Table of Contents
Executive summary 10
Market overview 10
Wind power 10
Solar power 11
Biomass 12
Hydropower 13
Marine power 14
Geothermal 15
Future outlook 15
Chapter 1 Market overview 17
Summary 17
Overview of the UK’s electricity market 17
Background 19
Installed capacity, electricity generation and consumption 20
Installed capacity 20
Electricity generation 23
Consumption 26
Drivers of renewable energy in the UK 29
The UK’s renewable market is driven by EU obligations 29
Falling levels of CO2 emissions 29
The Renewables Obligation program 30
Role of Low Carbon Transport Plan 30
FIT encourages specific technologies 30
The UK Government’s energy bill considerations 31
Resistors of renewable energy in the UK 32
Cancellation of low-carbon buildings program grants to impact growth 32
The UK's renewable energy diversification remains minimal 32
Renewable energy technology yet to be fully commercialized 32
Global comparison 33
Comparative economics 36
Chapter 2 Wind power 41
Summary 41
Overview 42
Current scenario 42
Installed capacity and generation 42
Global comparison 43
Key players 43
Economics 44
Drivers of wind power 46
The RO makes entrance into the UK’s wind energy market attractive 46
Government backed FIT encourages renewable electricity generating installations 46
Other Incentives 47
Resistors of wind power 48
Procedural delays restrain expansion of the UK’s wind power sector 48
Lack of infrastructure 48
Wind power outlook 49
Chapter 3 Solar power 50
Summary 50
Overview 51
Current scenario 51
Installed capacity and generation 51
Global comparison 52
Key players 52
Economics 53
Drivers of solar power 53
FITs called ‘Clean Energy Cashback Scheme’ drives the UK’s solar market 53
Other incentives 54
Resistors of solar power 55
Solar power outlook 56
Chapter 4 Biomass 57
Summary 57
Overview 58
Current scenario 58
Installed capacity and generation 58
Global comparison 61
Key players 61
Economics 62
Drivers of biomass 62
ROCs drive the UK’s biomass market 62
FIT encourages biomass energy crops production 63
Co-firing to grow 63
Other incentives 64
Resistors of biomass 64
Variant nature of biomass availability threatens biomass supply 64
Other resistors 65
Biomass outlook 65
Chapter 5 Hydropower 66
Summary 66
Overview 67
Current scenario 67
Installed capacity and generation 67
Global comparison 70
Key players 70
Economics 70
Drivers of hydropower 71
The RO scheme and the FIT drives UK’s hydropower market 71
Support given by British Hydropower Association and the UK Environment Agency 72
Resistors of hydropower 73
Geographical terrain and mature market stifles UK’s hydropower market growth potential 73
Physical constraints 73
Hydropower outlook 74
Chapter 6 Marine power 75
Summary 75
Overview 76
Current scenario 76
Installed capacity and generation 76
Global comparison 77
Key players 77
Economics 78
Drivers of marine power 79
UK’s marine energy market driven by incentives 79
The UK’s Marine Energy Action Plan sets the roadmap for the marine energy market 81
Commercial seabed lease options for marine energy technology development 81
World class UK marine energy project test centers 83
Resistors of marine power 83
The UK’s marine energy development subject to procedural delays 83
High costs deter project developers from entering UK’s marine energy market 83
Lack of grid connectivity prevents assessing total marine power generation 83
No financial support for unexpected delays and costs experienced 84
Marine power outlook 84
Chapter 6 Geothermal 85
Summary 85
Overview 85
Current scenario 86
Installed capacity and generation 86
Global comparison 86
Key players 86
Economics 87
Drivers of geothermal 87
Deep Geothermal Challenge Fund encourages the UK’s geothermal exploration 87
RHI to benefit geothermal technology 88
Low pollution output suits the UK 88
Resistors of geothermal 88
Geothermal outlook 89
Chapter 7 Future outlook 90
Summary 90
Outlook for the UK electricity sector 91
Outlook for renewables 91
Wind power 91
Solar power 92
Biomass 92
Hydropower 92
Marine power 93
Geothermal 93
Glossary 94
Table of figures
Figure 1: UK’s production of primary fuels (%), 2008 19
Figure 2: UK net installed electricity capacity (%), 2008 21
Figure 3: UK net installed renewable electricity capacity (%), 2008 23
Figure 4: UK's net electricity generation (%), 2004–08 24
Figure 5: UK net generation of renewable electricity (%), 2008 26
Figure 6: UK's electricity consumption (%), 2008 27
Figure 7: UK's total consumption of renewables (%), 1995–2008 28
Figure 8: Renewable electric power capacity (GW), 2008 35
Figure 9: UK's weekly electricity expenditure per household (£ per week), 2009 40
Figure 10: UK's wind power cumulative installed capacity (MW), 2004–08 43
Figure 11: Capital cost breakdown of a typical 5MW onshore wind project (%), 2010 45
Figure 12: UK's solar power cumulative installed capacity (MW), 2004–08 52
Figure 13: UK's biomass installed capacity (MW), 2004–08 59
Figure 14: UK’s net generation of biomass mix (GWh), 2004–08 60
Figure 15: UK's hydropower cumulative installed capacity (MW), 2004–08 68
Figure 16: UK’s net generation of hydropower mix (GWh), 2004–08 69
Figure 17: UK Renewable Energy Zone, 2006 82
Table of tables
Table 1: UK production from primary fuels (mtoe), 1980–2008 18
Table 2: UK's net installed electricity capacity (MW), 2004–08 21
Table 3: UK's net installed renewable electricity capacity (MW), 2004–08 22
Table 4: UK's net electricity generation (GWh), 2004–08 24
Table 5: UK net generation of renewable electricity, 2004–08 (GWh) 25
Table 6: UK's electricity consumption (TWh), 1980–2008 27
Table 7: UK's total renewables consumption (thousand toe equivalent), 1995–2008 28
Table 8: UK's CO2 power emissions (tonnes of CO2 per GWh), 2006–08 29
Table 9: Renewable electric power capacity (GW), 2008 34
Table 10: Green power prices in UK and EU 27 (€/MWh), 2008 36
Table 11: UK’s Table of tariffs (p/kWh), 2010–2013 37
Table 12: UK's industrial and domestic electricity and gas prices (pence per kWh), 2000–09 38
Table 13: UK's weekly electricity expenditure per household (£ per week), 2009 39
Table 14: UK's wind power cumulative installed capacity (MW), 2004–08 42
Table 15: Capital cost breakdown of a typical 5MW onshore wind project (%), 2010 45
Table 16: UK's solar power cumulative installed capacity (MW), 2004–08 51
Table 17: Proposed tariffs for solar PV (p/kWh), 2010–2013, 2010 54
Table 18: UK's biomass installed capacity (MW), 2004–08 59
Table 19: UK’s net generation mix of biomass (GWh), 2004-2008 60
Table 20: UK's hydropower cumulative installed capacity (MW), 2004–08 68
Table 21: UK’s net generation of hydropower mix (GWh), 2004–08 69
Table 22: UK’s public funding for marine energy technology, 2010 79