Tag: Department for Business and Industrial Strategy

The press release issued by the Department for Business, Energy and Industrial Strategy on 18 January 2023.

Business Secretary Grant Shapps marked the handover at Davos of the next Ukraine Recovery Conference which will take place in London in June 2023.

Business and Energy Secretary Grant Shapps today (Wednesday 18 January) met Swiss and Ukrainian representatives to mark the official host handover of the Ukraine Recovery Conference from Switzerland to the UK.

The Business Secretary attended the event at the World Economic Forum, Davos. Alongside Ukraine Prime Minister Denys Shmyhal and Swiss Federal Councillor Ignazio Cassis, he held a press conference to mark the handover of the next conference from Switzerland to the UK as co-host, jointly with Ukraine.

The next Ukraine Recovery Conference will take place in London on 21 to 22 June 2023. The event is a continuation of the series of annual conferences dedicated to Ukraine’s transformation. The first took place in London in 2017 as the Ukraine Reform Conference.

This year’s conference will focus on the mobilisation of international and private sector support for the economic and social stabilisation of Ukraine.

Speaking at Switzerland House Grant Shapps said:

Our steadfast commitment to Ukraine extends to also helping them secure the financial support required to recover from the destruction so cruelly meted out by Moscow.

It was a privilege to mark the official handover of the Ukraine Recovery Conference and I have no doubt that as hosts this June, Britain will rise to the challenge of mobilising support from across the world.

Prime Minister Shmyhal noted:

We expect that the next Recovery Conference in London will make it possible to mobilize international support for Ukraine’s urgent recovery for this year. In addition, we expect that, together with our partners, we will clearly set out the provisions on what resources should be used for long-term recovery.

Swiss Federal Councillor Cassis commented:

The decisions taken in Lugano will be followed up in London.

I believe we need a compass to guide us, even in the dark times we are currently experiencing. The Lugano Declaration serves as that compass.

The 2023 Ukraine Recovery Conference will be a major, high-profile event attended by senior representatives from the G7 and other international and multilateral partners, International Finance Institutions, the private sector and Civil Society.

The press release issued by the Department for Business, Energy and Industrial Strategy on 17 January 2023.

Electric vehicle consumers are set to benefit from lower energy bills and cheaper motoring thanks to a landmark plan to unlock the potential of smart electric vehicle charging.

The Electric Vehicle Smart Charging Action Plan published today (Tuesday 17 January) by the government and Ofgem, sets out steps being taken to seize on the significant potential of smart charging and make it the preferred method of long duration charging by 2025.

Smart charging harnesses the potential of energy use data and the latest energy innovations to deliver significant benefits for consumers, including allowing motorists to charge electric vehicles when electricity is cheaper or cleaner, allowing consumers to power their home using electricity stored in their electric vehicle, or even sell it back to the grid for profit. It is expected high mileage motorists could save up to £1,000 a year through smarter charging.

And to back this up further, the government has today also announced £16 million funding from the Net Zero Innovation Portfolio (NZIP) for technologies that harness the potential of smart charging, including a smart street lamppost which will enable motorists to access smart charging on the move, and projects that will enable domestic appliances, from heat pumps to electric vehicle charge points and batteries, to integrate into a smarter energy system.

Energy and Climate Minister Graham Stuart said:

We want to make smart charging an easier choice for drivers of electric vehicles, whether that is charging on the driveway, at the workplace, or parked on the street. To do that we need to build new network infrastructure at pace, using the latest available technologies.

Today’s plan sets out how we will work with Ofgem and industry to kickstart the market for smart charging, which we are backing up with £16 million in innovation funding. This will let people take control of their energy usage, in the most convenient and low-cost way.

Ofgem Director for Strategy and Decarbonisation Neil Kenward said:

As energy regulator, we’re helping create the infrastructure to deliver Britain’s net zero future at the lowest cost to customers. This latest innovative plan will help to maximise the benefits of smart charging, offer vital savings to consumers and reduce the overall cost of energy by seizing the opportunities to use batteries to both power homes and fuel the wider grid.

Today’s announcements build on the major steps already taken by the government to enable smart and flexible electric vehicle charging. As of July 2022, all new charge points sold for private now must have smart functionality and the UK is consulting on a new policy and technical framework to unlock the benefits of domestic smart, flexible energy, and enhance its cybersecurity.

Through the plan, the government will improve publicly available information and evidence on smart charging, support the implementation of robust consumer service standards and ensure private charge points are secure and compatible with the latest energy innovations.

