While UK met its 2020 interim target, there is some doubt regarding whether it will meet the overall 2020 target of 15% of energy consumption from renewables. For the time being it seems that the UK will have to make arrangements to count renewable energy produced and used in other member states to achieve its targets. Additionally, recent government decision to remove preliminary accreditation from the Feed-in-tariff, rejection of several renewable projects and Austrian legal action against development of the Hinkley Point nuclear power plant will have an effect on the countries energy future.

1. Energy Profile for the UK
Hans De Keulenaer, Fernando Nuño, José Daniel Fasolino and Paul Waide
January, 2016

2. Content
Introduction
Energy Policy
Governance
Supply
Demand
Prices
Summary: energy balance & indicators, specifics & issues
| Country Profile UK2

3. Introduction
Country snapshot in numbers
Indicator Unit Year of Estimate Value
Land area Thousand sq.km 2014 243.6
Urban population % of total 2012 82.09
Population Millions 2013 64.1
Population density People per sq.km 2013 264.9
GNI per capita PPP 2011 $ 2013 38,160
Inflation CPI % 2013 2.5
Net energy imports % of energy use 2012 39.3
| Country Profile UK3
Source: World Bank – World Development Indicators

4. Introduction
Wind and Solar resources
| Country Profile UK4

5. Introduction
Resources
5
Since the beginnings of 2013 the UK has been
a net importer of crude, NGLs and petroleum
products
Oil stocks are gradually increasing mainly due
to crude stocks
The share of electricity generation from
renewables is increasing
Electricity production through bioenergy is
higher than onshore wind
Renewable capacity has more than doubled
since 2012
Reserves in Mtoe
Available Renewable Capacity in MW
Source: World Energy Resources – 2013 Survey| Country Profile UK
19 200
1 071
133
0 5 000 10 000 15 000 20 000 25 000
Coal
Oil
Gas
12 987
5 377
4 526
1 723
- 5 000 10 000 15 000
Wind
PV
Bioenergy
Hydro

6. Energy Policy
National energy plan
The Energy White Paper (May, 2007) sets the government’s commitment to
ensure a secure, low-carbon and affordable energy supply
The White Paper acknowledges the evolving nature of the challenges in the
growing climate change impact and rising fossil fuel prices and slow
liberalisation of EU energy markets
It’s main goals are:
• To cut CO2 emissions by 60% before 2050, with real progress by 2020
• To maintain the reliability of energy supplies
• To promote competitive markets in the UK and beyond
• To ensure that every home is adequately and affordably heated
6 | Country Profile UK

7. Energy Policy
National energy plan
The Low Carbon Transition Plan (July, 2009) sets out how the UK aims to
meet its binding carbon budget:
• Cut emissions from the power sector and heavy industry by 22% of 2008
levels by 2020, using 40% of electricity from low carbon sources
- Production of 30% of electricity from low-carbon sources
- Facilitate the building of new nuclear power stations
- 120M GBP will be invested in offshore wind, 60 M GBP in marine energy
• Cut emissions from homes by 29% of 2008 levels
- Rolling out smart meters in every home by the end of 2020
• Cut emissions from workplace by 13% of 2008 levels
• Cut emissions from domestic transport by 14% of 2008 levels
- 30M GBP for electric vehicle charging points in six cities and regions
• Cut farming and waste emissions by 6% of 2008 levels
7 | Country Profile UK

8. Energy Policy
National energy plan - Highlights
Energy savings across all sectors – 20% energy consumption reduction
Move towards cleaner energy, especially heat and distributed energy and
clean large scale electricity
Renewable electricity but also maintaining power generation mix, including
nuclear
CCS to reduce emissions from fossil fuel power generation
Low carbon transport (fuel efficiency, modal mix, clean fuels)
R&D and pilot projects in low carbon technologies
Security of supply through targeted investment facilitation
Affordable and reliable energy access for consumers
8 | Country Profile UK

