Emissions Energy Efficiency

Phase III
(7 years)

Decision to opt
out Older Plant
IED replaces IPPC
Directive from 07
Jan 2014

Generators receive revenue

from selling electricity to the
market at a guaranteed strike
price, for 15 years.

Applications
open secound
half of 2014

Nov

Enduring Market
New & Existing Generation

A steady retainer payment for reliable supply and

demand side capacity providers in Great Britian

First Payments
in Great Britian

 01 Apr 2013

Offshore Wind (1.75 ROC) except 2 ROC if accredited

(operational) between 01 Apr 2010 and 31 Mar 2014

GB (England, Wales & Scotland)

9.7 ROCs/100MWh (Actual)

11.1 ROCs/100MWh (Actual)

12.4 ROCs/100MWh (Actual)

12.4% Fixed 10% Headroom

From Apr 2005 - 2.5%

NI (Northern Ireland)

3.5 ROCs/100MWh (Actual)

4.27 ROCs/100MWh (Actual)

5.0%
Fixed 10% Headroom
5.5
ROCs/100MWh
(Actual)

01 Apr 2012

PV (8.5-41.3 p/kWh)
Wind (4.5-34.5 p/kWh)
Hydro (4.5-19.9 p/kWh)
AD (9.0-11.5 p/kWh)

Years 1&2

Renewable Heat Incentive (RHI)

Accelerated
Review
Eligibility date

80%

01 Apr 2011

01 Apr 2001

July 2009

Proposed incentivisation for the generation of heat

from renewable and low carbon sources.

discount on climate change levy available to energy intensive

industry through Climate Change Agreements (CCA)

31 Mar 2027

01 Apr 2018

Limit operation from 1 Jan 2016 to 17,500 hours

or close by 31 Dec 2023

Longer contracts for Nuclear.

Biomass Conversion ceases to pay 2027

Carbon (equivalent)
Reduction Budget from
1990 baseline

80%

100% renewable electricity

for Scotland
40% renewable electricity and
10% renewable heat for
Northern Ireland

Phase IV
(2021-2028)

21% CO2 reduction

(2005 Baseline)

Biomass (1-8.3 p/kWh)

Heat Pumps (3.4-4.7 p/kWh)

Multi-site tariff introduced

for PV energy efficiency
requirements introduced
as eligibility criteria

Solar Thermal (8.9 p/kWh)

Biomethane (7.1 p/kWh)

65%

discount on climate change levy through

Climate Change Agreements (CCA)

Jul 2020

Plants close by
31 Dec 2023 at the latest

Geothermal (145 to 140 /MWh)

Landfill Gas (55 /MWh)
Sewage Gas (75 /MWh)
Wave (305 /MWh)
Tidal Stream (305 /MWh)

Target for over

30% renewable
electricity for Britian

End of Levy
Control Framework

Delivery of capacity
2nd Auction

Delivery of capacity

1 year
2nd Auction

Generators may choose between FiT CfD and ROCs

14.4% Fixed 10% Headroom

Domestic support
through Renewable
Heat Premium
Payment Scheme

Renewables
obligation closed
Obligation
closed
to new generation

Renewables Obligation vintaged.

Closed to new generation from
Apr 2017

Generators can choose between RO and Contracts for

Difference (CfD) between 2014 and 31 Mar 2017, after
which only CfD will be available

Less than 20 years ROC provision

for any new facility before 2037

15.4% Fixed 10% Headroom

Less than 20 years ROC provision for

any new facility before 2033

PV (8.9-21 p/kWh)
Wind (4.5-21 p/kWh)
Hydro (4.5-21 p/kWh)
AD (9.9-14.7 p/kWh)

Strike Prices; degression in pre-agreed rate for some technologies

Onshore Wind (95 to 90 /MWh)
ACT (155 to 140 /MWh)
Offshore Wind (155 to 140 /MWh) AD (150 to 140 /MWh)
Biomass Conversion (105 /MWh) Dedicated Biomass (with CHP) (125 /MWh)
PV >5MW (120 to 100 /MWh)
EfW (with CHP) (80 /MWh)

4 years

(1 year ahead)

Climate Change Agreements extended to 2023

90% discount on climate change levy for electricity through CCAs
65% discount for all other commodities

ROCs end for

existing (accredited
before 25 Jun
2008) facilities on
31 Mar 2027

6.3% Fixed until 31 Mar 2027

Hydro (3.23-22.58 p/kWh)

Wind (4.15-39.07 p/kWh)
AD (9.24 - 13.09 p/kWh
CHP<2kW (11.34 - 12.89 p/kWh)
Community tariff introduced

