Tag: Energy Security and Net Zero Department

  • PRESS RELEASE : Thousands of homes to be kept warm by waste heat from computer data centres in UK first [November 2023]

    PRESS RELEASE : Thousands of homes to be kept warm by waste heat from computer data centres in UK first [November 2023]

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

    More homes and businesses to benefit from cleaner, low-cost heating – thanks to almost £65 million in government support for 5 green energy projects.

    • Five innovative projects receive share of nearly £65 million to deliver cleaner, low-cost heating to thousands of homes and businesses
    • low carbon housing estate of the future will use waste heat from data centres to provide heating and hot water to more than 10,000 homes
    • new heat networks will create thousands of skilled jobs across England

    Thousands of homes will be kept warm by waste heat from nearby data centres for the first time in the UK – thanks to a share of nearly £65 million of government funding for 5 green heating projects across the country.

    The Old Oak and Park Royal Development Corporation in the London boroughs of Hammersmith and Fulham, Brent and Ealing will be the first of its kind to recycle waste heat from large computer systems storing internet data to supply heating for the local community.

    The heat network, backed by £36 million in government support, will connect 10,000 new homes and 250,000m2 of commercial space to a low-carbon energy source that will help keep bills low and contribute to the UK’s drive to reach net zero by 2050.

    It is one of 5 innovative green heating projects in London, Watford, Suffolk and Lancaster allocated grants from the Green Heat Network Fund. Together they are expected to create thousands of skilled jobs, helping deliver the government’s promise to grow the economy.

    One of these successful projects will see Lancaster University fully decarbonise its campus, by receiving over £21 million in support for a new low-carbon heat network. The heat network will supply heat to the university campus using a large heat pump, powered by a new solar farm and existing wind turbine.

    Energy Security Secretary Claire Coutinho said:

    Innovative projects, like these announced today, are another example of why the UK is a world leader in cutting carbon emissions.

    We are investing in the technologies of the future so that families across the country will now be able to warm their homes with low-carbon, recycled heat – while creating thousands of new skilled jobs.

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

    Keeping homes warm with waste heat from technology is a glimpse into the future – and demonstrates just how innovative this country can be when it comes to reducing our carbon emissions.

    The £65 million we’ve awarded today will help spread this success across the country, by rolling out innovative low-carbon heating to help to drive down energy bills and deliver our net zero goal.

    Heat networks supply heating and hot water to homes and businesses via heat pumps or sources from underground, manufacturing, and waste management. They help cut carbon emissions by supplying heat to multiple buildings from a central source, avoiding the need for households and workplaces to rely on individual, energy-intensive heating solutions, such as gas boilers.

    The transition to heat networks forms a major part of the UK’s carbon reduction commitment, with heating in buildings making up 30% of all UK emissions.

    Today’s round of funding comes on top of £122 million already awarded to support 11 new heat network projects across the country, under the government’s Green Heat Network Fund.

    The full list of projects to receive support today are:

    • Old Oak Park Royal Development Corporation will receive £36 million to construct a heat network using waste heat from data centres to provide heating to over 10,000 homes and 250,000m2 of commercial space
    • a new heat pump housing estate in Chilton Woods, Suffolk will see nearly 1,000 homes and a primary school provided with low carbon heating. The project, which has received £745,000, will also include a thermal store, meaning any excess energy generated from the system will be fed into the wider National Grid
    • the London Borough of Brent will receive nearly £5.2 million for the South Kilburn District Heat Network, supplying heat using air source heat pumps combined with back up gas boilers to 34 sites via a 2.79km pipe network, connecting 2,900 customers.
    • Watford Community Housing (WCH), a not-for-profit housing association with approximately 5,700 homes, will receive £1.8 million of funding to replace an old gas district heating system with ground source and air source heat pumps. This will provide heat to 252 apartments across 6 blocks
    • Lancaster University will receive more than £21 million to fully decarbonise its campus with a low carbon energy centre. The centre will use air source heat pumps, thermal storage and electrical infrastructure works

    Matthew Basnett, the Association for Decentralised Energy’s (ADE) Heat Network Policy Lead, said:

    Heat decarbonisation in buildings is a huge challenge, and one that is often fundamentally misunderstood – heat networks are the only internationally proven route for decarbonising heat at scale, yet most people don’t know what they are.

    We are excited to see that another round of the Green Heat Network Fund has been successful, and celebrate the news that a first-in-the-UK development will use waste heat from data centres to keep more than 10,000 homes warm, comfortable and affordable in the long term. We now look forward to seeing the government work with industry to raise the profile of heat networks as a versatile solution for heat decarbonisation.

    David Lunts, Chief Executive of the Old Oak and Park Royal Development Corporation (OPDC), said:

    Recycling the huge amounts of wasted heat from our local data centres into heat and energy for local residents, a major hospital and other users is an exciting and innovative example of OPDC’s support for the mayor’s net zero ambitions.

    We are excited to be leading the way in developing low carbon infrastructure, supporting current and future generations of Londoners in Old Oak and Park Royal to live more sustainably.

  • PRESS RELEASE : Mark McAllister confirmed as new Ofgem Chair [November 2023]

    PRESS RELEASE : Mark McAllister confirmed as new Ofgem Chair [November 2023]

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

    A new chair of the Ofgem Board has been appointed by the Energy Security Secretary, Claire Coutinho.