9. Energy Policy
Renewable Energy
The National Renewable Energy Action Plan (NREAP) from 2009 focuses on
meeting 2020 targets
• Target RE share of 15% of gross energy consumption by 2020 considered possible
- 30% RE in electricity
- 12% RE share in heating & cooling
- 10% RE share in the transportation sector
• Multiple financial, regulatory, innovation and “soft” measures across all sectors
- 30 billion GBP in financial support until 2020
• Focus on key renewable technologies with highest potential to achieve 2020 targets
- Onshore and offshore wind: development co-funding and direct funding
- Marine energy: financial innovation support for wave and tidal technology
- Biomass electricity and heat: regulatory incentive to increase biomass use
- Ground and air source heat pumps: RHI (Renewable Heat Incentive)
- Renewable transport: investment in EV infrastructure and grants for EV/ hybrid
vehicles.
9 | Country Profile UK

10. Energy Policy
Energy Efficiency
The National Energy Efficiency Action Plan (NEEAP) from April 2014
stipulates a UK EE target of an 18% (27.9 Mtoe) reduction in final energy
consumption reduction by 2020
• As part of the ‘20-20-20’ targets, UK has an ambitious target of 20% reduction of
primary energy consumption
• Central to the EE Directive is the achievement of Article 7 provisions (a binding final
energy consumption target)
- This target is equivalent to achieving new energy savings of 1.5% of annual
energy sales to final costumers from 2014 to 2020
• Horizontal (regulatory) measures
- A total of 19 policy measures have been identified to contribute towards this
target (EE Obligations, CERT, CESP, ECO)
- Energy audits and management systems (CRC, GHG reporting, DECs, etc.)
- The smart meters programme aims to roll out electricity and gas meters to all
domestic properties and smart or advanced meters to smaller non-domestic
sites in GB by 2020
- Consumer information programmes and training
10 | Country Profile UK

11. Energy Policy
Energy Efficiency
The UK has a wide range of policies that encourage EE of existing and new
buildings
Public bodies lead by example on energy consumption reduction
• 14% reduction of GHG emissions in 2012-2013
• The UK estimated the savings to be achieved by 2020 at 163.6 GWh
The Government has taken action to ensure that UK businesses have
access to support needed to install cost-effective EE measures
Regulations in place since 2009 have increased energy efficiency in the
transport sector (ultra-low emission vehicles, eco-driving, Green bus fund)
As heating accounts for approximately one third of UK GHG emissions, the
government is promoting CHP
Distribution Use of System and Transmission Use of System tariffs are
structured on a cost reflective basis to consider network costs
• This creates incentives for consumers to consider their usage profile and reduce
their consumption during peak usage periods
11 | Country Profile UK

12. Reduction in energy intensity – the UK’s
success story – source: WEC, all data adjusted to match EU average economic
structure (https://www.wec-indicators.enerdata.eu/)
12 | Country Profile UK

13. Energy Policy
Electricity
The British Electricity Trading and Transmission Arrangements, came into
effect in 2005
• Established a British-wide wholesale electricity market for Scotland, England and
Wales
• Ensured a uniform system for generation, transmission, distribution and supply of
electricity
Transmission:
• The transmission networks act like the motorway system and enabling the bulk
transfer of high voltage electricity (direct from power stations) around the country.
• The system as a whole is operated by a single operator, the National Grid Electricity
Transmission plc (NGET)
• The owners of these networks are National Grid, Northern Ireland Electricity
Networks, SP Energy Networks and Scottish and Southern Energy Power
13
Source: ENA| Country Profile UK

14. Energy Policy
Electricity
Distribution:
• Electricity distribution networks carry electricity from the high voltage transmission grid
to industrial, commercial and domestic users
• There are 7 distribution network operators (DNOs) distributed by region in the UK
- SSE Power distribution, SP Energy Networks, Northern Powergrid, Electricity
Northwest, Western Power Distribution, UK Power Networks and Northern Ireland
Electricity
Even though their share is decreasing, natural gas, coal and oil represent
almost 55% of electricity generated in the UK
• Nuclear energy is increasing and reached 21.5% of the share in 2015 Q3
• Renewables attained 23.5% of the electricity share in 2015 Q3
Electricity production and consumption have been decreasing over the past
five years (mainly in the industry and residential sectors)
14
Source: ENA| Country Profile UK

