Tag: Energy Security and Net Zero Department

  • PRESS RELEASE : Over 200,000 businesses set to get free advice settling energy supplier disputes [December 2023]

    PRESS RELEASE : Over 200,000 businesses set to get free advice settling energy supplier disputes [December 2023]

    The press release issued by the Department for Energy Security and Net Zero on 7 December 2023.

    More businesses will be able to get support from the Energy Ombudsman, under new proposals.

    • New proposals to expand support from Energy Ombudsman to cover small businesses with fewer than 50 employees
    • move would boost protection, offer an alternative to costly court fees, and resolve disputes quicker
    • follows survey finding 94% of total respondents supported the move

    More than 200,000 businesses could for the first time get access to specialist support for disputes with their energy supplier, under plans announced today (Thursday 7 December).

    Under new proposals, companies with up to 50 employees would qualify for support from the Energy Ombudsman – with issues ranging from disputes over bills and energy supply, to how an energy product or service has been sold, or wider customer service issues.

    Currently, this support is only available to businesses of up to 10 employees, and households.

    Making this move will enable these companies to settle disputes with their energy supplier without facing costly court fees – ultimately saving them money.

    It follows a survey conducted by regulator Ofgem, which found that 94% of the total respondents, which included businesses organisations, consumer groups, and suppliers, said they would welcome this move.

    Minister for Energy Consumers and Affordability Amanda Solloway said:

    This government has always stood by businesses, and we want to ensure they are getting proper support and service in dealing with energy suppliers.

    That’s why we’re proposing expanding the reach of the Energy Ombudsman to cover an extra 200,000 businesses, allowing them to access free, impartial advice and resolve issues with their supplier without the need for an expensive trip to court.

    See the consultation on a New threshold for businesses accessing the Energy Ombudsman which is open until Wednesday 31 January 2024.

  • PRESS RELEASE : UK dedicates £140 million to help countries switch to cleaner energy [December 2023]

    PRESS RELEASE : UK dedicates £140 million to help countries switch to cleaner energy [December 2023]

    The press release issued by the Department for Energy Security and Net Zero on 5 December 2023.

    Net Zero Minister Graham Stuart has announced further details of £140 million to support developing countries deliver net zero while growing their economies.

    • £140 million to support developing countries deliver net zero while growing their economies, creating thousands more green jobs internationally
    • funding will support governments across Africa, Asia, and Latin America to set clean growth goals
    • new international partnerships agreed to move towards clean energy and accelerate low-carbon steel, cement and concrete production, after PM called for ambitious, innovative and pragmatic climate action to combat rising global temperatures

    Countries looking to follow the UK’s leadership and boost their use of clean energy sources will receive millions of pounds to support their switch.

    At the COP28 negotiations in Dubai, Energy Security and Net Zero Minister Graham Stuart will announce further details of £140 million to support developing countries deliver net zero while extending access to affordable energy and growing their economies.

    The funds could provide clean energy for 8.7 million people, create 25,000 jobs in clean energy industries and cut CO2 emissions by at least 800,000 tonnes.

    This builds on UK progress at home on energy transition. Setting into law one of the most ambitious 2035 climate change targets of any major economy, the UK has undergone the fastest reduction in greenhouse gas emissions of any major economy – down nearly 50% since 1990.

    However, to meet net zero, developing countries also need to reduce their emissions and the funding announced today will help support this.

    Minister for Energy Security and Net Zero, Graham Stuart, said:

    The UK is helping other nations act swiftly to switch to renewable energy and slash emissions on the pathway to net zero, all while creating thousands of new green jobs.

    Backed by an extra £140 million, the UK is leading the world in supporting developing countries to unlock innovation and clean tech in this critical decade for our climate.

    To meet net zero globally by 2050, at least a third of the emissions reductions will need to be supported by technologies that are not yet on the market. The UK is therefore working with partners around the world to accelerate the global green transition, helping make clean technologies affordable, accessible and reliable for all.

    At the start of the conference, the Prime Minister announced £1.6 billion for international climate finance (ICF) projects over the course of COP28 aimed at stopping and reversing deforestation, protecting the natural environment and accelerating the global transition to clean and renewable energy. The investment delivers on the UK’s commitment to spend £11.6 billion of ICF over 5 years, and takes it further with new funding, exceeding our international pledges.

    Today’s package forms part of that £1.6 billion commitment and includes:

    • up to £80 million through the UK Partnering for Accelerated Climate Transitions (PACT), a flagship UK partnership programme to support governments across Africa, Asia, and Latin America to set clean growth goals, reducing emissions by starting renewable energy projects, greener transport and more sustainable use of land
    • £40 million via the Transforming Energy Access (TEA) platform to demonstrate energy access technologies in low-income countries, and fund research and development into climate friendly refrigeration and appliances that can run directly off renewables
    • £15 million via the Modern Energy Cooking Services (MECS) programme to help countries move away from firewood and charcoal for cooking to cleaner electrical cooking appliances
    • plus an additional £4 million to support universal access to affordable and reliable clean energy in Africa, which will deliver access to electricity to thousands of people

    These measures also follow concerted efforts to help developing countries reduce their emissions and green their electricity grids.

    The Minister also announced key partnerships with countries on a range of issues to help international efforts to tackle climate change.

    These include:

    • the UK pledging its commitment to the Green Public Procurement Pledge, alongside Germany, Canada and the US – sending a multi-billion-dollar global demand signal to accelerate low-carbon steel, cement and concrete production
    • Australia and Norway signing the UK-led Clean Energy Transition Partnership, bringing the total membership to over 40 countries and public finance institutions. Both countries have committed to move international public support away from unabated fossil fuels and towards clean energy

    CBI Chief Executive, Rain Newton-Smith, said:

    The UK has always been a leader in the global net zero transition. It was the first to sign net zero into law, has cut emissions faster than any other G7 nation, and, through the COP26 Presidency, has led unprecedented engagement with the private sector.

    However, climate change is a global issue with global repercussions, and it’s simply not enough to focus on our own actions. This announcement will allow the UK to play an important role in supporting developing countries to make their own transition.

    In turn, business stands ready to do its part and to champion the impact that increased public-private collaboration can have on this generation defining issue.

    Today, the UK government is also delivering on its 2023 Green Finance Strategy commitment and announcing that Vanessa Havard-Williams will lead the Transition Finance Market Review, which will launch in January and position the UK as the best place in the world to raise transition capital with integrity, to help companies in high-emitting sectors access capital to reduce emissions faster.

  • PRESS RELEASE : UK leads global action to protect rainforests, cut methane emissions and advance low carbon technologies [December 2023]

    PRESS RELEASE : UK leads global action to protect rainforests, cut methane emissions and advance low carbon technologies [December 2023]

    The press release issued by the Department for Energy Security and Net Zero on 2 December 2023.

    UK commits more than £85 million funding at COP28 to tackle deforestation and cut methane emissions.

