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| Project: |
Evaluation
of UK Government Support for Renewable Energy |
| Client: |
UK
Department of Trade & Industry (DTI) |
| Sector: |
Government
& State Agencies, Energy |
| Location: |
UK |
| Partners: |
Frontier
Economics, London |
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Together with Frontier Economics of London, Byrne
Ó Cléirigh were appointed by the Department of
Trade and Industry (DTI) in London to evaluate
DTI's support for new and renewable energy under
the UK's Non-Fossil Fuel Obligation (NFFO) and
the Supporting Programme. Frontier Economics
provides consulting support to public policy
makers and businesses, specialising in the
application of economics.
The UK Government has been supporting the
development of new and renewable energy sources
for nearly 30 years. Since 1990, the NFFO has
been used to support the implementation of
commercial projects through providing guaranteed
prices. This has been subsidised by levies on
electricity consumers. In addition, the
Supporting Programme (SP) has assisted in
resource and technology development, the
dissemination of information and promotion of
exports from the UK. Expenditure since 1990 has
totalled £955 million sterling.
The aim of the evaluation was to assess whether
DTI support has been effective in developing the
UK renewables industry and reducing the costs at
which energy from renewable sources can be made
available in the UK. The evaluation focussed on
energy from onshore wind, landfill gas and
biomass (the latter including agricultural and
forestry waste, and energy crops). The evaluation
looked particularly at assistance provided under
the Non-Fossil Fuel Obligation (NFFO), and at
those aspects of the Supporting Programme of
research, development, demonstration and
dissemination that have assisted the introduction
of these technologies under NFFO over the last
decade.
The results from the evaluation formed a key
input into the development of future renewable
energy support and funding programmes (in
particular the Renewables Obligation
and capital grant programmes).
This is the second occasion on which from Byrne
Ó Cléirigh and Frontier Economics' personnel
have worked together on assignments in the energy
policy area. On the previous occasion the Client
was the Department of Public Enterprise in Dublin.
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