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Biogas in the United Kingdom 

General
The Renewables Obligation (RO) is the main support scheme for renewable electricity projects in the UK. It places an obligation on UK suppliers of electricity to source an increasing proportion of their electricity from renewable sources. A Renewables Obligation Certificate (ROC) is a green certificate issued to an accredited generator for eligible renewable electricity generated within the United Kingdom and supplied to customers within the United Kingdom by a licensed electricity supplier. One ROC is issued for each megawatt hour (MWh) of eligible renewable output generated. The Renewables Obligation Order came into effect in April 2002, as did the Renewables Obligation (Scotland) Order. The Renewables Obligation (Northern Ireland) Order came into effect in April 2005.  These Orders have been and are subject to regular review. The Orders place an obligation on licensed electricity suppliers in England and Wales, Scotland and Northern Ireland to source an increasing proportion of electricity from renewable sources. In 2005 - 2006 it was 5.5 per cent (2.5 per cent in Northern Ireland). In 2006 - 2007 the obligation is set at 6.7 per cent (2.6 per cent in Northern Ireland). It was 7.9% for 2007/2008, and it will be up to 14.5% in 2015. Suppliers meet their obligations by presenting sufficient Renewables Obligation Certificates (ROCs). Where suppliers do not have sufficient ROCs to meet their obligations, they must pay an equivalent amount into a fund, the proceeds of which are paid back on a pro-rated basis to those suppliers that have presented ROCs. The value of ROCs is paid to the producer in addition to the market price of electricity.

In August 2008 the Energy regulator Ofgem has published interim information on the size of the Renewables Obligation for the 2007-08 obligation period, which finished in March 2008. According to this statement, the total Renewables Obligation on electricity supplied to customers across the UK is 25,477,265 MWh. On electricity supplied in England & Wales it is 22,784,988 MWh, on electricity supplied in Scotland it is 2,456,216 MWh and on electricity supplied in Northern Ireland it is 236,061 MWh. Electricity suppliers must comply with their Renewables Obligations for 2007-2008 before 1st September 2008. They can do this by either presenting Ofgem with Renewables Obligation Certificates (ROCs) to the value of 7.9 per cent of electricity supplied to customers, by using a buy-out clause which allows them to pay £34.30 per MWh for any shortfall or by using a combination of ROCs and buy-out.

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for the United Kingdom is 15% (in the year 2005 the share was 1.3%). The Directive has a mandatory 10 % target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.

From 1 April 2010 householders and communities who install low carbon electricity technology such as solar photovoltaic (pv) panels and wind turbines up to 5 megawatts will be paid for the electricity they generate, even if they use it themselves. The level of payment depends on the technology and is linked to inflation.

Renewable energy projections according to the National Renewable Energy Action Plan for the United Kingdom
The National Renewable Energy Action Plan (NREAP) for the United Kingdom was submitted in July 2010. The target according to Annex I of Directive 2009/28/EC is 15% for the year 2020 and the projected NREAP share in that year exactly matches the target.  According to the projection, the most important contribution in the year 2020 is expected from wind power (78.3 TWh or 6730 ktoe, 33% of all renewable energy). Second important contribution is expected from biomass (renewable heating and cooling) (3914 ktoe, 19% of all renewable energy). The third largest contribution is from biodiesel (renewable transport) (2462 ktoe, 12% of all renewable energy). Wind power contributes in the year 2020 with onshore wind (14.9 GW and 34.2 TWh) and offshore wind (13.0 GW and 44.1 TWh). For solar photovoltaic the 2020 contribution is projected to be 2.7 GW (2.2 TWh). For solar thermal the 2020 contribution is projected to be 34 ktoe. The two most important biofuels are projected to contribute 2462 ktoe (biodiesel) and 1743 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 20.6 TWh (1770 ktoe) and for biogas it is expected to be 5.6 TWh (479 ktoe). The consumption of renewable heat is expected to amount to 3612 ktoe for solid biomass and 302 ktoe for biogas.

Renewable heat and electricity: biogas
According to the National Renewable Energy Action Plan (NREAP) for the United Kingdom the contribution of electricity from biogas amounts to 6830 GWh (1340 MW) in the year 2010 and 5570 GWh (1100 MW) in the year 2020. In energy terms, this represents an average annual growth of -2% per year (-2% per year in capacity terms). Renewable heat from biogas is projected to amount to 18 ktoe in the year 2010 and 302 ktoe in the year 2020 (representing an average annual growth of 33% per year). 

The UK is undertaking efforts to increase the deployment and use of anaerobic digestion to create biogas. In March 2010 Defra published the Anaerobic Digestion Implementation Plan for England. This sets out the practical actions to increase the use of anaerobic digestion. The new Government’s Coalition Agreement has also made a specific commitment to increase the level of anaerobic digestion in the UK. Grant funding of £10 million has been made available for the Anaerobic Digestion Demonstration Programme.  These projects will be built by the end of March 2011, and will demonstrate ‘state of the art’ use of anaerobic digestion.

DfT is also exploring how utilisation of biogas in transport may be increased, how deployment barriers can be overcome and how the uptake of this technology can be stimulated. As such DfT is conducting a feasibility study on the use of biogas in local transport.

There is keen interest from businesses who would like to inject biomethane (upgraded and cleaned biogas or syngas) into the gas grid. The consultation on the Renewable Heat Incentive proposed to support this process through that scheme. However, financial support is not the only issue for companies intending to inject biomethane into the gas grid. In Great Britain, gas is delivered via a network of pipes owned and operated by National Grid and the Gas Distribution Network Owners. These companies and the flow of gas itself are strictly regulated – to allow the operation of the competitive gas market, and to ensure health and safety. The gas regulatory regime can appear complex to those who do not operate within it. That is why the Government, in partnership with Ofgem, the gas grid companies (National Grid and the Gas Distribution Network Owners), and trade associations (from the gas and renewables sectors), published guidance in December 2009 Biomethane into the Gas Network: A Guide for Producers to the GB gas regulatory regime aimed at potential biomethane producers. The Government will consult this year on providing biomethane producers with an exemption from the requirement to hold a Gas Transporter’s Licence. In parallel, the Health and Safety Executive, in partnership with DECC, will be ready to consider whether certain statutory requirements for the quality of gas in the grid might be adjusted, in order to help biomethane injection without compromising safety.

Future programme changes expected

No information on future policy.

Sources

ECN database on National Renewable Energy Action Plans (NREAPs), data for the United Kingdom, http://www.ecn.nl/nreap, October 2010

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources, http://ec.europa.eu/energy/renewables/transparency_platform_en.htm

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)

Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: December 2010

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