World Class in Renewables

The UK is well equipped to establish a lead position in the development of emerging energy technologies through similar initiatives, using effective cooperation and transfer of knowledge across the energy sector.  Our contribution to tackling climate change is not only in developing new low-carbon means of generating electricity, but in finding ways of dealing with the emissions from existing energy sources.  The UK government is supporting the world’s first commercial-scale demonstration project for post-combustion carbon capture and storage on a coal-fired power plant.  This technology has the potential to capture 90% of carbon emissions making it potentially an important means of addressing climate change. 

We hope to have the demonstration project up and running by 2014.  This technology, once commercially demonstrated, would be transferable.  Carbon capture technology allows hydrocarbons to be burned without causing damaging emissions and would be an extremely important tool in reducing emissions in rapidly developing economies like China and India. 

Wind power

The UK has an outstanding and forward looking position in the offshore wind power sector: we now lead the world in terms of installed offshore capacity at 600 megawatts. This success is due not just to expertise in wind turbine design, training and in specialist supply chain components, but in large part to the innovative spirit of the UK renewables industry.  UK technologies are at the leading edge of this energy sub-sector: in smaller scale wind power this includes the Scottish company Proven Energy’s flexible wind turbine blade, which adapts to the wind strength in order to optimise performance and safety.  The Proven blade twists as the wind gets stronger allowing the turbine to maintain a high output even in the fiercest storms.
The UK has the best and most geographically diverse wind resources in Europe and there are a number of projects underway both on and offshore to capitalise on this important source of renewable energy.  For example, the London Array wind farm being developed off the Kent and Essex coasts in the outer Thames Estuary will make a substantial contribution to the UK Government’s renewable energy target.
Similarly, the Rhyl Flats Offshore Wind Farm being developed by RWE npower off the coast of North Wales is expected to produce enough clean, green electricity every year to meet the average needs of approximately 61,000 homes, and will prevent the release of tens of thousands of tonnes of carbon dioxide to the atmosphere every year.
Such schemes have important economic benefits through local job creation. They also create a stimulus for other firms which supply and support major infrastructure projects. Demand for services and component products can also act as a driver for investment by overseas firms into the UK.

For example, Mitsubishi Power Systems Europe has chosen to headquarter in London both to grow its presence in the domestic market and in order to use the UK as a springboard into Europe, North Africa and the Gulf. From its UK base, the company is focused on securing contracts to support construction of new thermal power generation plants. It also provides ongoing management and maintenance services and will promote expansion of the company’s renewable energy business, which includes wind turbines and photovoltaic power generation systems.

Spotlight on solar

Another key renewable energy technology, identified as an important growth area by UKTI, is solar – or photovoltaics (PV). According to market research from Ecofys, the UK is set to see rapid growth in this area. At the end of 2006, after growth of over 30 per cent between 2003 and 2005, UK installed capacity stood at 13.6 MW – 8th in Europe. Looking ahead, the potential market by 2020 is estimated to be as much as 6094 MW, greater than Italy and Spain and on a similar scale to Germany, a current leader in the PV market.

Nurturing the PV market is a key element of the UK Energy Excellence Marketing Strategy launched by UK Trade and Investment (UKTI) last year, which aims to demonstrate the UK’s world-leading position in energy and keep it ahead of international competition.

The UK PV market benefits from world-leading R&D facilities, a collaborative research environment and advanced skills base. The government’s long-term commitment to the development of renewable energy and the drive to develop more sustainable, low carbon buildings also supports the future growth of the PV market. The UK is already home to a number of established players in the production, installation and integration of PV products – such as Sharp, Romag, Crystalox, Solar Century and Dulas, who can offer a range of services globally including PV module supply, grid connection, medical refrigeration, water pumping, rural electrification, telecommunications, emergency systems, streetlights and remote solar home systems.

A combination of a strong skills-base and the growing domestic market are decisive factors in attracting such businesses to the UK. Similarly, the ability to use the UK as a springboard for growth into other European markets is another strong selling point.

Looking to the future, new construction projects will start to drive demand for solar energy.  According to a report from the Renewables Advisory Board, onsite renewable generation needed to ensure zero carbon homes will drive up demand in the coming decade. The report predicts that the market for microgeneration could, as a result, be worth £2.3 billion a year, with PV playing a significant role in this growth.
 

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