“Renewable Projects: R~3-Regulation, Risk, Resourcing: Challenges in Achieving the UK and EU’s 20-20-20 Targets”

摘要

The UK Coalition Government has made clear its commitment to increasing the deployment of renewable energy across the UK in the sectors of electricity, heat and transport. The plan is that this will make the UK more energy secure, will help protect consumers from fossil fuel price fluctuations, is driving investment in new jobs and businesses in the renewable energy sector, as well as keep us on track to meet our carbon reduction objectives for the coming decades. Renewables will be a key part of the decarbonisation of the energy sector necessary by 2030, alongside nuclear, carbon capture and storage, and improvements in energy efficiency. However, as a relatively new, emerging set of technologies, renewables tend to be more expensive than existing fossil fuel generation [1]. By 2020, 15% of energy generated in the power sector must be sourced from renewable energy technologies (RET). By 2050, the UK is legally bound to cut its net carbon emissions by at least 80% of 1990 levels, which equates to a fully decarbonised power sector. Juxtaposed with the European sovereign debt and bank crises, policy makers are clambering to prevent recession from limiting the effectiveness of measures designed to incentivise low carbon energy and restore confidence in the financial markets. The combination of the growth in renewable capacity, new-build nuclear and modest use of CCS-fitted coal capacity may allow UK to reduce its carbon dioxide emissions from power generation by nearly four-fifths over the next 25 years. However, the record of renewables growth in UK is less impressive than in some other EU countries. The uncertainty surrounding market reforms, the timing of new nuclear capacity; the impact and negative perception rising from Fukushima incident, and, the entry of CCS-fitted coal units also inject doubt about the true realisation for decarbonisation. Despite this, the UK Government has affirmed its commitment to nuclear with eight new reactors planned by 2025. The 11GW of installed nuclear capacity, representing 17.3% of electrical generation is approaching end of life with 65% of capacity closing by 2020. More recently following German utilities RWE and E.ON’s decision to scrap their ￡15 billion investment plans to build two nuclear power plants put the UK Government's plans for future energy security in tatters, prompting warnings of serious knock-on effects for jobs and economic growth. It also seems increasingly evident that despite technological developments and economic viability for several applications, renewable and other forms of clean energy have only been exploited to a small fraction of their potential. This is due to the existence of the R3 (Regulation, Risk and Resourcing) barriers to the development, financing and implementation of renewable and other clean energy projects [2]. This paper attempts to identify and briefly evaluate the current regulatory framework [R1], various risks [R2] and barriers to investment in relation to the deployment of renewable energy in the EU, the UK and the ME. The paper will also provide some comprehensive insights and meaningful benchmarks in relation to the challenges and opportunities in harnessing, financing and resourcing [R3] such projects; by means of project financing such renewable energy sources and technologies.