    • With over 40 years’ experience in the energy industry, Mark McAllister will boost the regulator’s work to build an energy market fit for the future
    • Appointment follows endorsement by the Energy Security and Net Zero Select Committee
    • Mark McAllister will succeed Martin Cave on 6 November

    Mark McAllister is today (2 November 2023) confirmed as the next Chair of Ofgem – strengthening the government’s work to build a more secure and affordable energy system.

    The incoming Chair will take up the role at an important time for regulator Ofgem as they work to reform the energy market to best serve consumers.

    Responsible for protecting consumers from high energy bills, restoring confidence and resilience in the retail market, and supporting progress towards net zero, Mr McAllister’s leadership will help shape Ofgem’s work in years ahead.

    He will also work closely with the government to support more households to move towards cleaner, cheaper energy generated in the UK.

    The Energy Security and Net Zero (ESNZ) Select Committee approved the appointment, following a hearing in October.

    Energy Security Secretary Claire Coutinho said:

    I am pleased Mark McAllister is set to take up the position of Ofgem Chair, bringing over 40 years of outstanding experience in the energy industry to the role.

    By working together with Ofgem, we will continue to ensure the energy market works for consumers, delivering lower bills and cleaner energy – with prices already down 55% since their peak.

    Incoming Chair of Ofgem Mark McAllister said:

    Energy prices, security of supply and decarbonisation of the energy system are some of the most important challenges facing the UK today and which Ofgem plays a key role in addressing.

    I am looking forward to working with the new Board, management and entire Ofgem team to protect energy consumers and to help realise a net zero energy system through both our regulatory and delivery responsibilities.

    I am keen to engage with all stakeholders, including industry, consumer groups and charities to find the best solutions to the challenges we face together.

    The government is continuing to provide targeted support this winter, including £150 off energy bills for over three million households through the Warm Home Discount, alongside Winter Fuel and Cold Weather payments.

    This comes on top of £900 cost of living support for those in need, as well as nearly £40 billion to cover around half a typical household’s energy bill last winter.

    Working in conjunction with the Ofgem price cap, the government’s Energy Price Guarantee also remains in place until March 2024 to help safeguard families from high costs.

    Mr McAllister will take up his role on 6 November 2023.

    Notes to editors

    The Gas and Electricity Markets Authority (GEMA), or the Ofgem Board, comprises non-executive and executive members, and a non-executive chair. Members are appointed by the Secretary of State for Energy Security and Net Zero.

  • PRESS RELEASE : New laws passed to bolster energy security and deliver net zero [October 2023]

    PRESS RELEASE : New laws passed to bolster energy security and deliver net zero [October 2023]

    The press release issued by the Department for Energy Security and Net Zero on 26 October 2023.

    Landmark legislation becomes law to ensure bills are affordable in the long-term.

    • New laws passed to help ensure energy is affordable for households and businesses and make the UK more energy independent in the long-term
    • Act will help unlock £100 billion private investment in energy infrastructure and scale up jobs and growth
    • Measures set to accelerate development of offshore wind and help deliver our net zero commitments

    The biggest piece of energy legislation in the UK’s history has become law today (Thursday 26 October), laying the foundations for an energy system fit for the future.

    The Energy Act 2023 has received Royal Assent and will transform the UK’s energy system by strengthening energy security, supporting the delivery of net zero and ensuring household bills are affordable in the long-term.

    The Act will deliver a more efficient energy system in the long-term, helping to keep energy costs low. It will do this by increasing competition in Great Britain’s onshore electricity networks, through a new tender process – reducing costs for network operation and development. This new model is expected to save consumers up to £1 billion off their energy bills by 2050.

    A specific merger regime for energy networks will also be created under the Competition and Markets Authority. This will minimise the risk of mergers between energy network companies having detrimental effects on consumers and is estimated to save households up to £420 million over the next decade.

    There are also new measures for Energy Smart Appliances to prioritise safety and give consumers the confidence to transition to smart products, helping them to manage their energy consumption and reduce their bills. A smart electricity system could reduce system costs by up to £10 billion a year by 2050.

    The government is expanding Ofgem’s remit to heat networks, allowing the regulator to set rules on excessive pricing and improve the quality of service for the half a million heat network consumers across the country.

    The Act includes new consumer protections and frameworks, incentivising the heating industry to invest in low-carbon heat pumps, and including powers to deliver the smart meter rollout by 2028 – which could generate total bill savings to households of £5.6 billion.

    Energy Security Secretary Claire Coutinho said:

    The Energy Act is the largest piece of energy legislation in a generation. It will boost investment in clean energy technologies and support thousands of skilled jobs across the country.

    It lays the foundations for greater UK energy independence, making us more secure against tyrants like Putin, and helps us to power Britain from Britain.

    The Act also supports our new approach to make sure that families don’t feel a disproportionate financial burden as we transition to net zero, and forms a central part of our efforts to keep people’s bills affordable in the long-term.

    Minister for Nuclear and Networks Andrew Bowie said:

    The Energy Act is a statement of intent to support a flourishing British nuclear and low-carbon energy sector.

