Green Energy in the UK: Renewable sources, drivers, legislation, capacity growth and the future outlook

Date: July 22, 2010
Pages: 95
Price:
US$ 2,875.00
Publisher: Business Insights
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: GF470A5937FEN
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Green Energy in the UK: Renewable sources, drivers, legislation, capacity growth and the future outlook
Renewable energy generates close to 2% of electricity in UK. In 2008, UK’s electricity generation totaled 389,650GWh, a decrease of 1.9% over 2007. During 2004–08, UK’s electricity generation decreased at CAGR of 0.3% mainly on account of financial crisis. At a national level, the ‘UK Renewable Energy Strategy’ (2009) suggests that the UK’s electricity generation from renewables would be more than 30% by 2020. UK’s renewable energy industry is driven by government incentives and mandates. The UK’s electricity market for renewables is driven by Feed-in Tariff system and the Renewable Obligation.

This report documents the growth of the UK renewable energy market, showing its current status and projecting where it is likely to grow to in the foreseeable future.

This document gathers the statistical data on the different types of energy generation, combines and contrasts them against each other to show the clear leaders, drivers to change and future growth.

Key features of this report
  • Overview of the UK electricity market with focus on renewable energy. Analysis of energy type volumes, capacity installed, and generation output in the UK.
  • Growth of renewables – installed capacity and generation, government mandates and incentives, and comparative economics.
  • Information and analysis by renewable energy sector – wind, solar, biomass, hydro, and geothermal.
  • Installed capacity and generation, global comparison, key players, economics, drivers, resistors, and outlook for each renewable energy sector.
  • Outlook for overall UK energy supply with future outlook.
Scope of this report
  • Achieve a quick and comprehensive understanding of how UK market trends and legislation are influencing the development of the renewable energy market.
  • Assess the emerging trends in renewable energy technology – wind, biomass, hydropower, solar, geothermal, and biofuels - capacity and generation.
  • Quantify value and volume growth potential in UK electricity market and in energy generation technology type.
  • Understand the major issues affecting general electricity market and renewable electricity in particular.
  • Predict the key growth areas in the UK renewable energy industry.
Key Market Issues
  • EU Emission Reduction Targets: Historically, the EU’s emission reduction targets are the primary drivers for implementation of policies that encouraged usage of renewable energy in the EU member states. The EU’s directive on reducing GHG emissions through increased usage of renewable energy is expected to be met at individual country-level through their own policies.
  • Renewable Energy Incentives and Mandates: In order to meet the emission reduction target laid out in the EU directive, UK adopted its own national climate action plan. The UK Renewable Energy Strategy’ (2009) suggests that the UK’s electricity generation from renewables would be more than 30% by 2020.
  • Political Support: UK’s new coalition government has promised renewable initiatives under a new energy bill. The UK aims at creation of a green investment bank that would loan individual households the money to invest in carbon-reducing measures, including insulation.
  • Energy Efficiency: UK’ energy policy is governed by twin objectives of reducing energy demand through energy efficiency measures and converting its generation fleet into a cleaner one.
Key findings from this report
  • Given mounting fiscal deficit, UK’s new collation government has put an end to low-carbon buildings program grants. The UK government is to introduce the Renewable Heat Incentive (RHI) scheme from April 2011. This is expected top cover heat pumps, solar thermal, biomass boilers, renewable CHP. The UK government plans to increase its renewable electric power generation to 30% by 2020.
  • Wind power is the second largest renewable energy source in the UK after biomass. UK has set a target to increase its installed wind power capacity to 28GW by 2020 of which 14GW would be onshore and 14GW would be offshore.
  • In 2010, the government of UK took initiatives to expand solar power sector by encouraging new developments in solar technologies and announcing feed-in tariffs for solar power.
  • In 2008, biomass shared largest contribution of 43.1% in total generation of electricity from renewables (21,597GWh). Biomass is the UK’s largest green energy resource. The nation’s biomass resource potential is at an estimated 20 million tons per annum. By 2020, UK could witness commercialization of cogeneration (i.e. Combining Heat and Power or CHP) using biomass.
Key questions answered
  • What are the drivers shaping and influencing new capacity installed in the energy industry?
  • How will renewable energy technologies capacity share perform to 2020? What are the opportunities?
  • What is the policy framework governing the renewable energy market?
  • Which renewable energy technology types are likely to grow strongly?
  • What is the potential of various renewable energy technologies?

Executive summary
Market overview
Wind power
Solar power
Biomass
Hydropower
Marine power
Geothermal
Future outlook

CHAPTER 1 MARKET OVERVIEW

Summary
Overview of the UK’s electricity market
Background
Installed capacity, electricity generation and consumption
Installed capacity
Electricity generation
Consumption
Drivers of renewable energy in the UK
The UK’s renewable market is driven by EU obligations
Falling levels of CO2 emissions
The Renewables Obligation program
Role of Low Carbon Transport Plan
FIT encourages specific technologies
The UK Government’s energy bill considerations
Resistors of renewable energy in the UK
Cancellation of low-carbon buildings program grants to impact growth
The UK's renewable energy diversification remains minimal
Renewable energy technology yet to be fully commercialized
Global comparison
Comparative economics