    • Energy Security Secretary Claire Coutinho announces over £85 million dedicated funding to tackle climate change at COP28 in Dubai
    • package includes support for developing countries to cut carbon emissions
    • UK to sign unique partnerships with Brazil on hydrogen and decarbonising heavy industry
    • new international pledge on nuclear signed alongside US and France

    The UK will today announce a multi-million pound package of measures to protect the world’s rainforests, encourage investment in clean energy technologies and help developing countries cut their carbon emissions.

    At COP28 in Dubai, Energy Security Secretary Claire Coutinho will commit over £85 million funding for initiatives ranging from combating deforestation to cutting methane emissions and will sign new clean energy agreements with international partners, including Brazil, the US and countries across Europe.

    The funding includes up to £35 million to protect the Amazon rainforest through Brazil’s dedicated Amazon Fund, agreed on Friday. This would be on top of £80 million announced by the Prime Minister earlier this year, placing the UK among the fund’s top 3 contributors.

    Other measures include:

    • backing green enterprise – up to £40 million new funding to expand the UK’s Climate Finance Accelerator. The Accelerator aims to provide practical ways to help countries finance and deliver their climate commitments under the Paris Agreement. For example, this has helped start-up company Source Global attract £79 million of investment to make hydropanels that use solar energy to produce drinking water from air moisture. The extra funding, agreed on Friday, will support up to 750 new low carbon projects in up to 16 countries across Latin America, Africa and Asia between now and 2029
    • cutting emissions – £2 million support for President Biden’s Methane Finance Sprint, alongside the European Union, Canada, and other international partners. Contributions to the Sprint will support projects in developing countries, helping them to reduce emissions in major methane emitting sectors such as energy, agriculture, and waste. This is part of a wider £12 million package for the International Energy Agency’s programme to accelerate the transition to clean energy
    • Brazil partnerships – 2 unique partnerships between the UK and Brazil to speed up the South American country’s transition to clean technologies. The agreements will help Brazil cut emissions from heavy industry, support the development of hydrogen technologies and leverage the strength of both countries by bringing together a global package of financial, technical and other specialist assistance
    • nuclear pledge – the UK will endorse a global ambition to treble civil nuclear power capacity between 2020 and 2050, alongside other like-minded nations including the US and France, helping combat climate change and improve energy security. This builds on the government’s commitment for a quarter of the UK’s power to come from nuclear by 2050

    Energy Security Secretary Claire Coutinho said:

    The UK is a world leader in the drive to net zero, so it is vital we support our international allies like Brazil in meeting their climate ambitions.

    That’s why we have pledged up to £35 million to help stop deforestation in the Amazon, making the UK one of the largest contributors to the Amazon Fund.

    We will also partner with Brazil at COP28 and draw on our combined strengths to develop alternative fuels like hydrogen, advance green technologies and drive global action to cut emissions.

    The first agreement with Brazil will boost efforts to cut carbon emissions from heavy industries including steel, cement and chemicals – which are set to become responsible for the largest share of global emissions in the 2030s. Measures to do this will include implementing new technologies, piloting the use of alternative fuels and enhancing energy efficiency.

    The second will see the UK support Brazil’s National Hydrogen Programme, which is aiming for a sevenfold increase in research and development in clean hydrogen-related technologies between 2020 and 2025. This could support multiple sector transitions to net zero including heavy industry and maritime.

    The COP28 President Dr Sultan Al Jaber is also expected to launch a 12-month Action Plan under the UK’s COP26-initiated Breakthrough Agenda – which has become an established part of the international COP framework.

    Alongside a coalition of 56 governments, led by the United Arab Emirates, the UK, the US, India, Morocco, Canada, Germany, Egypt and France, the global Action Plan is designed to accelerate international collaborative action to lower the cost of clean technologies in the power, road transport, steel, hydrogen, and agriculture sectors – and ensure the world is on track to halve emissions by 2030.

  • PRESS RELEASE : Heat pump applications surge after increase in government grant [November 2023]

    PRESS RELEASE : Heat pump applications surge after increase in government grant [November 2023]

    The press release issued by the Department for Energy Security and Net Zero on 30 November 2023.

    New applications for the Boiler Upgrade Scheme surged, after the government increased its grant for installing a new heat pump to £7,500.

    • New figures show applications for Boiler Upgrade Scheme tripled in the week after grants increased to £7,500
    • subsequent weeks saw applications remain nearly 60% higher than the previous average
    • heat pumps could become easier to install under proposed changes to planning rules

    More families are choosing to ditch fossil fuel boilers for a cleaner alternative, after the government increased its grant by 50% for new heat pumps – making it one of the most generous schemes in Europe.

    New figures published today (30 November) show the number of new applications for government’s heat pump support surged after the increased £7,500 grant, announced by the Prime Minister, became available.

    The number of new applications to the government’s Boiler Upgrade Scheme in the first week since the grant uplift reached 1,150 – more than 3 times higher than the average weekly rate prior to the change. In the subsequent 3 weeks, new applications have remained nearly 60% higher than the previous weekly average.

    The scheme, which is available in England and Wales, provides financial support for families to switch from fossil fuel heating systems to a cleaner heat pump alternative – and as a result of the uplift, is now one of the most generous of its kind in Europe.

    Energy Security Secretary Claire Coutinho said:

    Today’s new figures show our pragmatic approach to net zero is working. In the first week after our 50% increase to the Boiler Upgrade Scheme, applications tripled.

    We are supporting hardworking families who want to make the switch and replace their boiler in a way that’s within their budgets.

    The results come alongside new independent research published today confirming heat pumps are generally rated as quiet, with a majority of those surveyed saying they did not notice the sound.

    The review found complaints from neighbours are rare – with people far more likely to hear the noise of traffic and dogs barking, over of the sound of nearby heat pumps.

    Lord Callanan, Minister for Energy Efficiency and Green Finance, said:

    This fantastic increase in applications through the Boiler Upgrade Scheme demonstrates not only the desire for heat pumps in this country, but also that our approach to reach net zero works.

    We want more families to enjoy the more stable bills and cleaner heating that heat pumps have to offer – and today’s evidence that heat pumps make minimal noise is yet another reason to make the switch.

    Today’s report examining the sound coming from heat pumps follows significant advances to reduce noise levels. The report concludes that heat pumps are now very quiet – with sound levels similar to a gas boiler or fridge.

    Extensive research was carried out for the independent study by acoustic experts – who reviewed existing data and conducted interviews with households, installers, manufacturers, industry bodies, as well as local authority planning officers.

    Currently some households need to seek full planning permission to install a heat pump. However, the report recommends a change in planning rules to make it easier for households to install heat pumps under permitted development rights – while also strengthening heat pump noise assessments conducted by installers to continue protecting the public from noise pollution.

    The government announced, in last week’s Autumn Statement, that it will consult on introducing new permitted development rights to end the blanket restriction on heat pumps one metre from a property boundary in England.

    Customers do not have to apply for grants through the Boiler Upgrade Scheme and can check their home is eligible on GOV.UK. Anyone interested just needs to agree a quote for the work with an MCS certified installer, who will then do all the paperwork. Ofgem will simply contact the customer after that to confirm they would like to proceed.

