International Comparative Legal Guides Renewable Energy 2021: First Edition | Page 3

Chapter 16 109

12 Overview of the Renewable Energy Sector

1.1 What is the basis of renewable energy policy and regulation in your jurisdiction and is there a statutory definition of ‘ renewable energy ’, ‘ clean energy ’ or equivalent terminology ?

Directive 2009 / 28 / EC of the European Parliament and of the Council of 23 April 2009 ( the Renewable Energy Directive ) on the promotion of the use of energy from renewable sources defines “ energy from renewable sources ” as energy from renewable non-fossil sources , namely wind , solar , aerothermal , geothermal , hydrothermal and ocean energy , hydropower , biomass , landfill gas , sewage treatment plant gas and biogases , each of which are then defined separately within the Renewable Energy Directive .

Under the Renewable Energy Directive , the UK must ensure that renewable energy accounts for at least 15 % of its total energy needs by 2020 . This requirement is incorporated into UK law under the Promotion of the Use of Energy from Renewable Sources Regulations 2011 ( SI 2011 / 243 ). In addition , 10 % of the UK ’ s transport energy consumption must come from renewable sources ( such as biofuels ) by 2020 .

There are various other policies , incentives and regulations that are detailed throughout the answers below .

1.2 Describe the main participants in the renewable energy sector and the roles which they each perform .

Governmental participants The Department of Energy and Climate Change ( DECC ), formed in 2008 , was the ministerial department responsible for making decisions , setting policy and implementing legislation affecting the renewable energy sector . Following the EU Referendum held on 23 June 2016 , DECC was merged together with the Department for Business and Innovation to create the Department for Business , Energy and Industrial Strategy ( BEIS ).

BEIS is supported by other public bodies , including :

■ The Gas and Electricity Markets Authority ( GEMA ): GEMA has primary responsibility for regulation of the energy sector . GEMA ’ s powers and duties are largely provided for in statute ( such as the Gas Act 1986 , the Electricity Act 1989 , the Utilities Act 2000 , the Competition Act 1998 , the Enterprise Act 2002 and the Energy Acts of 2004 , 2008 , 2010 and 2011 ) as well as arising from directly effective European Community legislation .

■ The Office of Gas and Electricity Markets ( Ofgem ): a non-ministerial government department and an independent National Regulatory Authority recognised by EU Directives . Regulation of the renewable energy sector is delegated by GEMA to Ofgem . Ofgem administers environmental programmes and sustainability schemes on behalf of the government ( please see questions 3.5 and 3.7 for more detail ). Key duties and functions concerning electricity include :

■ the regulation of distribution and transmission networks ;

■ granting licences ;

■ protecting interests of existing and future electricity ( and gas ) consumers ;

■ ensuring that electricity wholesale and retail markets are competitive ; and

■ managing the commercial tender process for offshore transmission projects .

Private participants

■ Generation companies : following the privatisation of the generation industry in the 1990s , an increasing number of generating companies have been established , including the “ big six ” – British Gas , e . on , EDF , RWE npower , Scottish Power and SSE .

■ Transmission companies : the transmission network is owned and maintained by regional transmission companies : National Grid Electricity Transmission plc ( NGET ) for England and Wales ; Scottish Power Transmission Limited for southern Scotland ; and Scottish Hydro Electric Transmission plc for northern Scotland and the Scottish islands groups . The National Grid Electricity System Operator ( NGESO ) is responsible for controlling the stable and secure operation of the national electricity transmission system as a whole .

■ Suppliers : energy is purchased from the wholesale market by suppliers ( or self-supplied by the “ big six ”), and then sold to customers .

1.3 Describe the government ’ s role in the ownership and development of renewable energy and any policy commitments towards renewable energy , including applicable renewable energy targets .

As stated in question 1.1 , the UK has binding renewable energy targets under the Renewable Energy Directive and the Promotion of the Use of Energy from Renewable Sources Regulations 2011 .

In January 2019 , BEIS published the UK ’ s draft National Energy and Climate Plan ( NECP ) for 2021 to 2030 . The NECP is required as part of the EU Clean Energy For All

Renewable Energy 2021 © Published and reproduced with kind permission by Global Legal Group Ltd , London