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Renewable energy How should the UK respond to the new EU renewables target? Alastair Gill
RWE Innogy November 2008 2/10/2008
PAGE 1
Key questions… Increasing renewables in the UK What factors are driving the growth of renewables? What contributions can be expected from the electricity / heat / transport sectors? How will the UK’s renewable electricity mix evolve? What are the key UK barriers?
RWE Innogy November 2008 2/10/2008
PAGE 2
What factors are driving the growth of renewables? Primarily public policy: - International, EU, UK, Scottish, Welsh targets - Delivered through regulations (EU ETS, UK RO) and taxes (CCL) Because of concerns about: - Climate change - Security of supply - UK’s ageing conventional generation fleet – coal, nuclear But also, growing public concern about climate change RWE Innogy November 2008 2/10/2008
PAGE 3
What contributions can be expected from the electricity / heat / transport sectors? EU binding target: 20% primary energy from renewables by 2020 UK share: 15% of UK primary energy from renewables (which currently contribute ~1.5%) UK Government must indicate the expected contributions from electricity, heat and transport sectors – electricity will bear the greatest “burden” Renewable Energy Strategy proposes to increase renewable electricity target from 15% to >30% by 2020 Heat is crucial – almost half of UK carbon emissions come from heat Transport - biofuel sustainability standards and electrification of vehicles are key challenges RWE Innogy November 2008 2/10/2008
PAGE 4
How will the UK’s renewable electricity mix evolve? The lowest cost technologies (landfill gas, sewage gas) have been exploited – their contribution will remain broadly at current levels (or decline) Wind, both on- and offshore, has the greatest potential – it is expected to grow from ~30% renewable generation today to 60% by 2020 Biomass should also be a major contributor – to renewable electricity but particularly to renewable heat – availability of biomass at “reasonable” cost will be a key factor Hydro will continue to play an important role, but growth will be limited to small scale projects Wave and tidal have significant potential, but will not deliver by 2020 (emerging technologies are however important in the context of 2050 goals)
RWE Innogy November 2008 2/10/2008
PAGE 5
What are the key UK barriers? Planning: - 9GW onshore wind in planning “queue” – enough to deliver a significant proportion of the 2020 targets - IPC is welcome, but doesn’t address small to medium sized wind farms - National Policy Statements must be given sufficient consideration Grid: - Grid queue in Scotland; lack of grid capacity in Wales Aviation / radar objections Supply chain – capability to build and install turbines (especially offshore) Lack of cross-party consensus Public opinion RWE Innogy November 2008 2/10/2008
PAGE 6
Role of South West First UK wind farm was in Cornwall The South West has major offshore wind potential – e.g. Atlantic Array The South West also has significant marine potential (wave, tidal, Severn Barrage) And could be a major player in heat:
- biomass - heat pumps
RWE Innogy November 2008 2/10/2008
PAGE 7
RWE Innogy November 2008 2/10/2008
PAGE 1
Key questions… Increasing renewables in the UK What factors are driving the growth of renewables? What contributions can be expected from the electricity / heat / transport sectors? How will the UK’s renewable electricity mix evolve? What are the key UK barriers?
RWE Innogy November 2008 2/10/2008
PAGE 2
What factors are driving the growth of renewables? Primarily public policy: - International, EU, UK, Scottish, Welsh targets - Delivered through regulations (EU ETS, UK RO) and taxes (CCL) Because of concerns about: - Climate change - Security of supply - UK’s ageing conventional generation fleet – coal, nuclear But also, growing public concern about climate change RWE Innogy November 2008 2/10/2008
PAGE 3
What contributions can be expected from the electricity / heat / transport sectors? EU binding target: 20% primary energy from renewables by 2020 UK share: 15% of UK primary energy from renewables (which currently contribute ~1.5%) UK Government must indicate the expected contributions from electricity, heat and transport sectors – electricity will bear the greatest “burden” Renewable Energy Strategy proposes to increase renewable electricity target from 15% to >30% by 2020 Heat is crucial – almost half of UK carbon emissions come from heat Transport - biofuel sustainability standards and electrification of vehicles are key challenges RWE Innogy November 2008 2/10/2008
PAGE 4
How will the UK’s renewable electricity mix evolve? The lowest cost technologies (landfill gas, sewage gas) have been exploited – their contribution will remain broadly at current levels (or decline) Wind, both on- and offshore, has the greatest potential – it is expected to grow from ~30% renewable generation today to 60% by 2020 Biomass should also be a major contributor – to renewable electricity but particularly to renewable heat – availability of biomass at “reasonable” cost will be a key factor Hydro will continue to play an important role, but growth will be limited to small scale projects Wave and tidal have significant potential, but will not deliver by 2020 (emerging technologies are however important in the context of 2050 goals)
RWE Innogy November 2008 2/10/2008
PAGE 5
What are the key UK barriers? Planning: - 9GW onshore wind in planning “queue” – enough to deliver a significant proportion of the 2020 targets - IPC is welcome, but doesn’t address small to medium sized wind farms - National Policy Statements must be given sufficient consideration Grid: - Grid queue in Scotland; lack of grid capacity in Wales Aviation / radar objections Supply chain – capability to build and install turbines (especially offshore) Lack of cross-party consensus Public opinion RWE Innogy November 2008 2/10/2008
PAGE 6
Role of South West First UK wind farm was in Cornwall The South West has major offshore wind potential – e.g. Atlantic Array The South West also has significant marine potential (wave, tidal, Severn Barrage) And could be a major player in heat:
- biomass - heat pumps
RWE Innogy November 2008 2/10/2008
PAGE 7