    Also today, the government confirmed plans for a new Clean Heat Market Mechanism, launching next year, which will incentivise the UK’s heating industry to invest in making heat pumps an increasingly attractive and affordable choice for families and businesses.

    Rebecca Dibb-Simkin, Chief Product & Marketing Officer at Octopus Energy Group, said:

    The Boiler Upgrade Scheme has already done wonders to kickstart a nascent heat pump industry and drive hundreds of millions of pounds of private sector investment in the UK. Since the increase in the grant was announced, we’ve seen 5 times more requests for heat pumps from our customers, and we’ve even been able to offer some installations for free.

    Many of the planning rules around heat pumps are outdated, so it’s great the government is modernising them to make it easier for more people to get their hands on one.

    The Clean Heat Market Mechanism announced today will also give industry the certainty we need to grow heat pump manufacturing here in the UK – securing green British jobs for generations to come.

    Mat Moakes Chief Commercial Officer at OVO said:

    It’s encouraging to see the rise in applications for the Boiler Upgrade Scheme with the recent uplift helping households make the switch.

    At OVO we’ve seen an uplift in customer interest and our data also shows that when paired with innovative tariffs to reduce the cost the uptake increases.

    Notes to editors

    New figures on weekly applications to the Boiler Upgrade Scheme have been published. These show weekly applications from the start of the scheme (23 May 2022) to the end of week of 13 November 2023).

    See the latest applications statistics for the Boiler Upgrade Scheme, which cover the latest delivery figures for the scheme up to 31 October.

    The independent research was conducted by:

    • engineering consultancy firm WSP
    • construction engineering company BSRIA
    • University of Salford
    • Stephen Turner Acoustics

    Read the report on Review of Air Source Heat Pump Noise Emissions, Permitted Development Guidance and Planning Regulations.

    See the government response to the consultation on the Clean Heat Market Mechanism.

  • PRESS RELEASE : Councils pilot net zero projects with £19 million government backing [November 2023]

    PRESS RELEASE : Councils pilot net zero projects with £19 million government backing [November 2023]

    The press release issued by the Department for Energy Security and Net Zero on 30 November 2023.

    Local Net Zero Accelerator pilots will help combined authorities deliver green initiatives such as retrofitting homes and installing solar panels.

    • Local Net Zero Accelerator pilots will help combined authorities deliver green initiatives such as retrofitting homes and installing solar panels
    • Greater Manchester and West Midlands selected to receive over £12 million to leverage private sector investment and meet climate goals
    • York and North Yorkshire Combined Authority supported with further £2 million to secure a strategic business partnership to accelerate decarbonisation

    A new £19 million pilot programme will help selected combined authorities unlock private investment, speed up their efforts to tackle climate change and help the UK reach its net zero target.

    Two Local Net Zero Accelerator pilots in the Greater Manchester Combined Authority and the West Midlands Combined Authority will help drive investment in multiple green projects across key sectors such as energy, housing and transport – essential to delivering on the UK’s climate targets.

    The combined authorities will decide how to allocate funding, selecting projects that will benefit their communities. These could include housing retrofit and renewable energy and transport projects, such as installing solar panels, battery storage and deploying green buses – all of which could help significantly cut emissions.

    Councils have previously faced barriers to attracting private sector investment in smaller net zero programmes and one-off projects. But today’s funding is designed to tackle this so they can secure investment at scale to deliver a range of green initiatives and expand decarbonisation work in the years to come.

    By combining multiple green projects across different sectors, rather than requesting funding for one-off, short-term projects, the new Local Net Zero Accelerator Programme will make it easier to secure private investment in a long-term, sustainable way.

    A third, separate pilot will be launched in the York and North Yorkshire Combined Authority, with the aim of replicating a similar, successful model in Bristol, which supported around 1,000 jobs. Bristol City Leap established an innovative public-private partnership between Bristol City Council, Ameresco Ltd and Vattenfall Heat UK, which helped secure millions of pounds worth of investment into Bristol’s energy system, including solar, wind, heat networks, heat pumps and energy efficiency measures across the council’s estate.

    Minister for Energy Efficiency and Green Finance, Lord Callanan, said:

    The UK is a world leader when it comes to tackling climate change. But the work we do locally is just as important for cutting emissions and delivering net zero.

    These pilots will help combined authorities to unlock private sector investment that they can spend on green projects they see fit locally, whether that be retrofitting housing or investing in green public transport networks – all while supporting skilled jobs, building out supply chains and growing our economy.

    Exchequer Secretary to the Treasury, Gareth Davies, said:

    Our £19 million investment is helping local governments explore new ways to fast-track our ambitious net zero objectives.

    This initiative is pivotal in mobilising the money we need to transition and boosting green jobs and investments across the country.

    Mayor of the West Midlands and chair of the West Midlands Combined Authority, Andy Street, said:

    The government’s decision to ask our region to help lead the drive to net zero represents a real vote of confidence in what we can do and indeed are already doing here in the West Midlands.

    Whether it’s the strides we’re making to retrofit homes – making them warmer and more energy efficient – or cutting energy bills for local businesses or indeed ensuring our transport network is more sustainable, we’re taking the practical steps on the ground to advance the net zero cause.

    Together, we can help draw in the required public and private finance that will accelerate the rollout and take up of net zero related projects right across the UK as a whole.

    Green City Lead for Greater Manchester, Councillor Tom Ross, said:

    We welcome the £7 million funding to accelerate our net zero ambitions across Greater Manchester over the next 2 years. Greater Manchester has established Local Area Energy Plans which identify the £12.5 billion of investment in infrastructure required, that is substantially under local authorities influence, to achieve our carbon neutral ambitions by 2038.

    This Accelerator funding from government will be used to design investment models to attract private investment – which is scalable, replicable and which leads to securing investment partners capable of delivering at scale.

    The 3 new schemes will be supported by a centralised finance service. Supported by around £3 million, this will give the pilots access to financial and commercial knowledge to attract private investment in the local programmes.

    Meanwhile, the Greater South East Local Net Zero Hub will receive an extra £2 million to ensure independent oversight and the successful delivery of the 3 pilot schemes. The Net Zero Hubs programme was set up in 2017 and supports combined authorities to develop net zero projects and attract commercial investment.

    The lessons learnt from these pilots will be used to support other combined authorities across England deliver on net zero targets.

  • PRESS RELEASE : Huge boost for UK green industries with £960 million government investment and major reform of power network [November 2023]

    PRESS RELEASE : Huge boost for UK green industries with £960 million government investment and major reform of power network [November 2023]

    The press release issued by the Department for Energy Security and Net Zero on 23 November 2023.

    Government sets out plans to speed up connections and increase grid capacity to boost energy security.

