Transcript Can the Legal Regime for Renewable Energy Support Schemes in

Can the Legal Regime for Renewable Energy Support
Schemes in the United Kingdom Promote Investment in
Climate Friendly Technologies?
Peter Oniemola
Doctoral Candidate in Law
(University of Aberdeen)
Introduction
• Climate change has been attributed to anthropogenic activities.
• Renewable energy technologies have the potential of contributing
climate change mitigation.
• The consensus on the important role of renewable energy in
climate change mitigation has been scientific and political.
• United Kingdom has obligation to mitigate the effect of climate
change as a result of its commitment under the international
Climate change regime and the Directives of the European Union.
• United Kingdom has evolved a legal regime for the promotion of
renewable energy.
• Much needs to be done to attract investors.
The Legal Regime in the United Kingdom
• The Existing Legal Regime in the United Kingdom Relevant to
the Promotion of Renewable energy are:
• International-Regime under the United Nation Framework
Convention on Climate Change and the Kyoto Protocol
• Regional- Directives of the European Union on the Emission
Trading Directives
-Directives of the European Union on promotion of renewable
Energy
National Legal Regime
• The Feed-in Tariffs (Specified Maximum Capacity and
Functions) Order 2010, No. 678)
• The Electricity Act 1989, c.29)
• The Renewables Obligation Order 2009, No. 785
• The Renewables Obligation (Scotland) Order 2009, No.
140)
• The Renewables Obligation (Northern Ireland) Order 2009,
No. 154
• The Finance Act 2000, c.17
• Climate Change Levy (General) Regulations 2001, No 838
• The Utilities Act 2000, c.27
• The Energy Act 2008, c. 32
Support Schemes
• Tradable Quota Scheme- Under the quota system,
electricity suppliers of more than 5 MW are obliged under
the Renewables Obligation Orders to supply a certain
proportion of electricity from renewable sources to their
customers.
• Feed-in Tariff -Accredited producers whose systems have a
capacity of less than 5 MW can sell their electricity at fixed
tariff rates established by the Gas and Electricity Market
Authority (Ofgem).
• Climate Change Levy-Commercial and industrial users of
traditional energy sources are subject to a Climate Change
Levy (CCL), a tax on the consumption of fossil energy.
Impediments
• Grid Issues-Access of renewable energy
systems to the grid is subject to the general
provisions of energy law. Renewable energy
sources are not given priority.
• Carbon market is not yet effective to attract
competitiveness
• Sustenance of the Schemes
• Regulatory Risks-Investors are wary of changes
in regulation
.
Conclusion
Renewable Energy Sources and Technologies are
important in mitigating climate change. An
effective legal regime capable of attracting
investment in renewables is paramount