Scotland, source of almost half the U.K.'s renewable energy, may benefit from a proposal to scrap a 20-year-old rule that's slowing wind- and sea-power development.
Ofgem, Britain's electricity-grid regulator, said it will take comments until Nov. 17 from energy companies and academics on changes that may abolish the system that charges the highest carriage rates to generators furthest from consumer centers. It's due to make a decision in 2011.
Scotland, with 7,300 miles (11,800 kilometers) of coastline and commitments for turbines to supply 1.7 million homes, has the potential to produce 10 percent of the wave power and 25 percent of the offshore wind energy in Europe. It also has the U.K.'s highest transmission rates. Britain gets a lower proportion of its power from renewable sources than other nation in the 27-member European Union except Malta and Luxembourg.
The power industry pays 2.5 billion pounds a year to ship electricity from generators to customers, according to Ofgem. The charges, equivalent to about 5 percent of wholesale prices, are passed through to end users. U.K. baseload power for next summer closed yesterday at 44.35 pounds ($70.65) a megawatt hour, up 3.1 percent in 2010.