Existing Technologies
Biomass <200kW Tiered (2.3-8.8 p/kWh)
Biomass 200kW-1MW Tiered (5.1-2.2 p/kWh)
Biomass >1MW (2.0 p/kWh) In addition,
Biomass also eligible for Biomass CHP

Fixed price certificates

in the final years from
2027-37

15.4% Fixed until 31 Mar 2027

6.3% Fixed 10% Headroom

PV (6.61-14.90 p/kWh)
Three degression bands
introduced for PV operating
by deployment thresholds

01 Apr 2014

5% - 8% return
on investment

13.4% Fixed 10% Headroom

01 Aug 2014

01 Apr 2010

Incentive to support small-scale renewable electricity

generation up to a capacity of 5MW.

01 Apr 2012

From Apr 2002 - 3.0%

Older Plant

Offshore Wind 2 ROCs (13-15); 1.9 (15/16); 1.8 (16/17) Onshore Wind 0.9 ROCs (13-17)
Dedicated Biomass 1.5 ROCs (13-16); 1.4 (16/17) Ground mounted PV 1.6 ROCs (13/14); 1.4
(14/15); 1.3(15/16); 1.2(16/17) Building mounted PV 1.7 ROCs (13/14); 1.6 (14/15); 1.5 (15/16);
1.4 (6/17). A range of other technologies.

2013 - 2017
Banding

01 Apr 2013

Onshore Wind (1 ROC)

Wave, Tidal, PV (2 ROC)
Dedicated Biomass (2 ROC)

Comply with tighter emission controls by 30 Jun 2020

First Payment in Northen

Ireland (at earliest)

First Auction

Feed-in Tariff
Contracts for
Difference
introduced

Apr 2014

First Banding
Review
31 Mar 2013

2009 - 2013
Banding

CRB 1950MtCO2e
from 1990 baseline

3rd Auction

2014

Autumn 2011

Consultation
Aug 2011

Feed in Tariff (FIT)

Charges on non-domestic consumers energy use.

Discounts to energy intensive sectors available under
Climate Change Agreements (CCA).

Summer 2011

Oct 2010

Nov 2011

Energy

01 Apr 2009

Apr 2009

Apr 2007

ROC uplift in
Scotland to 3 for tidal
and 5 for wave, to
replace the Marine
Supply Obligation

Carbon Budget 4

7 TWh of electricity produced from

renewable sources in Wales

National Allocation Plans (NAPs)

abolished. Centralised allocation
of permits.

Transitional National Plans

First Auction

Transitional Arrangements
Electricity Storage <50MW. Demand Side Response.

Marine Supply
Obligation
introduced in
Scotland

50%

GB RO Ends
31 Mar 2037
NI RO Ends
31 Mar 2033

FIT Tariff lifetime: 20 years

Biogas (7.5 to 2.2 p/kWh)

Biomethane Injection (7.5 p/kWh)
GSHP 7.2 p/kWh
Solar Thermal 10.0 p/kWh

Additional Technologies
Biomass CHP (4.1 p/kWh)
Biogas (5.9 to 2.2 p/kWh)
Deep Geothermal (5.0 p/kWh) AWHP (2.5 p/kWh)
MSW (2 p/kWh) C&I Waste (2p/kWh)

RHI Tariff lifetime: 20 years

CPS rates applicable on fossil fuels used to generate electricity in Great Britain.
Natural Gas 0.091 p/kWh (2013/4), 0.175 p/kWh (2014/5), 0.334 p/kWh (2015/16)
Coal 44.264 p/GJ (2013/4), 81.906 p/GJ (2014/5), 162.534 p/GJ (2015/16) LPG
1.46 p/kg (2013/4), 2.822 p/kg (2014/5), 5.307 p/kg (2015/16)

15% UK
renewable
heat target

30/tCO2

2030

Capacity Market

Differentiated banding of various forms of renewable

generation under the Renewables Obligation. Four
yearly cycle of renewable banding levels.

Carbon Budget 3

Apr 2021

Integrated Pollution Prevention and Control (IPPC) Directive; Large Combustion Plant
Directive (LCPD); Waste Incineration Directive (WID); Directive limiting Volatile Organic
Compounds; and Various Titanium Dioxide directives

Contracts for Difference (CFDs)

Government support for 1ow carbon generation
in United Kingdom

Renewables Obligation Banding

(midpoint 2020) 2544MtCO2e

35.0% CRB
from 1990 baseline

Plants close by
31 Dec 2015 at the latest

01 Apr 2017

IED combines directives:

Recasting of seven existing emissions directives,

including LCPD and IPPC into a single legislative item.