    It will help create of thousands of skilled jobs and deliver real benefits for people across the UK – from cleaner energy to affordable bills.

    The government has listened to industry and modernised our energy legislation, creating the framework for further green growth.

    The Act will help the government deliver net zero by 2050 in a pragmatic, proportionate and realistic way. It updates Ofgem’s remit so that it considers net zero targets as part of its everyday decisions and facilitates the first large village hydrogen heating trial – providing crucial evidence on the technology’s role in decarbonising heat.

    The government is also introducing a licensing framework for CO2 transport and storage to help deliver the UK’s first carbon capture sites – supporting up to 50,000 jobs by 2030.

    These new laws also make the UK the first country to legislate for fusion regulation, enabling developers to plan with confidence and encourage investment into this flourishing technology, and driving the UK’s ambition for a prototype fusion power plant by 2040.

    Establishing a new independent body – the Future System Operator – will ensure consumers can access a secure and decarbonised energy supply, key to enhancing the country’s energy security. The FSO will be responsible for systems in the gas and electricity network developing efficiently and keeping consumer bills low.

    Emma Pinchbeck, Chief Executive of trade body Energy UK, said:

    As the world shifts its focus towards net zero, the energy sector needs long-term certainty to remain internationally competitive and attract private investment. This critical piece of legislation is a welcome step in delivering that confidence by establishing new business models, improved customer protections, and frameworks for investment across the energy sector.

    The broad-ranging measures in this Act are part of a collaborative effort between government, industry, business and consumer groups to deliver a modern energy system fit for the changing needs of the 21st century energy market. More work remains to establish frameworks that these powers enable, but this Act will be the foundation upon which the new energy system will be built.

    Ofgem CEO Jonathan Brearley said:

    We welcome the Energy Act getting Royal Assent. It is the most significant energy legislation for a decade and a world-first in giving us a legal mandate targeting net zero.

    It gives Ofgem the powers to drive through the energy transition – unlocking investment, accelerating planning and building the infrastructure the economy needs. This will give us security from volatile world gas markets and end our dependency on fossil fuels.

    Consumers have faced a huge number of challenges in recent years, with high energy prices and cost-of-living pressures. The Act will give extra protection for existing and future customers, while powering the journey to net zero at the lowest possible cost to households and businesses.

    We’re now working closely with government, consumers and sector to implement the legislation in full.

    Clare Jackson, CEO of Hydrogen UK, said:

    Today’s news is warmly welcomed by the UK’s low carbon hydrogen industry, and adjacent sectors who rely on hydrogen for their own decarbonisation journey.

    The passing of the Bill has been a priority for the hydrogen industry as it will lay the foundations for the UK’s future hydrogen economy, by creating provisions for a Hydrogen Production Business Model, and Hydrogen Transport and Storage Business Models.

    This firmly indicates to the global hydrogen economy and international investors that the UK is serious about its net zero future, and the role hydrogen can play in it.

    John Pettigrew, CEO of National Grid, said:

    We welcome the passing of the Energy Act into legislation. This is a crucial next step in delivering a secure, affordable and clean energy future, establishing the needed policy and governance foundations to deliver on the UK’s net zero ambitions.

    In particular, establishing a Future System Operator will be critical in delivering strategic, whole system energy planning and oversight as we continue to transform our energy infrastructure.

    Only by working together as an industry, with the regulator and government, can we hope to achieve an energy transition that delivers for everyone and an energy system that is clean, fair and affordable for all.

  • PRESS RELEASE : Heat pump grants increased by 50% [October 2023]

    PRESS RELEASE : Heat pump grants increased by 50% [October 2023]

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

    Homes can get £7,500 to install a heat pump, meaning they can be cheaper than gas boilers, thanks to one of the most generous schemes in Europe.

    Families can install a heat pump for cheaper than the average gas boiler, thanks to an increase in government grants available from today.

    As promised by the Prime Minister as part of the government’s pragmatic approach to net zero, the Boiler Upgrade Scheme will offer £7,500 towards the cost of a new heat pump – a 50% increase in the support available for air source models and making it one of the most generous schemes in Europe.

    Estimates place the typical cost of buying and installing a gas boiler at between £2,500 and £3,000 and starting prices for heat pumps can now be below this for some households, when taking advantage of the grant and additional discounts offered by energy suppliers.

    The increased grants form part of the government’s pragmatic, proportionate and realistic approach to reaching net zero – reducing costs on British families (after huge pressures families have faced over the last couple of years) while still meeting international commitments.

    Today, the government is also:

    • making £10 million available through the Heat Pump Ready programme to support innovation in the heat pump sector to cut installation costs even further
    • launching ‘Welcome Home to Energy Efficiency’ a new campaign to help people improve the energy efficiency of their home and lower their bills over the winter

    As a result of the increased grant funding, thousands of families up and down the country have the chance to upgrade their heating to a cleaner alternative for less. The scheme has also been extended by 3 years to 2028, giving people more time to take advantage of the opportunity.

    Energy Security Secretary Claire Coutinho said:

    No one should have to choose between cutting costs and cutting emissions – our pragmatic approach means we can continue to deliver on our ambitious net zero targets without unfairly hitting the pockets of hardworking families.