15. Energy Policy
Gas
National Grid owns the high pressure gas transmission system in Great
Britain, acting like the motorway system and enabling the bulk transfer of
gas around the country
There are 8 regional distribution networks in UK
• Independent gas transporters, Scotland gas network, Northern Gas networks,
Nationalgrid, Southern gas networks, Bord Gais and Wales West
All gas suppliers must be certified by OFGEM (Office of Gas and Electricity
Market)
• OFGEM is a non-ministerial government department and an independent National
Regulatory Authority. Its main objectives are:
- Promote security of supply and sustainability
- Supervise and develop markets and competition
- Regulate and deliver Government schemes
There is an active debate about gas from fracking and the direction
of government policy is not yet clear on this
15
Source: Ofgem| Country Profile UK

16. Energy Policy
Coal
Coal is a significant component of the UK’s energy mix, and over three
quarters of the nation’s requirements are imported
There were 15 working coal powered stations in the UK, (~ 25 GW)
• Several of them were due to close by the end of 2015 (approximately 8 GW) to meet
EU air quality legislation
From April 1st 2015, coal imports should be decreasing thanks to the
implementation of the Carbon Tax, which charges power producers for each
tonne of CO2 they emit
Government has recently announced a consultation on ending unabated
coal-fired power stations by 2025
Carbon Capture and Storage (CCS) was being promoted to remove carbon
dioxide from power station emissions and store it underground
• 1 Billion GBP was due to be made available for the first CCS demonstration project in
UK but this pledge was cancelled in November 2015
16 | Country Profile UK

17. Energy Policy
Nuclear
By the end of 2012, UK had 16 nuclear reactors with a combined capacity of
9.2 GW
• Some of these reactors are old and will be shut down by 2019 (7.4 GW)
The government has taken a series of actions to encourage nuclear
development
• 16 GW is expected to be constructed by 2025
For new nuclear build, Section 45 of the Energy Act 2008 requires
prospective nuclear operators to submit a Funded Decommissioning
Program (FDP) for approval by the Secretary of State for Energy and
Climate Change
• The process for licensing new nuclear installations is outlined in the Office of Nuclear
Regulation (ONR) published in 2012
Austria filed a legal objection to the European Commission against the UK
decision to provide financial support for energy delivered from the
construction of the Hinkley Point C nuclear power plant
17 | Country Profile UK

18. Energy Policy
Climate
The Government has taken a number of steps to limit the UK’s
emissions of greenhouse gases through legally binding targets
By 2012, UK’s emissions had fallen by 25% on 1990 levels, meeting
its international target under the Kyoto protocol
The Climate Change Act commits the UK to reducing emissions by
at least 80% in 2050 (from 1990 levels)
• Also, the Climate Change (Scotland) act, passed in 2009, commits Scotland to a
42% reduction by 2020 and annual reductions between 2010 and 2050
18 | Country Profile UK

19. Governance
Actors
Electricity Gas
# of companies
representing >95% of
power generation
17 #of entities bringing
natural gas into country
23
# of main entities 6 # of main entities 6
# retailers 32 # of retailers 36
# main retailers 6 # of main retailers 7
HHI power 1,483 HHI supply n/a
HHI retail 1,720 HHI retail 2,373
Market value (B€) 33.67 Market value (B€) 20.69
Installer capacity (GW) 84.9
Peak load (GW) 56.2
19 | Country Profile UK

20. Supply
Overview
| Country Profile UK20
Source: IEA Energy Balances of OECD Countries
0%
20%
40%
60%
80%
100%
120%
140%
0
50
100
150
200
250
300
1960 1970 1980 1990 2000 2010 2011 2012 2013
Mtoe
Production TPES Energy independence
Total primary energy supply and energy independence in the UK

21. Supply
Total Primary Energy Supply
| Country Profile UK21
Source: IEA Energy Balances of OECD Countries
Gas and oils are the main source of primary energy supply,
representing 35% and 30% of the total respectively
20%
30%
35%
11%
4% Primary Energy Supply
Solids
Oil
Gas
Electricity
Biofuels

22. Supply
Electricity
| Country Profile UK22
Source: ENERDATA – Global Energy & CO2 Data
1%
27%
36%
6%
2%
20%
8%
Electricity production by source
Oil
Gas
Coal
Biomass
Hydro
Nuclear
Wind, solar,
geothermal0
50
100
150
200
250
300
350
400
1970 1990 2005 2011 2013
Electricity Consumption in TWh

