Tag: Energy Security and Net Zero Department

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

Energy and trade intensive businesses as well as heat network operators can from today apply for further support.

Applications have now opened for energy and trade intensive sectors that are most affected by the unprecedented rise in global energy prices to claim further discounts on their bills between April 1 2023 and 31 March 2024 – helping deliver on the government’s priority to halve inflation.

Ceramics and textiles are among the wide range of sectors potentially in line to benefit. These companies use high amounts of energy to deliver their goods, but also are exposed to strong international competition, meaning they cannot raise their prices to cover the increase in costs they have faced.

Ministers are today urging companies to check their eligibility and submit their applications at the earliest opportunity, as the government continues its unprecedented support package that has protected businesses and as of April has saved them £5.9 billion on energy costs – over £30 million a day.

Minister for Energy Consumers and Affordability Amanda Solloway said:

We are beginning to see light at the end of the tunnel for global energy prices as Putin’s grip on the market weakens – but our vital energy and trade intensive industries remain uniquely exposed to these challenges.

We stand firmly behind British business and that’s why we’re protecting them with an additional offer of support so they can continue to thrive. I urge businesses to check their eligibility and submit an application right away so they can get the help they need.

Rob Flello, Chief Executive of the British Ceramic Confederation, said:

We welcome the fact Government has recognised the on-going difficulties that the ceramics sector and other energy intensive industries are facing, and hope energy prices return to sustainable levels. We look forward to a smooth application process that recognises the variety of corporate structures amongst energy intensive businesses.

The offer is part of the government’s new Energy Bills Discount Scheme, launched this month, which will continue to automatically give businesses across the UK money off their energy bills – as wholesale energy prices fall to the lowest level since before Putin’s illegal invasion of Ukraine.

Businesses are advised to check gov.uk as soon as possible to find out their eligibility and what they need to do to apply. Discounts could be reflected in bills from as soon as June, with support backdated to 1 April. This could save some around 20% on predicted wholesale energy costs.

Heat networks with domestic customers can also now receive a new, sector-specific support rate to make sure households do not face disproportionately higher bills compared to customers supported by the Energy Price Guarantee. Heat suppliers will need to apply for this rate and are legally obligated to pass on the discount to their customers.

This is just one of a range of ongoing schemes supporting households and businesses with energy costs at this time – which the government is urging all eligible customers to apply for and take full advantage of.

The Non-Domestic Alternative Fuel Payment scheme is providing top-ups starting at £750 for organisations using large quantities of kerosene heating oil, such as such as farms, hotels, charities and public buildings like schools and hospitals. Organisations have until 28 April to apply for this support via gov.uk.

This scheme is also offering £150 payments to organisations using alternative fuels. A minority of those eligible will also need to apply for this extra support by 28 April if they have not received payments automatically through an electricity supplier.

The press release issued by the Department for Energy Security and Net Zero on 25 April 2023.

Government calls on prepayment meter users to claim bills support by redeeming their Energy Bills Support Scheme vouchers.

Households on traditional prepayment meters are being urged by the government to redeem their energy bill support vouchers, with £160 million remaining to be claimed.

Prepayment meter customers have so far claimed £620 million under the government’s Energy Bills Support Scheme (EBSS).

New figures published today show that more than £780 million in EBSS vouchers have been sent to households, with nearly 80% redeemed by customers.

These vouchers allow eligible customers, often in low-income homes, to access vital discounts of up to £400 on their energy costs, which direct debit customers will have automatically received this winter.

Consumer Energy Minister Amanda Solloway has urged anyone who has not yet redeemed their prepayment meter vouchers to do so now, with the scheme remaining open until 30 June. Customers can redeem the 2.4 million outstanding vouchers at their local Post Office or PayPoint.

The EBSS, together with the cap on energy prices, saw the government cover half of a typical household energy bill over the winter – driving forward the government’s priority to halve inflation. Last month the government also announced an extension to the Energy Price Guarantee, meaning by the end of June a typical household will have saved £1,500 on their energy bill – while wholesale prices continue to fall.

Minister for Energy Consumers and Affordability Amanda Solloway said:

Putin’s illegal war on Ukraine had a massive impact on global energy prices and with it, people’s bills.

The government stepped in to provide vital support to households across the country, with £780 million in support delivered to prepayment meter customers. But there’s still £160 million of that yet to claim which will make a huge difference.

Even as the warmer weather sets in I urge anyone on a traditional prepayment meter to act now if they haven’t redeemed their voucher.

