Abstract

The privatisation of the UK Electricity Supply industry in 1989/90 was expected to provide an opportunity for novel energy technologies to develop. This paper reviews the experience of renewable energy technologies, following the introduction, as part of the privatisation programme, of a cross subsidy system paid for by consumers designed to provide interim market support and stimulation for selected non-fossil fuel based technologies - as part of the so-called Non Fossil Fuel Obligation. While the NFFO levy certainly stimulated some renewable energy developments which might not otherwise have been successful, it is argued that the Governments decision in 1994 to cut back on R&D on renewable energy technology will mean that there will be fewer candidate technologies for selection for subsequent rounds of the NFFO. Market pull has clearly been effective at helping some renewable energy technologies to become established commercially, but, it is argued, there is also a need for continued technology push to support the next wave of technologies.

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