Downloads / FiTs

What’s the future role of photovoltaics in the UK energy mix? A discussion of recent market and policy developments

Dr Chiara Candelise, Imperial College The introduction of the Feed in Tariff (FIT) scheme has spurred photovoltaic (PV) sector in the UK, leading to a relatively unexpected increase in installed capacity since its implementation in April 2010.  By the end of 2011 PV installations reached about 750MW from about 40MW at the beginning of 2010. Such market growth has definitely been policy driven, but has also been helped by the dramatic price drop experienced by global PV module prices in the last two years. Indeed, module price drops and increased installation rate have led the UK Department of Energy and Climate Change (DECC) to undergo a controversial review of the FIT scheme, implying a substantial cut in the tariffs to support PV deployment. On the other hand, these recent developments have allowed the UK PV industry to grow and the achievement of considerable cost reductions in UK PV system costs (including balance of system costs). Medium-long term expectations on PV technologies also seem to have increased, as shown by a target of 20GW installed PV capacity by 2020 recently suggested Read more…

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20th
Sep
2012

The impact of installer business models on the uptake of residential microgeneration in the UK: Evidence from a nation-wide survey

Mr Richard Hanna, Centre for Environmental Strategy, University of Surrey This paper arises from a doctoral thesis comparing the impact of alternative installer business models on the rate at which microgeneration is taken up in homes and installation standards across the UK. The paper will present the results of the first large-scale academic survey of businesses certified to install residential microgeneration. The aim is to systematically capture those characteristics which define the business model of each surveyed company, and relate these to the number, location and type of technologies that they install, and the quality of these installations. The methodology comprised a pilot web survey of 235 certified installer businesses, which was carried out in June last year and achieved a response rate of 30%. Following optimisation of the design, the main web survey was emailed to over 2000 businesses between October and December 2011, with 317 valid responses received. The survey will be complemented during summer 2012 by semi-structured interviews with a representative sample of installers who completed the main survey. The survey results are currently being analysed. The Read more…

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The-role-of-installation-businesses-in-the-uptake-of-residential-microgeneration.pdf 741.42 KBHannaTheimpactofinstallerbusinessmodels.pdf 324.94 KB
20th
Sep
2012

Effectiveness of Feed-In Tariff Schemes for Solar PV: The Miracle Case of Italy

Mr Piergiorgio Chelucci, KEMA In the past two years PV technology has achieved an incredible expansion in the Italian electricity sector, with an astonishing 9GWp installed only in the past 12 months. Even more astonishing is that fact that according to GSE, the state owned company that promotes and supports renewables in Italy, PV installed capacity is projected to reach 15 GW by the end of 2012, a year-to-year increase of 20%. This success story started in 2005 with the introduction of the renewable incentive mechanism ‘Conto Energia’ (the feed-in premium scheme which provides a bonus to be paid on top of the market electricity price to the Photovoltaic generation), that was the main driver of this massive deployment of PV and the miraculous take-up of this support scheme (along with others like the all-inclusive feed-in tariff “tariffa omnicomprensiva”). Italy’s formidable case, in terms of the effectiveness of the available support schemes and responsiveness of the sector, is increasingly attracting the interest of policymakers and stakeholders in much of Europe and the rest of the world. The aim of this Read more…

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20th
Sep
2012

The small scale feed-in tariff in Great Britain : its role in electricity system transition

Mr Jimmy Aldridge, University of Exeter The feed-in tariff for small-scale low-carbon generation was introduced across GB in April 2010 and has resulted in the deployment of large numbers of solar photovoltaic installations and some increases in wind and hydro installations. The introduction of independently owned decentralised generation to the network marks a significant remove from the characteristics of the incumbent electricity regime based upon centralised, large-scale, long-running, carbon-intensive assets. But the scheme has been marred by a number of changes and reviews resulting from a lack of clarity over the objectives of the scheme, a crash in global module prices and some unforeseen developments within the sector. These changes have rocked the nascent small-scale renewable industry, sharply reducing the number of installations and questioning the UK government’s tolerance for potentially disruptive innovation in the electricity industry. This paper outlines the short tumultuous history of the feed-in tariff and the reasons for its problems, and it presents empirical analysis based on a set of interviews with stakeholders in the small-scale renewable sector and key actors from the wider electricity regime. Read more…

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The-small-scale-feed-in-tariff-its-role-in-electricity-system-transition-Jimmy-Aldridge.pdf 2.58 MB
19th
Sep
2012

Will EMR Work?

Rob Gross, Imperial College Based on the government’s goals for EMR, its success could be judged by how effectively the power sector is decarbonised by 2030, through the greater deployment of renewables, nuclear and CCS; as well as bringing in new entrants to the market. There are a range of conflicting goals in enabling this to happen, that includes the crowded UK energy policy landscape, policy change, conflicting ideologies and uncertainties. A key challenge will be securing the necessary investment for new infrastructure, including the amount of money needed, the timescale by which it is needed, the ability of the big six and other investors to provide new finance; as well as wider issues such as global supply chain constraints. New investors could include pension funds, insurance companies, banks and energy utilities/companies and they will need to create effective build consortia to allow projects to come forward and ultimately be refinanced. In the short term, EMR’s impact on investment may be marginal, but in the longer term it may be more positive. However, a fundamental issue remains that it is Read more…

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Will EMR Work 2011.pdf 477.72 KB
22nd
Sep
2011

Energy in a low carbon economy: new roles for governments and markets

David Newbery, EPEG Cambridge EU climate policy comprises of the Emissions Trading Scheme (ETS) to price CO2, the 20-20-20 Directive to create a demand pull for renewables and the EU SET-Plan to double R&D spending. However there are failures with some aspects of these policies, such as the ETS CO2 price being volatile and too low and the Renewables Directive undermining the ETS as it can reduce the price of EUAs and prejudice other forms of low carbon generation (nuclear). UK energy policy seeks to ensure a secure, affordable and efficient, low carbon energy system and is based in part around the policy lead from the EU. However, the UK also needs to consider how policy can support the transition to low carbon and the wider goals for the energy system. This requires the development of certainty to ensure that timely investment comes forward, including: a need for quick clarity on energy policy; the reduction of unnecessary risk; the replacement of ROCs with tendered FiTs; underpinning and guaranteeing the carbon price; and reform of the market and transmission access.

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Energy in a low carbon economy - Presentation.pdf 366.01 KB
22nd
Sep
2010

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