United Kingdom renewable energy policy framework summary

Second half of 2015 introduces a number of relevant announcements for renewables in UK. Changes and cuts to the Renewable Obligation (RO), Feed-in Tariff (FiT) and Climate Change Levy (CCL), Renewables exemption programmes were announced. 2016 is a year of implementation of previously planned changes in order to cut governmental spending.

Adopted in 2009, the binding target requires UK to source 15% of energy consumption from renewable energy. According to the European Commission progress report, UK missed its non-binding 2013/2015 target of 5.4% by 0.3%.

Feed-in tariffs (FITs)

At the end of August 2015 DECC issued proposal for public consultation outlining major changes in the scheme. The plan included considerable FIT reductions ranging between 54% and 87% for all technologies to be introduced asap, aiming for the beginning of 2016. Final decision on cuts was published in December 2015 coming into force in January 2016.

From February 2016 the cap on FIT budget was introduced – GBP 100 million per year. The pre-accreditation for FIT was reinstated from February 2016 after it was scrapped down in October 2016.

Renewable Obligations (RO) In December 2015 DECC announced that from April 2016 RO will be closed for new PV projects of 5 MW capacity or below and to any expansions of already existing installation larger than 5 MW. RO will be closed for onshore wind installations as of 1st of April 2016 – a year earlier than previously planned. The RO scheme will be closed for new applications as of 1st of April 2017.

Climate Change Levy (CCL) Starting from 1st of August 2015 renewable electricity generators are no longer eligible for the CCL exemption certificates which provide an additional income stream up to the value of the CCL (currently GBP 5.54/MWh) with few exemptions. The CCL waiver will be removed completely mid-2016 which will additionally impact renewable projects’ revenues.

Contract-for-Difference (CfD) The first allocation round under CfD took place in October 2014 announcing results in February 2015. The second round was scheduled for October 2015 but was cancelled and it was not rescheduled yet.

Renewable Heat Incentive (RHI) Currently no announcement on RHI changes but may be forthcoming.

 

Summary

Announcement on FIT cuts caused boom in installations as investors tried to lock in higher FIT level support in 2015. The general trend of the recent policy changes is to reduce expenditures generated by the renewable energy support programmes and create a policy framework that allows for better cost and capacity control as well as to limit consumers’ electricity bills.

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Highlighted records constitute key elements of renewable energy policy framework