    • New plans to halve power line construction time will speed up delivery of homegrown, renewable energy to homes and businesses
    • average grid connection delays cut from 5 years to 6 months, releasing up to 100GW of capacity – equivalent to around a quarter of the electricity needed to power our economy in 2050 – and maintaining the UK’s position as a world leader in low carbon energy
    • properties closest to power infrastructure could benefit from up to £1,000 a year off electricity bills
    • £960 million committed to accelerate manufacturing in key net zero sectors

    Major plans to speed up connections and rapidly increase capacity on the electricity grid have been set out alongside £960 million investment in green industries – strengthening UK energy security and delivering long term savings for families and businesses.

    The package of measures will support economic growth and further cement the UK as one of the best countries in the world to invest in renewables, bringing forward investment by building network infrastructure faster and speeding up grid connections.

    Launched by the Chancellor and Energy Security Secretary, government has published its response to Electricity Networks Commissioner, Nick Winser CBE, accepting his recommendations in all areas. These measures will halve the time it takes to build high-voltage power lines from 14 years to 7.

    Building on this, the Connections Action Plan will cut the average delay time projects face to connect to the grid from 5 years to just 6 months. It will also see the end of the existing ‘first-come, first-served’ system, which had led to a long queue of projects to connect to the grid – holding back low-carbon investment.

    Communities hosting new power infrastructure could benefit directly with lower electricity bills and money for projects in their local areas. They will have the power to decide how this is spent, for example on apprenticeships, energy efficiency measures, local parks or community energy generation. Properties closest to new transmission infrastructure will potentially receive up to £1,000 a year off electricity bills over 10 years.

    The government has also committed £960 million for the Green Industries Growth Accelerator, which will accelerate advanced manufacturing capacity in key net zero sectors, including offshore wind, networks, carbon capture, usage and storage, hydrogen and nuclear.

    As demand for renewables grows, with international competition across supply chains, the government is making sure the UK has the right conditions for further investment and growth. As a result of the UK’s global leadership in clean technologies, including the flagship Contracts for Difference scheme and the £20 billion recently committed to develop carbon capture, usage and storage, the UK has attracted £200 billion since 2010. A further £100 billion is expected by 2030, supporting up to 480,000 skilled jobs across the country.

    The new package announced at the Autumn Statement is expected to bring forward £90 billion of investment over the next 10 years and will ensure the country’s infrastructure is fit for the green industries of the future.

    Energy Security Secretary Claire Coutinho said:

    We have set out the most radical plans to update the grid since the 1950s – speeding up connections and rapidly increasing capacity.

    As we move away from unreliable imports to cheaper, home-grown energy, we’re boosting the grid so that it can meet our expanding electricity needs which are expected to have doubled by 2050. This will drive down bills while bringing forward £90 billion of investment over the next decade.

    We’ll also reward those living closest to new infrastructure with up to £1000 a year off their energy bills, while communities will get at least £200,000 to spend on local projects that matter the most to them.

    National Grid Chief Executive John Pettigrew, said:

    Networks are critical to connect cleaner, more affordable, home-grown energy to Britain’s homes and businesses, and we welcome the bold plans set out by government today.

    A spatial energy plan and accelerated planning consent will bring clarity, authority and urgency to what needs to be built and where, while new community benefit proposals will ensure local people remain at the heart of the energy transition. The connections action plan will deliver fundamental reforms needed to enable us to plug clean energy projects in faster, and build on the progress already being made.

    The intent is clear and welcome; now these plans must be implemented at pace to capture the economic opportunity of the energy transition and keep Britain on target to achieve its climate goals.

    The Autumn Statement includes the following:

    Speeding up grid connections

    As set out by the Prime Minister earlier this year, the government is taking action to ensure significant investment in new energy projects is supported by modern grid infrastructure – necessary to bring clean power to households and businesses while delivering emissions reduction targets.

    The Connections Action Plan, published jointly with Ofgem, will overhaul the way projects access the electricity grid, releasing over 100GW of capacity from the grid connections queue. This is equivalent to around a quarter of the electricity needed to power our economy in 2050.

    A ‘first-ready, first-connected’ approach will also be established, ensuring speculative and slow-moving projects are removed from the queue and supporting viable projects to connect when they are ready. Meanwhile, a triage service will be established to work closely and at pace with relevant investors, network companies and Ofgem to support accelerated connections for strategically-important demand customers, such as new industrial developments.

    This follows Ofgem’s recent decision to give the Electricity System Operator (ESO) new powers to terminate connection agreements of stalled projects that are holding others up in the transmission queue.

    The government has also accepted the programme of reform recommended by the Electricity Networks Commissioner to build new networks faster. This will support the delivery of up to 50GW of offshore wind power by 2030 and 24GW of new nuclear by 2050, as a major step towards decarbonising the UK economy.

    This includes developing a Strategic Spatial Energy Plan, which will enable better decision-making on the location of energy system infrastructure to create a more efficient, lower cost system. The plan will give increased certainty for investors and industry, and give every community a say. It will be produced through close working between the government and the ESO (and Future System Operator once established), in consultation with Ofgem, and act as a reference for the creation of a transmission network blueprint in the Centralised Strategic Network Plan.

    Community benefits

    As set out in the consultation response on Community Benefits for Transmission Infrastructure, benefits could be offered to communities hosting new transmission infrastructure.

    These will be in the form of both electricity bill discounts – of up to £1,000 per year, or £80 a month – over 10 years for eligible properties; and money to spend on local community projects.

    The government will publish guidance next year, enabling residents to decide how to fund projects in their area, such as education initiatives for young people, local parks or community energy generation, electric vehicle charging points or energy efficiency measures.

    The government is also considering establishing a Community Benefits Register, to ensure developers comply with the guidance and provide inspiration to communities of projects for their local area.

    Reforming the planning system

    Meanwhile, National Policy Statements – the bedrock of planning major new energy projects in England and Wales – have been strengthened to make clear that the planning system must treat low carbon energy infrastructure as a Critical National Priority.

    This underlines for everyone involved in planning decisions just how critical the need for energy infrastructure is. This works alongside a package of wider reform measures also being announced as a part of this package, to ensure the country can build the infrastructure it needs for energy security and net zero. This will facilitate investment to support growth, jobs, and emerging green industries, whilst respecting legislation to protect the environment.

    This is an important step towards delivering net zero as fairly, efficiently and quickly as possible.

    Backing green industries

    By reducing delays in network build and speeding up grid connections, this package could bring forward investment by around £90 billion over the next 10 years.

    The government is committing £960 million over the next 5 years for the Green Industries Growth Accelerator. This will drive economic growth and bolster UK exports, while removing bottlenecks from the supply chain.

    The Chancellor has also announced permanent Full Expensing: Invest for Less for those investing in IT equipment, plant, and machinery – an effective permanent tax cut of £11 billion a year. This will create the certainty that businesses, including renewable energy projects, need to confidently invest for less. A company can now permanently claim 100% capital allowances on qualifying main rate plant and machinery investments, meaning that for every pound invested its taxes are cut by up to 25p.

    To further support new renewables investment, electricity generators who take a substantive decision to proceed with new projects after 22 November 2023 will have an exemption from the Electricity Generator Levy (EGL) on revenues from those projects.