23. Supply
Electricity
| Country Profile UK23
Source: ENERDATA – Global Energy & CO2 Data
3%
37%
23%
4%
4%
10%
19%
Power capacity by source
Oil
Gas
Coal
Biomass
Hydro
Nuclear
Wind, solar,
geothermal
1%
27%
36%
6%
2%
20%
8%
Electricity production by source
Oil
Gas
Coal
Biomass
Hydro
Nuclear
Wind, solar,
geothermal

24. Supply
Interconnectors
Britain’s electricity market currently has 4GW of interconnector
capacity:
• 2 GW to France (IFA)
• 1 GW to the Netherlands (BritNed)
• 500 MW to Northern Ireland (Moyle)
• 500 MW to the Republic of Ireland (East West)
In general terms, there are two routes for interconnector investment
• A regulated route (cap and floor regime): developers identify, propose and
build interconnectors and there is a cap and floor mechanism to regulate
how much money a developer can earn once in operation
• A merchant exempt route: developers face full investment and would usually
apply for an exemption from certain aspects of European legislation in order
to increase the safeguards for the business case
24 | Country Profile UK

25. Supply
Gas
Gas pipelines:
• The UK-Belgium interconnector has an import capacity of 25.5 bcm a year
• The UK- Netherlands and the Versterled pipeline have an import capacity of
14.2 bcm a year, each one
• The Langeled pipeline to Norway has an import capacity of 26.3 bcm
Liquified Natural Gas: there are 3 import facilities that are capable of
meeting nearly 50% of annual demand
• Dragon at Milford Haven, Isle of Grain and South Hook
Norway and Russia are the two main gas suppliers for the UK
Gas production has fallen nearly 70% since its peak in the year 2000
25 | Country Profile UK

26. Supply
Oil
The Oil and Gas Authority (OGA) will be transformed into a Government
company in 2016; undertaking the licensing, exploration and development
functions for both offshore and onshore mining (including shale gas)
On January 1, 2015 the Supplementary Charge Tax (SCT) for new
investments by O&G companies was reduced from 32% to 20%
• Aiming to boost oil production by 15% and to attract around 5.6 Bn€ in
investments by 2019
Since the second quarter of 2013, import of petroleum products have
surpassed exports
26 | Country Profile UK

27. Demand
Overview
| Country Profile UK27
Source: IEA Energy Balances of OECD Countries
20%
33%
13%
33%
1%
Energy consumption by sector
Industry
Transport
Services
Residential
Agriculture
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
1960 1980 2000 2011
Energy consumption in ktoe

28. Demand
Industry
| Country Profile UK28
Source: IEA Energy Balances of OECD Countries
Electricity and natural gas are the main sources of energy consumed in
industry
7%
17%
36%
35%
2% 3%
Energy consumption in industry by energy type
Solids
Oil
Gas
Electricity
Biofuels & waste
Heat

29. Demand
Transport
| Country Profile UK29
Source: IEA Energy Balances of OECD Countries
Oil dominates energy consumption in the transport sector
0%
97%
0% 1% 2%
Energy consumption for transportation by energy type
Solids
Oil
Electricity
Biofuels & waste

30. Demand
Services
| Country Profile UK30
Source: IEA Energy Balances of OECD Countries
Electricity and gas are the main sources of energy consumed in
the service sector
0% 4%
41%
52%
1% 2%
Energy consumption in the service sector by energy type
Solids
Oil
Gas
Electricity
Biofuels & waste
Heat

31. Demand
Residential
| Country Profile UK31
Source: IEA Energy Balances of OECD Countries
Gas is the main source of energy consumed in the residential sector
2% 6%
66%
25%
1% 0%
Energy consumption in the residential sector by energy type
Solids
Oil
Gas
Electricity
Biofuels & waste
Heat

32. Prices
National Energy Bill (B€)
32
Fuel Industry Transport Households &
Services
Total
Coal 1 - 0 1
Oil 3 72 3 78
Gas 3 - 22 25
Electricity 11 - 36 47
Heat 0 - 0 0
Total 18 72 61 151
| Country Profile UK

33. Prices
Taxes
Oil: 57% of taxes in end-consumers prices
• 60% of taxes for the transport sector (59% on diesel and 61% on gasoline)
• 20% for industry and 21% for households and services
Electricity: 4%
• 3% of taxes for industry
• 5% of taxes for household and services
Gas: 4%
• 3% of taxes and levies for industry
• 5% of taxes for household and services
33 | Country Profile UK

