Can the Legal Regime for Renewable Energy Support Schemes in the United Kingdom Promote Investment in

Climate Friendly Technologies?

Peter OniemolaDoctoral 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

.

ConclusionRenewable Energy Sources and Technologies are

important in mitigating climate change. An effective legal regime capable of attracting

investment in renewables is paramount