    Stakeholder Reaction

    National Grid ESO Executive Director, Fintan Slye, said:

    The ESO welcomes the strong package of reforms announced by the Chancellor, which will help ensure our energy system is fit for the future.

    Great Britain’s energy grids are the backbone of our economy and it’s imperative that we drive through urgent reforms to ensure grid access improves.

    These reforms both acknowledge the scale of energy production and network infrastructure required for future generations whilst ensuring communities hosting the infrastructure receive appropriate compensation.

    We look forward to continuing to work in lockstep with both government, Ofgem and industry to drive these changes through, ensuring businesses can connect into the network when they are ready and that network is built in the right time, at the right place, with minimised impact on communities and the environment to facilitate these connections.

    Director General of the British Chamber of Commerce Shevaun Haviland, said:

    We have long called for the electricity grid to be upgraded to help companies transition to net zero. A recent BCC survey found more than a third (37%) of businesses were not getting what they needed from the grid, in terms of energy supply and connectivity. If we can greatly reduce grid connection times it will make a big difference.

    We also welcome the news of a growth accelerator for green industries. This will give businesses the confidence to invest in these key sectors where there are huge opportunities for UK Plc, which could support our economy for years to come.

    RenewableUK Chief Executive Dan McGrail, said:

    There’s a strong focus in Chancellor’s Autumn Statement on accelerating green industrial growth. His announcement on permanent full expensing will provide a much-needed degree of long-term certainty for investors in green technologies, helping to make the UK an attractive destination for investment in clean energy projects and manufacturing.

    This combined with the announcement of £960 million for a Green Industries Growth Accelerator to support clean energy manufacturing in the UK will help us to build up new supply chains in Britain at a time when international competition for investment in clean technology manufacturing has never been more intense.

    The decision to extend tax relief on freeports from 5 to 10 years will help us to revitalise coastal communities by encouraging new investment in offshore wind manufacturing, including factories servicing innovative floating projects. Industry estimates that overall the offshore wind supply chain could boost the UK’s economy by £92 billion by 2040.

    We also welcome the government’s commitments to reform the planning system by offering local authorities financial incentives to make decisions faster, as well as their ambition to cut grid connection delays from several years to 6 months.

    We look forward to further key announcements such as the publication in March of more details on next year’s CfD auction which we hope will secure a record annual amount of new clean energy capacity.

    Chief Executive of the Energy Networks Association Lawrence Slade, said:

    Today’s announcements will hearten everyone working hard to enable net zero. We need to use every tool in the box to accelerate grid connections and ensure the country can deliver the critical infrastructure it needs as quickly as possible.

    It’s great to see the government acting on the need for planning reform, including the publication of revised energy National Policy Statements. We also welcome the intent to ensure there are direct benefits for the communities hosting critical energy infrastructure and the steps set out in the government’s Connections Action Plan.

    Steps taken by the electricity network operators, Ofgem and ESO (the system operator) have already helped to ensure nearly 50GW of capacity is being made available to customers in 2023. That’s almost the equivalent of the UK’s peak electricity demand. The steps announced today will help increase that even further over the coming months and years.

    We look forward to working with the Secretary of State and Minister for Nuclear and Networks to enable net zero, unlock grid capacity and boost UK investment.

    SSE Chief Executive Alistair Phillips-Davies, said:

    As one of the biggest investors in the UK, we welcome the Chancellor’s focus on encouraging business investment, speeding up the time it takes to build major projects and looking at how communities hosting clean energy infrastructure receive tangible benefits.

    We look forward to seeing further details of today’s announcements and working with communities and policymakers across the political spectrum to build the cleaner, cheaper and more secure energy system we all want to see.

    ScottishPower Chief Executive Keith Anderson, said:

    This is a much-needed boost to get Britain back on track as a nation that builds infrastructure the rest of the world can envy.

    We were pioneers with the first electricity grids almost a century ago and these electricity superhighways are critical to bettering the lives of the nation – securing more green and home-grown energy and enabling the shift to clean transport and heating.

    A relentless focus on people, planning and the UK pipeline is key to unlocking the massive economic growth of these investments. We welcome the government’s plans to support communities who host this vital national infrastructure and raise awareness of the positive long-term impact on society.

    Microsoft Vice President External Affairs Hugh Milward, said:

    We urgently need to build the next generation of infrastructure that will see the UK economy grow and thrive. The measures announced today are precisely the kind of energy policies that will unlock a wave of additional domestic and international investment.

    GrantScape Chief Executive Matt Young, said:

    The Government Response to Community Benefits for Electricity Transmission Network Infrastructure was welcomed today. Community Benefit funding is a critical part of the overall implementation of these nationally important projects and a suitable mechanism to acknowledge the communities in close proximity.

  • PRESS RELEASE : New UK and Republic of Korea clean energy partnership to accelerate net zero transition [November 2023]

    PRESS RELEASE : New UK and Republic of Korea clean energy partnership to accelerate net zero transition [November 2023]

    The press release issued by the Department for Energy Security and Net Zero on 21 November 2023.

    UK and Republic of Korea to strengthen cooperation on low carbon technologies and civil nuclear.

    • Partnership will be signed in London by Energy Security Secretary Claire Coutinho and RoK’s Minister for Trade, Industry and Energy, Bang Moon Kyu
    • agreement will bolster cooperation on low carbon technologies, civil nuclear, and tackling climate change
    • builds on existing energy and climate agreements between the 2 nations, as part of efforts to accelerate the global transition to net zero

    new Clean Energy Partnership between the UK and the Republic of Korea (RoK) will be agreed tomorrow (Wednesday 22 November) to boost energy security and accelerate the clean energy transition.

    The partnership will be signed in London by Energy Security Secretary Claire Coutinho and RoK’s Minister for Trade, Industry and Energy, Bang Moon Kyu. It will see the UK and RoK strengthen cooperation on shared ambitions across the clean energy transition, low carbon technologies, civil nuclear, and domestic climate policies. The new partnership will promote UK-Korea business collaboration, addressing barriers to trade and encouraging mutual development of each other’s energy sectors.

    The 2 countries will also double down on commitments made under the Paris Agreement to limit global warming to 1.5 degrees, to work together to phase out unabated coal power from energy systems to achieve net zero by 2050.

    The partnership comes alongside South Korean businesses injecting more than £10 billion of new investment into the UK, backing renewable energy and infrastructure projects across the country, and supporting more than a thousand highly skilled jobs across the renewables supply chain.

    Energy Security Secretary Claire Coutinho said:

    The UK and the Republic of Korea already have a strong relationship on energy security and tackling climate change.

    The new partnership we will sign will see us collaborate even more closely, driving forward shared plans to accelerate clean energy sources, like renewables and nuclear power.

    This will help us make the green transition, while supporting the injection of more than £10 billion into the UK economy from South Korean businesses and the thousand skilled jobs that come with that.

