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UK Onshore

Wind
Constraints and opportunities for
wind farms in the UK
target, the present UK Government
anticipates onshore windfarms to gener-
ate “2.6% of the total electricity suppIy
by 2010, or 3,250 MW”l. In this article,
R NATlONAi
SCENIC
AREA (NSAN) sa.shp
INATURE NATURE RESERYE (NNRN) nrOl~M.sh,, c Frank MacCuIlaich reviews the feasibility
(=I l.ACHS.shp
0 NON 0ESIGNAT;TEO AREA
of UK onshore wind power meeting this
target, and thus considers the related
constraints and opportunities presented
by various interrelated issues such as
technical aspects, economics, the plan-
ning system, and national energy policy.

Reaching 2010
targets
Allindications are that, in the absence of any
over-riding constraint, UK onshore wind
power will contribute significantly to the
Government’s New & Renewable Energy
Strategy. Potential major constraints have
been identified, such as the lack of electricity
transmission infrastructure in Scotland, and
the apparently unfavourable planning system
within the rest of the UK. Despite this, how-
ever, it is proposed that UK onshore wind
power will still be able to meet more than the
anticipated generation capacity by 2010.
The drive behind this development of
onshore wind power will be via economic
policy in the form of the Climate Change
Levy (CCL) in conjunction with the forth-
coming Renewables Obligation (RO).
However, the benefits to wind power

T
he UK, in particular Scotland, change, the UK Government is commit-
derived from the CCL and RO is threat-
possesses the largest share of the ted to putting in place mechanisms to
ened by another recently introduced energy
onshore wind resource in ensure that, by the year 2010, 10% of policy, namely the New Electricity Trading
Europe. As part of its contribution to total UK electricity supply shall be Arrangement (NETA). Due to the current
addressing the problem of global climate sourced from renewable energy. Of this penalising system imposed by NETA on

30 November/December 2001 www.re-focusnet


FEATURE - UK ONSHORE WIND

intermittent generation technologies, such Table 1. The UK GPR with Average Turbine Rating of 1.2MW
as wind power, the favourable economic
conditions derived from the CCL and RO
will be seriously undermined. Indeed, if
NETA remains in its current form, it is
unlikely that UK onshore wind power will
meet anticipated generation capacity by
2010. Given that Scotland possesses the
largest share of the onshore wind resource
in Europe, and thus theoretically offers the
greatest development potential in the UK
and west of a notational line between roughly commission (operational) dates of their
for the onshore wind power industry, the
the Clyde, Perth and Dundee (Figure 1). schemes. The main factors had been, firstly,
role of the planning system in Scotland is
However, there are other possible reasons why obtaining planning permission and, second-
also a key factor in reaching the 2010 tar-
Scotland has underused its onshore wind ly, securing finance. 5 The sample of infor-
gets. It is important to ascertain whether the
power potential. The electricity network cur- mation on Scottish planning applications
current planning policy framework reflects
rently operates with an over-capacity, and in collated by this author showed that 56% of
the aims of the UK Government’s New &
conjunction with the limited export capacity approved projects had still not become oper-
Renewable Energy Strategy.
(i.e. 1600 MW) via the inter-connection to ational. This commissioning delay, com-
the greater England and Wales network, has bined with the planning refusal rate of
Scotland’s planning probably created a lack of incentive or oppor- around 30%, has seen a conversion rate from
system tunity for generators/suppliers, such as SRO contracted status to operational status
Analysis of both the Structure Plans and the ScottishPower, to initiate windfarm projects.3 of about 31%, and closely accords with the
planning approval rate within Scotland Based on the calculation methodology of conversion rate figure of 26% as stated by the
indicate that the Scottish planning system the 1999 ETSU study* Scotland could, in ETSU (1999) study’ (Table 2).
in general has held a positive stance towards the absence of upgrading the transmission Nonetheless, the current GPR (grid lim-
windfarms and Renewable Energy develop- system, generate around 1200 MW by 2010 ited practical wind resource) of the UK
ment. From the sample of information on (Table 1). This figure represents only 5% of will enable onshore windpower to con-
onshore windfarm planning applications, Scotland’s total practical resource and around tribute more than a quarter share of the
received by the author from Scotland’s plan- 42% of the 3,250 MW required for onshore Renewable Obligation target of 10% of
ning authorities, the planning approval rate wind power to contribute 26% of the UK total electricity supply in the UK from
in Scotland has been around 70%. The Governments 2010 RE target. Whereas, renewable energy by 20 10. However, the
available literature suggests that the overall England and Wales can potentially generate utilisation of the GPR shall depend on the
planning approval rate of onshore wind- 4,046 MW, which is 796 MW more than the economic infrastructure of the energy mar-
farms for the UK is about 50%.2 If one UK Governments anticipated onshore wind ket and thus the incentives in place for
were to remove the Scottish element from power target for 2010. Therefore, one can generators and/or suppliers to deal in elec-
this statistic, then it would likely reveal the conclude that although the present grid tricity derived from onshore wind, as dis-
planning system in the rest of the UK to poses a major constraint to exploiting the cussed below.
have been even more unfavourable in its practical wind resource, the UK will still in
consideration of windfarms. Compared to theory be able to generate 5,446 MW by CCL and RO
Scorland, the rest of the UK currently has in 2010 (Table l), which is significantly more All electricity supply companies will be
operation approximately 7.5 times more than the generation anticipated by the UK required under the Renewables Obligation
operatronal wmdfarms and 3 times more Government (i.e. 3,250 MW). (RO) to source 10% of their supply from
generation capacity. This is despite renewable energy (RE) by 2010. Combined
Scotland possessing 3.5 times the wind Delayed SRO with the exemption of renewably generated
resource than the rest of the UK. This sta-
tistical paradox is possibly explained in part
contracts electricity from the Climate Change Levy