Found: 47 results. (Tip: sort columns by clicking on the column header)
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TitleCountryYearPolicy StatusPolicy TypePolicy Target
Contract for Difference (CfD)United Kingdom2014 (October)In Force Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums Solar, Wind, Wind>Offshore, Wind>Onshore, Ocean, Ocean>Tidal, Ocean>Wave, Multiple RE Sources>CHP, Bioenergy>Biomass for power, Geothermal, Hydropower
Electricity Market Reform (EMR)United Kingdom2013 (April 1st)In Force Regulatory Instruments Multiple RE Sources, Multiple RE Sources>Power
Green DealUnited Kingdom2013Ended Economic Instruments>Fiscal/financial incentives>Grants and subsidies, Economic Instruments>Fiscal/financial incentives>Loans, Economic Instruments>Direct investment Solar>Solar photovoltaic, Multiple RE Sources, Multiple RE Sources>Heating, Multiple RE Sources>Power, Multiple RE Sources>Cooling, Multiple RE Sources>Renewable heat pumps , Solar Thermal
Renewable Heat Incentive (RHI) for domestic and non-domestic generatorsUnited Kingdom2011 (amended 2014, updated 2015)In Force Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums Solar Thermal, Bioenergy>Biomass for heat, Geothermal, Geothermal>Heat
Energy White Paper 2011United Kingdom2011Superseded Regulatory Instruments>Codes and standards, Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums, Policy Support>Institutional creation, Policy Support>Strategic planning, Policy Support Multiple RE Sources>All
Feed-in Tariffs for renewable electricity for PV and non-PV technologiesUnited Kingdom2010 (last updated 2015)In Force Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums Wind>Onshore, Bioenergy, Hydropower, Multiple RE Sources>CHP, Solar>Solar photovoltaic
National Renewable Energy Action Plan (NREAP)United Kingdom2010In Force Policy Support>Strategic planning, Policy Support Multiple RE Sources, Multiple RE Sources>All, Multiple RE Sources>CHP, Multiple RE Sources>Cooling, Multiple RE Sources>Heating, Multiple RE Sources>Power, Multiple RE Sources>Renewable heat pumps
Energy Act 2010United Kingdom2010Superseded Policy Support>Strategic planning
Low Carbon Transition PlanUnited Kingdom2009Ended Regulatory Instruments, Economic Instruments>Fiscal/financial incentives>Grants and subsidies, Policy Support, Policy Support>Institutional creation, Policy Support>Strategic planning, Economic Instruments>Direct investment, Research, Development and Deployment (RD&D) Wind, Bioenergy>Biofuels for transport, Bioenergy, Bioenergy>Biomass for heat, Bioenergy>Biomass for power, Multiple RE Sources, Multiple RE Sources>Heating, Multiple RE Sources>Power, Ocean
Renewable Energy Strategy 2009United Kingdom2009In Force Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums, Policy Support, Policy Support>Institutional creation, Policy Support>Strategic planning, Research, Development and Deployment (RD&D)>Research programme >Technology deployment and diffusion, Research, Development and Deployment (RD&D)>Research programme >Technology development, Regulatory Instruments Bioenergy, Bioenergy>Biofuels for transport, Bioenergy>Biomass for heat, Bioenergy>Biomass for power, Geothermal>Heat, Hydropower, Ocean>Tidal, Ocean>Wave, Solar, Wind, Wind>Offshore, Wind>Onshore
Low Carbon Industrial Strategy (LCIS)United Kingdom2009Ended Research, Development and Deployment (RD&D)>Research programme >Technology deployment and diffusion, Information and Education>Advice/Aid in Implementation, Information and Education>Information provision, Economic Instruments>Fiscal/financial incentives>Grants and subsidies, Economic Instruments>Fiscal/financial incentives>Loans, Policy Support, Policy Support>Strategic planning, Economic Instruments>Direct investment>Procurement rules, Economic Instruments>Direct investment>Infrastructure investments, Research, Development and Deployment (RD&D), Research, Development and Deployment (RD&D)>Demonstration project, Research, Development and Deployment (RD&D)>Research programme >Technology development Wind>Offshore, Bioenergy, Multiple RE Sources, Ocean>Tidal, Ocean>Wave
Renewable Transport Fuels Obligation (RTFO)United Kingdom2008 (last updated 2015)In Force Regulatory Instruments>Obligation schemes  Bioenergy>Biofuels for transport
Energy Act 2008United Kingdom2008Superseded Policy Support>Institutional creation, Policy Support Wind, Bioenergy, Geothermal, Multiple RE Sources, Multiple RE Sources>CHP, Multiple RE Sources>Heating, Multiple RE Sources>Power, Ocean, Solar
Climate Change Act 2008United Kingdom2008In Force Policy Support, Policy Support>Institutional creation, Policy Support>Strategic planning, Regulatory Instruments>Obligation schemes , Economic Instruments>Market-based instruments>GHG emissions trading Multiple RE Sources, Bioenergy>Biofuels for transport
Planning and Energy Act 2008United Kingdom2008In Force Regulatory Instruments Multiple RE Sources
Energy Technologies InstituteUnited Kingdom2007In Force Voluntary Approaches>Negotiated Agreements (Public-private sector), Policy Support, Policy Support>Institutional creation, Research, Development and Deployment (RD&D) Wind>Offshore, Multiple RE Sources, Ocean>Other, Ocean>Tidal, Ocean>Wave
Environmental Transformation Fund (ETF)United Kingdom2007Ended Economic Instruments>Fiscal/financial incentives>Grants and subsidies Multiple RE Sources>Power, Multiple RE Sources, Multiple RE Sources>All, Multiple RE Sources>CHP, Multiple RE Sources>Heating
Microgeneration Strategy 2006United Kingdom2006 Ended Economic Instruments>Fiscal/financial incentives>Grants and subsidies, Policy Support>Strategic planning, Research, Development and Deployment (RD&D)>Research programme >Technology development Multiple RE Sources>Power