    From today, for some households starting prices for heat pumps could now be below the average gas boiler, as we have increased the cash grant by 50% to £7,500 – making our scheme one of the most generous in Europe.

    This will help thousands of people across the country reduce their energy use and keep their homes warm.

    Customers do not have to apply for the grants 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.

    As well as increasing the air source heat pump grant from £5,000 to £7,500, ground source heat pump grants have risen from £6,000 to £7,500, and households can still access £5,000 grants for biomass boilers.

    Organisations can now apply for a share of the latest round of the Heat Pump Ready programme, which will support innovation projects that would make heat pumps cheaper, quicker or easier to install and would improve the customer experience of using a heat pump.

    The Welcome Home to Energy Efficiency campaign will encourage families to improve their home’s energy efficiency, with adverts across television, on-demand services, podcasts, print and billboards. They will include a range of recommended measures such as:

    • Checking loft and wall insulation
    • Upgrading to a heat pump, using the bumper grant
    • Installing solar panels to power a heat pump and save even further

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

    Making our housing stock more energy efficient not only furthers our net zero ambitions but enables families to cut their energy use and reduce their bills.

    Welcome Home to Energy Efficiency will help people identify measures that will work for them, and in turn create street upon street of warmer homes.

    Boiler Upgrade Scheme grants can be used alongside support from the £1 billion Great British Insulation Scheme for more than 300,000 homes, including the most vulnerable families in England, Wales and Scotland. This ensures the most energy-inefficient homes can keep more of their heat indoors and replace their inefficient gas boilers with the latest technology.

    Consumers can also give their home an energy efficiency MOT now at a new dedicated website: gov.uk/energy-efficient-home.

    To prevent hardworking people being burdened with high costs, the government is delaying the ban on installing oil and liquified petroleum gas boilers, and new coal heating, for off-gas-grid homes to 2035, instead of phasing them out from 2026. Some of these homes are not suitable for heat pumps, so this ensures homeowners are not having to spend around £10,000 to £15,000 on upgrading their homes in just 3 years’ time.

    The government has also set an exemption to the phase out of fossil fuel boilers, including gas, in 2035, so that households will not have to switch to a heat pump if their home is not suitable.

  • PRESS RELEASE : Families to cut bills with energy saving tips and support for most vulnerable [October 2023]

    PRESS RELEASE : Families to cut bills with energy saving tips and support for most vulnerable [October 2023]

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

    Campaign launches to offer new energy saving tips for families, alongside £150 in Warm Home Discount support for the most vulnerable.

    • ‘It All Adds Up’ government campaign will help people make simple changes to save at least £100
    • Amazon’s Alexa will offer tips to help improve energy efficiency
    • Warm Home Discount to provide more than three million households with £150 to help with winter fuel costs

    Families can access simple energy saving tips from today, as the government teams up with Amazon Alexa to relaunch a public information campaign that helped British households save an estimated £120 million last winter.

    Through a free collaboration between the government and Amazon, anyone asking Alexa how to reduce their energy bill will now receive the latest government advice on preparing their home for winter and using less energy in the long-term – which could save at least £100 a year. This experience will be available via Amazon Echo devices and on mobiles via the free Alexa app.

    Phrases which will prompt Alexa include “Alexa, give me some energy saving tips”, “Alexa, give me tips to conserve energy” and “Alexa, give me tips to get ready for winter”.

    The collaboration is part of today’s relaunch of the government’s It All Adds Up campaign, which last year saw 80% of people in the UK saying they had taken at least one of the money-saving actions. Alongside Alexa, advice is available online via the Help for Households website and through a public information campaign including partnerships, billboards and radio adverts later in the autumn.

    It comes as more than three million households will from today get told they qualify for the Warm Home Discount. The automatic one-off £150 payment will help eligible, low-income customers in England, Scotland and Wales pay their energy bills over the winter.

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

    Energy prices are down 55 per cent since their peak, but we know many families are still facing pressures. That is why we are continuing to provide financial support, including targeted help, such as the £150 Warm Home Discount, for those most in need.

    There are also some small, simple things families can do to keep their bills down – from reducing the boiler flow temperature to turning off radiators in rooms not being used, it all adds up.

    Our collaboration with Amazon’s Alexa will help to make these tips easier to access as we relaunch our energy saving tips campaign, which helped families across the UK save around £120 million last winter.

    Minister for Energy Consumers and Affordability Amanda Solloway said:

    We want everyone to be able to take easy steps this winter to save money on their energy bills. By following tips such as reducing boiler flow temperature, or washing clothes at a lower temperature, families could save at least £100 a year.

    And our Warm Home Discount will mean that over three million households receive more targeted support to help with the cost of energy.

    John Boumphrey, UK Country Manager at Amazon, said:

    With new energy saving tips on Alexa, you can simply ask for helpful advice on how to make simple changes around the home to help reduce energy costs this winter.

    There are 6 low-to-no cost actions that collectively could save a typical household as much as £100 off their energy bill, with more advice available online.

    The 6 measures are:

    • Reducing boiler flow temperature to 60 degrees, saving up to £60 per year
    • Getting your boiler serviced to prevent costly and unexpected repairs
    • Bleeding radiators to remove air pockets and improve their efficiency
    • Turning down radiators in rooms not being used, saving up to £50 per year
    • Washing clothes at 30 degrees, saving up to £20 per year
    • Installing an energy efficient showerhead, saving up to £40 per year

    The Warm Home Discount is automatically applied to bills between October 2023 and March 2024, or is available as a top-up voucher for those with a pre-payment meter.