The roll out of intelligent and automated smart charging will deliver a win-win situation for all consumers. Reduced electricity system costs will lower prices for everyone, motorists will pay less for charging their electric vehicle, and the electricity powering electric vehicles will be cleaner and greener.

The government and Ofgem will seek to remove the barriers that currently prevent the full development of a diverse and competitive smart charging market, while making sure the energy system is ready to respond to the upturn in energy demand that electric vehicles will bring.

Among those receiving funding today through the V2X (Vehicle to Everything) Innovation Programme for prototype hardware, software and business models, are:

• £229,000 to a project led by Otaski Energy Solutions (Gateshead, Tyne and Wear) to develop a smart street lamppost capable of charging electric vehicles and sharing power back to the grid
• £220,000 to V2X-Flex (Reigate, Surrey), a project led by EV Dot Energy Ltd to develop prototype software and a new business model which will reduce entry barriers for the domestic use of V2X bi-directional chargers to provide energy flexibility services
• £165,000 to BEVScanV2X (London), a project led by Agile Charging Ltd to develop technology that could overcome battery degradation by creating a cost-effective tool to monitor and advise best approaches to maximise battery life and financial returns from smart charging

Among those receiving funding today through the Interoperable Demand-Side Response (IDSR) Programme, which supports technologies that allow consumers to remotely increase or decrease their energy use to take advantage of when energy is cheaper or more renewables are on the grid, are:

• £510,000 to Energy Smart Heat Pump (Chertsey, Surrey), a project by Samsung Electronics UK and their project partners Passiv UK to design and develop a technology solution that is able to provide demand side response (DSR) services via Samsung Heat Pumps, giving greater control of their usage on the basis of cost or carbon savings
• £1.2 million to Smart-DSRFlex (Manchester), a project by Landis & Gyr UK to demonstrate how DSR technology can help to manage a renewables-based electricity grid using the smart meter system
• £29,000 to Open DSR for All (Manchester), a project by Carbon Co-op to explore the benefits and technical barriers to an accessible approach to domestic DSR, potentially enabling more products being able to offer DSR in future

Depending on tariff, mileage, and charging patterns, smarter charging could save an average driver up to £200, and a high mileage driver up to £1000 a year by delaying the power demand from electric vehicles at peak periods, such as 4pm to 9pm on winter evenings. By helping to efficiently balance when energy is generated and used on the electricity grid, the technology could contribute to reducing electricity prices for consumers across the network.

Delivering the steps set out in the Action Plan will help make smart charging the norm at home and work by 2025. It is the ambition that in the late 2020s smart charging will also become more commonplace at long-duration public charging, such as on-street or at transport hubs.

The press release issued by the Department for Business, Energy and Industrial Strategy on 16 January 2023.

Households and businesses in the North of Scotland will continue to benefit from energy bill savings through the Hydro Benefit Replacement Scheme.

The UK government is today announcing that all households and businesses in the North of Scotland will continue to receive protection from higher energy bills, with average savings of £60 to offset the higher costs of electricity distribution in the region. This is in addition to savings offered through other UK government schemes including the Energy Price Guarantee and Energy Bill Support Scheme.

£94.9 million of support will be provided through the continued Hydro Benefit Replacement Scheme (HBRS) and Common Tariff Obligation (CTO), which is automatically taken off bills.

The government introduced the HBRS in April 2005 to provide a cross subsidy to reduce distribution charges in the North of Scotland. Electricity distribution in the region is more costly than elsewhere because of its unique geography, which presents challenges to electricity networks. The scheme is funded by charges on all licensed electricity suppliers across Great Britain, costing £1 per household.

Following the illegal invasion of Ukraine, the UK Government stepped in to provide Scottish households with support to help meet rising energy costs. This includes the Energy Price Guarantee, saving the typical household in Great Britain around £900, payments of £400 towards bills through the Energy Bill Support Scheme, as well as £1,200 being provided to the most vulnerable households.

UK government Minister for Energy and Climate Graham Stuart said:

The UK Government is determined to protect energy users wherever we can and to ensure fairness when it comes to energy prices across the Union.

Therefore we are reaffirming our commitment to the Hydro Benefit Replacement Scheme and Common Tariff Obligation, which are vital tools for easing energy costs for those living in rural areas of the North of Scotland.

Technical improvements are being brought forward. This will mean that funding charges are minimised without reducing assistance being offered.

UK government Minister for Scotland John Lamont said:

At a time when the cost of energy bills is on everyone’s minds, the UK Government wants to see equality for users, whether you live in Sutherland or Sunderland.

The continuation of this payment is good news for people in rural parts of Northern Scotland, protecting households from the higher electricity distribution costs in certain areas.

