electricity Trading Arrangements ‘unfriendly’ to small generators.•Weighted in-favour of suppliers who can guarantee generation at a

i ti l di t bl l tgiven time – less predictable sources lose out.•Chaotic Funding

•Grants for homeowners “dash” (pot too small?) L k f ‘ l’ l d hi f t l t bl•Lack of ‘real’ leadership from central government on renewables.

•Obssession with nuclear power, rhetoric on climate change not matched by concrete moved towards carbon reduction (Kingsnorth, Ffos y Fran Open Cast Mine Heathrow)Ffos-y-Fran Open Cast Mine, Heathrow)

UK Renewables – Room For Improvement

Graph: news.bbc.co.uk/2/hi/europe/7657414.stm

UK Renewables – Change of Direction

•Rt. Hon. Ed Miliband MP- Feed In Tariffs for Small Scale Renewables•Will undoubtedly improve small-scale renewable prospects if prices are y p p p pset at a sensible level.

•New U.S. ‘Green’ Administration•Will this encourage change in UK Politics?

•Climate Change Act – CO2 levels cut by 80% from 1990 levels by 2050•Commitment to ‘greening the UK’ but how will it be achieved?

•Five proposals for Severn Barrage have been shortlisted•Potential to generate 5% of UK’s electricity from renewables.•Consultation, final shortlist, project selection in 2010.•£500,000 to develop “newer” tidal technologies.

O iti P t l ‘ l ti ’•Opposition Party plans ‘energy revolution’•Electric cars, “national recharging network” smart meters, energy efficiency loans, £1bn upgrade for national grid. “Green Paper on Low Carbon”Carbon”•Philip Selwood, Head of Energy Saving Trust – “Absolutely Spot On”.

However…

The Merton Rule

The Merton Rule

Lack of “real” leadership from Central Government has resulted in forward thinking from people working in local government.g p p g g

•Adrian Hewitt•London Borough of Merton•Planing Policy Statement sets precedent for ‘Merton Rule’

Adrian Hewitt ‘architect of the Merton rule’ says local policies are a better approach over building regulations as:

•Building Regulations are Inflexible.C t P id d R iti l l l l•Creates Pride and Recognition on a local level.

•Fosters a sense of ‘competition’.•Preserves imagination and initiative.

The Merton Rule

Planning Policy Statement 22 “Planning Guidance on Renewable EnergyOffice of the Deputy Prime Minister 2004Office of the Deputy Prime Minister 2004.

Merton Unitary Development Policy PE13 – Adopted October 2003

“All new non-residential development above a threshold of 1 000All new non-residential development above a threshold of 1,000 square metres will be expected to incorporate renewable enegryproduction equipment to provide at least 10% of predicted energy requirements.”requirements.

This has since changed subtly to ‘incorporate on-site renewable energy equipment to reduce predicted CO2 emissions by at least 10%.q p p y

The Merton Rule

The ‘Merton Rule’ has been adopted by a b f th b h d ilnumber of other boroughs and councils

throughout the country. Some are setting their sights higher than Merton’s 10%

Energy Service Companies (ESCOs)

Energy Service Companies (ESCOs)

Woking HedeselskabetBorough Council

Miljo Energi

ThamesweyESCO

International Ltd.

e a o aA/S

ThamesweyEnergy Ltd.

Island Woking – Allan Jones

Energy Consumption Savings 244,408,155 kWh 48.6% SavingCaron Dioxide CO2 Emission Savings 142,013 Tonnes 77.4% SavingNitrogen Dioxides Nox Emission Savings 439 0 Tonnes 76 6% SavingNitrogen Dioxides Nox Emission Savings 439.0 Tonnes 76.6% SavingSulphur Dioxide SO2 Emission Savings 1,480.84 Tonnes 90.9% SavingWater Consumption Reduction 412,855,000 Litres 43.8% SavingSavings in Energy and Water Budgets £5 388 721 31 4% SavingSavings in Energy and Water Budgets £5,388,721 31.4% Saving

•Worked in changing political climate.•Economies of scale through ‘smart•Economies of scale through smart thinking and design’.•Sell ‘service’ not ‘product’

Woking Park CHP

Zero Carbon Britain

t kwww.cat.org.uk

www.pirc.info

b b it iwww.zerocarbonbritain.com

C ll b ti b t C t f Alt ti T h l [ t k] d

Zero Carbon Britain•Collaboration between Centre for Alternative Technology [www.cat.org.uk] and Public Interest Research Centre [www.pirc.info].

•An update on CAT’s 1977 Report “An Alternative Energy Strategy for the UK•An update on CAT s 1977 Report An Alternative Energy Strategy for the UK.

•A positive blueprint for Britain’s energy future.p p gy•Eliminate Fossil Fuel Generation in 20 years•Break dependence on imported energyp p gy•No new nuclear plant

Zero Carbon Britain1 The economy and environment must be addressed together and1. The economy and environment must be addressed together and environmental considerations need to be paramount in establishing economic policy.

2.Technology and the market must be recognised as vital tools – but not as masters.

3. The long-term must be taken on board, as well as the short-term.

4. Adequate investment in research and development must be provided urgently to bring promising potential technologies (e g wave tidalurgently, to bring promising potential technologies (e.g. wave, tidal stream and biofuel technologies) to the ‘starting gate’.

5. Energy provision needs to be influenced by social values and ‘quality of5. Energy provision needs to be influenced by social values and quality of life’,for instance, the community benefits of localenergy provision should be recognised.

6. Energy security must also be addressed in the strategy debate.-Sir John Houghton

Former Co-Chair of the IPCC

Zero Carbon Britain

Zero Carbon Britain

Conclusions

Out EU countries demonstrate that we do not need to wait for

technology to develop-We just need effective policyput in place at multiple levelsto ensure rapid delivery of a…

CLEANSUSTAINABLE

FUTURE