4. Renewable energy

Key data

(2017)

Total supply*: 17.1 Mtoe (9.7% of TPES) and 99.3 TWh (29.6% electricity generation). IEA average: 9.9% of TPES and 24.6% of electricity generation

Bioenergy and waste**: 12.4 Mtoe (7.1% of TPES) and 36.0 TWh (10.7% of electricity generation)

Solar: 1.0 Mtoe (0.6% of TPES) and 11.5 TWh (3.4% of electricity generation) Wind: 4.3 Mtoe (2.4% of TPES) and 49.6 TWh (14.9% of electricity generation)

Hydro: 0.5 Mtoe (0.3% of TPES) and 5.9 TWh (1.8% of electricity generation)

*Not including non-renewable waste.

**Includes 1.2 Mtoe (4.2 TWh) of non-renewable municipal and industrial waste.

Overview

Over the past decade, the United Kingdom has achieved a remarkable growth in renewable energy, supported by different policy schemes. The United Kingdom is a market leader in offshore wind with an installed capacity of around 7.9 gigawatts (GW). The contracts for difference (CFD) auctions, which provide 15 year contracts to new renewable generation at a guaranteed strike price have resulted in strong cost reductions. In the 2017 CFD auction, the clearing price for offshore wind halved compared to the first auction in 2015 and secured 3.3 GW (UK Government, 2017a, 2017b). All these factors led to the development of a competitive renewable energy industry in the United Kingdom (see below Box 4.2). In November 2018, the total renewable electricity capacity in Great Britain (GB) from wind, solar, and biomass (42 GW) overtook the capacity of coal and gas generation (40.6 GW). Besides the outstanding growth in renewable electricity to reach 30% in 2017 from 5.5% in 2007, renewables progress in the heating and transport sectors has been more challenging to achieve under its EU 2020 target of 15% renewables in total energy consumption with 30% of electricity, 12% of heat, and 10% of transport. The United Kingdom aims to increase its renewable energy supply further, especially in heating and transport, under the Clean Growth Strategy (UK Government, 2017b). The innovative Renewable Heat Incentive (RHI) and the Renewable Transport Fuel Obligation (RTFO) have provided mixed results. A review of these policies for the horizon 2030/50 is recommended to foster the modernisation of the heating and transportation infrastructure to low-carbon technologies and fuels, as well as research, development, and demonstration (RD&D) projects.

55

ENERGY SYSTEM TRANSFORMATION

IEA. All rights reserved.