CHAPTER 2 WIND POWER

Summary
Overview
Current scenario
Installed capacity and generation
Global comparison
Key players
Economics
Drivers of wind power
The RO makes entrance into the UK’s wind energy market attractive
Government backed FIT encourages renewable electricity generating installations
Other Incentives
Resistors of wind power
Procedural delays restrain expansion of the UK’s wind power sector
Lack of infrastructure
Wind power outlook

CHAPTER 3 SOLAR POWER

Summary
Overview
Current scenario
Installed capacity and generation
Global comparison
Key players
Economics
Drivers of solar power
FITs called ‘Clean Energy Cashback Scheme’ drives the UK’s solar market
Other incentives
Resistors of solar power
Solar power outlook

CHAPTER 4 BIOMASS

Summary
Overview
Current scenario
Installed capacity and generation
Global comparison
Key players
Economics
Drivers of biomass
ROCs drive the UK’s biomass market
FIT encourages biomass energy crops production
Co-firing to grow
Other incentives
Resistors of biomass
Variant nature of biomass availability threatens biomass supply
Other resistors
Biomass outlook

CHAPTER 5 HYDROPOWER

Summary
Overview
Current scenario
Installed capacity and generation
Global comparison
Key players
Economics
Drivers of hydropower
The RO scheme and the FIT drives UK’s hydropower market
Support given by British Hydropower Association and the UK Environment Agency
Resistors of hydropower
Geographical terrain and mature market stifles UK’s hydropower market growth potential
Physical constraints
Hydropower outlook

CHAPTER 6 MARINE POWER

Summary
Overview
Current scenario
Installed capacity and generation
Global comparison
Key players
Economics
Drivers of marine power
UK’s marine energy market driven by incentives
The UK’s Marine Energy Action Plan sets the roadmap for the marine energy market
Commercial seabed lease options for marine energy technology development
World class UK marine energy project test centers
Resistors of marine power
The UK’s marine energy development subject to procedural delays
High costs deter project developers from entering UK’s marine energy market
Lack of grid connectivity prevents assessing total marine power generation
No financial support for unexpected delays and costs experienced
Marine power outlook

CHAPTER 6 GEOTHERMAL

Summary
Overview
Current scenario
Installed capacity and generation
Global comparison
Key players
Economics
Drivers of geothermal
Deep Geothermal Challenge Fund encourages the UK’s geothermal exploration
RHI to benefit geothermal technology
Low pollution output suits the UK
Resistors of geothermal
Geothermal outlook

CHAPTER 7 FUTURE OUTLOOK

Summary
Outlook for the UK electricity sector
Outlook for renewables
Wind power
Solar power
Biomass
Hydropower
Marine power
Geothermal
Glossary

TABLE OF FIGURES

Figure 1: UK’s production of primary fuels (%), 2008
Figure 2: UK net installed electricity capacity (%), 2008
Figure 3: UK net installed renewable electricity capacity (%), 2008
Figure 4: UK's net electricity generation (%), 2004–08
Figure 5: UK net generation of renewable electricity (%), 2008
Figure 6: UK's electricity consumption (%), 2008
Figure 7: UK's total consumption of renewables (%), 1995–2008
Figure 8: Renewable electric power capacity (GW), 2008
Figure 9: UK's weekly electricity expenditure per household (? per week), 2009
Figure 10: UK's wind power cumulative installed capacity (MW), 2004–08
Figure 11: Capital cost breakdown of a typical 5MW onshore wind project (%), 2010
Figure 12: UK's solar power cumulative installed capacity (MW), 2004–08
Figure 13: UK's biomass installed capacity (MW), 2004–08
Figure 14: UK’s net generation of biomass mix (GWh), 2004–08
Figure 15: UK's hydropower cumulative installed capacity (MW), 2004–08
Figure 16: UK’s net generation of hydropower mix (GWh), 2004–08
Figure 17: UK Renewable Energy Zone, 2006

TABLE OF TABLES

Table 1: UK production from primary fuels (mtoe), 1980–2008
Table 2: UK's net installed electricity capacity (MW), 2004–08
Table 3: UK's net installed renewable electricity capacity (MW), 2004–08
Table 4: UK's net electricity generation (GWh), 2004–08
Table 5: UK net generation of renewable electricity, 2004–08 (GWh)
Table 6: UK's electricity consumption (TWh), 1980–2008
Table 7: UK's total renewables consumption (thousand toe equivalent), 1995–2008
Table 8: UK's CO2 power emissions (tonnes of CO2 per GWh), 2006–08
Table 9: Renewable electric power capacity (GW), 2008
Table 10: Green power prices in UK and EU 27 (€/MWh), 2008
Table 11: UK’s Table of tariffs (p/kWh), 2010–2013
Table 12: UK's industrial and domestic electricity and gas prices (pence per kWh), 2000–09
Table 13: UK's weekly electricity expenditure per household (? per week), 2009
Table 14: UK's wind power cumulative installed capacity (MW), 2004–08
Table 15: Capital cost breakdown of a typical 5MW onshore wind project (%), 2010
Table 16: UK's solar power cumulative installed capacity (MW), 2004–08
Table 17: Proposed tariffs for solar PV (p/kWh), 2010–2013, 2010
Table 18: UK's biomass installed capacity (MW), 2004–08
Table 19: UK’s net generation mix of biomass (GWh), 2004-2008
Table 20: UK's hydropower cumulative installed capacity (MW), 2004–08
Table 21: UK’s net generation of hydropower mix (GWh), 2004–08
Table 22: UK’s public funding for marine energy technology, 2010
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