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Why Renewables Matter June 2015 Why renewables matter June 2015 RUK15-012-7 Why renewables matter Why renewables matter 3 Why renewables matter Renewable energy is a UK success story. Renewable energy now provides over 19% of the UK’s electricity, and half of this comes from wind. By 2020 we expect wind, wave and tidal energy to meet 25% of the UK’s electricity needs. The Committee on Climate Change (CCC) predicts that by 2030 renewable electricity should provide 50% of the UK’s power needs, most of which will be wind power. Across this decade, the UK is renewable energy projects. 34,000 For industry and Government this expected to cut 45.5 Mt of CO2 from people now have wind, wave and tidal is semi-uncharted territory. In this 9.5% in 2014 25% by 2020 44% by 2030 electricity generation. In the 2020s we energy to thank for their employment, new relationship, industry has a must more than double this, cutting a a figure likely to increase to over responsibility to deliver new low- Percentage of the UK’s power RenewableUK forecast of wind, Committee on Climate Change further 92.9MtCO2 in order to hit CCC 100,000 by the early 2020s. Over carbon generation on time, while needs coming from wind, wave and tidal energy’s contribution prediction of wind, wave and tidal recommendations. This challenge three quarters of wave and tidal keeping costs down and maximising wave and tidal energy. to UK power needs. energy’s contribution to UK power needs. will require continued investment investment has been spent in the UK value. In turn Government must in renewables like onshore wind, UK supply chain. Over two thirds of seek to provide market stability. offshore wind, wave and tidal, as onshore wind spending stays in the Without this, investment will not flow. well as in other renewables and low- UK, with one quarter spent locally. carbon technologies, while scaling Offshore has a target of 50% UK In June 2014 RenewableUK published 13 GW 28.5 TWh <0 .1% up action on energy efficiency. In content, and, with inward investment its General Election Manifesto, setting its ability to cut CO2, wind energy is in UK manufacturing now certain, is out what the UK could expect from Capacity of UK power needs met UK wind performance in 2014 The reduction in carbon emissions unparalleled, with lifetime emissions set to deliver this target. wind, wave and tidal energy, and by onshore and offshore wind. enough to power more than from wind because of the need to comparable to new nuclear, and far what actions we would like to see a quarter of UK homes. provide thermal back up. below those of other renewables or But this success can only be from a new Government. With the low-carbon alternatives. continued with Government support. election now passed and a new The need to take action on climate Government formed, this document Best of all, we can decarbonise while change, worries over energy security, sets out, with updated information, minimising the cost to the consumer, and the challenges of keeping energy how our new Government can rely on 35,000 105,000 94% confidence and while bringing new employment costs down have all meant that renewable energy to keep the lights to the UK. Onshore wind is already Government plays a pivotal role in on and decarbonise our electricity People employed by the UK’s wind, Potential employment figure in 2020s National Grid’s ability to predict wind cheaper than new nuclear, and is set setting out the long-term framework system, while keeping down costs wave and tidal sectors. for wind, wave and tidal sectors. power output 24 hours ahead. to be cheaper than new gas plant by for our industry. and bringing new skilled employment 2020. Offshore wind costs are also to the UK. We then set out the falling rapidly and by 2020 will have The last Parliament agreed an Energy necessary policy actions required so fallen 30% from their 2012 value, Act which gives Government the that the industry can continue delivery with the industry confident that it can role of architect. Government must out to 2020, and throughout the next compete with new nuclear on price decide the shape of the market, and decade. 