UK renewable energy falls short of targets

The Carbon Trust has called for urgent change to UK renewables policy framework as research reveals that there is likely to be a huge shortfall in energy supplies by 2020.

The shortfall, due in part to the retirement of coal and nuclear generation capacity, will open up a gap of at least 14GW between supply – equivalent to almost a fifth of the UK’s capacity requirement.

Renewable energy could be significant in making up this balance but is being failed by the current policy approach. The Carbon Trust estimates that under the current framework of the Renewables Obligation, renewables will only meet 10% of the UK’s electricity needs by 2020, half the Government’s aspiration of 20% by 2020. Not only are targets being missed, but the cost of installed renewable energy is higher than necessary.

Based on the research, the Carbon Trust believes that the Renewables Obligation (RO) should be reformed or replaced.

Tom Delay, Chief Executive of the Carbon Trust, said: “Renewables, starting with on and offshore wind, can make a material contribution to meeting our energy needs. Renewable energy needs a better support framework in place to bring down costs and fast track its development.

“Our report highlights that the current RO is not working as efficiently as it should and to maximise the delivery of renewables, urgent change is needed. If we get the right framework in place we can reap the benefits of reduced carbon emissions and strengthened energy security, as well as develop leadership in low carbon technologies. Switching to the Renewables Development Premium as a part of the ongoing Energy Review would ensure that renewables play as full a role as possible in the UK’s low carbon economy.”

The Carbon Trust’s analysis also looked at developing renewable technologies in the longer term, recommending that the UK should focus on low carbon technologies where it has a natural lead and is likely to achieve economic benefits, such as marine.

The report suggests that if the UK gives wave energy the support it requires, it could develop an export industry worth up to £4 billion per annum by 2050.

(SP/GB)