The Renewables Obligation is the main financial support scheme for large-scale generators of renewable electricity. The renewable energy obligation is set at a level that varies from year to year. The level of the obligation is not the same as a target. The obligation is set at a level of electricity supply from renewable sources just above what the government expects the market to deliver.
The renewables obligation has recently been extended (UK pre-budget report).
Alistair Darling MP has stated that it remains the Government’s desire, despite the economic downturn, not to allow current economic conditions to have a negative impact on spending on renewable energy and other environmental projects.
“Action to achieve environmental objectives remains a high priority,” he said in his speech to Parliament. Of key importance, the pre-budget report states that the Renewable Energy Obligation will be extended until “at least 2037”, to encourage further investment in renewable energy technologies.
The extension has been granted to ensure that investors can plan for the future with confidence. The most important point here is that over the next ten years the market will grow to offer the increasing number of renewable energy schemes needed to achieve the 2020 target. Electricity sales and distribution companies are encouraged to obtain increasing percentages of the electricity they need. sell (5.5% in 2005/06 which should increase to 15.4% by 2015/16) from renewable sources.
The Renewable Energy Obligation is popular with the public. In fact, it’s designed not to affect consumer bills significantly. It acts as an internal incentive for utility companies to buy their fair and growing share of renewable energy, including relatively more expensive renewables such as biomass and some novel marine technologies.
In the coming years, the renewable electricity generated by wind farms will meet the needs of another three million UK homes. Using the latest turbine technology, just 2,000 turbines on land would be enough to meet this goal, or a smaller number installed offshore where the wind force is higher.
Wind farms are going to be the main beneficiaries of RO in the short and medium term. Greenpeace has coined the term “offshore power stations” which we think sums it up beautifully. “It is the only technology that exists with sufficient capacity to deal with the challenging nature of the targets,” the experts say.
In 2004 there were six offshore wind farms in operation in the UK which later saw a further seven under construction and planning for a further four submitted. The pace has picked up a lot recently and many more are now being planned and built.
The first offshore wind farm was the North Hoyle facility, built in 2003 and located in the Irish Sea off the coast of North Wales. Today’s large wind turbines are many times taller than churches or trees, with more than 100 m to the tip of the blade. These wind turbines are on the scale of a large industrial plant and can cover large areas.