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The co-benefits of offshore wind under the UK Renewable Obligation scheme: Integrating sustainability in energy policy evaluation

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  • Ghorbani Pashakolaie, Vahid
  • Cotton, Matthew
  • Jansen, Malte

Abstract

Offshore wind energy is a key technology for decarbonising the UK electricity system. It also delivers significant socio-environmental co-benefits. Assessing these co-benefits is essential for energy policy under turbulent energy market conditions emerging in the wake of geopolitical unrest. This study focuses on assessing the co-benefits and costs associated with offshore wind electricity generation for the Renewable Obligation scheme in the UK, which although being phased out, currently supports more offshore wind generation in 2023 than its Contracts-for-Difference replacement scheme. Comparing offshore wind co-benefits with support scheme costs provides an objective evaluation of the scheme's success. Results indicate that reduced energy imports contribute to co-benefits of £5.9 ± 0.3bn and £4.9 ± 0.3bn in simple and flexible scenarios respectively. Emissions reductions lead to £4.4 ± 0.9bn in simple and £3.9 ± 0.8bn in flexible scenario. The employment benefits amounted £1 ± 0.2bn. The cost of the Renewable Obligation scheme amounted to £18.8 ± 3.8bn, indicating that the co-benefits can cover 60% and 52% of the policy costs, in simple and flexible scenarios, respectively. This analysis supports a case for monetising the wider co-benefits of energy technology implementation to support institutions and policy makers in the integration and evaluation of sustainability in energy policy in a way that goes beyond the electricity price.

Suggested Citation

  • Ghorbani Pashakolaie, Vahid & Cotton, Matthew & Jansen, Malte, 2024. "The co-benefits of offshore wind under the UK Renewable Obligation scheme: Integrating sustainability in energy policy evaluation," Energy Policy, Elsevier, vol. 192(C).
    • Handle: RePEc:eee:enepol:v:192:y:2024:i:c:s0301421524002799
    DOI: 10.1016/j.enpol.2024.114259
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