    The partnership will see both countries commit to:

    • strengthening cooperation on civil nuclear, including on large scale, small scale and advanced reactors, decommissioning and waste management, and supply chains – important as both nations develop clean energy sources, and reduce the global nuclear industry’s dependence on Russia
    • sharing information and lessons learned on offshore wind to support UK and RoK’s ambitions, collaborating on barriers to deployment and exploring commercial opportunities through the annual Offshore Wind Policy Dialogue
    • exploring shared priorities for UK-RoK hydrogen collaboration, building on engagement through existing forums
    • reinforcing existing cooperation on grids and infrastructure between Korea Electric Power Corporation (KEPCO), Ofgem and The National Grid to enhance existing technical, policy, R&D and commercial exchange
    • enhancing R&D cooperation via the UK-RoK Science, Technology and Innovation Partnership, and to deepen cooperation via other channels including Mission Innovation

    The clean energy partnership will elevate existing areas of bilateral cooperation on energy between the 2 countries, in particular building on the UK-RoK Civil Nuclear Dialogue and the previously agreed UK-RoK Offshore Wind Memorandum of Understanding to accelerate offshore wind deployment.

    These agreements will advance the Republic of Korea’s transition to clean energy while creating high-value jobs in the UK’s green supply chain.

    Already, RoK has a target of 14.3 GW of offshore wind by 2030 – with UK companies winning a significant number of RoK offshore wind engineering contracts. Additionally, there are a number of investment commitments from UK and RoK companies, helping to accelerate offshore wind development:

    • RoK’s SeAH Wind Ltd is making a £650 million investment to build a new factory and manufacture offshore wind monopiles in Teesside, creating up to 750 jobs by 2030
    • UK offshore wind developer Corio Generation, with a portfolio exceeding 30GW and a total value of approximately £146 billion across 10 countries, is expanding its offshore wind presence, particularly in the UK and Republic of Korea
    • in February, BP entered the South Korean offshore wind market, establishing a joint venture and acquiring a 55% stake in Deep Wind Offshore’s early-stage offshore wind portfolio, including four projects across the Korean peninsula with a potential generating capacity of up to 6GW

    Louise Kingham, Head of Country at BP said:

    BP is delighted to support early-stage offshore wind opportunities in South Korea, working in partnership with stakeholders for the country’s energy transition.

    This further investment and closer collaboration follows over 3 decades of the UK and RoK working together on advancing nuclear power generation, underpinned by the Nuclear Cooperation Agreement made in 1991.

  • PRESS RELEASE : Boost for offshore wind as government raises maximum prices in renewable energy auction [November 2023]

    PRESS RELEASE : Boost for offshore wind as government raises maximum prices in renewable energy auction [November 2023]

    The press release issued by the Department for Energy Security and Net Zero on 16 November 2023.

    Maximum price that other renewables projects can receive in the next Contracts for Difference (CfD) auction has also been raised.

    • Maximum prices available for offshore wind increased by 66% for Contracts for Difference round next year
    • projects could also get more money from 2025 auction if they reduce carbon emissions in their supply chains and demonstrate positive social impact on communities
    • changes will attract continued investment in the UK and further cement position as global leader in clean energy

    The government has increased the maximum price for offshore wind projects in its flagship renewables scheme to further cement the UK as a world leader in clean energy.

    Following an extensive review of the latest evidence, including the impact of global events on supply chains, the government has raised the maximum price offshore wind and other renewables projects can receive in the next Contracts for Difference (CfD) auction to ensure it is performing effectively.

    The CfD scheme ensures renewable energy projects receive a guaranteed price from the government for the electricity they generate, encouraging continued investment in the UK – which is already home to the world’s 5 largest operational offshore wind farm projects and has increased electricity generation from renewables from 6% in the first quarter of 2010 to 48% in the first quarter of this year.

    The maximum strike price has been increased by 66% for offshore wind projects, from £44/MWh to £73/MWh, and by 52% for floating offshore wind projects, from £116/MWh to £176/MWh ahead of Allocation Round 6 (AR6) next year.

    This will help ensure projects are sustainably priced and economically viable to compete in AR6, building on the success of previous CfD auctions. These have so far awarded contracts totalling around 30GW of new renewable capacity across all technologies since 2014.

    In AR6, offshore wind will also be given a separate funding pot in recognition of the high number of projects ready to participate. This will ensure healthy competition among a strong pipeline of projects, helping the UK deliver on its ambition of up to 50GW of offshore wind by 2030, including up to 5GW of floating offshore wind.

    First established nearly a decade ago, the CfD has helped reduce the cost of renewables. It aims to deliver good value to electricity consumers and drive down costs. The government’s ambitions will create tens of thousands of new jobs by 2030, while also delivering the Prime Minister’s priority of growing the economy.

    See Contracts for Difference (CfD): Allocation Round 6.

    The government is also today (Thursday 16 November 2023) publishing developed proposals to review applications from the 2025 auction not just on their ability to deliver low cost renewable energy, but also on how much a project strengthens the environmental and economic sustainability of the industry. As part of this, a project’s social impact will also be considered – including how supply chains affect jobs and communities.

    Energy Security Secretary Claire Coutinho said:

    The UK is home to the world’s 5 largest offshore wind farms projects.

    Today we have started the process of our latest Contracts for Difference auction for renewables, opening in March next year. We recognise that there have been global challenges in this sector and our new annual auction allows us to reflect this.

    This is a vital part of our plan to have enough homegrown clean energy, bringing bills down for families and strengthening our energy independence.

    Minister of State for Energy Security and Net Zero Graham Stuart said:

    Last year’s Contracts for Difference scheme saw more than 90 clean, homegrown energy projects and today we have shown our ongoing commitment to retaining our global leadership in renewable energy.

    This critical update to the scheme’s design provides further clarity and confidence to the offshore wind sector and ensures the scheme remains competitive for renewable developers investing in new low carbon technologies.

    I look forward to securing another year of successful contracts in 2024, creating skilled jobs, reducing emissions and delivering maximum amounts of reliable clean energy for the British public.

    Exchequer Secretary to the Treasury Gareth Davies MP said:

    This scheme has played an indispensable role in driving forward renewable energy projects.

    Supporting industry to make investments in renewable energy is essential to achieving our net zero goals, vital to attracting investment to our coastal communities, supporting jobs, and levelling up the country. I am proud to see Britain remain at the helm of green energy innovation as we move ahead.

    The government is also increasing maximum bid prices for other technologies, offering certainty for developers, and keeping the UK at the cutting edge of all renewables. These include:

    • geothermal by 32% – from £119/MWh to £157/MWh
    • solar by 30% – from £47/MWh to £61/MWh
    • tidal by 29% – from £202/MWh to £261/MWh3

    Contracts for Difference are currently awarded based on the outcome of a competitive auction.

    The consultation published today invites views on how Sustainable Industry Rewards, formerly non-price factors, could be incorporated into the 2025 auction process. This would be for offshore wind and floating offshore wind companies and would mean additional payments if they reduce the carbon emissions in their supply chains, or if they improve their social benefits, ensuring AR7 is the cleanest and most impactful auction yet.

