Evaluating the UK policy framework

1
Evaluating the UK policy framework for Bio-energy
R. Slade (), C. Panoutsou and A. Bauen
Bio-energy Group, Imperial Centre for Energy
Policy and Technology, Imperial College,
Mechanical Engineering building 3rd floor,
Exhibition Road, London, SW7 2AZ
www.imperial.ac.uk/icept () email
r.slade_at_imperial.ac.uk.
Introduction
In 2003 the UK Government introduced the
reduction of CO2 emissions as a core objective of
UK energy policy. Increased use of bio-energy is
expected to make a significant contribution to
meeting this objective. An extensive framework of
targets, incentives, economic and regulatory
instruments is in place to drive the development
of the sector nevertheless, progress is slow.
This paper reviews the UK policy framework for
bio-energy, proposes criteria by which policy
effectiveness may be evaluated and draws initial
conclusions.
The policy context
A basis for evaluation

• The UK energy system is evolving rapidly drivers
  for change include
• Climate change
• Market liberalisation
• Resource depletion
• Infrastructure replacement
• Nevertheless, high level policy objectives have
  remained remarkably consistent

A basis for assessing policy effectiveness can be
developed from studying past successes and
failures. Effective policy initiatives are likely
to embody the following principles2
UK policy aims to ensure secure, diverse and
sustainable energy supplies at competitive
prices1
Pre-conditions for successful policy
implementation

• External constraints are surmountable
• Objectives are unambiguous and agreed
• A direct relationship exists between cause and
  effect
• Outcomes are quantifiable compliance reporting
  is reliable

• Effective co-operation / minimal interdependence
  between implementing agencies
• Adequate time and resources are available
• A mechanism exists for enforcing compliance
• Implementation should be considered at the same
  time as policy formation

The UK energy sector had been subject to a large
number of policy initiatives, originating both
domestically and via the EU.
If future UK bio-energy policy is to be
effective, evidence of these principles should be
manifest in existing policies and the current
policy debate.
Preliminary results
Incentive schemes target all stages of the supply
chain and innovation chain.
Multiple organisations are responsible for
administration
Bio-energy policy
A wide range of legislation impacts the
development of UK biomass sector both driving it
forward as well as restricting its development.
Policy interactions are complex, subject to rapid
change and frequently perceived as giving rise to
perverse incentives. Aspects of plant development
including location, biomass production,
transport and visual impacts may all be
restricted by planning permission. The Pollution
Prevention and Control regime, which restricts
emissions to air, water and land on a site by
site basis may also apply to large conversion
plants. Over 17 incentive schemes exist that can
be considered to promote bio-energy regional
variations also exist.
Bio-energy has the potential to address multiple
policy objectives
Recent policy reports fail to address all
pre-conditions for effective implementation
Initial conclusions
In addition to the legislation and consultative
processes affecting the whole of the renewable
energy sector, a number of recent high-profile
policy reports have sought specifically to inform
and influence the bio-energy policy debate in the
UK. These reports include

• The bio-energy policy arena is crowded there is
  an extensive legislative framework, multiple
  initiatives, and multiple actors.
• With the exception of heat, the coverage of
  Incentive schemes is comprehensive, but not
  necessarily optimal from a cost, land use or
  energy perspective.
• Anticipated policy outcomes are poorly
  quantified assessing policy effectiveness is
  thus a major challenge.
• Evaluating whether the existing policy mix is
  sufficient to meet high level objectives requires
  a whole-systems approach.

• Royal Commission Biomass as a Renewable Energy
  Source
• UK Government Non-food Crops Strategy (
  progress report)
• Biomass Task Force Report to Government
• UK Government response to the Biomass Task
  Force
• The Carbon Trust Biomass Sector Review

Notes and references The Carbon Trust Biomass
sector review, 2005. estimates that the
proportion of UK energy supplied by biomass could
increase from 1.5 to 3 in the short term and up
to 5 in the long term 1Runci, P.J., Energy
RD in the United Kingdom. 2000, Pacific
Northwest National Laboratory Battelle Memorial
Institute 2Adapted from McCormick, J.,
Environmental policy in the European Union,
p142-14, PALGRAVE. Acknowledgements We
gratefully acknowledge the support provided for
this work by the joint research councils through
their sponsorship of the TSEC-BIOSYS project
Natural Environment Research Council (NERC),
Engineering and Physical Sciences Research
Council (EPSRC) and the Biotechnology and
Biological Sciences Research Council (BBSRC).