RENEWABLES AND THE PRIVATIZATION OF THE UK-ESI - A CASE-STUDY

The privatization of the UK electricity supply industry (ESI) was expected to be likely to improve the commercial prospects of at least some renewable energy technologies, especially given the introduction, in parallel, of a protected market/cross subsidy for renewables via the non-fossil fuel obligation. Although some projects have benefited from the new arrangements, this paper suggests that on balance the institutional and strategic uncertainties and the tight contract conditions imposed had a negative impact, at least initially. Alternative, more interventionist, support policies are discussed, drawing on examples from the USA and Denmark.