Executive Summary

The EU’s draft Renewable Energy Directive includes a binding target for all Member States to source 10% of their transport energy consumption (excluding aviation and shipping) from renewable sources by 2020[1]. At present the main source of renewable energy available for transport is biofuels. However, vehicles powered through the electricity grid using renewable energy may have a growing part to play.

In 2006, biofuels accounted for less than 1% of the UK’s road transport fuel.  However, the Renewable Transport Fuel Obligation, which was introduced in April this year, now requires fuel suppliers to ensure that their road transport fuel contains 2.5% by volume of biofuels, rising to 5% in 2010.

It is essential that our biofuel use is sustainable – environmentally, socially and economically. We therefore commissioned Professor Ed Gallagher to carry out a review of evidence on this issue.  Gallagher’s findings will be important to the development of the Government’s biofuel policies and targets.

Over the next few years motor manufacturers have committed to developing electric and potentially hydrogen-powered vehicles.  In widespread use, such vehicles would have the potential to contribute to the EU renewable transport target.  Since electric vehicles may be charged at night (when not in use), and would entail a system of battery replacement, they could have other benefits too.  They could improve the returns to renewable energy generation, and through vehicle-to-grid technologies could help smooth electricity demand.  They would have the ancillary benefits of reducing air and noise pollution.  The Government is keen to promote all options open for future technological development (including electric and hydrogen) and is interested in examining now how the development of electric vehicles and an appropriate charging infrastructure could be accelerated in the UK.

We would therefore like to hear your views on potential measures for increasing renewable transport in the UK, including:

• agreeing robust sustainability criteria for all biofuel use;
• adapting the Renewable Transport Fuel Obligation (RTFO) to provide incentives for greater levels of renewable energy in transport with safeguards to ensure these levels are sustainable, and ensuring our support provides the greatest greenhouse gas savings;
• facilitating the development of second and third-generation biofuels, which are made from non-food sources and therefore avoid many of the sustainability concerns around current biofuels;
• extending the use of biofuels in rail transport and shipping so far as is sustainable;
• exploring the potential contribution of alternative vehicle technologies such as electric or hydrogen cars, to meeting our renewable energy targets, taking into account the possible impact on electricity demand, and the potential for vehicle-to-grid technologies to help smooth electricity demand.

1 The proposed target requires renewable energy to make up 10% of the energy consumption in transport excluding petroleum products other than petrol and diesel. This effectively excludes aviation and shipping, except that any renewable energy in these sectors would count towards the target. [back]