Nick Read, Chief Executive of the Post Office said:

We’re urging people not to miss out on this vital support from the government before the Energy Bills Support Scheme closes at the end of June. Claiming your voucher at the Post Office is really simple, just bring your voucher, your energy pre-payment key or card and the ID specified in your voucher letter and we will redeem the voucher for you at the counter. It’s important to check any post you have at home to ensure you haven’t missed any vouchers. They are valid for 3 months but if you have expired vouchers you should contact your electricity supplier and ask for a new one to be sent out.

Under the Energy Bills Support Scheme more than £11.4 billion went to 28 million households across the UK to keep costs down over the winter – the equivalent of £500,000 a day.

Households who do not have a direct relationship with an energy supplier or use alternative fuels – such as heating oil, LPG and biomass – to heat their homes are also being urged to take full advantage of government support, as a number of schemes close on 31 May, meaning from Monday they’ll have just a month to claim.

Customers in these households can apply for:

• the Energy Bills Support Scheme Alternative Funding which provides equivalent £400 payments to households who do not have a domestic electricity supply and were not eligible to receive the Energy Bills Support Scheme automatically. Eligible applicants include partially or wholly self-funded care homes residents and residents of park homes. These households must apply either via GOV.UK or the contact centre helpline by 31 May 2023
• the Alternative Fuel Payment Alternative Funding scheme which supports households that use fuels such as heating oil, LPG and biomass as their main heating source but did not automatically receive £200 of support from an electricity supplier. Eligible applicants must apply via GOV.UK or the contact centre helpline by 31 May 2023

Today’s figures on EBSS vouchers show that for the fifth month in a row London had the lowest redemption rate, with a third of vouchers still unused at the end of February. Around 26% of vouchers in both Scotland and the South East of England are also yet to be used.

The government has urged suppliers and consumer groups to continue to make the most of this data and pinpoint help to where it is most needed, with some going door-to-door to get information out to these households.

Londoners also benefitted from government pop-up events to help explain how they can access the support, held in partnership with Citizens Advice and the Post Office. This came as part of a targeted government information campaign, which saw adverts run on community radio, social media, national magazine titles, as well as roaming billboard vans that have been popping up in towns and cities across the country.

The press release issued by the Department for Energy Security and Net Zero on 24 April 2023.

LionLink power line between UK and Netherlands will deliver enough electricity to power more homes than Manchester and Birmingham combined.

The world’s largest multi-use electricity power line will be built under the North Sea, boosting UK energy supplies with enough to power 1.8 million homes – more than Birmingham and Manchester combined.

The new LionLink will connect the UK and the Netherlands with offshore wind farms, providing clean affordable and secure energy to Britain which will help cut household bills and drive Putin’s Russia further out of the energy market.

The cross-border electricity line will be only the second of its kind in the world, with the first having been built by Germany and Denmark. However, it will be able to carry more than 4 times the amount of electricity as its predecessor – making it the largest of its kind in terms of capacity anywhere in the world.

While normal interconnectors only connect 2 countries, the multipurpose LionLink will join the UK and Netherlands to each other as well as simultaneously with offshore wind farms at the heart of the North Sea.

The government is announcing the innovative project between the UK and the Netherlands as Energy Security Secretary Grant Shapps leads a British business delegation to the crucial North Sea Summit in Belgium today, aiming to boost our collective energy security through new renewable energy and interconnector projects.

This is part of the government’s efforts to work with business to grow the economy, one of the Prime Minister’s 5 priorities. Boosting clean energy not only helps create better paid jobs across the country but also strengthens economic security by reducing reliance on foreign gas supplies.

The summit will see 9 countries meet in Ostend to agree ambitions for building future offshore wind farms. While there, the Energy Security Secretary is also expected to sign a historic agreement with Denmark to boost trade in cheaper, cleaner energy.

Energy Security Secretary Grant Shapps said:

Today’s historic deal with the Netherlands connects our two countries together through this exciting feat of innovation and engineering – the largest of its kind in the world which will provide enough electricity for more homes than in Manchester and Birmingham combined.

Together with the strong ties we have with our northern European neighbours united today at the North Sea Summit, we are bolstering our energy security and sending a strong signal to Putin’s Russia that the days of his dominance over global power markets are well and truly over.

I’m proud to have the best of UK energy firms and organisations with me, flying the flag for British business and demonstrating our world-leading expertise in cleaner, cheaper and secure renewable technologies – helping deliver on one of our 5 priorities to grow the economy.

