United Kingdom

United Kingdom

Gap widening between supply and demand for renewables

A growing gap is emerging in the UK between supply and demand for electricity from renewables, according to a survey by Datamonitor. British businesses are planning to buy 34 TWh of green electricity this year. The survey of 3500 of the UK's largest energy consumers reveals that 28% of companies now having a goal for renewable electricity consumption -- up 7% on 2006. Last year, however, renewable generators produced only 12 TWh, leaving a gap of potentially 22 TWh. With the Renewables Obligation market structure failing to deliver at the rate that customers are demanding, internal company targets will be very difficult to meet, say analysts at Datamonitor. "Rising UK demand for green energy is not a strong enough incentive alone to bring sufficient renewable generation capacity online," says Datamonitor's Paul Stewart.

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