    See the consultation: Introducing a Contracts for Difference (CfD) Sustainable Industry Reward.

    This could be done by investing in high-skilled jobs, using more environmentally friendly factories to assemble components, such as wind turbines, investing in new manufacturing facilities or skills in deprived areas, or finding new, innovative ways to reduce their carbon emissions, for example.

    Building a more secure energy future will increase developer confidence in the sector every year. It will also enhance the UK’s reputation as one of the most attractive places to invest in renewables.

    The introduction of annual auctions last year means project developers now have more frequent opportunities to participate. This also allows the government to respond more quickly to ensure the scheme continues to support the sector, maintain investment and continue its success.

    The government is also taking significant steps to ensure homes and businesses across the country can access the electricity produced from these new renewable projects by accelerating grid infrastructure and connections. A Connections Action Plan will be published later this year to reform the connection process and reduce connection timescales.

    RenewableUK’s Chief Executive Dan McGrail said:

    Ensuring that the UK continues to unlock investment in renewables is critical to improve Britain’s energy security, drive economic growth, support thousands of new green jobs and enable us to continue to create a lowest cost electricity system for billpayers. With intense international competition for investment in renewables, we welcome the strong commitment to the sector shown by government today, which demonstrates that the UK is intent on remaining a global leader in offshore wind, as well as innovative technologies like floating wind and tidal stream.

    There is the potential for the government to attract a record level of private investment in offshore wind projects next year, with at least 10 projects likely to be eligible, able to power 8.5 million homes each year and reduce the UK’s need for gas by 39%. The framework they’ve set out today is a significant step forward in securing this. Although renewables haven’t been immune from the recent rises in financing and supply chain costs which all major infrastructure projects have faced, they remain the lowest cost means of generating new electricity. Even at these new prices, there is still no cheaper way to meet the UK’s rising electricity demand and increase our energy security.

    Emma Pinchbeck, Energy UK’s Chief Executive, said:

    Offshore wind is the flagship technology for the UK in terms of meeting our net zero targets. It’s also a critical one to ensuring our energy security through generating more clean domestic power – at the same time as boosting our economy and creating jobs. So we very much welcome the government responding to the increased global competition and the economic challenges facing developers by showing more ambition and giving greater confidence to investors, which will help build a domestic green powerhouse that benefits our own economy and people.

    Wider stakeholder commentary

    Tom Glover, RWE UK Country Chair, said:

    RWE welcomes the government’s decision on the administrative strike prices for renewables technologies bidding into Allocation Round 6, and its recognition of broader international global supply chain and inflationary cost pressures within the clean energy sector. We also welcome the decision to revert to a separate allocation pot for offshore wind for Allocation Round 6, which should help to secure future capacity towards the UK’s 50GW by 2030 target.

    The timely and efficient deployment of renewables remains the lowest cost and best way of achieving the UK’s domestic energy security, as well as net zero. Today’s announcement represents a positive step towards maximising the UK’s clean energy potential, for ensuring sustained lowest prices for consumers and creating good quality jobs.

    Keith Anderson, Chief Executive of ScottishPower, said:

    Bringing more green energy onto the system is the single most important thing we can do to cut customers’ bills and strengthen our energy security. This is a welcome signal that the government is listening and is committed to getting the UK’s pipeline of offshore wind projects moving again.

    The real test of that ambition will come when the overall budget for the next auction round is set next year. But, no doubt about it, this is a step in the right direction.

    Chris Hewett, Chief Executive of Solar Energy UK, said:

    The Contracts for Difference system has been a major factor in the growth of the UK’s solar power sector, by providing investors with secure and reliable incomes. Solar remains the cheapest source of power in the UK, according to the government’s own figures, although lately installation costs have been affected by factors outside the control of the industry, notably the war in Ukraine. So it is gratifying that that the maximum bid price has been raised by a significant amount, which should bolster growth further towards reaching the capacity target of 70GW by 2035.

    Duncan Clark, Head of UK Region at Ørsted, said:

    We welcome this important and positive step towards getting the next auction round right, which is essential for both UK energy security and the wider supply chain. This is a clear indication from government that offshore wind can and will be the backbone of our future energy mix – providing low-cost, low-carbon electricity, creating jobs, supporting communities and attracting investment into the UK.

    Alistair Phillips-Davies, Chief Executive, SSE plc, said:

    Securing enough projects through the next 2 auction rounds will be critical if the UK is to deliver on its stretching renewables targets and we therefore welcome today’s announcement which is an important step towards this goal. We now look forward to continuing to work constructively with the UK government on further details related to next year’s auction, as well as on wider issues such as consenting, in order to ensure as many projects as possible are able to bid for contracts to drive the right outcomes for consumers, energy security and the climate.

    Halfdan Brustad, VP UK Renewables at Equinor, said:

    When it comes to offshore wind, the UK is Equinor’s most important market. Equinor, like the UK, is committed to becoming net zero by 2050. DESNZ’s published AR6 parameters reflect the changing economic conditions for domestic renewable energy production including both bottom-fixed and floating offshore wind, which is warmly welcomed by Equinor. In a globally competitive environment, ensuring the right CfD parameters enables the UK to remain one of the most attractive markets to develop offshore wind.

    Matthieu Hue CEO at EDF Renewables UK, said:

    Today’s announcement on the Administrative Strike Price levels is very welcome news, and is a step in the right direction to putting the UK back at the forefront of renewable deployment.

    The Contract for Difference is fundamentally a good mechanism, and a sustainable administrative strike price will drive investor confidence, economic growth and lower electricity bills.

    It is encouraging that the concerns raised by ourselves and the rest of the industry in recent months have been listened to and we look forward to seeing further detail on the budget parameters over the coming year to match the ambition of today’s announcement.

    The framework set out in relation to floating wind places us in a strong position to start to realise the many benefits that this emerging technology offers. The most advanced projects, such as our Blyth 2 Demonstrator, will enable the UK to secure a head start in the global race to develop floating wind.

    Claire Mack, Chief Executive of Scottish Renewables, said:

    Industry has repeatedly warned of the cost pressures facing our industry so we’re pleased the UK government has responded by delivering strike prices which should go a long way to restoring investor confidence in the Contracts for Difference scheme as a viable route to market for offshore wind.

    As well as the social, environmental and economic benefits that renewable energy projects can deliver, bringing forward more of these developments will not only deliver affordable electricity and savings to bill-payers but will improve energy security and reduce consumer exposure to high, volatile gas prices.

    It is therefore now essential that the UK government provides a budget for Allocation Round 6 which aligns with Scotland’s renewable energy ambitions and maximises the number of projects which can be successful in winning contracts to deliver clean power for consumers.

  • PRESS RELEASE : New annual oil and gas licensing rounds to boost UK economy, energy independence and transition to net zero [November 2023]

    PRESS RELEASE : New annual oil and gas licensing rounds to boost UK economy, energy independence and transition to net zero [November 2023]

    The press release issued by the Department for Energy Security and Net Zero on 8 November 2023.

