The Economics of Renewable Energy, Volume 1The Government aims to increase renewable energy from 1.8 per cent to 15 per cent of energy consumption by 2020, in line with European Commission proposals. This report looks at the economics of renewable energy given the Government's policy to reduce carbon emissions. Chapter 2 gives a brief overview of Britain's energy system and outlines the Government's energy policy objectives. Chapter 3 examines the different renewable technologies used to generate electricity, and compares generation costs between them and contrasts them with fossil fuel-fired plants and nuclear power. Chapter 4 looks at the issues involved in balancing the irregular supply from renewable generators which depend on weather conditions against the continuous demand for electricity. The potential for renewable sources of heat and of transport fuels - an overlooked area even though they account for 80 per cent of UK energy consumption. - is examined in chapter 5. Chapter 6 reviews the key policy issues, the impact of renewable policy on fuel poverty, the planning system for renewable energy, and whether the 15 per cent EU target is achievable. The Committee finds that costs of renewable energy generation are more than conventional means. It recommends that the Government prioritise the development and promotion of the other effective and economic options, both to bring down carbon dioxide emissions and to achieve security of electricity supply. The most reliable renewable sources are tidal barrage and biomass, which are problematic for other reasons, and hydro-power which is near the limit of its potential in the UK. The most reliable low-carbon alternative to renewables is nuclear power, together with conventional fossil fuel generation with carbon capture and storage (if and when that becomes available). |
Contents
Abstract | 6 |
Predicted electricity demand and generation | 13 |
Solar | 19 |
Estimates of the cost of electricity generation | 28 |
Renewables in the Electricity System | 34 |
Common terms and phrases
Appendix base cost BERR biofuels biomass Britain capital costs capture and storage carbon capture carbon dioxide carbon dioxide emissions carbon emissions Centrica Chapter Climate Change CO₂ coal coal-fired consumers conventional plant cost of electricity costs of renewable Denmark deployment E.ON economic Emissions Trading Energy Technologies Institute estimates extra figures forms of renewable fossil fuel fuel poverty Government Government's heat pumps higher household hydro hydrogen impact increase intermittent renewable investment load factor Lord low carbon micro-generated million National Grid nuclear power offshore wind farms Ofgem onshore p/kWh paragraph peak demand pence per kWh potential power stations projects reduce carbon emissions renewable electricity Renewable Energy Foundation renewable heat renewable sources Renewables Obligation Renewables Obligation Certificates ROCs sector share of renewable suppliers supply target tidal tonne transmission UK Energy UK's UKERC wind farms wind power wind turbines