    This comes as the Department for Work and Pensions launches its Household Support Fund Awareness Week to encourage vulnerable people across England to contact their councils to find out what support is available in their area. 26 million awards from the Household Support Fund have been made since its launch in October 2021.

    Wider government support to help families with costs has also been made available this financial year – including a £900 payment for those on means-tested benefits, £300 for pensioners and an extra £150 available for disabled people. Average energy prices have also fallen again this month – down by 55% since their peak.

    Those who qualify for the Warm Home Discount in England and Wales will receive a letter from October onward explaining the discount and instructions on what they need to do next, while customers in Scotland will need to apply directly with their energy supplier as soon as possible.

    Mike Thornton, Chief Executive at Energy Saving Trust said:

    As we head into the colder winter months with energy prices remaining high, it’s vital that people know how to reduce the amount of energy they use around their home to keep bills as low as possible.

    Public information, engagement and advice have a vital role to play, therefore we welcome the relaunch of this UK government campaign.

    We hope its continued success paves the way for further initiatives that inspire positive behaviour change around energy consumption in the future.

  • PRESS RELEASE : Thousands of new training places created as part of £650 million fusion package [October 2023]

    PRESS RELEASE : Thousands of new training places created as part of £650 million fusion package [October 2023]

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

    Measures announced by Nuclear Minister Andrew Bowie at IAEA Fusion Energy Conference.

    • Plans to transform UK fusion include training for over 2,000 people, a new fuel cycle testing facility and dedicated funding to support fusion companies
    • £650 million package will help cement UK as world leader in development of innovative technology
    • Nuclear Minister Andrew Bowie outlined details of the Fusion Futures Programme at key international conference

    Thousands of people across the UK will have the chance to train for careers in innovative fusion technology, under government plans unveiled today (Monday 16 October).

    Speaking at the IAEA Fusion Energy Conference, Nuclear Minister Andrew Bowie set out details of the new £650 million Fusion Futures Programme – part of the UK’s updated Fusion Strategy.

    Measures include the creation of more than 2,200 training places across the country, a new fuel cycle testing facility to focus on commercialising the technology and funding to develop infrastructure for private fusion companies.

    This includes growing and improving the UK Atomic Energy Authority’s (UKAEA) dedicated campus in Culham, Oxfordshire, recently visited by Energy Secretary Claire Coutinho, which will help drive further investment.

    Fusion could generate a near unlimited supply of clean electricity in the long-term, and its development in the UK will help to create jobs, grow the economy, and strengthen the country’s energy security – delivering a cleaner energy system that will benefit future generations.

    The UK is already a world leader in fusion technology and is well placed to share its knowledge and expertise around the globe. This government support will further cement that position, with the £650 million spending outlined today taking the total government investment in fusion to over £1.4 billion since 2021.

    Speaking at the IAEA Fusion Energy Conference 2023, Minister for Nuclear and Networks, Andrew Bowie, said:

    With world-leading scientific talent and expertise based here in the UK, we have a golden opportunity to be at the cutting-edge of fusion and lead the way in its commercialisation as the ultimate clean energy source.

    The Fusion Futures Programme, backed by £650 million, will be at the core of delivering this, training thousands of people across the country and ensuring we have the best possible facilities to develop this exciting new technology.

    CEO of the UK Atomic Energy Authority (UKAEA), Professor Sir Ian Chapman, said:

    Delivering fusion power will require ideas to solve science and engineering challenges, involvement of industry partners, development of thousands of skilled people and strong international partnerships.

    Fusion Futures will invest in all of these aspects – a truly concerted programme that will support economic growth and high-quality jobs as well as advancing fusion as part of a future sustainable energy mix.

    The £650 million funding for the Fusion Futures Programme will include:

    • up to £200 million for a Fuel Cycle Testing Facility, to develop technology in breeding fuel for fusion power plants, which will provide opportunities for the UK to become a world leader and exporter in tritium intellectual property
    • up to £200 million for vital R&D ensuring industry can develop and design components for future fusion powerplants
    • up to £50 million for growing and improving the Culham campus in Oxfordshire, building new premises to create vibrant concentrations of fusion companies, and helping drive inward investment into the UK
    • up to £55 million for a Fusion Skills Programme, to train over 2,200 people over the next 5 years by working with business and universities to expand fusion training programmes
    • up to £35 million additional funding for the Fusion Industry Programme (FIP), a challenge fund supporting UK companies to develop new technologies
    • up to £25 million to enhance international collaborations on fusion R&D, to export UK expertise and make best use of global knowledge to accelerate fusion energy
    • up to £18 million for a Technology Transfer Hub, strengthening connections between the UK’s leading research organisations and other programmes worldwide, with a focus on commercialising fusion research
    • up to £11 million to further support the STEP programme and upskill UK industry to help deliver it

    Today’s announcement follows confirmation from the government in September of its plans to put in place an ambitious suite of new research and development programmes to support the UK’s fusion sector and strengthen international collaboration.