Ben Wilson, President National Grid Ventures, said:

Connecting wind farms to multiple markets simultaneously is a game changer for energy infrastructure and brings us one step closer to realising the enormous green energy potential of the North Sea.

Not only can we deploy every spare electron where it is needed most, we can help to reduce the impact of infrastructure on coastal communities.

We now need the right political, legal and regulatory framework to make it happen and establish a mutually beneficial North Sea grid to deliver a cleaner, fairer, more secure and more affordable energy future for British and European consumers.

The countries attending today’s summit alongside the UK are Belgium, Denmark, France, Germany, Ireland, Luxembourg, Norway and the Netherlands

The new LionLink will carry 1.8GW of electricity, compared to Germany and Denmark’s Kassø-Frøslev (Kriegers Flag), which carries 0.4GW.  It will be developed by National Grid Ventures and TenneT and will be operational by the early 2030s.

This builds on the 8.4GW interconnector capacity that the UK has – and LionLink alone will increase that by up to a fifth, meaning more clean and affordable power for UK homes and businesses.

This increased interconnectivity also means LionLink will be good both for the UK’s coastal communities and the environment by reducing the need for further onshore construction and visible infrastructure, as well as lessening the impact on the North Sea’s wildlife.

Britain’s world-class innovation, knowledge and skills within the North Sea energy sector is expected to bring £20 billion a year of investment to the UK’s coastal regions and create 40,000 skilled green jobs to Britain.

Manon van Beek, CEO of TenneT, said:

It is our conviction that offshore hubs configured in a meshed DC grid must form the backbone of the North Sea powerhouse.

This is a view that is increasingly shared, and for us, it is more than a vision of the future.

In fact, we are already doing it by kicking off this ground-breaking LionLink project right now. It is a first step and a great opportunity to learn as the offshore grid takes shape.

Minister Rob Jetten, Climate & Energy for the Netherlands:

With the North Sea becoming the largest supplier of green electricity for the Netherlands and large parts of Europe, we are ready to expand the interconnection between the 2 countries. LionLink provides close to 2 gigawatts of electricity to both countries, enough to power 2 million households.

This new connection further boosts energy security and energy independence in Europe. Close collaboration on offshore wind energy and interconnection amongst the North Sea countries is imperative.

So in case there is a surplus of wind generated electricity, it can be shared instantly to locations with a shortage of power, and vice versa.

The Energy Security Secretary is also expected to sign a Memorandum of Understanding between the UK and Denmark today, which will ensure further collaboration on the transition from fossil fuels to renewable technologies – offshore wind, especially.

The press release issued by the Department for Energy Security and Net Zero on 17 April 2023.

Government seeking views on introducing Contracts for Difference reforms rewarding applicants for including factors not only based on price in projects.

A major reform to the government’s flagship renewables scheme that could help drive further investment in renewable energy deployment and improve energy security is being explored in plans set out today (Monday 17 April).

The Contracts for Difference (CfD) scheme is the government’s mechanism for supporting new British low-carbon electricity generation projects, such as offshore wind and solar developers, and along with FIDER, an early form of the scheme, has awarded contracts to new low carbon projects in Britain with a total capacity of 26.1GW.

The competitive nature of the scheme has already proven successful at placing downward pressure on prices since the first auction was held, with the per unit (MWh) price of offshore wind dropping by almost 70% between the first auction in 2015 and the latest in 2022.

Currently, Contracts for Difference are awarded based on the bid price submitted by renewable energy generating stations, such as an offshore wind farm – the aim being to increase deployment and ensure good value to electricity consumers and, over time, drive down costs.

The government is now seeking evidence and views about reviewing applications not just on their ability to deliver low-cost renewable energy deployment, but also based on how much a renewable energy project contributes to the wider health of the renewable energy industry.

Read and respond to: Introducing non-price factors into the Contracts for Difference scheme: call for evidence.

These reforms could see applicants considering overall costs alongside other ‘non price factors’ – such as supply chain sustainability, addressing skills gaps, innovation and enabling system and grid flexibility and operability – when submitting their bids, which could help drive investment in the sector, grow the economy and boost the country’s energy security.

More investment in supply chain sustainability, for example, would help to reduce its carbon impact and access the resources and materials it needs to deploy sustainability at scale in the longer term. Investment to address the skills gaps would help to train the technicians needed to deploy ever larger renewable energy generation stages.