In Scotland, the rate of SRO contracted pro- (CCL), ‘going green’ now makes good busi-
by the grid constraint that currently exists
jects becoming operational was just over ness as well as environmental sense. It
within Scotland and the rate of Scottish
26% (Table 2). If this percentage rate had appears that both the RO and CCL were
Renewables Obligation (SRO) contracted
been lOO%, Scotland would now have designed in conjunction with each other.
projects becoming operational.
around 28 operational windfarms rather Rather than being just simply a duty of com-
than the current number of 7. Whereas, for pliance the RO will, due to the workings of
Scotland’s grid the UK as a whole there would be an opera- the CCL, actually turn out to be a ‘golden
constraint tional generation of at least 1016.18 MW, handcuff’ scenario for electricity suppliers
From the study conducted by ETSU (1993), meeting approximately half of the 2010 Via the economic pressure of the RO, elec-
the revised NPPG 6: Renewable Energy onshore wind power target, instead of the tricity suppliers will be forced to fulfil their
Developments states that anticipated present generating capacity of 401.8 MW. commitments to RE. Proof that suppliers
Renewable Energy expansion in Scotland will The DTI conducted a monitoring pro- have complied will be through the issuing of
mostly come from wind power, despite the gramme in 1995/96 for projects receiving Renewables Obligation Certificates (ROCs).
transmission and grid system capacity exerting support under the NFFO, the SRO and the Suppliers will have the choice of either meet-
an “influence” on the choice of potential wind NI-NFFO. The study showed many project ing their obligation by buying the requisite
farm locations. This constraint exists north developers had been overly optimistic in the amount of certificates, or by choosing to

November/December 2001 RE:-‘l;i”i -i, www.re-focmnet 31


FEATURE - UK ONSHORE WIND

Table 2. UK Onshore Wind Power Progress under the NFFO/SRO/Nl-NFFO (end September 1998). ETSU (1999).

‘buy-out’ part of their obligation. The buy- work to tight financial budgets and thus the conjunction formed a favourable market
out price is currently proposed at 3p/kWh greater amount of supply of RE electricity condition for significant expansion of
for each unit short of the obligation. This the lesser the level of CCL tax imposed, operational wind power in the UK.
proposed buy-out price is intended to act as which can amount to annual sums of 6 or Indeed, the effects of these economic poli-
a price-cap on eligible renewables, so that the more figures. cy instruments have created a situation
extra cost passed onto the consumer is at an However, at present electricity suppli- that favours organisations, liable to the
acceptable level. The revenue gained from ers/generators do not produce enough levy, to obtain 100% of electricity supply
less compliant suppliers (i.e. those that chose capacity to supply 100% RE electricity to from renewable sources. However, this
to ‘buy-out’ receipts) are redistributed back those that desire it. The organisations auspicious scenario is threatened by anoth-
to the more compliant suppliers. Thus, in liable to the levy are creating a waiting RE er Government policy, namely the New
effect it pays to comply with the RO, as the market and will thus give encouragement Electricity Trading Arrangement (NETA).
‘green’ suppliers will be financially rewarded to electricity suppliers to purchase more NETA came into effect on the 27 March
by the monies gained from the less ‘environ- than just their 10% RE obligation, and 2001 and replaces the previous pooling sys-
mentally friendly’ suppliers. Consequently, will give investors the confidence to tem of how wholesale electricity was bought
suppliers will have the incentive to comply as finance the construction of RE schemes. and sold. The trading arrangement penalis-
much as possible in order that competitors To meet the increased RE demand, created es electricity generators that do not meet
do not gain market advantage through a by the RO and CCL, electricity suppliers their stated supply amounts. Thus, if an
greater respective compliance level. are likely to favour expansion of onshore electricity generator experiences a shortfall
With the climate change levy adding a wind power due to it being significantly in contracted generation then it must pay
further 0.47p/kWh, the costs for electricity cheaper than any other renewable energy for that shortfall at the ‘System Buy Price’
supply for organisations subject to the CCL technology. In turn, for the local authori- (SBP). As the supply of wind has unpre-
will increase between 7 to 15 %. ty consortiums to achieve full CCL exemp- dictable fluctuations, windfarms have
Consequently, organisations will be keen to tion it would require favourable planning already been penalised to the point
gain full exemption from the tax by pur- conditions for onshore windfarm propos- whereupon it was more economical to sim-
chasing as much of their electricity as possi- als. As planning departments are part of ply not generate. The non-generation of
ble from suppliers that sell electricity local authorities it will be interesting to see windfarms is contrary to the aims of the
sourced from renewable energy. Evidence if planning approval rates significantly Renewables Obligation and Climate
of the promoting effect of the CCL, operat- increase beyond present levels. This is Change Levy, and currently presents the
ing since April 200 1, has been shown by the probably a more significant issue within greatest potential constraint to the expan-
formation of public body consortiums England and Wales given the relatively low sion of wind power in the UK. Therefore, it
(local authorities, police, fire brigades, etc) planning approval rate, estimated to be is clear that the UK Government needs to
collectively purchasing their electricity around 50%.7 If such a situation did review the present NETA system, such as
needs to reduce the extra costs imposed by occur, and was provable, it would be an excluding intermittent Renewables from
the levy. With local authorities eager to example of the CCL creating a centralised penalty payments.
avoid the extra costs of the CCL, it creates financial interest between both local
an interesting situation for the development authorities and electricity suppliers. Conclusion
of onshore wind power in the context of In summary, the Renewables Obligation This article has indicated that, in the
planning issues. Local authorities already and Climate Change Levy have in absence of any over-riding constraint,

