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The UK Renewable Energy Strategy Cm 7686 The UK Renewable Energy Strategy The UK Renewable Energy Strategy Presented to Parliament by the Secretary of State for Energy and Climate Change by command of Her Majesty July 2009 Cm 7686 £34.55 © Crown Copyright 2009 The text in this document (excluding the Royal Arms and other departmental or agency logos) may be reproduced free of charge in any format or medium providing it is reproduced accurately and not used in a misleading context. The material must be acknowledged as Crown copyright and the title of the document specifi ed. Where we have identifi ed any third party copyright material you will need to obtain permission from the copyright holders concerned. For any other use of this material please write to Offi ce of Public Sector Information, Information Policy Team, Kew, Richmond, Surrey TW9 4DU or e-mail: [email protected] ISBN: 9780101768627 Contents Foreword 3 Executive Summary 7 Chapter 1: The Case for Renewable Energy 23 Chapter 2: Delivery in Electricity, Heat and Transport 35 Chapter 3: Greater Financial Support 51 Chapter 4: Swifter Delivery 69 UÊ iÌÌiÀÊ*>}ÊvÀÊ iÛiÀÞÊ ÇÓ UÊ -ÌÀ}iÀÊ,iiÜ>LiÊ`ÕÃÌÀÞÊ ä UÊ +ÕViÀ]Ê->ÀÌiÀÊÀ`Ê iVÌÊ È UÊ 1Ã}ÊÀiÊ-ÕÃÌ>>LiÊ iiÀ}ÞÊ £äÎ Chapter 5: New Resources and Technologies 131 Chapter 6: A Role For Everyone 151 Chapter 7: Benefi ts and Impacts 173 Chapter 8: Implementation 189 2 The UK Renewable Energy Strategy ANNEXES Annex A: Analysis of Responses to Consultation 208 Annex B: Summary Action Plan for Delivery 211 Annex C: Glossary of Terms 221 Annex D: Related Documents and Links 226 Annex E: Choosing the ‘Lead Scenario’ for Delivering the Renewable Energy Target 231 Foreword 4 The UK Renewable Energy Strategy Foreword by the Secretary of State To meet the challenge of climate change, we need to save carbon in every sector of the economy – this will mean a rapid transition to renewable energy. This Strategy shows how we can reach our goal of 15% of energy from renewables by 2020. Doing so will help the UK to lead the industries of the future. According to recent analysis the renewable energy sector could support up to half a million jobs in the UK by 2020. It will help safeguard the security of our energy system. The plans here can help reduce the UK’s use of fossil fuel by around 10%, and so stem the rise in the UK’s use of imported fossil fuels, with our need for gas imports 20-30% lower than they would have been in 2020. This Strategy shows how we can achieve this transformation. It will involve producing enough energy from renewable sources by 2020 to supply the equivalent of nearly all 26 million homes in the UK with their current electricity needs, and 4 million homes with their current heating needs. Already, renewable electricity has doubled in the UK in fi ve years, and in the last year alone, onshore wind capacity grew by almost a third, and offshore by two thirds. We already have more offshore wind power than any other country. The natural resources are there and waiting to be harnessed: two independent reports found the UK has the largest potential for wind energy in Europe, and one of the greatest natural wave power resources in the world. Government action can shape the market to drive further progress. By next year, for example, the obligation on energy suppliers to get a rising proportion of electricity from renewable sources, combined with the exemption from the Climate Change Levy, will be worth around £1 billion a year to the renewable electricity industry. Planning decisions and access to the grid are becoming quicker and easier. Households, communities, public services and business will be able to generate their own renewable energy, through the introduction of a new Renewable Heat Incentive and ’Feed-In Tariffs‘ to provide guaranteed payments for energy they produce. Executive Summary 5 With cleaner energy, new opportunities for jobs and greater security of supply, this plan shows a clear route to a cleaner, better energy system. It makes a signifi cant contribution to tackling climate change. I look forward to working with businesses and communities to put these actions into practice. / iÊ,Ì°ÊÊ `ÊL>`Ê* Secretary of State for Energy and Climate Change Executive Summary 8 The UK Renewable Energy Strategy Summary We need to radically increase our use of renewable electricity, heat and transport. This Strategy explains how and why we will do so. It sets out the path for us to meet our legally-binding target to ensure 15% of our energy comes from renewable sources by 2020: almost a seven-fold increase in the share of renewables in scarcely more than a decade. This Strategy will help us tackle climate change, reducing the UK’s emissions of carbon dioxide by over 750 million tonnes between now and 2030. It will also promote the security