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

Our flagship Contracts for Difference scheme has been hugely successful in supporting British low-carbon electricity generation, while also driving down costs for the benefit of consumers.

But we want to go further to ensure we maximise the scheme’s potential to improve energy security and ensure renewable energy developers can make the necessary investment in supply chains and innovation, which will ultimately make for a stronger sector and help our economy to grow.

This potential reform to the scheme to introduce non-price factors presents a solution to grow the renewable energy supply chain as we accelerate our energy transition plans to power more of Britain from Britain.

This Call for Evidence is part of our work to continue to evolve the CfD scheme as we consider long-term market arrangements through the Review of Electricity Market Arrangements (REMA).

Building a more secure energy future with thriving green industries will also have the knock on effect of helping to deliver on our promise to grow our economy and create good jobs across the country, with billions of pounds in private investment and 68,000 green jobs supported since late 2020.

The government is exploring introducing non-price factors into the CfD auction allocation process following recommendations made in Chris Skidmore’s Net Zero Review and the report earlier this month from the Offshore Wind Champion Tim Pick.

If, following this Call for Evidence, appropriate changes to the CfD scheme have been identified and deemed more effective than other potential policy levers, the government will launch a consultation on more detailed proposals.

CfDs have already helped accelerate plans to diversify, decarbonise and domesticate our energy supplies, with the last round (AR4) securing almost 11GW of low carbon capacity – enough to generate sufficient electricity to power 12 million British homes.

Last month, the government committed a further budget of £205 million to the scheme for the fifth allocation round (AR5), confirming another year of significant financial backing by government for green industries and jobs.

Tim Pick, who recently completed his term as the Offshore Wind Champion, said :

I very much welcome this Call for Evidence. As noted in my recent report, price-only CfD auctions have created a strong driver for innovation to drive down costs, but there is a need in the current climate to consider how to better develop new supply chains and associated jobs.

The current global context arguably provides the justification for considering a more nuanced approach as part of a wider package of measures, especially as we seek to seize a first-mover advantage in the deployment of floating offshore wind technology at scale.

Adam Berman, Deputy Director for Advocacy at Energy UK, said:

The Contracts for Difference (CfD) programme has played a key role in ensuring the UK’s position as a global leader in low carbon technologies. But factors such as inflation, commodity price increases, and pressure from international competition mean that the UK will have to continue working hard to pull in the investment required to reach our Net Zero and energy security goals. We welcome the government’s ambition to build on the success of the CfD programme by recognising that the cost of delivering new renewables projects has risen significantly over recent months.

If designed appropriately, the inclusion of new factors in the CfD could improve investment certainty for low carbon projects, boosting energy security as well as ensuring that all parts of the UK benefit from the jobs, skills, and supply chain opportunities these multi-billion pound investments bring.

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

Agreement reached at the Nuclear Energy Forum at the G7 in Sapporo, Japan.

An alliance between the UK, US, Canada, Japan and France, aimed at displacing Putin from the international nuclear energy market, has been announced in Sapporo, Japan today.

The five nations will leverage the respective resources and capabilities of each country’s civil nuclear power sectors to undermine Russia’s grip on supply chains. This agreement will support the stable supply of fuels for the needs of today, as well as guarantee the safe and secure development and deployment of fuels for the advanced reactors of tomorrow.

This agreement will be used as the basis for pushing Putin out of the nuclear fuel market entirely, and doing so as quickly as possible, to cut off another means for him to fund his barbaric attack on Ukraine and fundamentally leave Russia out in the cold.

The agreement will also strengthen our respective nuclear energy sectors, which is key to boosting our domestic energy security and bringing down electricity bills for British families. Nuclear fuel is needed to operate nuclear power stations, that provide around 15% of the UK’s electricity supply with an aim for it to make up 25% of our electricity supply by 2050.

Speaking at the G7 Energy Ministers’ Meeting in Sapporo, Mr Shapps said how this, alongside investment in cleaner, cheaper and more secure renewable energy sources, will be a key part of making the UK energy independent.

Within days of the illegal invasion of Russia, the UK acted immediately to place sanctions on the country’s oil, devastating a lucrative revenue stream for the regime.

Today’s agreement at the Nuclear Energy Forum at the G7 in Sapporo will build on this, acting as a springboard for these five countries to make swift progress, ensuring the secure supply of uranium fuel through the development of shared supply chains that isolate Russia. The Energy Security Secretary wants these countries to come together to address dependencies on Russian fuel as the world turns increasingly to nuclear as a source of low-carbon and secure energy.

