The UK Experience

828 views
764 views

Published on

Presented by Andrew Walker, former Director of the UK Office of Gas and Electric Markets

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
828
On SlideShare
0
From Embeds
0
Number of Embeds
53
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

The UK Experience

  1. 1. The UK Experience Clean Energy, Good Governance and Regulation Andrew Walker – March 2008
  2. 2. What is Clean Energy? <ul><li>Renewables </li></ul><ul><li>- bio-fuels, cost effectiveness, implementation or development? </li></ul><ul><li>Nuclear </li></ul><ul><li>- what about the waste? </li></ul><ul><li>Carbon capture and storage </li></ul><ul><li>- will it work on a large scale? </li></ul>
  3. 3. UK Experience – Clean Energy <ul><li>Renewables – in 2006 about 5½GW of capacity generating about 5½ per cent of electricity </li></ul><ul><li>Nuclear – in 2006 about 11GW of capacity generating about 19 per cent of electricity </li></ul>
  4. 4. UK Experience - Strengths <ul><li>Early commitment to renewable energy with the introduction of the NFFO in 1990 </li></ul><ul><li>Political consensus – support for renewable energy, Stern Review and White Paper on Nuclear Power </li></ul><ul><li>Resource base for renewable energy – Severn Barrage 8½GW and offshore wind +200GW </li></ul>
  5. 5. UK Experience - Weaknesses <ul><li>Lack of coordination between government energy policy, the planning regime and energy regulation </li></ul><ul><li>Design of the arrangements to support renewable energy </li></ul><ul><li>The focus of energy regulation is competition / regulation of natural monopoly – not the environment </li></ul>
  6. 6. Coordination Issues <ul><li>The planning process led to the approval of a relatively large number of small scale onshore wind farms </li></ul><ul><li>This led to growing public dissatisfaction with visual intrusion </li></ul><ul><li>A relatively small number of large onshore wind farms would have been more effective </li></ul>
  7. 7. Support Mechanisms <ul><li>NFFO – regulator picked schemes on the basis of cost effectiveness, but few actually got built </li></ul><ul><li>RO – obligation on suppliers and if they do not deliver they must make buyout payments, complex and volatile, has not promoted the development of Severn Barrage or offshore wind </li></ul>
  8. 8. Energy Regulation (1) <ul><li>Bi-lateral trading arrangements and imbalance settlement unhelpful for renewable energy </li></ul><ul><li>No strategic consensus with Government </li></ul><ul><li>Long on rhetoric and short on action </li></ul>
  9. 9. Energy Regulation (2) <ul><li>Abolished deep connection charges for distributed generation but introduced use of system charges </li></ul><ul><li>Key initiatives on offshore wind, transmission capacity, distributed generation and micro-generation led by Government and not the regulator </li></ul>
  10. 10. Conclusions <ul><li>The challenge of climate change is so great that it is likely renewable, nuclear and CCS will all need to be developed </li></ul><ul><li>Coordination between Government agencies within and between countries essential </li></ul><ul><li>Regulation needs to fully take account of the changing strategic landscape </li></ul>

×