Proposals to support renewable electricity and bring forward a surge of investment in our energy infrastructure were published by the Government today. The consultation proposes new support levels for large scale renewable electricity from 2013-17 (2014-17 for offshore wind) under the Renewables Obligation (RO).
Deputy Prime Minister Nick Clegg said: “Investing in green energy boosts growth and creates jobs – the offshore wind sector alone could provide up to 66,000 jobs in this country by 2020. Supporting clean, green, secure energy is the right thing to do for both the environment and the economy. Today’s announcement makes clear the Government’s commitment to supporting long-term investment in the UK’s renewables industries.”
Chris Huhne, Secretary of State for Energy and Climate Change said: “The renewables industry can bring in billions of pounds of investment into the UK economy. Our ambitions for these technologies reflect our desire for the UK to be the number one place to invest.
“We have studied how much subsidy different technologies need. Where new technologies desperately need help to reach the market, such as wave and tidal, we’re increasing support. But where market costs have come down or will come down, we’re reducing the subsidy.”
By 2017, as a result of these proposals, we expect to see 70-75 TWh of renewable electricity in the UK. This is 70% of the way towards the 108TWh of electricity needed to meet the UK’s 2020 renewable energy target.
These proposals are expected to cost between £0.4bn and £1.3bn less than retaining current bandings and drive a higher level of deployment than leaving bandings as they are. The proposals also provide industry with the certainty needed to make investment decisions and will overall mean a lower impact on consumer bills, without reducing our level of ambition.
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Notes for editors
- The consultation on banding for the Renewables Obligation is available on the DECC website – the consultation runs to 12th January 2012.
- Current and proposed bandings are in Table 1 at the foot of this document.
- The Government’s Renewable Energy Roadmap sets out a comprehensive plan to accelerate the deployment of renewable energy.
- Bill impacts of current and proposed RO bands:
Contribution of RO support payments to an average household annual electricity bill 2011 2012 2013 2014 2015 2016
Continuing with current bands £20 £26 £34 £41 £48 £52
Changing to proposed bands £20 £26 £33 £40 £47 £50
5.
Table 1 – Proposed bandings under the Renewables Obligation consultation
Renewable electricity technologies Current support, ROCs/MWh[1]
Proposed ROC support/MWh[2]
Other proposed changes
Advanced gasification 2 2 in 2013/14 and 2014/15; 1.9 in 2015/16 and 1.8 in 2016/17
Call for evidence Proposed change to definition and merger with advanced pyrolysis
Advanced pyrolysis 2 2 in 2013/14 and 2014/15; 1.9 in 2015/16 and 1.8 in 2016/17
Call for evidence Proposed change to definition and merger with advanced gasification
Anaerobic digestion 2
2 in 2013/14 and 2014/15; 1.9 in 2015/16 and 1.8 in 2016/17
Biomass conversion No current band but eligible to claim 1.5ROCs under current banding arrangements 1
Call for evidence Proposal for a new band.
Co-firing of biomass 0.5 0.5 Changes proposed to add fossil derived bioliquids.
Co-firing of biomass (enhanced) No current band but 0.5 ROCs under current banding arrangements 1
Call for evidence Proposal for a new band.
Co-firing of biomass with CHP 1 1 Changes proposed to add fossil derived bioliquids, to exclude enhanced co-firing and to close this band to new accreditations from 1 April 2015.
Co-firing of energy crops 1 1 Changes proposed to the definition of energy crops and to exclude enhanced co-firing.
Co-firing of energy crops with CHP 1.5 1.5
Call for evidence Changes proposed to the definition of energy crops, to exclude enhanced co-firing and to close this band to new accreditations from 1 April 2015.
Dedicated biomass 1.5 1.5 to 31 March 2016
1.4 from 1 April 2016 Changes proposed to exclude biomass conversions and to add fossil-derived bioliquids
Dedicated energy crops 2 2 in 2013/14 and 2014/15; 1.9 in 2015/16 and 1.8 in 2016/17 Changes proposed to the definition of energy crops and to exclude biomass conversion.
Dedicated biomass with CHP 2 2 in 2013/14 and 2014/15 Changes proposed to add fossil derived bioliquids, to exclude biomass conversion and to close this band to new accreditations from 1 April 2015.
Dedicated energy crops with CHP 2 2 in 2013/14 and 2014/15
Call for evidence Changes proposed to the definition of energy crops, to exclude biomass conversion and to close this band to new accreditations from 1 April 2015.
Energy from waste with CHP 1 0.5
Call for evidence
Geothermal 2 2 in 2013/14 and 2014/15; 1.9 in 2015/16 and 1.8 in 2016/17
Geopressure 1 1
Hydro-electric 1 0.5
Landfill gas 0.25 0
Call for evidence
Microgeneration 2 2 in 2013/14 and 2014/15; 1.9 in 2015/16 and 1.8 in 2016/17
Onshore wind 1 0.9
Offshore wind 2 in 2013/14; 1.5 from 2014/15 onwards 2 in 2013/14 and 2014/15; 1.9 in 2015/16 and 1.8 in 2016/17
Sewage gas 0.5 0.5
Call for evidence
Solar photovoltaic 2 2 in 2013/14 and 2014/15; 1.9 in 2015/16 and 1.8 in 2016/17
Standard gasification 1 0.5
Call for evidence Proposed change to definition and merger with standard pyrolysis
Standard pyrolysis 1 0.5
Call for evidence Proposed change to definition and merger with standard gasification
Tidal impoundment (range) – tidal barrage (<1GW) 2 2 in 2013/14 and 2014/15; 1.9 in 2015/16 and 1.8 in 2016/17
Tidal impoundment (range) – tidal lagoon (<1GW) 2
2 in 2013/14 and 2014/15; 1.9 in 2015/16 and 1.8 in 2016/17
Tidal stream 2 5 up to a 30MW project cap.
2 above the cap.
Wave 2 5 up to a 30MW project cap.
2 above the cap.