THE ENGLAND AND WALES NON-FOSSIL FUEL OBLIGATION: History and Lessons

The first phase of promoting renewable energy in Europe is coming to an end. The timetable of the European Commission's Single Electricity Market (SEM) Directive has been the key recent driver of change within European energy and electricity markets. As mainland European countries have been forced to restructure their electricity industries and reappraise their renewable energy policies, they have been impressed by the results of the England and Wales Renewable Non-Fossil Fuel Obligation (NFFO). The NFFO is a mechanism for promoting renewable energy that has a competitive basis. However, the United Kingdom is in the process of creating a new policy. As new renewable energy policies have been discussed or put in place in mainland European countries, so these have influenced those of the United Kingdom. Renewable energy policies throughout Europe are converging. This paper analyzes the history behind these changes and underlines the lessons to be learned.