Renewables up, carbon emissions down in 2017

Once again, large falls in both coal production and use, together with the continuing rise in electricity generated from renewable energy sources, were the key changes in UK energy statistics for 2017. A (provisional) 3.2% reduction in UK carbon emissions – caused mainly by these changes in electricity generation – was the other notable highlight of the Digest of UK Energy Statistics 2018, published in July by the Department for Business, Energy and Industrial Strategy (BEIS). All the following data are from this source.

Renewables were responsible for a record high of 29% of total UK generation, up nearly 5% from 2016, meaning that – with a stable contribution from nuclear power stations – the proportion of UK generation from low carbon sources just exceeded half of the total (50.1%), up from 46% in 2016. The increase in renewables generation was due to a 14% rise in generating capacity, coupled with higher average wind speeds. Generation from onshore and offshore wind rose by 39% and 27% respectively to new records. Generation from solar and hydro increased by 11% and 10%.

Meanwhile, there was a 28% reduction in coal used in power generation (the largest user of coal in the UK) which meant that coal was responsible for 6.7% of power generated, down from 9% in 2016. Unusually, the contribution from gas was also down slightly, from 42% in 2016 to 40% last year. The share of nuclear generation remained close to 21%.

Meanwhile, the total consumption of electricity in the UK fell by 1% to 301 TWh in 2017, its lowest level since 1995. While indigenous supply was stable, electricity imports fell by 17% to just 15 TWh.

Total renewables, as measured by the 2009 EU Renewables Directive, accounted for 10.2% of total energy consumption in 2017, up from 9.2% in 2016.

Looking at UK energy production, overall primary production rose by 0.4% in 2017; although production is down 57% from its 1999 peak value. Gross natural gas production was relatively stable – although recent years have seen modest increases in UK gas production, the long-term pattern is one of decline and 2017 production levels stood at under 40% of the peak in 2000.

Crude oil production decreased by 2% in 2017, despite the opening of new fields and development of older fields. Production is currently around a third of the UK’s 1999 peak. Coal production was down by 27% to a record low of 3mn tonnes in 2017, mainly due to one of the large surface mines not producing since April 2017.

Energy imports therefore rose by 1.2% in 2017 but are down by 16% on 2013’s record high level. For both crude oil and gas the key source was Norway, with LNG accounting for 15% of gas imports, most of these from Qatar. 

UK primary energy consumption in 2017 fell, on a temperature adjusted basis, by 0.3%, continuing the downward trend of the last ten years. The fall in 2017 was largely due to the switch in generation from coal to renewable sources.

Overall coal consumption decreased by 20% and there was a 28% decrease in consumption by major power producers, due to reduced capacity following the closure of Longannet and Ferrybridge C power stations in 2016.

Electricity generated from renewable sources in the UK in 2017 increased by 19% to a record 99 TWh in 2017, while the installed generating capacity of renewable sources rose by 14% to 41 GW. Taken together, onshore and offshore wind now represent nearly half of renewable electrical capacity. 

The domestic sector was the largest electricity consumer in 2017 (105 TWh), while industry consumed 93 TWh, and the service sector 98 TWh.

Welcoming the BEIS data, trade association RenewableUK picked out another statistic – the carbon intensity of the UK’s power supply. This has fallen to a record low level – a kWh of electricity generated last year produced, on average, 225 grams of carbon dioxide, down from 483g in 2012.

The association also welcomed an announcement from Energy Minister Claire Perry that the next auction for Contract for Difference contracts for large-scale renewable generators will be held in May next year, and at two-yearly intervals thereafter. According to Perry, and depending on the auction prices, this could mean seeing  1–2 GW of new offshore wind capacity installed every year in the 2020s.

The key for the industry is the prospect of a long-term commitment from government, and regular auctions. In return the government will: ‘expect the offshore wind sector to continue cutting costs and reducing household bills whilst growing UK manufacturing.’

The government also confirmed its 2015 plan to close its Feed-in Tariff (FiT) scheme, which was primarily designed to support smaller renewables schemes – particularly solar – as planned at the end of March 2019. It says that the scheme, funded by levies on energy suppliers, has been a success, with 6 GW of generating capacity at 800,000 installations on the scheme register in March this year and having driven down costs significantly. 

The announcement, which included news of a consultation on a potential new support scheme, was less well received by the renewables industry. RenewableUK said: ‘Today’s confirmation that there will be no replacement for the FiT is a major blow to small-scale renewables in the UK. The government has known the FiT would be closing for three years and the fact that they are only now beginning the conversation about new policies is far too little, far too late for many companies.’