    The programme aligns with the core principle of international collaboration in the UK’s updated Fusion Strategy, also published today. The UK remains open to collaboration with the EU and other international partners, and this will form a key part of this new programme of work.

    The fusion process involves heating a mix of 2 forms of hydrogen to extreme temperatures, 10 times hotter than the core of the Sun, causing them to fuse together to create helium and release huge amounts of energy.

    The energy created can be used to generate electricity in the same way as existing power stations. Fusion is many million times more efficient, per kilogram, than burning coal, oil or gas.

  • PRESS RELEASE : New appointments to strengthen energy regulator’s work [October 2023]

    PRESS RELEASE : New appointments to strengthen energy regulator’s work [October 2023]

    The press release issued by the Department for Energy Security and Net Zero on 13 October 2023.

    Five appointments to Ofgem’s board will bolster their consumer protection work.

    • Five new members to join Ofgem’s governing body
    • New members come with experience in consumer protection, competition and regulation
    • Non-Executive Directors will strengthen regulator’s work to support cleaner, cheaper and more secure energy

    New Non-Executive Directors have today (Friday 13 October 2023) been announced to join Ofgem as the government strengthens the energy regulator’s work to protect consumers.

    Responsible for bringing independent oversight and support, the new Non-Executive Directors will help guide Ofgem’s work on current and future challenges – from restoring resilience in the energy market to maintaining progress towards the UK’s net zero goals.

    The 5 new Non-Executive Directors are:

    • Warren Buckley, outgoing Chair of Citizens Advice
    • Alena Kozakova, Director at E.CA Economics
    • Graham Mather, President of the Infrastructure Forum
    • Jonathan Kini, Non-Executive Director at Ofwat
    • Dr Tony Curzon Price, former advisor at the Department for Business, Energy and Industrial Strategy (BEIS), Cabinet Office and Number 10

    As the government takes a more pragmatic and proportionate approach to net zero, it will work closely with Ofgem and the new Non-Executive Directors to deliver a more flexible and innovative retail market that can provide cheaper, cleaner energy to families.

    This includes comprehensive new reforms to energy infrastructure, helping to speed up planning for the most nationally significant projects and giving every community a say.

    Minister for Energy Consumers and Affordability Amanda Solloway said:

    Protecting households from high energy bills and supporting them towards using cleaner, cheaper energy is integral to our plan for reaching net zero.

    Bringing a rich breadth of experience in consumer protection, and areas including competition and regulation, Warren, Alena, Graham, Jonathan and Tony will be strong new additions to Ofgem’s Board.

    I look forward to working with them on our shared mission to champion the rights of energy consumers and build an energy market fit for the future.

    The new appointees will further enhance Ofgem’s work to support gas and electricity consumers, ensuring their energy needs are met on the path to net zero.

    With energy prices down by 55% from their peak, the government will continue to support the most vulnerable through winter – on top of the £40 billion already provided last year to cover around half a typical household’s energy bill.

    The 5 appointees, who take up their posts in November, will work with existing Non-Executive Directors Myriam Madden and Barry Panayi, as well as Ofgem’s new Chair and Executive Committee.

    Notes to editors

    The Gas and Electricity Markets Authority (GEMA), or the Ofgem Board, comprises non-executive and executive members, and a non-executive chair. Members are appointed by the Secretary of State for Energy Security and Net Zero.

    Warren Buckley has spent over 30 years in consumer and customer service leadership roles across the corporate and charity sectors. He has led large service delivery and retail teams at Vodafone, Lucent Technologies, Avaya, Orange, BT, Openreach, HSBC and Thames Water. He is the outgoing chair of National Citizens Advice, having served on the board for 11 years and was previously the chair of the Business Disability Forum.

    Alena Kozakova is a competition and regulatory economist with experience spanning the public and private sectors, and currently co-leads the London practice of E.CA Economics, an antitrust consultancy. She was previously the Chief Economist at Ofwat. She worked for the predecessors of the Competition and Markets Authority, the Competition Commission and the Office of Fair Trading, and for the Directorate General for Competition at the European Commission. She also worked at Frontier Economics and in the consumer body Which?.

    Graham Mather has served on the Monopolies & Mergers Commission and the Competition Appeal Tribunal, as well as on the boards of the regulators Ofcom and the Office of Rail & Road. With experience in competition, regulation, law and economics, he was appointed CBE for services to economic regulation, competition and infrastructure development. He is President of the Infrastructure Forum. Earlier in his career he was General Director of the Institute of Economic Affairs, Head of the Policy Unit at the Institute of Directors, as well as a Member of the European Parliament from 1994 to 1999 serving on its Economic & Monetary Affairs Committee.

    Jonathan Kini most recently worked as Managing Director of TalkTalk’s Consumer and Business Division and continues to support the business on mergers and acquisitions. Prior to this, Jonathan has held senior roles in Virgin Media and Vodafone and previously worked for Drax Plc as CEO of its Customer Businesses. He has held advisory roles at the Bank of England and Chaired the Business in the Community (BITC) Net Zero Carbon Taskforce. Jonathan is currently Non-Executive Director of regulator Ofwat, which is responsible for maintaining standards across the water and sewerage industry, in important areas including customer service and environmental protection.