Legislation to be introduced in Parliament will make technical improvements to the HBRS and follows support of £92.7 million provided through these schemes in 2021/22.

The Common Tariff Obligation (CTO) performs a similar function to the HBRS within the North of Scotland by preventing electricity suppliers from charging comparable domestic consumers different prices solely on the basis of their location within the region.

David Hilferty, Social Justice spokesperson for Citizens Advice Scotland, said:

We know consumers and business in the North of Scotland continue to face higher costs when it comes to energy and extending this scheme and the associated protections is a welcome move. If anyone is worried about energy bills or costs generally they can seek free, impartial and confidential advice from the Citizens Advice network.

There is a requirement for the UK government to review the HBRS and CTO every three years. The latest review included a public consultation, where most respondents supported the UK Government’s proposal to retain the schemes in their current form with some technical improvements to the funding arrangements of the HBRS.

These technical improvements included:

• Removing a distortion which allowed some suppliers to avoid charges at the expense of others.
• Adjusting support for inflation using the Consumer Prices Index including owner occupiers’ housing costs instead of the Retail Price Index, as the former is now considered a better measure.
• Addressing an ambiguity that could be interpreted as requiring funding to be recovered twice-over from electricity suppliers.

The press release issued by the Department for Business, Energy and Industrial Strategy on 16 January 2023.

Support for energy bills coming to Northern Ireland, with vouchers beginning to reach people today, and delivery continuing over the next few weeks.

The press release issued by the Department for Business, Energy and Industrial Strategy on 13 January 2023.

The UK and UAE governments have signed a Memorandum of Understanding (MoU) which will help facilitate the sharing of technical knowledge, advice, skills and expertise, opening up new avenues for cooperation on energy and climate, while boosting jobs and investment in the UK.

The Clean Energy MoU, which today was signed by the UK Business and Energy Secretary Grant Shapps and the UAE Minister of Energy and Infrastructure, His Excellency Suhail Mohammed Al Mazrouei, during the Abu Dhabi Sustainability Week, will further reinforce the robust economic links between the 2 countries developed in the nations’ 2018 MoU on Cooperation in the Field of Energy.

The MoU has been expanded to encompass the full scope of bilateral co-operation, including the new low carbon super fuel hydrogen. This builds on ADNOC – the UAE’s largest energy company – taking a 25% stake in the design stage of BP’s blue hydrogen project, H2Teesside, last year. It also acknowledges the progress the UAE has made so far on climate action, their ambition for clean energy investment and their call for finding energy solutions with like-minded partners.

Business and Energy Secretary Grant Shapps said:

The UK is immensely proud of its longstanding relationship with the UAE. Today’s latest agreements provide further evidence that not only are we are strengthening our energy security and lowering bills for consumers in the long term, we’re unlocking huge opportunities for investment in British expertise and jobs in the process.

International cooperation on energy and climate with close partners like the UAE is vital and as they take centre stage as hosts of COP28 later this year, they will have our full support every step of the way.

Memorandum of Understanding

The MoU represents a strengthening of collaboration between the UK and the UAE and follows hot on the heels of the Partnership for the Future (P4F), which was signed during His Highness President Sheikh Mohammed bin Zayed Al Nahyan’s visit to UK in September 2021 and provided a clear statement of our collective energy ambitions.

The P4F is complemented by the existing Sovereign Investment Partnership (SIP), agreed in March 2021 to serve as a coordinated investment framework to grow a future-focused relationship between the two nations, driving economic recovery, jobs and growth.

The press release issued by HM Treasury on 13 January 2023.

Chief Economic Adviser to the Treasury, Clare Lombardelli, has been appointed as the new OECD Chief Economist – the first time a British person has held this role in thirty years.

As OECD Chief Economist, Clare will be working with OECD member countries and partners to confront difficult macroeconomic and structural challenges. She will lead the OECD’s economic work, replacing France’s Laurence Boone, who has held the post since 2018.

Clare has worked in government since 2005, after starting her career as an economist at the Bank of England. During this time her roles have included Principal Private Secretary to the Chancellor, Private Secretary for Economic Affairs to the Prime Minister and Budget Director. She has also worked as a technical adviser for the International Monetary Fund. She will step down from the Treasury after the Spring Budget.

Chancellor Jeremy Hunt said:

Clare is an exceptional civil servant – throughout her time in government she has always delivered clear and level-headed advice. Most recently she has led teams at the Treasury to promote sustainable economic growth and setting and implementing fiscal policy.

I congratulate Clare on her well-deserved appointment. It’s great to have a Brit in the role and look forward to working with her in the future.

