For full explanation of terms, methodology and growth projections see pages 96-97
long way short of the estimated contribution required for 2020.
average by 3.9% between 2009 and 2014, although a final EU agreement on indirect effects of biofuels is likely to lead to the UK formally scaling back its ambitions.
Biofuel consumption has increased on State of the Renewable Industry
Investment in renewables is growing, but much more is needed Data provided by PwC £10 billion was invested in UK renewable electricity generation in 2014, with an estimated further £42billion required to 2020. Heat saw £2billion invested in 2013, with the vast majority going to biomass boilers and biomethane. A further £6.5billion is estimated to be needed by 2020. There were no new investments identified in transport biofuels in 2014. Any plausible projection of future investment in the industry would require a far more supportive policy environment than at present.
RENEWABLE HEAT PRODUCTION
ACHIEVED TO 2013, RECENT GROWTH EXTRAPOLATED TO 2015 AND NREAP PROJECTION BY DECC FOR 2020
Investment in Renewables
n GEOTHERMAL n HEAT PUMPS n SOLAR THERMAL n ANA EROBIC DIGESTION
1. Executive summary 80000 70000
In order tomeet 2020 carbon reduction targets, all EUmember countries have been set targets for the level of renewable energy as a proportion of total energy consumption. The UK target of 15%of final energy consumption is binding, as is the 10% contribution fromtransport, however electricity and heating targets are a matter of UK policy.
60000 50000
The renewables targets are interlinked. With the electricity sector the only one that might be able to exceed its targets, any under-performance in heat and transport would have significant implications for additional renewable electricity. This highlights the need for a coordinated approach to targets that is not obvious from current policy.
10 12
2 4 6 8
- 2010 2011 2012 2013 2014 2015F 2016F 2017F 2018F 2019F 2020F Renewable electricity
www.r-e-a.net
2014 saw the greatest investment in renewable electricity generation to date, at £10bn. This level of investment exceeded expectations for the year, which were forecast to lie at £8.7bn, based on 2013 projections. Offshore wind and solar PV attracted the largest share of this record investment in a year that witnessed a number of important developments in the renewable electricity sector.
REview Renewable Energy View 2015 7 7.9 7.7 6.8 5.8 4.2
Renewable electricity
6.6
Renewable transport fuels
Renewable heat
The UK Government has enacted a series of policies to support the development of a portfolio of renewable technologies, provided a regulatory framework and a supportmechanismthat encourages investment. As the renewable energy industrymatures, Government has sought to adjust policy so that the overarching targets are met in themost affordable way, which in practicemay see the policy for individual sectors (electricity, transport and heating) change as technology costs and deployment rates change. 20000
40000 30000
This report explores the recent (2014/15) developments in the renewable energy industry and their impact on the level of investment, recognising the interactions between policy, targets and level of investment.We also present an updated estimate of capital expenditure required to reach UK 2020 targets, following on from the first REview in 2014.
10000
The analysis estimates £40bn has been spent between since 2010 across the three sectors1 and a further £48bn is required to deliver against targets.2
0
Figure 1:Historical and forecast investment in renewables (2010-20) HISTORICAL AND FORECAST INVESTMENT IN RENEWABLES (2010-20)
10.6 10.7 10.6 8.8 8.7
n ENERGY FROM WASTE n PLANT BIOMASS n WOOD COMBUSTION: INDUSTRIAL n WOOD COMBUSTION: DOMESTIC
n RECENT GROWTH TREND CONTINUED n NREAP PROJECTION
£bn
ANNUAL GENERATION (GWh)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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