34. Prices
Electricity prices w.r.t. neighbours
| Country Profile UK34
Constant price in US$cents05 of electricity in industry (taxes incl.)
Unit 1980 2013 2014 Unit 1980 2013 2014
Belgium USc05/kWh 11.08 10.09 9.93 Z-score 0.12 0.35 0.09
France USc05/kWh 11.48 9.95 9.85 Z-score 0.20 0.31 0.07
Italy USc05/kWh 14.58 25.59 25.94 Z-score 0.83 3.96 3.78
Portugal USc05/kWh 12.82 12.24 n.a. Z-score 0.47 0.85 n.a.
Spain USc05/kWh 9.92 13.09 14.26 Z-score -0.12 1.05 1.09
United
Kingdom
USc05/kWh 12.36 12.89 13.48 Z-score 0.38 1.00 0.91
Source: ENERDATA – Global Energy & CO2 Data

35. Prices
Gas prices w.r.t. neighbours
| Country Profile UK35
Source: ENERDATA – Global Energy & CO2 Data
Constant price in US$05 of natural gas in industry (taxes incl.) GCV
Unit 1980 2013 2014 Unit 1980 2013 2014
Belgium USc05/kWh 2.49 3.87 3.26 Z-score -0.40 0.13 -0.19
France USc05/kWh 2.91 4.29 4.08 Z-score -0.27 0.35 0.32
Italy USc05/kWh 3.34 4.23 4.04 Z-score -0.14 0.32 0.30
Portugal USc05/kWh n.a. 4.48 n.a. Z-score n.a. 0.45 n.a.
Spain USc05/kWh 4.26 3.56 3.55 Z-score 0.15 -0.03 -0.01
United
Kingdom
USc05/kWh 2.75 3.86 3.55 Z-score -0.31 0.13 -0.01

36. Indicators
Security
| Country Profile UK36
Indicator Unit 1970 2000 2013
Oil self-sufficiency % 0 2 1
Coal self-sufficiency % 1 1 0
Gas self-sufficiency % 1 1 1
Total self-sufficiency % 0 1 1
RES share in TPES % 0.2% 1.0% 5.1%
RES share in electricity % 1.8% 2.7% 14.9%
TPES/GDP toe/ 2005 $ PPP 0.253 0.129 0.090
TPES/capita toe/capita 3.687 3.786 2.968
Source: IEA Energy Indicators for OECD Countries

37. Indicators
Environment
| Country Profile UK37
Indicator Unit 1970 2000 2010
CO2 per capita Tons 11.73 9.23 7.86
CO2 per unit GDP kg per PPP 2011 GDP - 0.34 0.22
Network losses % 7.18 8.32 7.04
Access to electricity % - 100 100
Source: IEA Energy Indicators for OECD Countries

38. Summary
Simplified Energy Balance
| Country Profile UK38
Source: IEA Energy Balances of OECD Countries
ktoe 1960 1970 1980 1990 2000 2010 2011 2012 2013
Primary Production 114,811 101,337 197,848 207,998 272,474 148,383 129,662 117,484 109,278
Imports 60,357 125,995 70,697 82,770 89,105 145,504 150,867 161,761 165,611
Exports -12,950 -20,966 -58,372 -78,039 -129,465 -84,611 -78,014 -74,835 -70,114
Bunkers -7,067 -7,489 -5,292 -8,856 -12,494 -14,032 -14,712 -13,922 -14,008
Stock changes 3,782 6,239 -6,449 2,048 3,335 6,179 -871 1,742 -544
Gross inland consumption 158,932 205,116 198,432 205,921 222,956 201,424 186,933 192,231 190,223
Available for final
consumption 109,291 134,887 131,280 137,793 150,503 136,510 125,077 127,570 ..
Industry 38,553 50,479 39,276 31,831 33,922 25,708 24,717 23,970 ..
Transport 18,039 24,180 30,370 39,180 41,870 39,746 39,252 38,870 ..
Services 3,311 10,459 12,739 12,862 16,850 16,181 15,671 16,098 ..
Residential 40,080 33,905 35,922 37,269 43,026 44,591 35,827 39,651 ..
Agriculture 1,188 1,637 1,422 1,277 1,148 950 892 858 ..
Non-energy uses 4,248 10,659 7,099 10,824 11,323 8,174 7,557 6,873 ..
Efficiency of transformation 68.8% 65.8% 66.2% 66.9% 67.5% 67.8% 66.9% 66.4%
Energy independence 72.2% 49.4% 99.7% 101.0% 122.2% 73.7% 69.4% 61.1% 57.4%