of our energy supply, reducing our overall fossil fuel demand by around 10% and gas imports by 20–30% against what they would have been in 2020. And it will provide outstanding opportunities for the UK economy with the potential to create up to half a million more jobs in the UK renewable energy sector resulting from around £100 billion of new investment. In parallel with energy saving, nuclear and carbon capture and storage, this is a key element of our overall transition plan for setting the UK on the path to achieve a low-carbon, sustainable future that helps address dangerous climate change. Our target is very ambitious. We consulted last year on proposed measures for meeting it; this document confi rms our strategy for doing so. Our lead scenario suggests that we could see: UÊ More than 30% of our electricity generated from renewables, up from about 5.5% today. ÕV ÊvÊÌ ÃÊÜÊLiÊvÀÊÜ`Ê«ÜiÀ]ÊÊ>`Êvvà Ài]ÊLÕÌÊL>ÃÃ]Ê hydro and wave and tidal will also play an important role. UÊ 12% of our heat generated from renewables, up from very low levels today. We expect this to come from a range of sources including biomass, biogas, solar and heat pump sources in homes, businesses and communities across the UK. UÊ 10% of transport energy from renewables, up from the current level of 2.6% of road transport consumption. The Government will also act to support electric vehicles and pursue the case for further electrifi cation of the rail network. Such a scenario will only be possible with strong, co-ordinated efforts from a dynamic combination of central, regional and local Government and the Devolved Administrations, as well as other public groups, the private sector and dedicated community groups and individuals. To deliver this we will: UÊ Put in place the mechanisms to provide financial support for renewable electricity and heat worth around £30 billion between now and 2020: We will extend and expand the Renewables Obligation for large-scale renewable generation; amend or replace the Renewable Transport Fuel Obligation to increase use of sustainable biofuels; and introduce a new Renewable Heat Executive Summary 9 Incentive and ‘Feed-In Tariffs’ to provide guaranteed payments to individuals, business and communities for renewable heat and small-scale electricity generation. UÊ Drive delivery and clear away barriers: We have established the Offi ce for Renewable Energy Deployment to drive delivery of our targets, including through stronger supply chains and through the planning system. We will also ensure quicker grid connections and more sustainable bioenergy supplies. We will work collaboratively with our delivery partners and in doing so respect their concerns. We have already made signifi cant strides to decarbonise our energy supply and in getting the rest of the way, we will protect our environment and natural heritage through the application of relevant controls. UÊ Increase investment in emerging technologies and pursue new sources of supply: We will provide greater support for developing key technologies we expect to contribute to our renewable goals. We are increasing investment in wave and tidal generation, making improvements to offshore wind technologies, and developing more sustainable advanced biofuels. We are confi rming the schemes under consideration to generate energy from the Severn Estuary. This will lead to a decision next year on whether to seek to harness the potential of Severn tidal power to supply up to 5% of the UK’s electricity needs. UÊ Create new opportunities for individuals, communities and business to harness renewable energy: We will introduce new, simple mechanisms to support investment by businesses, communities and householders in small-scale renewable heat and electricity generation. Alongside this we will make extra funding available to ensure that people unfamiliar with renewable technologies get the advice they need to generate their own energy. We are publishing guidance on approaches that developers could take to share the benefi ts of large-scale projects with local communities. We will encourage greater adoption of renewables in central Government and the wider public sector. iiÌ}ÊÕÀÊÀiiÜ>LiÊ>LÌÃÊÜÊLiÊV >i}}]Ê>`Ê >ÃÊ>ÊVÃÌ°Ê ÕÌÊ>ÃÊÀ`Ê Stern made clear in his 2007 Review of the Economics of Climate Change the costs of inaction are much greater. And there will be signifi cant benefi ts. Our goal is to maximise the environmental, economic and employment opportunities for the UK from renewables. We want the UK to be the location of choice for inward investment and a world class centre of energy expertise. This Strategy – and our wider UK Low Carbon Transition Plan published in parallel with it – will enable us to build the UK low-carbon economy, promote energy security and take action against climate change.
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