Low-carbon shake-up for UK energy mix
3 Oct 2012
London - Incentives to promote low-carbon power generation are having a significant impact on the UK’s energy mix, the Department of Energy and Climate Change’s latest Energy Trends publication shows.
Renewables’ share of electricity generation increased to around 10% from the 9% share in the second quarter of 2011.
DECC linked the trend to factors including the conversion of Tilbury B power stations to dedicated biomass, increasing use of feed-in-tariff-supported solar PV and the co-firing of biomass in coal-fired power stations, particularly in the Yorkshire and Humber region.
Overall renewable generation was up 7% compared to the same quarter in 2011, as offshore wind generation increased by 47%, whilst onshore wind generation fell by 11%. Hydro generation, meanwhile, dipped 31% as a result of low rainfall.
Of electricity generated in the second quarter of 2012, gas accounted for 30% – its lowest second quarter share in the last 14 years. This, said DECC, was due to high gas prices. By contrast, coal accounted for around 36% – its highest second quarter share in the last 14 years.
Meanwhile, the government has backtracked on proposals to remove support for small-scale renewable technologies under the Renewables Obligation (RO) - a move welcomed with considerable relief by the renewables industry.
The Coalition had suggested excluding new small scale solar, anaerobic digestion, onshore wind and hydro power installations of between 50kW and 5MW from the RO from 1 April 2013.
This would have meant that the RO would support renewables over 5MW, with Feed-in Tariffs (FITs) being aimed at those who invest in solar, small scale wind, anaerobic digestion and hydro power projects under 5MW in size.
In the face of widespread concerns voiced by industry, DECC has now decided to keep the option of both FITs and RO open for those investing in projects between 50kW and 5MW in size.
Energy and Climate Change Minister Greg Barker said: “In light of feedback from industry on our intention to consult on the overlap between the RO and FITs we believe that now is not the time to make further changes to these schemes. Industry needs certainty, and keeping the current arrangements for small scale renewables as they are will help provide this assurance.”
Renewable Energy Association chief executive Gaynor Hartnell described the decision as “evidence of the Government’s willingness to listen to sensible and constructive debate, and the kind of mature working relationship we need to have.”
Likewise, chief executive of RenewableUK Maria McCaffrey said the government had “recognised that a number of developers taking forward commercial projects below 5MW wish to retain the option of taking forward their projects under the renewables obligation.”
“This decision also means that we will not see a large influx of commercial developers restricted to using the feed-in tariff,” she added
The decision will give confidence to anaerobic digestion plants which rely on the RO either as their primary support mechanism or as back up to progress, according to Charlotte Morton, chief executive of the Anaerobic Digestion and Biogas Association.
“This sensible decision recognises the huge value which AD can generate for the UK with the right support: tackling climate change, providing economic growth and supporting up to 35,000 jobs,” said Morton.