39. Summary
Extended Energy Balance
| Country Profile UK39
Source: IEA Energy Balances of OECD Countries
Ktoe Solids Oil Gas Electricity
Biofuels &
waste Heat Total
Primary Production 9,973 46,275 35,031 20,744 5,462 0 117,484
Imports 27,735 88,980 42,341 1,186 1,519 0 161,761
Exports -721 -62,592 -11,142 -150 -230 0 -74,835
Bunkers 0 -13,922 0 0 0 0 -13,922
Stock changes 1,886 -247 102 0 2 0 1,742
Gross inland consumption 38,873 58,493 66,332 21,780 6,753 0 192,231
Available for final consumption 2,377 51,716 42,812 27,465 1,967 1,232 127,570
Industry 1,764 4,018 8,566 8,412 416 795 23,970
Transport 9 37,579 0 352 930 0 38,870
Services 10 665 6,580 8,351 106 386 16,098
Residential 590 2,519 26,233 9,864 394 52 39,651
Agriculture 1 286 119 333 120 0 858
Non-energy uses 0 6,412 460 0 0 0 6,873

40. Summary
Technology
Technology focus according to Energy Bill 2015:
• Carbon Capture & Storage, especially offshore (saline aquifers, depleted
offshore gas & oil reservoirs)
• Renewable energies, with focus on
• Biomass electricity and non-domestic heat
• Offshore wind – theoretical potential of 400TWh
• Wave and tidal energy – UK has ~50% of Europe’s tidal energy
sources
• Ground source heat pumps
• Nuclear Power
• Home energy, including 100% smart meters by 2020
40 | Country Profile UK

41. Summary
A few specifics
Considered as a world leader and focal point for the development of wave
and tidal stream technologies.
• Stemming from expertise in marine gas and oil exploitation
Increasing efforts in building expertise in CCS
• Installation of largest battery in Europe
• Pilot plant for compressed liquid air
Continued development of nuclear power plants to contribute to “low
carbon” energy
• 11 new nuclear plants with 15,600MW capacity planned by 2025
41 | Country Profile UK

42. Summary
Issues
Struggling to meet renewable energy targets in transport and heat sector
• Lack of strong national policy on transport fuel efficiency
• Limited distribution grid capacity for renewables
Sustained high dependence on oil and gas imports for energy mix
PV subsidies are disappearing, this means projects need to be ‘self-funded’
The Scottish Government issued an Expert Scientific Panel Report on
Unconventional Oil & Gas which investigated the technical and
environmental challenges of hydraulic fracking
• Even though it was rejected, it shows the technology’s controversy
Geothermal potential is difficult to exploit for economic reasons
Recent government policy has shifted from backing EE, RES and CCS
towards gas and nuclear and eliminating coal
42 | Country Profile UK

43. Summary
Issues
“Antiquated” electricity grid - £110bn investment in electricity infrastructure
needed by 2020
Energy supply sector was responsible for 33% of GHG emissions in 2013
• Coal and natural gas use in electricity generation is the main source of
emissions
UK housing stock among the least energy efficient in Europe contributing
to almost 14% of annual carbon emissions
• The age of buildings is an important factor to be considered
• Home energy efficiency as a national infrastructure priority
Energy poverty a considerable problem
• But domestic electricity prices are amongst the lowest in the EU
Meeting post 2030 GHG targets without building on previous EE, RE and
CCS deployment efforts is unrealistic, so focus on gas will need to change
43 | Country Profile UK

44. Sources
Macroeconomic indicators: http://databank.worldbank.org
EE indicators: https://www.wec-indicators.enerdata.eu/
Energy Balances: Eurostat, IEA, Enerdata
Energy Prices: Eurostat, Enerdata
Country Report, Global Energy Research (Enerdata)
European Commission: Progress towards completing the IEM
ENTSO-E: TYNDP
ENTSO-E: Scenario Outlook & Adequacy Forecast
World Energy Council: World Energy Resources 2013 Survey
44 | Country Profile UK

