Is the UK set to miss its renewable energy targets?- Part 1

The UK is set to miss its own targets of generating 10% of its energy from renewable sources by 2010, according to a report by the House of Lords science and technology committee. "We found almost no one outside government who believed that the White Paper targets were likely to be achieved," the report states. "We judge that by 2010 the UK may have achieved 6-7% renewable generation." The report gives recommendations and analysis for all forms of renewable energy, and is critical of the government's reliance on market mechanisms to keep electricity affordable. It says that "virtually no renewable source is economically competitive at present unless a substantial pollution cost is added to the cost of generation from fossil fuels." This means that renewables must be supplemented by subsidies or other means of support.

The renewables obligation and the planning system are two key problems to be addressed in the next two years if the whole strategy on renewables is not to be seriously jeopardised, the report states. It claims that, although described as "technology blind", the renewables obligation discriminates strongly in favour of generation technologies that can be brought to market within the next year or so, because the uncertainty surrounding the future value of the RO incentives means that investors look for an early return on their investment. In addition: "The weakness of the Renewables Obligation as an incentive to developers is its vulnerability to uncontrollable commercial and political risks. Although it appears to provide a subsidy of around £45-50 per MWh at present, in practice only a small part of this is likely to reach those actually generating renewable electricity; the remainder will go to their backers, and electricity suppliers, to compensate them for accepting their share in these risks."......