    Dr Tony Curzon Price is an economist with particular interests in technology, energy, environment and economic regulation. He has worked as an advisor in BEIS, the Cabinet Office and Number 10, as well as the Competition and Markets Authority and the Financial Conduct Authority. He has been a technology and media entrepreneur, and spent 4 years in Silicon Valley. He has been involved in UK energy/environment policy for over 30 years.

  • PRESS RELEASE : More funding to schools, hospitals and public buildings to lower energy use and save on bills, and cut carbon emissions [October 2023]

    PRESS RELEASE : More funding to schools, hospitals and public buildings to lower energy use and save on bills, and cut carbon emissions [October 2023]

    The press release issued by the Department for Energy Security and Net Zero on 10 October 2023.

    Public sector organisations can now bid for a share of £230 million to help make low-carbon energy upgrades to their buildings.

    • £230 million made available to schools, hospitals, leisure centres and other public buildings in latest round of funding
    • Grants will allow schools, hospitals and other public buildings to install low-carbon heating and energy efficiency measures
    • More than 1,000 buildings have already received upgrades helping them save thousands of pounds on energy bills

    More schools, hospitals and other public buildings will be able to reduce energy use, save on bills and cut carbon emissions for the long-term through the latest round of funding from the Public Sector Decarbonisation Scheme.

    From today (Tuesday 10 October), public sector organisations can bid for a cut of £230 million of government funding to support significant low-carbon energy upgrades to their buildings, ranging from heat pumps and solar panels, to new energy efficiency measures such as insulation and low-energy lighting.

    The opening of the latest bidding process coincides with the 3-year anniversary of the scheme, which has so far allocated more than £2 billion to almost 1,000 public sector organisations across England, helping them reduce energy bills and carbon emissions in the long term.

    Today’s funding marks another step in the government’s pragmatic and proportionate approach to reaching net zero, by scaling-up energy efficiency of buildings across the country and supporting the switch to more low-carbon heating.

    The commitment follows significant progress the UK has already made towards reaching net zero – cutting all emissions by 48% between 1990 and 2021, which is faster than any other G7 country. Decarbonising the public sector with low carbon heating and energy efficiency measures is also expected to save the public sector an estimated £650 million per year on average to 2037.

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

    We are a world-leader when it comes to reducing carbon emissions – and for us to reach our goal of net zero by 2050, we want to help public bodies like schools and hospitals to do their bit.

    We’ve made fantastic progress so far, helping more than 1,000 schools, hospitals and leisure centres. Today’s funding will now help even more organisations across England bring their bills down, while also cutting their emissions.

    The funding, announced today, has been made available through Phase 3c of the scheme, with organisations able to spend the money allocated in the 2024 to 2025 financial year – on top of further funding for 2025 to 2026.

    Organisations that have benefited from a share of more than £2 billion under the scheme over the past 3 years include:

    •  University Hospitals Coventry and Warwickshire NHS Trust have saved £54,500 on their annual energy bill thanks to a new air source heat pump at the Hospital of St Cross in Rugby and new solar panels and pipework insulation
    • Staffordshire County Council have installed air source heat pumps and solar panels at the new Kingston Centre in Stafford. The school will also receive new energy efficiency measures, including a building energy management system, LED lighting, double glazing, roof insulation, cavity wall insulation, and pipework insulation. This is due to save them £79,700 on their annual energy bill
    • Upper Norwood Library and the Waterloo Action community centre in the London Borough of Lambeth will see their energy efficiency improved – saving the council £5,200 on their annual energy bill. Air source heat pumps were installed at both sites, alongside LED lighting, double glazing, insulation and building energy management systems. Solar panels have also been installed at the Waterloo Action community centre

    The Public Sector Decarbonisation Scheme aims to support the government’s commitment to reduce emissions from public sector buildings by 75% by 2037, compared to 2017 levels, as first set out in the 2021 Heat and Buildings Strategy.

    Ian Rodger, Director of Programmes at Salix, said:

    Salix is delighted to be delivering the next phase of the Public Sector Decarbonisation Scheme to support public sector bodies in their net zero transformation journey. The scheme is empowering organisations across England to make significant reductions in their carbon footprint from heating public buildings.

    The huge enthusiasm for the scheme shows how much public sector bodies care about their carbon emissions and Salix is proud to be able to support them with finance and technical support to achieve their ambitions.

    To apply for funding public sector bodies should visit: Public Sector Decarbonisation Scheme: Phase 3.

  • PRESS RELEASE : Emissions scheme to reduce sale of carbon allowances on path to net zero [October 2023]

    PRESS RELEASE : Emissions scheme to reduce sale of carbon allowances on path to net zero [October 2023]

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

    Tighter emission limits for industries under the UK Emissions Trading Scheme, as the 2024 carbon allowance auction calendar is published.

    • Power, aviation and energy-intensive industries given incentive to cut emissions
    • Number of allowances to be auctioned next year will fall by 12.4% to their lowest-ever level in line with net zero targets
    • Ambitious approach will support industries to smoothly transition away from using fossil fuels

    Energy-intensive industries will be incentivised to reach their lowest-ever level of carbon emissions, under detailed plans published today (Thursday 5 October 2023).