Permanent Secretary to the Treasury James Bowler said:

I’m delighted Clare is being appointed to such a key international role. With her proven economic experience and leadership over almost 20 years in government, she fits the job very well.

Clare has been an exceptional Chief Economic Adviser and colleague at the Treasury making a huge contribution under successive Governments and I wish her all the best.

Clare Lombardelli said:

I look forward to taking up my new role, leading the OECD’s economic work to improve policies to benefit people around the world. I have loved my time in the civil service and the Treasury – it has been a huge privilege to work with such talented, dedicated and supportive colleagues as we’ve tackled the UK’s biggest economic challenges.

A recruitment process for Clare’s replacement will be set out shortly by the Treasury.

The press release issued by the Department for Business, Energy and Industrial Strategy on 13 January 2023.

The UK and Saudi Arabian governments discussed ambitious plans yesterday (Thursday 12 January), for collaboration in space and innovation, including the potential to invest in the development of space based solar power.

Business Secretary Grant Shapps met with His Excellency (HE) Abdullah Al-Swaha, the Saudi Arabian Chairman of the Saudi Space Commission and Minister of Communications and Information Technology this week, to discuss the potential agreement that could help unlock significant commercial opportunities for British businesses.

A collaboration between UK company Space Solar Ltd, and NEOM – a new Saudi city being built in the Tabuk Province to incorporate smart city innovations, world-class technology and data intelligence – could see each nation committing significant investment into developing space based solar power (SBSP) in the coming years.

SBSP sees solar energy collected using a very large satellite in geo-stationary orbit with solar panels, and beaming the energy to a fixed point on earth using radio technology. Its main advantages over wind and terrestrial solar energy are the ability to deliver clean energy, day and night, throughout the year, and through all weather conditions. Interest in the technology has grown in recent years as costs fall rapidly.

Early UK investment could leverage significant private investment, and development of SBSP in the UK could provide substantial benefit to the domestic space and technology sectors, through the creation of valuable intellectual property, jobs and industrial contracts.This collaboration on space follows extensive backing for the space sector from the Business Secretary.

Business Secretary Grant Shapps said:

The Kingdom of Saudi Arabia is on an ambitious journey to modernise its economy and society, which opens up a host of opportunities for burgeoning British businesses, exporting UK expertise that could transform global access to renewable energy, including space based solar power.

Collaboration on a global scale is an essential part of realising the UK’s ambitions in science and innovation, which is why I am excited to be here in the Gulf – where we are now playing an integral role in influencing energy transition plans – to develop our bilateral relationship with a state so open to business, and with aspirations so grand.

The UK already has strong and significant links with both Saudi Arabia and the United Arab Emirates – with SABIC (Saudi Basic Industries Corporation) and Alfanar committing to investing a combined total of £1.85 billion into decarbonisation and clean energy technology in Teesside.

The UK and Saudi Arabia have a long-standing bilateral relationship based on trade, investment, defence, security and energy, and we intend to maintain our relationship with the country on the grounds of vital national security and economic interests.

Saudi Arabia’s ‘Vision 2030’ shows encouraging signs of change – as well as social reform and improved human rights, it is full of opportunity for the UK economy, with possibilities for space based solar collaboration being just one example.

Any future funding in collaboration with Saudi Arabia will be subject to value-for-money analysis and investment security scrutiny.

The press release issued by the Department for Business, Energy and Industrial Strategy on 13 January 2023.

The UK’s leadership on tackling climate change has delivered real change at home and led to a global transformation – but more should be done to reap the economic benefits that presents, Chris Skidmore says today.

Mission Zero, his Net Zero Review, makes 129 recommendations covering areas including the greater role that business can be supported to play, making better use of infrastructure and delivering more energy efficient homes. Every one is designed to maximise economic investment, opportunities and jobs – all while working towards achieving legally binding targets to reach net zero carbon emissions by 2050.

He urges ministers to grasp the ‘historic opportunity’, highlighting how the government’s Net Zero Strategy offers the right direction, and the right policies to do so.

Chair of the Net Zero Review, Chris Skidmore MP, said:

We should be proud of the lead the UK has taken in tackling climate change, having exceeded expectations so far in our race to net zero emissions by 2050. As essential as that is environmentally, it also puts us at an economic advantage globally.

We lead in areas including clean technologies, science, manufacturing and green finance – areas that, if managed right, can lead to new jobs and strong economic growth.

In developing this report, we have engaged with communities, economists and climate experts from across the country through more than 50 roundtables and 1800 submissions – all of which have led to the Mission Zero findings.