Limit operation from 1 Jan 2008 to 20,000 hours

or close by 31 December 2015

Apr 2017

Existing Opt-Out

Aviation emissions capped at 95%

of average 2004-2006 emissions.
15% of allowances auctioned

31 Mar 2017

Plants licensed before 1 Jul 1987

80-95% EU GHG
Reduction (1990
baseline)

1 Jan 2016 NOx limit for >500 MWth solid fuel (coal)
drops from 500 to 200 mg/Nm3 driving SCR retrofit
Plants opting-out to close by 2023

Comply with LCPD Emission Limit Values (ELVs)

and/ or trade emission allowances in NERP

01 Jan 2016

Existing

2050

Continues unless
superseded by IED
or other

2016

Plants licensed between

1 Jul 1987 and 27 Nov 2002

2021 - 2049

20-20-20

2020

80% free allocation for manufacturing in 2013, declining

to 30% in 2020 and 0% in 2027
Sectors at risk of carbon leakage receive free allocation

Estimated 500MtCO2e saving per annum

50% of allowanced to be auctioned
Use of non-EU allowances capped at 50%

Apr 2015

New

New New
New
Existing Opt-In

31 Mar 2018

01 Apr 2013

Carbon Budget 2

Greenhouse Gas
Emissions (Directors
Reports) Regulations

06 Jan 2014

Plants licensed after 27 Nov 2002

Industrial Emissions Directive (IED)

EMR

31% of gross
electricity consumed
from renewable
sources in Scotland

Large Electricity Producers; Offshore facilities; Refineries; Iron & Steel; Cement; Lime; Ceramics; Glass;
Pulp & Paper; Chemicals; Food & Drink; Aluminium; Services; Other Electric; Downstream Gas; Gypsum;
Mineral Wool; Aerospace; Vehicle Manufacture; Textiles; Tyres; Munitions.

SO2 limits drove requirement for FGD

2020

15% UK Renewable Energy (~ 32% Renewable Electricity)

2782MtCO2e
28.9% CRB
(midpoint 2015) from 1990 baseline

01 Apr 2014

UK specific implementation of Large Combustion

Plant Directive.

New New

01 Jan 2008

Emissions

Plants larger
than 50 MWth

Phase II
(5 years)

2019

20% EU Renewable Energy

20% EU GHG Reduction (1990 baseline)
20% Less Energy Consumption

Imposes Emission Limit Values (ELVs) for incineration and co-incineration of waste, including limits on:
Dust; Heavy Metals; Dioxins; Carbon Monoxide; Poly Aromatic Hydrocarbons; SO2; NOx.

From 04 Dec 2000

EU Directive imposing limits on Sulphur Dioxide,

Nitrogen Oxides and Dust.

Climate Change Levy (CCL) and Carbon Price

Support (CPS)

2018

CoP19
Warsaw

01 Jan 2013

Large Electricity Producers (>20 MW)

Offshore facilities (including flaring)
Refineries and partial inclusion of other industries

01 Jan 2008

31 Dec 2007

01 Jan 2005

Phase I
(3 years)

Large Combustion Plant Directive (LCPD)

Increasing requirement for suppliers to source

electricity from renewable sources within the UK.

2017

reduction in CO2 equivalent Kyoto Protocol European Union

Carbon Budget 1

4 TWh of electricity
produced from
renewable sources
in Wales

2010

Carbon Budgets

Waste Incineration Directive (WID)

Renewables Obligation (RO)

2016

legally binding reduction in CO2 equivalent Kyoto Protocol Annex I country

GHG (Carbon Dioxide, Methane, Nitrous Oxide, Sulphur Hexafluoride) and
Hydrofluorocarbons and Perfluorocarbons by 2012 (1990 baseline)

8.0%

Reduction Budget (CRB) 3018MtCO2e

22.9% Carbon
(midpoint 2010) from 1990 baseline

01 Apr 2008

Targets

Targets set under the Climate Change Act 2008.

Scotland and Wales targets set by devolved parliaments.

UK National Emissions Reduction Plan (NERP)

2015

12.5% reduction in CO2 equivalent Kyoto Protocol United Kingdom

United Kingdom

Limits emissions from incineration and co-incineration

of waste with a focus on dioxins, mercury and
particulate matter.

2014

CoP18
Doha

Ecodesign for
Energy-Related
Products Regulations

Targets imposed under various EU policies

and directives.

Largest multi-country, multi-industry emissions

trading scheme initially focussed on Greenhouse
Gas reduction.

CoP17
Durban

5.2%

European Union

European Union Emissions Trading Scheme

(EUETS)

2013

1 Apr 2023

CoP16
Cancun

2012

31 Mar 2023

Kyoto Protocol
came into force

2011

31 Dec 2020

2010

2020

2009

2020

2008

2020

2007

31 Mar 2013

Targets set under the Kyoto Agreement.