Energy Security Secretary Grant Shapps said:

The UK has been at the very heart of global efforts to support Ukraine, defeat Putin and ensure neither him nor anyone like him can ever think they can hold the world to ransom over their energy again.

This is the next vital step, uniting with other countries to show Putin that Russia isn’t welcome anymore, and in shoring up our global energy security by using a reliable international supply of nuclear fuel from safe, secure sources.

But this is one side of the equation – the other is the need to invest in clean, cheap and secure energy sources, and our Powering Up Britain plan will do just that.

We must stop being reliant on expensive and imported fossil fuels and focus on smarter energy solutions. The UK is already a world-leader when it comes to renewables, a fact recognised by the investors I have met in the Republic of Korea and Japan this week.

In flying the flag for UK PLC, I want to be crystal clear that the expertise we have from having the four biggest wind farms off our shores is available to support countries looking to invest in their supplies – something that will benefit them, create green jobs and opportunities at home and boost energy security around the world.

And I want us to work ever-closer together with countries like Republic of Korea and Japan as we invest more in nuclear technologies like Sizewell and Small Modular Reactors, opening up opportunities to invest in the UK and with it, the job opportunities in our local communities.

The UK is already taking proactive steps in this space, including through the Nuclear Fuel Fund which launched in January. It will provide up to £75 million to ensure the UK has the fuel production capabilities needed to support a nuclear renaissance, backing the government’s ambition to secure up to 24GW of nuclear power by 2050.

The UK has many decades of expertise in nuclear fuel production, which plays a vital role in supporting the energy security of the UK fleet and those of international partners.

At the summit, all nations also agreed to accelerating the phase-out of unabated fossil fuels – with a particular focus on coal, by agreeing to work together to stop new unabated coal plants being constructed – a G7 first.

This is backed by new collective targets for the use of offshore wind and solar energy – for the G7 to increase offshore wind capacity by 150GW and solar PV to 1,000 GW by 2030.  The UK will account for a quarter of the offshore wind target, which we are already on track to meet.  In addition, the UK has driven forward progress in the phasing out of petrol and diesel cars in the G7, with the group committing to 50 per cent zero emission vehicle sales in cars and vans by 2050.  The UK is already far ahead of this, having committed to phase out the sales of diesel and petrol cars by 2030, and all major manufacturers have committed to selling 100% ZEVs by 2035.

Together, today’s G7 commitments deal a blow to Russia, demonstrating the international resolve to isolate Putin further internationally.  As more countries move away from fossil fuels and towards renewables, this will cut off a vital income stream for his regime once and for all.  It also means the greater use of cheaper, cleaner and more secure energy sources will boost energy independence, shield the UK and others from volatile international fossil fuel markets and – ultimately – cut the cost of supplying power to homes, and therefore people’s bills.

The G7 comes at the end of a week in which Grant Shapps has been in Republic of Korea and Japan, meeting ministers and potential investors to fly the flag for UK PLC – becoming the first Cabinet Minister to visit those countries since negotiations closed on the UK’s accession to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, of which Japan is a member.

The Energy Security Secretary has also been highlighting how other countries can reap the benefits of the UK’s world-leading action in renewable technologies, hiring UK firms to support their efforts to achieve greater energy security and independence.

This would also create even more green jobs and economic opportunities at home and put the country in prime position to make the most of CPTPP membership.

The UK has cut emissions faster than any other G7 country – and last year were ranked alongside the US as one of the top four most attractive markets for renewable energy investment. Nearly 40 per cent of the UK’s power was generated from renewable sources last year.

The press release issued by the Department for Energy Security and Net Zero on 12 April 2023.

Government expands scheme offering households using alternative fuels £200 in energy bills support.

The press release issued by the Department for Energy Security and Net Zero on 12 April 2023.

Government funding awarded to innovative projects that will capture and store renewable energy for later use.

Cutting edge businesses, in locations including Scotland and Nottingham, are set to benefit from a share of £30 million to be at the forefront of designing and testing innovative technology of the future that will modernise our energy system and store renewable energy for later use.

Capturing and storing energy for use when and where it is needed will play an essential role in powering more of Britain from Britain and increasing the country’s energy security. The funding announced today will support these businesses testing and preparing their technologies to be ready for the energy market, encouraging private investment and creating new jobs across the UK.

