As well as reiterating the world’s first legally-binding carbon budgets, the Government's Low Carbon Transition Plan included the long-awaited Renewable Energy Strategy detailing how the UK will meet its target of sourcing 15 per cent of its energy from renewable by 2020.
One of the key elements of the
strategy is the promise of an extra £30 billion of investment to be made available between now and 2020. The
Renewables Obligation, which requires electricity suppliers to source an increasing proportion of their electricity from renewable sources, will be extended and expanded and microgeneration will be boosted by
‘clean energy cashback’ schemes, or
'feed in-tariffs', and the renewable heat incentive for heat.
The strategy claims that 30 per cent of electricity could be
renewable by 2020 – this is a massive increase from just 5.5 per cent of the UK’s electricity supply today. While the Government points out that the actual technologies deployed will depend on how investors respond to the incentives in place, it is clear that onshore wind is a main area of focus, with other initiatives, such as the creation of an independent Infrastructure Planning Commission aimed at fast-tracking wind farm proposals. Marine energy has also been touted as an emerging technology worthy of a share of £450 million of investment to be made available for research and development over the next two years.The shortlist of proposals for the River Severn tidal project was also announced alongside the transition plan and a final decision will be reached next year on whether harnessing the tidal power of the River Severn can help supply five per cent of the UK’s electricity. The strategy outlines the strong potential for the waste sector to also help meet energy needs, tackling two problems in one go.
Business leaders have already expressed concern at the choice of preferred technologies for reaching the UK’s
carbon emissions reduction target of 34 per cent by 2020. The ‘Decision Time’ report released by the CBI ahead of Wednesday’s announcements warned the Government not to focus on wind at the expense of nuclear technology. However, Ed Miliband, Secretary of State for Energy and Climate Change was keen to stress that renewable, nuclear and clean coal should be seen as, "the trinity of low carbon and the future of Britain".
Other industry leaders welcomed the mix of energy technologies. Jo Butlin, head of Retail at
SmartestEnergy, the UK’s largest buyer and seller of electricity from the independent sector said: ‘“We are pleased the Tovernment has recognised that energy security requires energy diversity, and that this must include both nuclear and renewable”.
However, she pointed out that the proposals do not outline sufficient safeguards against a reliance on the large utilities to deliver solutions. “It is the legions of independent, decentralised generators – from farmers to waste producers – who continue to provide
energy supply, security and diversity across the country and who are the future of Britain’s energy landscape. It is these energy entrepreneurs who really need support, not the larger players. The Government must listen to the independent sector, both generation and supply, and not be pushed into a corner by the Big Six,” she added.
Indeed, while the Government is keen to portray its feed-in tariffs and Renewable Heat Incentive scheme, (re-branded as a ‘clean energy cashback’ schemes), as a way of empowering households, communities and businesses who ‘want to do their bit’, the exact details of how each will work are still to be consulted on.
According to Juliet Davenport, founder and ceo of Good Energy, the UK’s only dedicated 100 per cent
renewable electricity supplier, “the real test will be whether the Government really can get the support of the public behind it. At Good Energy we’ve already proved that measures like feed-in tariffs and renewable heat incentives can work on a commercial scale so it is about time the Government caught up.”
However, perhaps most importantly, the strategy recognises that the successful deployment of
renewable technologies, whatever the final mix and characteristics, depends on the efficiency of the grid system itself. Ofgem is tasked with heading up a £4.7 billion investment from grid companies aimed at updating the current infrastructure to allow smooth transition and control of renewable energy in the system and the strategy stresses the importance of making the grid ‘smarter’ to help manage variability and reduce costs.
The ability of the grid to support renewable will affect subsequent
private sector investment in renewable technologies. Dr. Steve Mahon, cio of clean technology fund, Low Carbon Accelerator, makes the point that, "while the measures to encourage renewable energy are welcome, this really means we have to shift our focus and start working on a far smarter grid and smarter appliances in order to balance and stabilise the electricity load and prevent future power surges and blackouts. These smart-grid technology companies exist in the UK and have already attracted venture capital and industry investment. It is time they were given the same supports that the
renewable sector gets as they are a vital part of our energy mix. Other grids around the world will suffer similar problems as they increase decentralisation, opening up huge opportunities for our fledgling smart-grid firms.”
Overall, the
Renewable Energy Strategy is an encouraging roadmap, planting the UK firmly on the path towards a low carbon future. We must ensure that the strategy works with all the other elements of the Low Carbon Transition Plan and not against them. Previous commentators have pointed out potential conflicts between proposals to reduce carbon emissions, such as the
Carbon Reduction Commitment and targets to increase the renewable energy generation. The right pieces are in place to form a credible energy strategy for the future, now it is up to the Government to prove it can join the dots.