69% 50% 75% by the mid-2020s. decisions made through the related Contracts for Difference programme Level of UK content in the Offshore wind sector’s commitment Percentage of wave and tidal The industrial opportunity is also and Capacity Market will define what onshore wind sector. to level of UK content. investment in the UK supply chain. significant. The UK now has a does and does not get built. Now more significant employment base involved than ever it is the Government which in the development, manufacture, has responsibility for keeping the lights construction and operation of on, rather than the energy market. Front cover image: Siemens press picture Why renewables matter 4 Why renewables matter 5 Renewable energy in numbers Actions for Government: wind, wave and tidal At the end of 2014 renewables were meeting almost 20% of the UK’s electricity needs. According to the Committee on Climate Change, by 2030 over 50% could come from renewables, with wind, wave and tidal making the biggest contribution. First 100 days 2015 –2020 action 2.5% 10% 14% 19% Government to confirm the timetable Government to set a clear 2030 30.2% Gas Gas of, and budget for, the 2nd allocation decarbonisation framework. 19% 9.6% 2014 Coal 2030 Wind, wave and tidal renewables renewables round under the Contracts for We strongly advocate a firm make-up Wind, wave and tidal make-up Biomass & other renewables 44% 9.6% Other renewables Other Difference regime. Indicative dates 2030 decarbonisation target, as 12% 29.1% Other Nuclear and budget for the 3rd round to be recommended by the Committee on Nuclear 1% Carbon capture & storage published. Climate Change. – – The continued growth of renewables is not surprising in Not only are renewables important in helping us to decarbonise, light of the fact that between 2020 and 2030, the UK must they’re also important in helping us to deal with energy security. Clarification on the role of onshore wind Parliamentary consensus on tackling cut carbon emissions from the power sector by two times Our reliance on imports is increasing rapidly. In 2010 we im- in meeting Government’s 2020 targets, climate change must not waiver. All the the level agreed between 2010 and 2020. ported 20% of our fuel needs. By 2013, this had risen to 47%. given its place as the UK’s cheapest main parties were clear on this in the 1990 Baseline (204.51 MtCO2) source of low carbon electricity. 2015 election. Government needs to lead – action to secure a Fifth Carbon Budget. Set out a clear timetable for FIT Review – 2013 2010 28% to support householders, farmers By 2016 at the latest, agree the Levy 204.51 47.2% MtCO2 and small businesses benefit from Control Framework budget covering the 2011 renewable energy deployment. period up to 2025, to be extended on a 2012 36.5% 43% – rolling basis thereafter, accompanied 15.98 MtCO2 Government to make a strong by a clear timetable of CfD auctions commitment to maintain the UK’s that includes visibility of their budgets market lead in wave and tidal as part two years in advance. of the UK’s electricity mix. – Almost 35,000 people currently work in the wind, wave and tidal sectors. By the early 2020s this could rise to over 100,000. To work together with all devolved 37,119 44,653 administrations to implement a strategy 18,859 13,058 to deliver at least three pilot tidal 2013 2023 (high scenario) 2013 2023 (high scenario) arrays, and bring wave energy to a Onshore Offshore point where private investment will re- = 1,000 jobs 104,793 enter the market. 23,021 34,373 2,457 2013 2023 (high scenario) 2013 2023 (high scenario) For further information, see RenewableUK’s General Election Manifesto and our 2014 Marine All State of the Industry report. Why renewables matter 6 Why renewables matter 7 Our 2030 vision Running the country is a complex and difficult task, and a workable energy policy is a necessary part of this task. Government has recognised that the market is the best place to deliver cost efficiency, but Government itself also has an important role. The politics of Government requires The signing of the 2008 Climate Passing of the Fifth Carbon Budget The challenge of decarbonisation Technology changes and continued Power sector scenarios to reach 50gCO2/kWh a focus on immediate issues Change Act and the passing of the will mean getting agreement on also allows industry and our research evolution in how we generate and by 2030—generation (TWh/year) and an emphasis on keeping a 2013 Energy Act were important a clear pathway to electricity institutions to look at how we improve use energy will mean that across the 500 programme on track. Currently, that actions which set out a long-term decarbonisation by 2030; a our overall energy system; quickening decade electricity storage will come 450 means ensuring that the UK hits its plan for decarbonising our economy. necessary long-term signal to its evolution into a modern energy to the fore. Different storage options 400 renewable energy targets effectively. The next Government must set out investors. And this pathway network that will stand the test of time. will help put consumers back in a credible but ambitious pathway for underlines the importance of charge of how they consume energy 350 Achievement of the 2020 targets is by decarbonisation post-2020.
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