My recommendations are designed to make the most of this historic opportunity, covering the length and breadth of our economy, so that people in every part of the country can reap the benefits of this both in their communities, and in their pockets.

Business and Energy Secretary Grant Shapps said:

With a wealth of talent and expertise, and a track record to be proud of, the UK is well placed to ensure that tackling climate change also brings new jobs and investment for businesses and communities.

I am grateful to Chris Skidmore – the man who signed our climate commitments into law – for his detailed report today, which offers a range of ideas and innovations for us to consider as we work to grasp the opportunities from green growth.

Chris Skidmore’s proposals include:

• backing business – these include reviewing incentives for investment in decarbonisation, including via the tax system, and launching a Help to Grow Green campaign offering information and advice to small businesses so they can plan ahead
• backing local action – these include reforming the planning system to put net zero at its heart nationally and locally, and backing at least one Trailblazer Net Zero City, local authority and community that can work towards reaching net zero by 2030
• delivering energy efficient homes – including legislating for the Future Homes Standard so that no new homes will be built with a gas boiler from 2025, adopting a 10-year mission to make heat pumps a widespread technology in the UK
• using infrastructure to unlock net zero – including developing a cross-sectoral infrastructure strategy by 2025 to support the building and adaptation for new green energy sources such as hydrogen to support the green economy

Official statistics show there are already around 400,000 jobs in low carbon businesses and their supply chains across the UK, with turnover estimated at £41.2 billion in 2020. Both the British Energy Security Strategy and Net Zero Strategy aim to leverage an additional and unprecedented £100 billion of private investment, while supporting an additional 480,000 British jobs by 2030.

The press release issued by the Department for Business, Energy and Industrial Strategy on 11 January 2023.

Business Secretary Grant Shapps has today (Wednesday 11 January) agreed to deepen the UK’s collaboration with the Kingdom of Saudi Arabia on critical minerals, putting the government’s ambitions for building more resilient critical minerals supply chains into clear action.

The partnership paves the way for the UK and Saudi Arabia to work together on diversifying sources of critical minerals, both through Saudi investment in the UK’s world leading manufacturing and mining finance sectors as well as new opportunities for UK mining firms to do business in Saudi Arabia. This is also important in ensuring the UK’s critical mineral supply chains are not overly reliant on any one country, with supplies currently dominated by China.

The two countries will work collectively on specific actions we can take, to bring our respective strengths together. We will be formalising this relationship in the coming months.

Critical minerals such as graphite and lithium are vital to the economy and used in products ranging from laptops to aircraft. However, global markets are volatile and supply chains are at risk, leaving UK jobs and industries vulnerable to market shocks and geopolitical events.

Agreements like today’s will make the UK’s supply chains more resilient, helping provide supplies to key green industries which will deliver growth and jobs now and for future generations. Saudi Arabia has one of the greatest untapped sources of critical minerals in the global market, worth circa US$1.3 trillion.

Business Secretary Grant Shapps said:

Critical minerals underpin the things that make everyday life and work possible, from our cars to our phones. It is essential that we do all we can to ensure resilient supplies of these important resources.

The impact of Putin’s illegal war in Ukraine on energy prices has shown us all how important international supply chains are to our economy, and why we can never be too reliant on any one nation. That’s why it’s so key that we work with partners like Saudi Arabia to make sure our supply chains are diverse and robust, supporting jobs and prosperity across the UK in the decades to come.

The UK and Saudi Arabia will explore working together to open up new sources of critical mineral supply. That could mean promoting the UK’s world leading manufacturing and mining finance sectors for Saudi investment, or exploring new opportunities for UK mining firms to do business in Saudi Arabia.

The partnership will also build on the importance of rigorous transparency and environmental standards, to minimise the risks to businesses and encourage investment. Clear, internationally-agreed rules are essential to building dependable supply chains.

The UK is determined to use relationships such as this one to build on efforts already underway to boost standards worldwide, from the UK’s leading role in international forums, to work through the City of London – the global centre of metals trading – to improve market governance.

The pledge builds on objectives already set out in the Critical Minerals Strategy, published in July 2022, to work at home, abroad, and through the markets to develop more robust supplies of these minerals. It is hoped today’s announcement will be the first of many such partnerships between the UK and other countries, because it is not possible for the UK to meet all of its critical mineral needs domestically.

The Business Secretary made the agreement while in Riyadh for the Future Minerals Forum, a further sign of the importance the government is placing on strengthening critical mineral supply chains for the UK. The UK will work closely with international partners to build the diverse and robust supply chains needed to support the global economy in the coming decades.

The press release issued by the Department for Business, Energy and Industrial Strategy on 10 January 2023.