FOREWORD REQ


A RENEWABLE ENERGY ASSOCIATION PUBLICATION WINTER 2014


REQ RENEWABLE ENERGY QUARTERLY


FROM ROCs TO CfDs


n ENSURING ROUTE TO MARKET FOR INDEPENDENT GENERATORS n CAN RENEWABLES TACKLE THE CAPACITY CRUNCH? n MAINTAINING UK LEAD ON ADVANCED POWER TECHNOLOGY


Powering up for an uncertain and exciting energy future


Editor Sarah Cartledge 020 8492 5881 sarah@tpggroup.co.uk


Art Editor Nadia Nelson nadia@tpggroup.co.uk


Editorial and commercial support from the REA team Lindsay Barnett; James Beard; Mike Landy; Stuart Pocock; Paul Thompson; Ben Goodwin; Leah Ashcroft


Contributors Darren Riva; Jodi Huggett; Andrew King; Codin-Sorel Ureche; David Gleadhill; Stephen Kemp; Avril Banks; Richard Gueterbock; Andy Gadsby; Sarah Farr; David Hunt; Silvio Spiess; Ian McCracken


Advertising Manager Amanda Flatt 020 8492 5882


amanda.flatt@tpggroup.co.uk


Advertising Executive Rory Mulkerrins rory@tpggroup.co.uk


Sales Director Karen Hart 020 8492 5885 karen@tpggroup.co.uk


Publisher Steve Gardner 020 8492 5888 steve@tpggroup.co.uk


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A Renewable Energy Association Publication


When you hear the words “renewable energy” I bet you think of a white wind turbine or an array of shiny solar panels. It’s hardly surprising. Not only are these two renewables the most visually distinctive, they are also two of the fastest growing, rapidly


bringing down their costs. At the REA, we are often at pains to point out that there’s more to renewables than just these two technologies. Biomass, wave and tidal, hydro, geothermal and the various waste to energy technologies all generate renewable electricity too. But even more often, we find ourselves at pains to point out that there is more to renewables than just electricity. Renewable heating technologies and transport fuels are just as important for the


WE HAVE BEEN DOING TERRIFIC WORK ON SOLAR THESE PAST FEW YEARS, BUT MAINLY FOR


Renewable Energy Association 25 Eccleston Place, Victoria London, SW1W 9NF Tel: +44 (0)20 7925 3570 Fax: +44 (0)20 7925 2715 www.r-e-a.net


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THE BENEFIT OF THE STA. SO OUR FIRST TASK IS TO REFOCUS THAT WORK SO IT DIRECTLY BENEFITS REA MEMBERS.’


mammoth challenge of decarbonising our economy. Having said all that, we are keen to make renewable electricity a special focus in this issue of REQ as the sector is, at this very moment, undergoing the most radical policy overhaul in over a decade. Commentators have employed several colourful metaphors to describe Electricity Market Reform, the process that is replacing the current Renewables Obligation (RO) with the new Contracts for Difference (CfD) scheme. My favourites include “runaway rollercoaster,” “a jigsaw puzzle with no picture on the box” and, succinctly, “a dog’s dinner”. Unlike the Feed-in Tariff and Renewable Heat Incentive (both secured following sustained


political campaigning by the REA and colleagues), the renewables industry hasn’t asked for the introduction of CfDs. Most developers were quite happy with the RO, thank you very much! So what we’re doing is trying to smooth the


transition. We’ve had some excellent successes along the way, but independent developers and certain technologies remain at a disadvantage. There’s much work still to be done to make CfDs work for all players (see p. 10). REPOWER also introduces two exciting


new work programmes for 2015: solar and energy storage. We have been doing terrific work on solar these past few years, but mainly for the benefit of the STA. So our first task is to refocus that work so it directly benefits REA members. Our next task is to expand it and focus not just on where solar is now, but where solar is going (see p. 12).


The combination of solar and storage could


revolutionise the way we engage with energy. Battery technology is on the cusp of the kind of rapid expansion we’ve seen in solar these past five years. It’s a really exciting time. Storage isn’t just about solar and batteries


though. There are many diverse storage technologies at different scales and stages of development. What they all have in common is that they can help balance unpredictability on the grid, both in supply and demand (see p. 13). We work to make policies as supportive as


possible for renewables and to help our members grow their businesses. Sometimes, policies fall short of our expectations (such as the EU 2030 package – see p. 7). But even in difficult times, the renewables industry continues to exceed expectations. Its adaptability, ingenuity and resilience give me every confidence that a sustainable, low carbon energy future is within reach – whatever the outcome of next year’s election!


REQ


Dr Nina Skorupska Chief Executive, REA


To read REQ online, please visit: www.r-e-a.net/resources/rea-publications


WINTER 2014 | RENEWABLE ENERGY QUARTERLY | REQ 3


FRONT COVER IMAGE: SHUTTERSTOCK


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