Low Carbon Buildings ProgrammeUnited Kingdom2006Ended Research, Development and Deployment (RD&D), Information and Education>Information provision, Economic Instruments>Fiscal/financial incentives>Grants and subsidies Wind>Onshore, Bioenergy>Biomass for power, Geothermal>Heat, Hydropower, Multiple RE Sources>CHP, Solar>Solar photovoltaic, Solar Thermal
Climate Change and Sustainable Energy ActUnited Kingdom2006Ended Policy Support Wind>Onshore, Multiple RE Sources, Multiple RE Sources>Power
Scottish Biomass Support SchemeUnited Kingdom2006Superseded Economic Instruments>Fiscal/financial incentives>Grants and subsidies Multiple RE Sources>CHP, Bioenergy>Biomass for heat
Biomass Task Force ReportUnited Kingdom2005In Force Policy Support>Institutional creation, Research, Development and Deployment (RD&D)>Research programme , Policy Support>Strategic planning, Information and Education>Advice/Aid in Implementation, Information and Education>Information provision, Economic Instruments>Fiscal/financial incentives Bioenergy
Marine Research Development Fund (MRDF)United Kingdom2005Ended Research, Development and Deployment (RD&D)>Research programme >Technology deployment and diffusion, Research, Development and Deployment (RD&D)>Demonstration project Ocean>Wave, Ocean>Tidal
Research Councils Energy Programme (RCEP)United Kingdom2004In Force Research, Development and Deployment (RD&D)>Research programme >Technology deployment and diffusion, Research, Development and Deployment (RD&D), Research, Development and Deployment (RD&D)>Demonstration project, Research, Development and Deployment (RD&D)>Research programme , Research, Development and Deployment (RD&D)>Research programme >Technology development Multiple RE Sources>All, Multiple RE Sources
UK-US Partnership for Clean EnergyUnited Kingdom2004In Force Policy Support, Research, Development and Deployment (RD&D)
Bio-energy Infrastructure SchemeUnited Kingdom2004In Force Economic Instruments>Fiscal/financial incentives Bioenergy
Methane to Markets PartnershipUnited Kingdom2004In Force Policy Support Bioenergy>Biomass for power, Bioenergy>Biomass for heat
Funding for Using Willow as a Renewable Energy SourceUnited Kingdom2004Unknown Economic Instruments>Fiscal/financial incentives>Grants and subsidies Bioenergy>Biomass for power
Energy Act 2004United Kingdom2004In Force Regulatory Instruments Wind>Offshore, Ocean>Tidal, Ocean>Wave
Energy White Paper 2003United Kingdom2003Superseded Policy Support Multiple RE Sources, Multiple RE Sources>All
Renewable Energy Guarantees of Origin (REGOs)United Kingdom2003In Force Information and Education>Performance Label>Endorsement label, Regulatory Instruments>Monitoring, Regulatory Instruments>Codes and standards, Economic Instruments>Market-based instruments>GHG emissions trading Multiple RE Sources>All
Bio-energy Infrastructure SchemeUnited Kingdom2003Ended Economic Instruments>Fiscal/financial incentives>Grants and subsidies Bioenergy>Biomass for power
Industry Promotion and Information DevelopmentUnited Kingdom2003Unknown
Renewables Obligation (RO)United Kingdom2002 (last amended 2015)In Force Economic Instruments>Market-based instruments>Green certificates, Information and Education>Performance Label>Endorsement label, Economic Instruments>Fiscal/financial incentives, Policy Support>Strategic planning, Regulatory Instruments>Monitoring, Regulatory Instruments>Obligation schemes , Regulatory Instruments>Codes and standards Wind>Onshore, Bioenergy>Biomass for power, Geothermal>Power, Hydropower, Multiple RE Sources>All, Multiple RE Sources>Power, Ocean>Tidal, Ocean>Wave, Solar>Solar photovoltaic, Wind, Wind>Offshore
Preferential Tax Regimes for BiofuelsUnited Kingdom2002 (last amended 2008)In Force Economic Instruments>Fiscal/financial incentives>Tax relief Bioenergy>Biomass for heat
Biofuels Duty IncentiveUnited Kingdom2002In Force Economic Instruments>Fiscal/financial incentives>Tax relief Bioenergy>Biofuels for transport
Bio-energy Capital Grants SchemeUnited Kingdom2002In Force Economic Instruments>Fiscal/financial incentives>Grants and subsidies Bioenergy>Biomass for power, Bioenergy>Biomass for heat
Energy Technology ProgrammeUnited Kingdom2002Superseded Research, Development and Deployment (RD&D) Multiple RE Sources
Large-scale PV Demonstration ProjectUnited Kingdom2002Ended Regulatory Instruments>Monitoring, Economic Instruments>Fiscal/financial incentives>Grants and subsidies, Research, Development and Deployment (RD&D)>Demonstration project, Research, Development and Deployment (RD&D)>Research programme >Technology development, Regulatory Instruments>Auditing Solar>Solar photovoltaic
Offshore Wind Capital Grants SchemeUnited Kingdom2002Ended Economic Instruments>Fiscal/financial incentives>Grants and subsidies Wind>Offshore
Major PV Demonstration ProgrammeUnited Kingdom2002Ended Economic Instruments>Fiscal/financial incentives>Grants and subsidies Solar>Solar photovoltaic
Climate Change LevyUnited Kingdom2001 (last updated 2015)In Force Economic Instruments>Fiscal/financial incentives>Taxes, Regulatory Instruments Multiple RE Sources>Power
The Green Fuels ChallengeUnited Kingdom2001Ended Economic Instruments>Fiscal/financial incentives, Policy Support
Renewables Obligation PlanUnited Kingdom2000Superseded Regulatory Instruments>Codes and standards, Economic Instruments>Fiscal/financial incentives, Regulatory Instruments>Other mandatory requirements, Regulatory Instruments>Monitoring, Regulatory Instruments>Obligation schemes  Multiple RE Sources>All
Energy Crops Scheme - EnglandUnited Kingdom2000In Force Economic Instruments>Fiscal/financial incentives>Grants and subsidies Bioenergy>Biomass for power, Bioenergy>Biomass for heat
Scotland - Small business energy efficiency loansUnited Kingdom1999In Force Economic Instruments>Fiscal/financial incentives>Loans Multiple RE Sources
Non-Fossil Fuel ObligationUnited Kingdom1990Superseded Multiple RE Sources, Multiple RE Sources>Power, Multiple RE Sources>All

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