The nature of renewables means that on windy, sunny days sometimes more renewable electricity is generated than is needed, such as during extended periods of the sun shining or high winds. Energy storage technology will soak up this excess energy for later use, maximising the use of renewable energy, all while boosting energy security and supplying energy to consumers at a lower cost.

Flexibility from technologies such as electricity storage and smart charging of electric vehicles could save up to £10 billion per year by 2050 by reducing the amount of energy and network needed to create a secure, home-grown energy system. Accelerating the uptake of energy storage technology will also mean National Grid can balance the grid by activating storage systems instead of asking certain power generation technologies to switch off, further reducing costs to the taxpayer.

Minister for Energy Security and Net Zero Graham Stuart said:

Storing energy for longer periods is vital to build a robust and secure energy system and ensure that renewable energy is used efficiently. Fortunately the UK has a wealth of pioneering businesses that are making their mark on this industry.

Today we’re backing three UK businesses to make their projects a reality, which will go on to play a role in our country’s energy security.

The winning projects will now go on to fully deploy and demonstrate their technology; they are:

• Synchrostor, Edinburgh, Scotland, which will receive £9.4 million to build a Pumped Thermal Energy Storage (PTES) grid-connected demonstration plant operating at 1MW, with the ability to charge and discharge for a period of 10 hours, longer than current battery technology
• Invinity Energy (UK) Limited, Scotland, which will receive £11 million to develop and manufacture their 7MW, 30MWh 4-hour Vanadium Flow Battery (VFB), the largest in the UK. Invinity will manufacture the 30 MWh VFB at the Company’s factory in West Lothian, Scotland. The location of the plant will be confirmed in due course; and
• Cheesecake Energy Ltd, Nottingham, which will receive £9.4 million to test their FlexiTanker technology which stores electricity using a combination of thermal and compressed air energy storage and uses a reversible air compression / expansion train to charge and discharge. They will then install pilot units at 2 sites within a microgrid development in Colchester.

This announcement follows the £32.8 million funding awarded to 5 UK energy storage projects across the country in November 2022 to create first-of-a-kind prototypes of their technology. A total of £69 million of funding has been awarded so far through this programme, helping to drive innovative technologies such as energy storage.

Today’s announcement follows the launch of the government’s Powering Up Britain plan, showing how the UK will boost the country’s energy security and independence, create green British jobs and stay at the forefront of the transition to net zero.

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

UK and Republic of Korea to collaborate more closely on the development of renewable energy sources and move towards energy independence.

Energy Security Secretary Grant Shapps today joined forces with the Republic of Korea to collaborate ever closer on accelerating the move towards a cleaner, more energy secure future, including renewables and nuclear, while also underlining the vital importance of our international efforts against Putin’s weaponization of global energy markets.

Flying the flag for UK PLC in Seoul, Mr Shapps highlighted the close collaboration already taking place between the two countries – UK companies represent 60 per cent of Korean offshore wind engineering contracts, and Korea is already investing in projects supporting the offshore wind industry in the UK.

He also emphasised the UK’s joint solidarity with the Republic of Korea against Putin’s illegal invasion of Ukraine and urged them to continue work towards energy independence from Russia’s gas supply.

It comes on the first day of a trip taking in the Republic of Korea and Japan in the run-up to the G7 at Sapporo – making Grant Shapps the first Cabinet Minister to visit since the closure of negotiations on the UK’s accession to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) – of which Japan is a member.

He will also encourage the Republic of Korea to join the 168-strong “Powering Past Coal Alliance” and commit to bringing forward its own 2050 coal power phase-out date towards 2030, with support from Britain’s own expertise in offshore wind.

As well as encouraging ever-greater collaboration on offshore wind, the Energy Security Secretary  also agreed a joint statement of cooperation with Dr Lee Chang-Yang – Minister of Trade Industry and Energy in the Republic of Korea on advancing civil nuclear power generation, cementing a partnership spanning over three decades, covering issues including safety standards and regulation, all agreeing the crucial role of nuclear in creating secure, affordable and clean energy.

The visit is aimed at demonstrating the investment opportunities in the UK in the renewable energy sector, and how the UK’s world-leading expertise can help other countries to make the switch from fossil fuels – all at a time when both the Republic of Korea and Japan are looking to expand their use of renewable technologies including offshore wind.

Energy Security Secretary Grant Shapps said:

Putin’s illegal war in Ukraine has held up a mirror to the world, reflecting back just how vulnerable our energy security can be.

