Transmission charging and growth of renewables in the UK

This paper discusses the main results and conclusions from the work commissioned by UK government´s Department of Trade and Industry to quantify the effect of the proposed GB-wide transmission charging methodology on the future growth of renewable electricity so as to ascertain the impact on the likelihood of meeting the Government´s 2010 renewable target. The charges were simulated until 2015 and then incorporated into both a static investment model, and a dynamic market investment model for the renewable obligation, with the impacts assessed against a range of financial and planning scenarios. The conclusion was that a dispensation from high charges in Scotland, if applied, would not significantly change the level of UK renewable capacity.