Renewable Energy

3.85 The Renewable Energy Roadmap, published in July 2011, lays out a plan of action for Governments across the UK to further accelerate renewables deployment, drive innovation and reduce the cost of renewables to ensure value for money for the consumer.10 It identifies those technologies that have either the greatest potential to help meet the 2020 target in a cost effective and sustainable way, or offer the greatest potential for the decades that follow.

3.86 The Roadmap highlights a series of further measures which the Government is putting in place to put the UK on the path to achieving the 2020 target for renewable energy.

3.87 In addition to the market-wide measures presented above, the Government will:

• provide stable financial support for renewable technologies by:

• introducing new banding for the Renewables Obligation from 2013, with a managed transition to the new Contract for Difference Feed-in Tariff mechanism proposed in the White Paper on Electricity Market Reform; and

• launch the Renewable Heat incentive for industrial and commercial deployment by December 2011.

• unblock barriers to the deployment of renewable technologies, through:

• driving down the cost of offshore wind to £100 per megawatt hour by 2020, in partnership with industry;

• working closely with the Aviation Investment Fund Company Limited (AIFCL) to agree a plan of work to develop generic aviation mitigation solutions which will resolve objections holding up wind farms in development or awaiting construction. This project is intended to commence in early 2012; and

• publishing a Bioenergy Strategy in early 2012 to provide clarity about the availability and best use of this resource, and ensuring that sustainable feedstocks are fully exploited;

• support innovation and supply chain development in the renewable industry by:

• supporting Centres for Offshore Renewable Engineering, partnerships between Central and Local Government that ensure businesses looking to invest in manufacturing for the renewables industry receive the most comprehensive support possible. The Government has initially chosen five locations which have been the focus of the investment enquiries from renewable manufacturing businesses. In 3 of these 5 locations (Humber, Tees and Tyne), offshore renewables projects will form part of an enterprise zone development strategy and will benefit from enhanced capital allowances;

• investing up to £50 million over the next 4 years in innovation in offshore wind and marine energy and in reducing technology costs;

• investing up to £60 million over the next 4 years to develop offshore wind manufacturing facilities at UK ports;

• investing around £80 million to support a programme of research and development in ultra-low carbon technologies; and

• providing at least £100 million of additional funding for Scottish renewable energy through access to the Scottish Fossil Fuel Levy fund.




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10 UK Renewable Energy Roadmap, DECC, July 2011