Renewable Energy Scenario in the UK
Until recently, the United-Kingdom (UK) was largely self-reliant for energy, producing significant quantities of oil, gas and coal. The gradual depletion of oil and gas reserves and a decrease in domestic coal production has led to a growing dependence on imports. In the electricity sector, gas has replaced coal as the principal fuel. Since 2005, rapidly increasing energy prices, growing concerns on security of supply and awareness of climate change have raised the profile of energy in the UK. The government has come out strongly in favour of new nuclear build, while some regions are putting particular focus on renewable energies (particularly wind and tidal). The UK Government set out its energy policy on 23 May 2007 when it published its Energy White Paper Meeting the Energy Challenge.
Renewable Energy Subsidies
The Renewables Obligation (RO) is the Government's main mechanism for supporting generation of renewable electricity. It was introduced in April 2002 and is the successor to the Non Fossil Fuels Obligation. The RO places an obligation on electricity suppliers to source an increasing share of their power sales from renewable sources. In case they should not meet this obligation, they have to pay a penalty: 34.30 GBP (50.58 €) per MWh in 2007/2008. The percentage of renewable power that must be supplied is now 7.9% and will increase to 15.4% in 2015. For each megawatt hour of renewable energy generated, a tradable certificate called a Renewables Obligation Certificate (ROC) is issued.
Electricity suppliers meet their obligation:
by surrendering Renewables Obligation Certificates (ROCs) as evidence of their own renewable electricity generation:
by surrendering ROCs they have purchased from other renewable electricity generators;
by paying the ‘buyout’ penalty; or
by a combination of the options.
Technology specific figures
For the first time in 2006, wind (with an 8% share) accounted for as much as hydro in primary input terms. Of the 4.43 million tonnes of oil equivalent of primary energy use accounted for by renewables, 3.94 million tonnes was used to generate electricity and 0.44 million tonnes to generate heat.
Decreased water flow from low rainfall was the cause of the lower hydro levels in 2006.
Since January 2006 more than 540MW of wind and around 80 MW134 of other renewables, including landfill gas, photovoltaics and biomass have been installed. More than 2GW of wind is now connected to the grid – with the first GW taking around 14 years to become operational and the second only 20 months.
A further 1,260 MW of renewables capacity is under construction; 4,600 MW has been consented, and 11,400 MW is in planning processes across the UK. The Department for Business, Enterprise and Regulatory Reform estimate that around £1billion has been either invested or committed to new UK renewable projects in the past year.
Total sales of biofuels in the UK in 2006 were some 264 million litres, whilst total road fuel sales were approximately 49,000 million litres.


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