    The 2024 calendar for the UK’s Emissions Trading Scheme will limit the number of carbon allowances for companies to buy in 2024 to 69 million – 12.4% fewer than in 2023, and their lowest-ever level. By 2027, this will fall to around 44 million – a 45% reduction on 2023 – before reaching around 24 million by 2030.

    It puts plans announced earlier this year into action – to reduce the cap on carbon emissions under the Emissions Trading Scheme in line with the UK’s ambitious net zero strategy.

    Through the scheme’s auctions process, companies in industries including manufacturing, power and aviation are required to buy allowances for every unit of carbon they emit. With fewer available to buy, these sectors will need to take further steps to cut their emissions.

    The auction calendar published today by the Intercontinental Exchange (ICE), on behalf of the UK Emissions Trading Scheme Authority, gives businesses certainty over the next 12 months and sets the scheme on a clear path for decarbonisation for the 6 years after that.

    In a joint statement, UK Emissions Trading Scheme Authority ministers, including Lord Callanan, Julie James MS, Màiri McAllan MSP and Exchequer Secretary Gareth Davies MP said:

    We want to give our industries the confidence to decarbonise, by investing in efficiency measures and moving away from fossil fuels to cleaner, more secure energy.

    The UK Emissions Trading Scheme will cut supply of allowances auctioned, with a 45% reduction by 2027, to help us on our path to net zero.

    The auction calendar for 2024 and introduction of the new net zero consistent cap will help provide certainty for businesses, while spurring investment and helping to grow the economy.

    To ease the transition to a net zero cap, a proportion of allowances that went unused between 2021 and 2023 are now being allocated to auctions to be held between 2024 and 2027 – helping taper the reductions needed over that time. The number of allowances auctioned will still fall significantly each year over this period. There are also programmes in England, Wales, Scotland and Northern Ireland providing millions of pounds to help businesses make the changes needed.

    As part of wider changes to the scheme, the UK Emissions Trading Scheme Authority has also committed to exploring measures for the future of the carbon allowances market, including examining the merits of a supply adjustment mechanism. This would provide a means of amending the supply of carbon allowances in response to market conditions.

    A copy of the 2024 UK Emissions Trading Scheme auction calendar can be found on the ICE website. ICE run UK Emissions Trading Scheme auctions and secondary markets on behalf of the government.

    The UK Emissions Trading Scheme Authority is the joint body comprising the UK government, Scottish Government, Welsh Government and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland that runs the scheme.

  • PRESS RELEASE : Social housing tenants helped to cut energy bills with £80 million for home upgrades [October 2023]

    PRESS RELEASE : Social housing tenants helped to cut energy bills with £80 million for home upgrades [October 2023]

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

    More social housing tenants to receive energy efficiency upgrades in their home, with an additional £80 million under Social Housing Decarbonisation Fund.

    • An extra 9,500 social housing tenants will benefit from grants to make homes warmer and more energy efficient
    • Additional funding for the government’s Social Housing Decarbonisation Fund will help lower bills by £240 a year on average and support 2,000 jobs
    • Scheme is already benefiting more than 100,000 households

    Thousands more social housing tenants will be helped to cut bills with additional government grants available for home energy efficiency upgrades.

    Energy Security and Net Zero Secretary Claire Coutinho today (Monday 2 October) announced up to £80 million in additional funding will be made available through the Social Housing Decarbonisation Fund – which will generate energy bill savings of around £240 a year for some of the lowest-income households.

    More than 100,000 households in England are already benefiting from the scheme and today’s funding is enough to upgrade an additional 9,500 homes.

    Measures range from installing new wall, loft or underfloor insulation to supporting families to switch to low carbon heating – helping to cut energy bills and supporting around 2,000 jobs.

    As part of the government’s new pragmatic and proportionate approach to reaching net zero, eligible tenants will receive the energy efficiency upgrades free of charge through their social housing provider, whether local councils or housing associations.

    Secretary of State for Energy Security Claire Coutinho said:

    We are delivering net zero in a way that supports the British public and does not burden hardworking families with additional costs.

    Our Social Housing Decarbonisation Fund is delivering warmer homes and energy bill savings of around £240 for some of the lowest income families, as well as supporting thousands of jobs.

    We’re already making over 100,000 homes more energy efficient with this scheme, and I’m delighted an extra 9,500 social housing tenants will now benefit too.

    Minister for Energy Efficiency and Green Finance Lord Callanan said:

    The UK is a trailblazer when it comes to reducing carbon emissions, cutting them faster than any other G7 country.

    By supporting families to improve their household energy efficiency, this additional funding will deliver measures such as new insulation and low-carbon heating for even more households – helping them save money and cut emissions.

    The government has a strong record on energy efficiency, with the proportion of homes in England with an EPC rating of C or above up from 14% in 2010 to nearly half of all homes now. Today’s funding will help drive up the energy performance of social homes with an EPC rating of D or below.

    The scheme forms part of the government’s commitment to reduce overall UK energy demand by 15% by 2030, as well as supporting the ambition for the UK to move towards ever-greater energy security and independence. The government also plans to run a consultation on energy efficiency standards in the social rented sector.

    Local and combined authorities, registered providers of social housing and charities that own social housing will be able to bid for the additional funding to install energy efficiency upgrades in November.