45. Annex – Transposition of EU Policy in the
UK

46. Energy Policy
Transposition of EU Policy
RED – implemented but EU Commission asked UK in June 2015 to
assess policies and tools effectiveness to achieve RE targets
• Non-Fossil Fuel Obligation (NFFO) already implemented in 1990’s
• Transposition of directive by modification of existing legislative framework
and support schemes:
• Renewables Obligation (RO) in England & Wales, Scottish
Renewables Obligation in Scotland (SRO) and NI Renewables
Obligation in Northern Ireland (NIRO).
• Feed-in Tariffs (FiTs)
• Renewable Transport Fuel Obligation (RTFO) – also implements
former Biofuels Directive
• Renewable Heat Incentive (RHI) – payment system for renewable
energy source heat
46 | Country Profile UK

47. Energy Policy
Transposition of EU Policy
EED – implemented uniformly UK-wide, incl. Northern Ireland, Wales
and Scotland
• Climate Change Act 2008 already implements 20% energy savings goal
• Energy Act of 2011 provides for a step change in the provision of energy
efficiency measures to homes and businesses
• Article 5 transposed by a UK wide Statutory Instrument called the Energy
Efficiency (Eligible Buildings) Regulations 2013
• Energy audit requirements (article 8) implemented under ESOS (Energy
Savings Opportunity Scheme)
• Other aspects of EED partly implemented through Environmental
Permitting Regulations (EPR)
• Several “Orders” (UK Statutory Instruments) to implement specific of EED
47 | Country Profile UK

48. Energy Policy
Transposition of EU Policy
EPBD
• Communities and Local Government (CLG) is responsible for
implementing the EPBD in England & Wales and also has lead
responsibility for co-ordinating implementation in the UK.
• In England & Wales transposed through the Building Regulations
(amendments) 2012 (SI 2012/3119) and the Energy Performance of
Buildings (SI 2012/3118)
• Scotland: the Building Act 2003, the Building Regulations 2004, the
Building (Procedure) Regulation 2007, the Building (Forms) Regulation
2007 and Energy Performance of Buildings Regulations 2008 (amended
2012)
• Northern Ireland: Building regulations (SR2012 No192), the Energy
Performance of Buildings (Certificates and Inspections) Regulations
(SR2008 No170)
48 | Country Profile UK

49. Energy Policy
Transposition of EU Policy
Internal electricity and gas markets - Third Package Directives have
been transposed into national law in November 2011
• Electricity and Gas (Internal Markets) Regulations 2011
• UK regulations include
• Ownership unbundling requirements in regards to TSO and DSO for
electricity
• Ownership unbundling requirements in regards to gas TSO, storage
and LNG system operators as well as DSO
• Amended Electricity Act 1989 and Gas Act 1986 respectively
• Specific Articles of the Electricity and Gas Acts accommodate Internal
Markets Directive requirements
49 | Country Profile UK

50. Energy Policy
Transposition of EU Policy
IED – implementation in the UK on February 27th, 2013
• Defra announced the publication of regulations that transpose the EU's
Industrial Emissions Directive into legislation applicable in England and
Wales, in the form of amendments to the Environmental
Permitting regulations.
• Implemented in England and Wales by the Environmental Permitting
(Amendment) Regulations 2013 (SI 2013 No. 390) amending the
Environmental Permitting (England and Wales) Regulations 2010 (SI
2010/675) (EP Regulations 2010).
• In Scotland and Northern Ireland IED was brought into effect by the
Pollution Prevention Control (Scotland) Regulations 2012 and the Pollution
Prevention and Control (Industrial Emissions) Regulations (Northern
Ireland) 2013.
50 | Country Profile UK

51. Energy Policy
Transposition of EU Policy
ETS - implemented in the UK by The Greenhouse Gas Emissions
Trading Scheme Regulations 2012
• In force since January 1st, 2013 replacing a number of regulations and
their amending instruments
• The regulation covers the entire UK, but…
• …GHG emissions trading is a devolved matter in Scotland
• …are a transferred matter in Northern Ireland
• …in Wales the Welsh Ministers exercise a wide range of executive
functions
• Policy responsibility for the EU ETS and the National Emissions Inventory
lies with Department of Energy and Climate Change (DECC), together with
the Northern Ireland Executive, the Scottish Government, and the Welsh
Government.
51 | Country Profile UK