Closure of the Renewables Obligation ‘slowing clean energy growth’

The Renewable Energy Association (REA) has been lamenting the closure of what it calls the single most important policy that supported the rapid growth of renewable electricity in the UK, the government’s Renewables Obligation (RO), which closed on 31 March. In 2015–16, some 23.4% of the UK’s electricity was generated by RO-accredited power stations, says the REA. In comparison, the newer Feed-in Tariff scheme supported the generation of 1.8% of electricity. 

The REA says that closure of the scheme is one of over a dozen sudden and severe policy changes introduced since the 2015 general election that have slowed the deployment of low carbon power. 

Electricity generated from renewables fell by 1% during 2016, in contrast to steady growth in previous years. For example, the cumulative annual growth rate for solar PV capacity deployed between 2011 and 2015 was 47%, while growth in deployed capacity between 2015 and 2016 was minus 35%, says the Association, quoting government data. 

The renewables industry is therefore calling for greater policy certainty. James Court, Head of Policy and External Affairs at the REA said: ‘The RO has been very successful at growing renewable electricity capacity in the UK. The renewables industry has been able to grow by having this stable, consistent policy mechanism. Without the RO the industry is left with the Contracts for Difference mechanism and, while this does support new generation, auctions take place at unpredictable intervals and the policy is prone to government more directly picking winners.’ 

Court continued: ‘Renewables such as solar and onshore wind are already the cheapest form of electricity in many situations and are tantalisingly close to being able to be built with no direct subsidy, but in the meantime they need support to get over that final hurdle.’