32 November/December 2001 REP :“ICI! , www.re-focus.net


m FEATURE - UK ONSHORE WIND

UK onshore wind power will contribute In conclusion, onshore wind power devel- Ibid.
significanrly 10 the Government’s NPW & opment is likely to generate 2.6% of total UK New Review, The Quarterly Ren-
Renew~zble Energy Strategy. There are electricity consumption by 2010, providing ewable Energy Newsletter. Issue 47,
potential constraints. such as the lack of the UK Government imminently revises the February 2001, D-II. http://
electricity transmission inftastructure in current significant constraint posed by the www.dti.gov.uklNewReviewlnr471
Scotland, and the apparently unfavourable recently introduced New Electricity Trading html/monitoring_programme.htm,
planning system within the rest of the UK. Arrangement (NETA). Otherwise, if NETA accessed on 13/05/O 1.
However, according to this study, Scotland remains in its current form it is unlikely that ETSU (1999). New and Renewable
should still be able to exploit a further UK onshore wind power will meet anticipat- Energy: Prospects in the UK for the
1200 MW of wind resource, which is over ed generation capacity by 20 10. 21st century: Supporting Analysis. A
a third of the 3,250 MW required for report produced by E1’SU for the
onshore wind power to contribute around References Department of Trade and Industry as
26% of the UK Governments 2010 RE Renewable energy has an important role part of the New and Renewable Energy
target. In addition, due to the Climate in the UK’s future: it is not ‘optional’. Programme. London: DI‘I. Published
Change Levy it is possible that the plan- Environment Minister Michael March 1999. ~173.
ning system in the rest of the 1JK could Meacher speaking at the 21st annual ETSU (1999). New and Renewable
become more approving, due to the BWEA conference, September 1999. Energy: Prospects in the UK for the
emerging ccntralised business interests http://www.britishwindenergy.co.uk/pu 21st century: Supporting Analysis. A
between electricity generators/suppliers b.html. , accessed O 1/07/O. report produced by El‘SU for the
and local authorities. ETSU (1999). New and Renewable Department of Trade and Industry as
The consumer market for onshore wind Energy: Prospects in the UK for the part of the New and Renewable Energy
power will be induced by the combined 21st century: Supporting Analysis. A Programme. London: D1‘1. Published
economic incentive of the Renewables report produced by ETSU for the March 1999. ~173.
Obligation and the Climate Change Levy. Department of Trade and Industry as ETSU (1999). New and Renewable
Indeed, it is very likely that the resultant part of the New and Renewable Energy Energy: Prospects in the UK for the
favourable economic conditions for onshore Programme. London: DTI. Published 21st century: Supporting Analysis. A
wind power from these policies will result in March 1999, ETSU-R-122 report produced by ETSU for the
electricity suppliers trying to purchase more Scottish Executive, Development Department of Trade and Industry as
than their obliged 10% quota from eligible Department (August, 1994). National part of the New and Renewable Energy
renewables, as Pet the Renewables Planning Policy Guideline NPPG 6 Programme. London: D7’I. Published
Obligation. Renewable Energy. Crown Copyright. March 1999, ETSU-R-122.

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