Russia’s gas – just like the president himself – belongs in the past.  As we edge closer towards the tipping point when holding onto coal and gas power no longer makes economic sense, let alone environmental sense, there is ever-greater opportunity for British and Korean companies to work together, for the benefit of both countries and our communities.

I want the Republic of Korea to work ever closer with us in the UK, making the most of world-leading British expertise to move further and faster towards greater use of renewables, of opportunities in the UK to invest, and to redouble our efforts against Putin’s weaponizing of our global energy sources.

Grant Shapps’s visit follows the UK Government’s publication of its plan to Power Up Britain, with a multi-billion pound investment in green technologies, unlocking lucrative new international energy deals that will boost the economy, create new green jobs and further boost the UK’s energy security and independence.

The Energy Security Secretary today argued that this move towards renewables, and away from fossil fuels, will further isolate Putin’s Russia, boosting both the energy security of the UK and that of the Republic of Korea.

Already, Korea has a target for 12 GW of offshore wind by 2030 – with over 25 projects in development and UK companies representing 60 per cent of Korean offshore wind engineering projects. The UK has 14 GW of offshore and is targeting 50 GW by 2030 – over a threefold increase.

But Mr Shapps also highlighted the opportunities for the Republic of Korea to invest in the UK.  In particular, he pointed to SeAH Wind’s £512million investment in a new factory on Teesside, manufacturing the foundations for wind turbines to be used offshore – all helped in part by the Government’s Offshore Wind Manufacturing Investment Scheme.

This further investment and closer collaboration would follow over three decades of the UK and the Republic of Korea working together on advancing nuclear power generation, underpinned by the Nuclear Cooperation Agreement made in 1991.

The joint statement of cooperation on energy transition, including civil nuclear energy, focuses on:

• Accelerating plans for civil nuclear – with the UK and the Republic of Korea in united agreement that nuclear energy has an essential role to play in creating secure and affordable energy;
• Agreement on collaborating to promote the highest standards of nuclear safety, regulation, security, safeguards and non-proliferation – setting a global standard; and
• Confirmation of plans to build robust and resilient nuclear supply chains and to share experiences in developing the latest advanced civil nuclear technologies – including small modular reactors
• Reaffirming a shared commitment to accelerate the just transition away from unabated coal power and actively collaborate on expanding renewable energy technologies

This also complements the Powering Up Britain Plan, which includes the creation of Great British Nuclear, which will expand the UK’s nuclear power industry with the aim of serving a quarter of the country’s power through nuclear by 2050.

The press release issued by the Department for Energy Security and Net Zero on 1 April 2023.

New campaign launched today to help organisations save money on their energy bills by improving energy efficiency.

A new campaign to help businesses, charities and public sector bodies increase their energy efficiency and drive down bills by making simple changes at low-to-no cost has been launched by the UK government today.

The campaign, targeted at small and medium sized businesses, will offer guidance on how organisations can make significant savings while cutting emissions, from installing light and heating timers, to turning down boiler flow temperature and changing light bulbs.

Many organisations are already aware of ways to boost their energy efficiency and have put these measures into practice. However, a substantial number of businesses are missing out on huge potential savings, due to a lack of information on how to cut down on their energy costs.

For many companies, a 20% cut in energy costs represents the same bottom-line benefit as a 5% increase in sales. A new website will help organisations access simple, low-to-no cost advice, outlining a range of possible actions, from having better sight of current energy use to upgrading and modifying equipment.

Examples of businesses already benefiting from energy efficiency measures:

• LED lighting allowed a carpark in Bedford to cut their average annual lighting costs by 50%. Lurke Street Multistorey Carpark installed lighting throughout their premises in 2017, replacing older, less energy efficient lighting. By installing a smart meter they were able to actively track and compare year-on-year savings – on average £50,000 per year – allowing them to build business cases for further investments.
• Marlec Engineering, a wind turbine manufacturer in Corby, switched to energy saving lighting as part of a range of measures to make their business premises more energy efficient. The company replaced T8 Fluorescent lamps with new, energy saving LED tubes. The lighting did not reduce light levels in the office and achieved a 60% saving on lighting costs.

To make sure as many businesses as possible know about the campaign, it will be promoted through paid advertorial across TV, radio, social media and more, and we are seeking to promote this through partnerships with the British Chambers of Commerce and Federation of Small Businesses.

