UNITED KINGDOM RENEWABLE INCENTIVES

In the United Kingdom RES-E are supported through a feed-in tariff, the Contracts for Difference scheme, a quota system and tax regulation mechanisms. RES-E electricity is connected to the grid under the principle of non-discrimination, RES-E plant operators are granted the right to access the grid against grid operators and grid operators are obliged to expand the grid if this is necessary to accept all generated RES –E from a plant. UNITED KINGDOM RENEWABLE INCENTIVES

As for RES-H&C, a subsidy and price-based mechanisms are available for supporting RES-H installations. Furthermore a quota system for biofuels for transport is in place.

A training programme for RES-E plant installers is in place, as well as a certification programme for RES-E installations is in place. An overarching Renewable Energy Roadmap relating to RES-E has been laid down and implemented. UNITED KINGDOM RENEWABLE INCENTIVES

ELECTRICITY

Support schemes

In the United Kingdom, the generation of electricity from renewable sources is supported through a combination of a feed-in tariff system, Contracts for Difference system and a quota system in terms of a quota obligation and a certificate system. UNITED KINGDOM RENEWABLE INCENTIVES

Under the feed-in tariff, accredited producers whose plants have a capacity of less than 5 MW can sell their electricity at fixed tariff rates established by the Gas and Electricity Market Authority (Ofgem). The scheme is applicable to England, Wales and Scotland only.

Under the quota system, UK electricity suppliers of more than 5 MW of capacity are obliged under the Renewables Obligation Orders to supply a certain proportion of electricity from renewable sources (“quota”) to their customers. A supplier’s quota is deemed satisfied if he presents a certain number of green certificates.

Under the Contracts for Difference (CfD) scheme, a RES-E generator and a CfD Counterparty (Low Carbon Contracts Company) enter into a contract, which is based on a difference between the market price and an agreed “strike price”. Currently, the scheme is applicable in England, Wales and Scotland. In Northern Ireland it is expected to be introduced in 2016. From April 2017 the CfD scheme will be the only support scheme for all new RES-E plants exceeding 5 MW.

Furthermore, in the United Kingdom commercial and industrial users of traditional energy sources are subject to a Climate Change Levy (CCL), a tax on the consumption of fossil energy, and in Great Britain also to Carbon Price Floor (CPF), a tax on fossil fuels used for electricity generation. Electricity from renewable sources is exempt from both of these taxes. UNITED KINGDOM RENEWABLE INCENTIVES

More about support schemes

Grid issues

In the United Kingdom access of renewable energy plants to the grid is subject to the general provisions of energy law. Renewable energy sources are not given priority.

More about grid issues

Policies

In the United Kingdom a certification scheme for solar thermal installations and an R&D policy are currently available. A plan for vocational training of installers is being developed.

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HEATING AND COOLING

Support schemes

In the UK, a subsidy and a price-based mechanism are available for supporting RES-H installations.

More about support schemes

Policies

In the United Kingdom a certification scheme for solar thermal installations and an R&D policy are currently available. A plan for vocational training of installers is being developed.

More about policies

TRANSPORT – MOBILITY

Support schemes

A quota system for biofuels is in place. UNITED KINGDOM RENEWABLE INCENTIVES

More about support schemes

Source and read more on: RES GLOBAL

Further information

  • Department for Transport
  • +44 0300 330 3000
  • DFT website
  • Green Deal Oversight and Registration Body (GD ORB) – body administering Green Deal scheme
  • +44 (0) 207 090 1031
  • GD ORB website