2006

31 Dec 2012

Global

2005

16 Feb 2005

Drivers

2011

UK

Legislation Timeline

(real 2009 prices)

Carbon Price
Floor target

70/tCO2

(real 2009 prices)

Carbon Price
Floor target

against a target of 19.25

reduction in carbon
emissions through
whole house or whole
street approach

2005

Edition No.7 December 2013

We would be pleased to receive your views and comments or for further information, please contact: energy@arup.com

2006

2007

2009

2010

2011

2012

50% improvement
in CO2 emissions
in Scotland

32% energy efficiency improvement

compared to 2006

Expected 55%
improvement in CO2
emissions on 2006
levels in Wales

2013

Disclaimer: This publication is intended to provide a high level selective overview of emissions, energy and energy efficiency legislation and should not be relied upon by any third party and no responsibility is undertaken to any third party in relation to it.

Qualification period

2014

2015

New schools to
be zero carbon

Smart meter
roll-out begins

2016

Footprint year

Pathway to zero carbon

New buildings to be zero

carbon in Scotland

6 year third phase (including footprint year)

2019

Third Phase

All new buildings to be

zero carbon

New public sector buildings

to be zero carbon

2030

Green Deal
begins

30 Sep 2018 end registration (Third Phase)

2016

Consultation on
scheme simplification

Phase 2
forecast sale

01 Apr 2016

Mar - Jun
2012

30 Sep 2013
end registration

6 year second phase (including footprint year)

2018

Building Regulation
powers devolved to
Welsh Assembly

15.60/tCO2 2014/15 Forecast Sale

16.40/tCO2 2014/15 Buy to Comply

Footprint year

Allowable solutions
for zero carbon
introduced

2020

CSH energy requirements

aligned with Part L 2010

Qualification period

25% energy efficiency improvement

compared to 2006

31 Dec 2011

Publicly funded
housing to be
CSH 3

2008

Consultation on scheme
simplification

All new homes to be given

a CSH rating

THESE SYMBOLS IN ALL COLOURS DENOTE EXISTING LEGISLATION

THESE SYMBOLS IN ALL COLOURS DENOTE LIKELY OR PLANNED FUTURE LEGISLATION

2016

Apr 2012
Mar 2013

3 year introductory phase (including footprint year)

01 Oct 2010

Nov 2010

Drivers

30% improvement
in CO2 emissions
in Scotland

2010

Sustainability assessment process for new homes

incorporating performance standards in England
and Wales.

Code for
Sustainable
Homes (CSH)
introduced

01 May 2008

01 Apr 2007

Code for Sustainable Homes (CSH)

Part L (Conservation of
Fuel and Power) updated

2008

01 Oct 2006

Statutors instrument defining the standards for new and

replacement building developments in the UK.

Key

Apr 2012 First sale of allowances

Second Phase

Building Regulations

ECO targets
Funding from energy companies for domestic efficiency measures
Carbon Emmissions Reduction Obligation to reduce CO2
emissions by 0.35MtCO2/yr by March 2015
Affordable Warmth Obligation to a reduce notional heating costs for
low income and vulnerable consumers by 3.4bn by March 2015

2015

Footprint year

Green Deal
Loan scheme for homes and
businesses for: insulation (solid
wall, cavity wall, loft); heating;
draught-proofing; double
glazing; renewable energy

Green Deal
& Energy
Companies
Obligation

Apr 2014

30 Sep 2010 end registration

2012

Qualification period

16.31 MtCO2

Apr 2014

CESP

31 Mar 2013

against a target of 293

actual overall
installation lifetime
reductionthrough
domestic energy
saving interventions

31 Dec 2012

297 MtCO2

01 Oct 2009

CERT

01 Apr 2008

energy consumption reduction

Introductory Phase

Applicable if > 6,000MWh

per year or on 1/2 hourly
metered electricity in 2008

Mandatory energy efficiency and emission reductions

scheme for large public and private sector organisations.

139 TWh

31 Dec 2008

Carbon Reduction Commitment (CRC)

Energy Efficiency Scheme

Energy Efficiency
Commitment (Phase II)

01 Jan 2008

Efficiency

Green Deal is a financial mechanism which allows

energy-saving improvements to be paid through
savings on energy bills. ECO is an obligation on energy
companies to support energy efficiency measures.

01 Apr 2005

Green Deal & Energy Companies Obligation (ECO)

2017

2018

2019

2020

All new buildings to be

total life zero carbon

Smart meter
roll-out ends

2021 - 2049

2050

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