Analysis of Global Power Market
Analysis of Global Power Market
Policies and Regulation in the UK and Europe (1/2)
The European Commission and UK government have both issued a series of policies and regulations to promote the development
of renewable energy and increase the share of renewable energy sources in total energy consumption. The share of renewable
energy sources in EU's gross final consumption of energy was 17.5% in 2017 and that in the UK has reached over 30% in 2018.
Policies and Regulation of Power Market, Major Countries and Regions
Execution
Year
Policies and Regulations
Industrial Strategy Offshore
2019
Wind Sector Deal
Renewable Energy
Directive (EU) 2018/2001
2018
Contracts for Difference
(CfD): Draft Budget Notice
2018
for the third allocation round
Issued
Department
Department for
Business, Energy
& Industrial
Strategy
The European
Parliament &
The European
Commission
Department for
Business, Energy
& Industrial
Strategy
•
•
The Renewables Obligation
Order 2015
2015
The Secretary of
State
•
FROST &
Main Content and Emphasis
In the UK, the offshore wind can contribute up to 30GW of generating
capacity by 2030. Building up to 30GW of offshore wind by 2030
could account for over £40bn of infrastructure spending in the next
decade.
Establish a binding Union target: a share of renewable energy
sources at least 32% in 2030 and 20% in 2020 in gross final
consumption of energy
Commission should assess whether that target should be reviewed
upwards in light of substantial cost reductions in the production of
renewable energy
The administrative strike prices for offshore wind energy in third
allocation round are 53 £/MWh (2024/25) and 56 £/MWh(2023/24),
which shows a clear downward trend, compared with competition
strike price 74.75 £/MWh (2021/22) and 57.50 £/MWh (2022/23) of
second allocation round
Implement outstanding policy decisions relating to the transition from
the renewables obligation to the Contract for Difference and Capacity
Market mechanisms
Make consequential amendments to the Renewables Obligation
Closure Order
Regulates on registration of offshore wind turbines
Source: Government Documents, Frost & Sullivan
SULLIVAN
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