- 2010 2011 2012 2013
| State of the Renewable Industry
This shift in themix of capacity being deployed is significant because it affects the output of renewable electricity, since all technologies have different load factors.12 Solar PV has one of the lowest load factors of any renewable power generating technology (c. 10%),meaning that a large addition of solar capacity will not lead to as large an increase in output as would be the case fromother technologies.
1,000 1,500 2,000 2,500 3,000
500 -
The last 12months have also been positive for biomass, with Drax’s Unit II conversion unit entering operations, adding to the unit commissioned in 2013.13 In January 2015 the FIDe contract awarded toMGT’s 300MW Combined Heat and Power (CHP) plant in Teesside formally cleared EU state aid approval.14Thismarked the first biomass plant to be approved under the CfD regime.
submitted).16
of the role institutional investors play in allowing developers to recycle their capital for use in future projects. For example, EDF Energy Renewables announced the sale of the majority stake in three of its onshore developments (Green Rigg, Rusholme and Glass Moor II) to China General Nuclear Power Corporation (CGN) in December 2014.17
10 DUKES 6, DECC,March 2015 11 DUKES 6, DECC,March 2015
Another important observation is the extent to which the total capacity additions exceeded the forecastsmade by DECC in 2013. The outturn capacity additions amounted to 129%of the 2013 forecast for 2014.
2014 saw further evidence 3.3. Renewable electricity investments in 2014
This report is solely for the use and benefit of Renewable Energy Association and should not be relied upon by any other party. State of the renewable industry - Investments in renewable electricity, heat and transport PwC
Onshore wind received a further boost in 2014, when the creation of a £200m debt
2014 saw the greatest investment in renewable electricity capacity to date, with the in-year investment of £9.8bn (2013: £9.1bn) taking the total since 2010 to £36.3bn. Solar PV attracted the greatest investment during 2014 (£4.6bn), followed by offshore (£2.1bn) and onshore wind (£1.4bn). Mixed waste-to-energy showed the greatest year on year increase, with investment rising almost six-fold to £0.8bn in 2014.
3.4. Renewable electricity investments 2015-2020 Given the developments during 2014 in terms of market reform and the resulting record investment and capacity additions, what are the implications for investment in renewable
outperformance is that DECC has increased its forecast for 2020 renewable electricity capacity by almost 7 GW to 44.6GW in 2020. This increase in the forecast capacity largely reflects the boom in low load factor generation during 2014. The increase in
15 FIGURE 11 INVESTMENT IN RENEWABLE ELECTRICITY GENERATION DURING 2014 (£m) Figure 11: Investment in renewable electricity generation during 2014 (£m)
1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000
500 -
4,554
In order to estimate cost of deploying this capacity the technology specific capital costs in a given year is multiplied by the capacity addition.
fund was announced to support community scale renewables (anticipated to be mainly wind and small scale hydro). The lending programme will be provided address a funding gap at the community scale.18
electricity generation from 2015-20? The capacity investment outperformance
during 2014 certainly appears positive in the context of achieving 2020 targets; however, this apparent benefit may be misleading. One of the most notable effects of this
806 262 169 25 29 2 793 2,448
2014 Outturn 2013 DECC Forecast
Investment in Renewables
2014 RENEWABLE ENERGY VIEW 2015
The figure below shows the capacity deployment during 2014 by technology. Two technologies stand out for their outperformance against previous forecasts: solar PV and offshore wind. Solar PV has not only deployed significantlymore capacity in 2014 than onshore and offshore wind combined, but alsomore than doubled the 2013 solar PV capacity addition of 1GW. Offshore wind, while reaching a lower absolute deployment, exceeds the existing forecasts by c. 60%.
FIGURE 10 CAPACITY ADDITIONS DURING 2014 AGAINST 2013 FORECASTS (MW)12 Figure 10: Capacity additions during 2014 against 2013 forecasts (MW)11
2014 investment 2013 Investment
2,113 1,427 824 689 94 122 5
www.r-e-a.net
This level of investment has translated to greater than expected capacity additions during the year.When compared to 2013 forecastsmade by DECC, the 2014 out turn capacity additions have exceeded expectations by 1GW(c. 30%greater in year deployment than 2013 forecast).
REview Renewable Energy View 2015 85
Investment (£m)
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