"The Department needs a more strategic
approach to delivering government funding for renewable energy
technologies. This requires clearer plans, better information,
improved co-ordination and a more consistent approach to assessing
results. At present the 2020 target looks optimistic. The
Department should complete work on developing its renewable energy
plans as a matter of urgency, and agree responsibilities with
delivery bodies for implementing the
plan."
Amyas Morse, head of the National Audit
Office, 10 June 2010
Government funding for developing renewable
energy technologies has delivered technology innovation and
increased the supply of renewable energy, according to a report
published today by the National Audit Office. However,
co-ordination has historically been limited and the absence of a
consistent approach to measuring and reporting on the impact of
this support means the overall value for money of spending to date
cannot be demonstrated.
Numerous schemes offering direct support for
renewable energy technologies have been launched during the last
decade by various government departments and delivery bodies.
Reflecting their own objectives and remits, each organization has
determined its approach and spending on renewable energy
technologies. Co-ordination among delivery bodies has historically
been limited and there has been no routine collection of
information on the spending and delivery by these schemes and their
contribution to meeting the 2020 target for renewable energy and
the longer-term statutory commitment to reduce carbon
emissions.
The National Audit Office found that
government-funded direct support for renewable energy technology
had totalled £265 million between 2000 and 2009. This funding is
separate from support provided through fiscal and regulatory
measures, including the Renewables Obligation, which in 2008-09
provided financial support worth around £1 billion.
The available evidence suggests direct support
has contributed to an increase in renewable energy generation. For
example, the Department’s Offshore Wind Capital Grants Scheme
contributed to an increase in renewable electricity equivalent to
14 per cent of total renewable generating capacity in 2008.
Industry has had to seek funding from many short-term schemes to
support long-term projects, but there is evidence that funding has
successfully supported innovation.
Since taking on responsibility for renewable
energy policy in October 2008, the Department of Energy and Climate
Change has delivered a renewable energy strategy and it is now
developing a supporting delivery plan. This provides an opportunity
to improve co-ordination, consistency and the value for money
achieved from Government funding for developing renewable energy
technologies.
Publication details:
HC: 35, 2010-2011
ISBN: 9780102965254