<p>Last week Ruth Jaun, a Lexis Energy PSL, gave a presentation at a Young UKELA seminar on the basics of Renewable Energy. During the seminar Ruth provided a comprehensive overview of the UK market and regulatory framework for renewable energy, as well as insight into the key recent developments in the sector. The event provided an excellent introduction for anyone who is new to energy law, or those keen to learn more about recent developments in this practice area. </p><h2><strong>What is renewable energy?</strong></h2><p>Defined in the <a href="https://www.lexisnexis.com/uk/lexispsl/energy/docfromresult/D-WA-A-CCAY-AUUU-MsSWYWC-UUW-UZEYAAUUW-U-U-U-U-U-U-AZUEVCZVUW-AZUDUBDWUW-WZWADBEBD-U-U/1/linkHandler.faces?psldocinfo=Renewable_Energy_Directive_2009_28_EC_snapshot&linkInfo=F%23GB%23EU_DIR%23num%2532009L0028%25&A=0.9410177280484586&bct=A&risb=&service=citation&langcountry=GB">Renewable Energy Directive</a> (RED) as ‘energy from renewable non-fossil sources’, renewably generated energy includes energy which is conventionally generated (such as wind, solar and hydropower) as well as less mainstream sources (ex: aerothermal, geothermal or biomass). <br></p><p>The RED definition was transposed into UK legislation via the <a href="https://www.lexisnexis.com/uk/lexispsl/energy/docfromresult/D-WA-A-WW-WW-MsSWYWC-UUA-UZEYAAUUW-U-U-U-U-U-U-AZUEVCYEZC-AZUDUBEDZC-WZWADZZDZ-U-U/1/linkHandler.faces?psldocinfo=Renewable_Energy_Directive_2009_28_EC_snapshot&linkInfo=F%23GB%23UK_SI%23num%252011_243s_Title%25&A=0.7353720950992103&bct=A&risb=&service=citation&langcountry=GB">Promotion of the Use of Energy from Renewable Sources Regulation 2011</a>. Although RED has since been recast, the new Directive will not come into force until after the end of the Brexit transition period. <br></p><p>As of 2019, renewable energy made up around 31.7 % of electricity generation in the UK, with the highest contributions from onshore and offshore wind and bioenergy (including biogas and energy from waste). Ruth noted that while this number is not insignificant, it will need to increase as part of the steps the UK is taking to become carbon neutral by 2050, a target enshrined in the Climate Change Act 2008. </p><p><span style="background-color:transparent;color:inherit;font-family:inherit;font-size:inherit;text-align:inherit;text-transform:inherit;white-space:inherit;word-spacing:normal;caret-color:auto;">Aside from the UK government’s legally binding commitment to carbon neutrality, investments in this sector are also being driven by consumer and stakeholder pressure, a trend which was compounded by the COVID-19 pandemic and the resulting drop in industrial demand for fossil-fuel sourced energy.</span><br></p><h2><strong>The renewable energy market and regulation in the UK</strong></h2><h2><strong></strong></h2><p>During her lecture Ruth also provided a high-level overview of the key participants in the energy sector, including:</p><ul><li><strong>Energy sector regulators</strong>, namely GEMA whose functions are performed through Ofgem. Ofgem administers many of the renewable electricity subsidy schemes discussed further below</li><li><strong>Energy generators</strong>, who own, finance and operate renewable energy generation plants </li><li><strong>Participants in the transmission system</strong>, which take high voltage electricity from where it is generated to where it is needed. Energy transmission can happen through onshore networks, which are owned and maintained by district-specific TOs (ex: National Grid TO for England and Wales) or offshore transmission systems, for which ownership is appointed by c</li></ul>
Source: LexisNexis Purpose Built
Renewable energy – what is it and where is it going?
