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Recommendations to ensure future of UK renewable energy

The gas and electricity watchdog Ofgem has proposed an end to the policy of Renewables Obligation in order to encourage future investment in renewable energy.

The proposal comes as part of a raft of recommendations announced by the regulator to ensure Britains energy supplies remain secure.

Project Discovery indicates that reform is needed in the UK energy market to address tough environmental targets and the global financial crisis.

The report makes a series of different suggestions one of which is to replace the RO with tenders for renewable energy generation.

It is hoped that this will encourage investment in renewable energy by providing investors with increased certainty over the revenue they would earn.

This is something which is sure to be welcomed by investors given the current uncertainty associated with investing in specific types of renewable energy, notably biomass, as reported by MRW earlier this week.

This suggested policy, Ofgem believes, would increase the likelihood of meeting the 2020 renewables target while providing better value for money for consumers.

Speaking about the proposals, Ofgems chief executive Alistair Buchanan said: We do not advocate change lightly, but all the facts point to the need for reforms now to provide resilient supply security.

Ofgem will be reviewing responses to these proposals between now and March 31.

 

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