    New legislation introduced for annual oil and gas licensing rounds.

    • Offshore Petroleum Licensing Bill to safeguard homegrown energy supply
    • legislation will require annual oil and gas licensing rounds to support UK production
    • Bill will provide certainty and investor confidence for oil and gas industry, supporting 200,000 jobs across the UK and adding £16 billion to the economy each year

    The UK government has introduced the Offshore Petroleum Licensing Bill to Parliament today (Wednesday 8 November) to boost the UK economy, energy security and transition to net zero.

    The legislation will require annual oil and gas licensing rounds subject to stringent new emissions and imports tests.

    The domestic oil and gas industry is vital to the UK’s energy security and economy. The introduction of regular licensing for exploration will increase certainty, investor confidence and make the UK more energy independent. This new regime will be subject to 2 key tests being met: that the UK is projected to remain a net importer of both oil and gas; and that the carbon emissions associated with the production of UK gas must be lower than the average of equivalent emissions from imported liquefied natural gas.

    Supporting continued production in the UK will also reduce reliance on higher-emission imports – with domestic gas production having around one-quarter of the carbon footprint of imported liquefied natural gas.

    The oil and gas industry supports around 200,000 jobs in the UK and adds £16 billion annually to the economy – with fossil fuel producers expected to pay around £50 billion in tax over the next 5 years.

    The sector is also playing an important role in helping the UK reach the net zero target by drawing on existing supply chains, expertise and key skills – needed for low-carbon industries such as tidal power, offshore wind, and carbon capture and storage.

    Supporting continued domestic production will therefore help deliver on the Prime Minister’s priorities to grow the economy while realising the UK’s net zero target in a pragmatic and proportionate way.

    Secretary of State for Energy Security and Net Zero Claire Coutinho said:

    The UK has cut its emissions faster than any of its peers. But as the independent Climate Change Committee acknowledges we will need oil and gas even after we reach net zero in 2050.

    As energy markets become more unstable it’s just common sense to make the most of our own homegrown advantages and use the oil, gas, wind and hydrogen on our doorstep in the North Sea. Rather than importing dirtier fuels from abroad, we want to give industry the certainty to invest in jobs here and unlock billions of pounds for our own transition to clean energy.

    While the government is scaling up domestic clean energy sources such as offshore wind and nuclear, the UK still relies on oil and gas for its energy needs. This will continue to be the case over the coming decades, and even after 2050, as data published by the independent Climate Change Committee shows.

    The new Bill will bolster domestic energy supplies by requiring the North Sea Transition Authority (NSTA), the independent regulator for oil and gas, to run annual oil and gas licensing rounds, inviting applications for new production licences in the UK’s offshore waters.

  • PRESS RELEASE : New UK and Germany partnership to boost renewable energy and bolster energy security [November 2023]

    PRESS RELEASE : New UK and Germany partnership to boost renewable energy and bolster energy security [November 2023]

    The press release issued by the Department for Energy Security and Net Zero on 3 November 2023.

    UK Energy Security Secretary and German Vice Chancellor boost cooperation between nations on path to net zero.

    • Agreement provides blueprint for cooperation on energy and climate, including clean technologies and security, between Europe’s 2 largest economies
    • partnership will bolster cooperation and remove regulatory barriers on renewables, especially offshore wind and North Sea electricity interconnection
    • UK and Germany will share knowledge on industrial and buildings decarbonisation

    A new partnership between the UK and German governments has been agreed today (Friday 3 November 2023) to help secure safe, affordable and clean energy for consumers in both nations for the long term and bolster energy security.

    Under the new partnership signed in London by Energy Security Secretary Claire Coutinho and Germany’s Vice Chancellor, Robert Habeck, the UK and Germany have reaffirmed their shared ambition and commitment to net zero and progressing the energy transition.

    Europe’s 2 largest economies have also doubled down on commitments made under the Paris Agreement to limit global warming to 1.5 degrees.

    The energy and climate partnership sees both countries commit to:

    • enhance cooperation in renewables, notably offshore wind and electricity interconnection, to remove regulatory barriers and accelerate deployment of offshore hybrid projects
    • share industry knowledge and expertise to improve the exploration of carbon capture, utilisation and storage, including the cross-border transport of CO2
    • strengthen and promote regional and global energy security, including discussions on winter preparedness, security of infrastructure and supply chains
    • share best practices and lessons learned on industrial, buildings and heat decarbonisation, energy efficiency and net zero policies and strategies

    Energy Security Secretary Claire Coutinho said:

    The UK and Germany agree on the importance of clean, affordable energy and we both recognise its crucial role in growing our economies and guaranteeing national and global energy security.

    We are already working together in the North Sea to deliver our world-leading offshore wind ambitions, as well as linking our countries with subsea electricity cables.

    Today’s agreement will see us extend and deepen our partnership to ensure we continue to lead Europe and the world in making the green transition.

    German Vice Chancellor and Federal Minister for Economic Affairs and Climate Action Robert Habeck said:

    Germany and the UK face similar challenges. We have made good progress regarding the transition towards climate neutrality, but there is still a long path ahead of us. Cooperation with reliable partners can help all partners to advance not only faster, but better.

    We can learn from each other’s experiences, share knowledge and work together to reach our common goals. The joint declaration signed today builds upon a long history of cooperation and provides a sound framework for successfully working together in future.

    The energy and climate partnership incorporates the UK-Germany hydrogen partnership signed by Lord Callanan in September. This aims to accelerate the role of low carbon hydrogen – in particular from renewable sources –  in both nations’ energy mix and commits to working together to develop the global hydrogen economy.

    Germany was the UK’s second largest trading partner in the 4 quarters to the end of Q1 2023, accounting for 8% of total UK trade. British and German companies are already collaborating on joint projects in the North Sea and both countries have committed to maximise its renewables potential, most recently at the Ostend North Sea Summit.

    In the field of offshore wind, around 75% of installed offshore wind capacity in the North Sea is in German and British waters. This is helping to drive the UK’s ambition for up to 50GW of offshore wind, including up to 5GW of floating offshore wind, by 2030. Germany is aiming at installing 30GW by 2030.

    The first phase of major construction of the £2.4 billion NeuConnect project, the first subsea electricity cable between the UK and Germany, was completed this week. The project, once operational in 2028, has the potential to power up to 1.5 million homes in the UK and Germany over its lifetime with reliable, affordable and clean energy. When completed, it will be the second longest UK electricity power line with approximately 725km of land and subsea cables, connecting Kent and Wilhelmshaven.

    Another interconnector project connecting the UK to Germany is currently in development and awaiting regulatory approval from Ofgem.

    Beverley Cornaby, Director, Policy and Systems Change Collaborations, Cambridge Institute for Sustainability Leadership (CISL):

    Clean power generation is front-and-centre of the UK’s strategy to reach net zero by 2050. This partnership will support these aims by providing a blueprint on energy and climate between Europe’s 2 largest economies – helping the UK and Germany to bolster cooperation, remove regulatory barriers on renewables and share knowledge on industrial decarbonisation.