It follows the launch of the government’s £18 million ‘It All Adds Up’ campaign last year. This provides similar advice for households, saving them hundreds on their energy bills, and saw UK sales of ‘draught protection products’ on eBay double shortly after the launch.

Minister for Energy Efficiency and Green Finance Lord Callanan said:

Falling wholesale energy prices are welcome news, but this in no way changes our firm, long-term commitments to vastly boost UK energy efficiency across industry and households.

From today businesses, charities and public sector bodies can access helpful and practical advice on simple actions they can take to substantially reduce their energy use – and potentially increase profits.

Not only will this help lower operational costs by up to hundreds of thousands of pounds, but smarter energy use will help us deliver on our critical pledges to cut demand by 15% and reach net zero by 2050.

The new site also offers guidance on taking full advantage of the government’s range of energy support schemes available, such as the new Energy Bills Discount Scheme, which offers a unit discount on bills, and the Boiler Upgrade Scheme, which offers grants to help make installing heat pumps and biomass boilers as cheap as a gas boiler.

Adrian Dennis, Managing Director of Marlec Engineering, said:

Our business works with an absolute focus on sustainable energy solutions. We’ve invested in electric company cars and eco-friendly packaging. But upgrading to LED lighting is low-cost, and one of the simplest ways to promote sustainability in-house and save money on utility bills. We’d encourage other businesses to upgrade as well.

Energy Bills Discount Scheme

From today organisations across the country will start receiving money off their energy bills through the new Energy Bills Discount Scheme. It comes as wholesale gas prices are at levels not seen since before Russia’s illegal invasion of Ukraine, with eligible UK businesses, charities, public sector bodies and others to receive the discount until 31 March 2024.

Customers do not need to apply for the universal discount, with suppliers automatically factoring it into the bills of all eligible non-domestic customers.

The new scheme replaces the Energy Bill Relief Scheme, which by late March had paid out £5.6 billion – around £35 million a day to cut energy costs for businesses.

Minister for Energy Consumers and Affordability Amanda Solloway said:

This government will always be unapologetically pro-business. We’ve spent over £5 billion to protect against disruption to UK industry at the hands of Putin, saving many businesses around half on their wholesale energy costs this winter.

The new level of support offered today reflects a substantial drop in global energy prices – now at their lowest level since before Russia’s illegal invasion of Ukraine.

We will continue to firmly back UK industry and are making sure those unable to cut back on their energy use continue to be shielded.

Dhara Vyas, Deputy CEO at Energy UK, said:

Despite recent falls, wholesale gas prices are still high by historical standards, making this is a difficult time for businesses up and down the country. Energy suppliers are working with businesses to come up with innovative solutions that will help customers afford their bills while providing improved customer service and information. But high prices cannot be solved by industry alone, so we’re pleased government and industry have worked together to ensure delivery of this critical, extended support is on time. We particularly welcome the launch of a business energy campaign will help reduce bills now and protect against future crises.

Meanwhile, eligible energy and trade intensive industries will be able to apply for a higher level of support through a GOV.UK portal later this month. This is expected to save some businesses 20% of predicted wholesale energy costs.

Domestic heat networks will also receive a new, sector-specific support rate. This will make sure these customers do not face disproportionately higher energy bills under the Energy Bills Discount Scheme than those supported by the Energy Price Guarantee.

The discount is expected to be reflected in bills from May onwards, with support backdated to 1 April.

Minister Solloway met with Ofgem, energy suppliers and others earlier this week to discuss what more suppliers can do to help business customers fixed into long-term contracts at high prices – especially those in sectors currently facing challenges.

Non-Standard Cases

The government is today announcing further that non-domestic energy support will be extended and eligibility expanded to include customers receiving energy from non-licensed suppliers through the public electricity or gas grid.

These customers will be able to apply for Non-Standard Cases support under the Energy Bills Discount Scheme covering similar levels of energy costs from 1 April 2023 to 31 March 2024.

Non-Standard Cases support will also be expanded to include non-domestic customers who receive electricity or gas from license-exempt suppliers via private wire or pipe and where prices paid are pegged to wholesale energy prices. This wider group can apply for backdated support under the Energy Bill Relief Scheme as well as under the new Energy Bills Discount Scheme.

Further information about how eligible customers can apply will be provided on GOV.UK in due course.

The press release issued by the Department for Energy Security and Net Zero on 31 March 2023.

UK Government invites bids for next Carbon Capture and Storage clusters and commits to projects that will boost UK energy independence.