Subsidy-free UK renewable energy remains a mirage – despite cuts to green levies

renewables general

By JON FERRIS

The UK renewables sector has suffered from a lack of clarity over whether subsidies are to support innovation, new industries, decarbonisation or to correct for market failure.

As a result, the removal of a scheme can be justified because it has achieved one of these aims, while the other objectives will not be achieved if support is withdrawn.

Wind and solar technologies have matured rapidly over the last decade, with costs falling rapidly, and supply chains have been developed. The CPS premium over EU ETS sets a higher carbon price for fossil fuels. On this basis, a reduction in subsidies would be justified.

However, the current wholesale market structure will not support the cost of inflexible low carbon generation, as evidenced by the increasing prevalence of negative prices at periods of high renewable output.

Read the full POLICY PLATFORM article on Scottish Energy News here: – http://goo.gl/ix34eD

 

Pixie Energy

Pixie logo Pixie Energy is an incubator and a facilitator of strategic research and project work, focusing on energy regulation, policy and markets at the local and national level. Find out more about Pixie Energy here.

Local Energy Matters: Scotland

Local Energy Matters: Scotland is a free-to-download brochure with a focus on energy tariffs in the two Scottish electricity distribution regions, as well news on local energy and low-carbon schemes.

Previous editions can be download here.

Scottish energy market overview

You can read an overview of the Scottish energy market here.

Scottish Government energy feed