The Likely Impact of Mechanism Change on Renewables Targets in the UK: The Reform of the RO and the Introduction of Feed-in Tariffs to the Policy Landscape
Geoffrey Wood , C EP M L P, University of Dundee Although the United Kingdom has had a specific delivery programme for RES-E since 1990, the NFFO and RO, the 2010 (10%), 2015 (15%) and proposed 30-35% RES-E target for 2020 are unlikely to be achieved. In response, the Government has reformed the RO. By introducing technology banding, the ‘reformed RO’ will allocate a higher number of ROCs/MWh to less mature higher-cost technologies that have massive deployment potential (e.g. offshore wind, wave, tidal). However, an analysis of the internal and external failures reveals a number of issues of concern: Government didn’t learn from their own actions during the NFFO-RO transition, evidenced by the high level of similarity in internal and external failures (e.g. planning, grid, policy uncertainty, price risk, mechanism complexity, excessive focus on low cost). Although the reformed RO increases subsidy levels and addresses the main external failures, by not addressing the issue of high price/financial risk and uncertainty, and increasing overall mechanism complexity, it can be seen that the major internal failures have still not been fully addressed. Read more…
Categories: Academic Papers, Energy economics, Energy policy
Tags: conference 2010, Energy in a Low carbon economy, Feed in tariffs, RES-E, RO, ROC’s, Student poster
The Likely Impact of Mechanism Change on Renewables Targets in the UK - Poster.pdf 974.1 KBSep
2010