Prior to 2002, the main instruments for pursuing the development of renewables capacity were the Non Fossil Fuel Obligation (NFFO) Orders for England and Wales and for Northern Ireland (NINFFO), and Scottish Renewable Obligation (SRO) Orders; the term “NFFO Orders” is used to refer to these instruments collectively. These aimed to assist the renewables industry by allowing premium prices to be paid for electricity for a fixed period.

Since February 2000, the United Kingdom’s renewables policy has consisted of four key strands:

• a new Renewables Obligation on all electricity suppliers in Great Britain to supply a specific proportion of electricity from eligible renewables introduced from April 2002;
• exemption of electricity from renewables from the Climate Change Levy *, introduced from April 2001;
• an expanded support programme for new and renewable energy including capital grants and an expanded research and development programme
• development of a regional strategic approach to planning and targets for renewables

* Electricity generated by hydro stations with a declared net capacity of more than 10 MW is not exempt from the Climate Change Levy

In parallel with this, the European Union’s Renewables Directive (RD), which came into force in
October 2001, proposes that Member States adopt national targets for renewables that are
consistent with reaching the overall EU target of 12 per cent of energy (22.1 per cent of electricity)
from renewables by 2010. The proposed UK “share” of this target is that renewables source eligible under the RD should account for 10 per cent of UK electricity consumption by 2010.

In March 2007 the European Council agreed to a common strategy for energy security and tackling climate change.  An element of this was establishing a target of 20% of EU's energy to come from renewable source.  During 2008 a new Renewables Directive was negotiated on this basis and resulted in agreement of country “shares” of this target.  For the UK, the share is that by 2020 15 per cent of final energy consumption - calculated on a net calorific basis, and with a cap on fuel used for air transport - should be accounted for by energy from renewable sources .  The Government published a new UK Renewable Energy Strategy earlier this summer, setting out how we will meet the 15 per cent target.

Further details may be found in the June 2008 issue of Energy Trends.

Resource map of forestry residues for the UK (oven dried tonnes per annum - odt/pa)