Tag: Energy Security and Net Zero Department

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.

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

Stakeholders response to the government’s Energy Security Plan, announced by the Energy Security Secretary on Thursday 30 March.

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

Energy Security Secretary outlines steps to strengthen Britain’s long-term energy security and independence to help deliver clean, prosperous future for the country.

Ambitious plans to scale up affordable, clean, homegrown power and build thriving green industries in Britain have been unveiled by the government today (Thursday 30 March) – boosting the country’s energy security and independence and reducing household bills for the long term and maintaining a world-leading position in achieving net zero.

Putin’s illegal invasion of Ukraine had a devastating effect on global energy markets, forcing up wholesale prices and with it the energy bills of households and businesses in the UK and around the world.  In response, the government has taken steps to shield consumers and companies from the worst effects, paying around half a typical household’s bill over the winter and half the wholesale energy costs paid by some businesses.

After decades of reliance on importing expensive, foreign fossil fuels, the government is delivering a radical shift in our energy system towards cleaner, more affordable energy sources to power more of Britain from Britain.

In doing so, plans will help deliver on the Prime Minister’s promise to grow the economy across the country, supporting almost half a million new green jobs by 2030, creating a strategic advantage in new clean industries, and generating opportunities for UK businesses to export their expertise around the world.

Building on decisive government action taken since 2021, measures announced today include:

• World leading commitment to Carbon Capture Usage and Storage – The first projects will be announced to progress to the next stage of the negotiations to rollout the first Carbon Capture clusters in our industrial heartlands. The round for areas to apply for two additional future clusters has also been launched and there will be an opportunity for further projects to be added to the first two clusters. These announcements build on the £20 billion CCUS funding
• Kickstarting investment into the UK’s emerging floating offshore wind industry by launching the £160 million fund to support port infrastructure projects, securing the UK’s leadership in this new technology.
• Backing the first tranche of new green hydrogen production projects under the £240 million Net Zero Hydrogen Fund as part of development of this new power source.
• Opening the fifth round of the UK’s world-leading scheme to incentivise investment in renewable electricity, backed by a budget of £205 million. Now being held annually, Contracts for Difference will build on the UK levy-funded support for renewable power since 2010 of around £80 billion.
• Announcing Great British Nuclear, will initially be led by Simon Bowen as interim Chair and Gwen Parry-Jones OBE as interim Chief Executive Officer: with GBN’s first job to launch a new competition to select the best Small Modular Reactor technologies – one of the most advanced nuclear power technologies in the world – for development by Autumn.
• Speeding up the planning process to attract investment – reforming the planning process to enable the building of more energy infrastructure including solar power and offshore wind projects more quickly.
• Cutting household bills by expanding Government energy efficiency support to even more households – The Great British Insulation Scheme, a rebranded ECO+, will upgrade 300,000 of the country’s least energy efficient homes.
• Investing more than £380 million into boosting EV charging points and infrastructure across the country to support the rollout of electric vehicles
• Reducing our reliance on fossil fuels to heat our buildings – a new £30 million Heat Pump Investment Accelerator is designed to leverage £270 million private investment to boost manufacturing and supply of heat pumps in the UK. The Boiler Upgrade Scheme, which offers a £5,000 grant to anyone buying a heat pump, will be extended to 2028.
• Providing UK Export Finance with an extra £10 billion capacity to boost exports, including from the UK’s world leading clean growth sectors.
• Building a stable environment for businesses to invest and grow in the transition to electric vehicles and sustainable aviation fuel.

Prime Minister Rishi Sunak said:

When global energy supplies are disrupted and weaponised by the likes of Putin, we have seen household bills soar and economic growth slow around the world.

We have stepped in to shield people from its worst impacts by helping to pay around half the typical energy bill. But we are also stepping up to power Britain and ensure our energy security in the long term with more affordable, clean energy from Britain, so we can drive down energy prices and grow our economy.

That’s why we’re driving forward plans to boost renewables, revive nuclear and build new thriving industries like carbon capture, which will in turn create good jobs across the country, provide new opportunities for British businesses at home and abroad, and maintain our world-leading action to reach net zero.

Energy Security Secretary Grant Shapps said:

We have seen over the past year what can happen when global energy supplies are disrupted, and a tyrant like Putin uses energy as a weapon.

Access to cheap, abundant and reliable energy provide the foundation stone of a thriving economy with our homes and businesses relying on it to deliver our future prosperity.

Following our unprecedented cost of living support this Winter, which continues, this plan now sets out how we fix this problem in the long term to deliver wholesale UK electricity prices that rank amongst the cheapest in Europe, as we export our green growth expertise to the world.

Chancellor of the Exchequer Jeremy Hunt said:

Transforming our energy system is no longer just about tackling climate change, it is also a matter of national security. To protect ourselves from future price spikes, we need to accelerate the move to cleaner, cheaper, home-grown energy.

By unlocking billions of pounds of private capital through our Green Finance Strategy, we generate more of the energy we need in Britain and create new industries and jobs that are built to last.

Since 2010, the UK has seen £198 billion of investment into low carbon energy, through a mixture of government funding, private investment and levies on consumer bills. Going forward we anticipate around £100 billion of private investment will be forthcoming into the UK’s energy revolution. The UK has also broken numerous records in generating renewable electricity, leading the world in offshore wind – the UK is now in prime position to export its world-leading expertise.

This will drive green growth at home and abroad and see British businesses set the standard for a clean, secure and prosperous future.

Building on our COP26 Presidency and our role in agreeing the Global Biodiversity Framework, the UK will continue to lead international action in tackling climate change and biodiversity loss, working with our partners and delivering on our £11.6 billion International Climate Finance commitment. The 2030 Strategic Framework for International Climate and Nature Action and the International Climate Finance Strategy set out today what this will look like in practice.

The press release issued by the Department for Energy Security and Net Zero on 27 March 2023.

Over 94,000 prepayment meters were forcibly installed under warrant last year – with Scottish Power and British Gas leading the pack.

Over 94,000 prepayment meters were forcibly installed in homes under warrant last year without customer consent – on average over 7,500 meters a month.

After calling on suppliers to stop forcibly installing prepayment meters, the Energy Security Secretary Grant Shapps has now revealed the most overzealous suppliers, as part of a crackdown on mistreatment of vulnerable customers in the use of these meters.

Leading the charge with the highest number of prepayment meters force-fitted last year are British Gas, Scottish Power and OVO Energy, making up 70% of all forced installations with a total of 66,187 devices fitted under warrant. Of these, Scottish Power tops the list as the worst offender when taking into account their customer base – force fitting over 24,300 in their customer’s homes in 2022.

Mr Shapps has today doubled down on his call for any mistreatment of customers to be rectified, while again urging suppliers to help the households on traditional prepayment metres access the 2.1m vouchers yet to be claimed under the government’s Energy Bills Support Scheme.

Energy Security Secretary Grant Shapps said:

Today’s figures give a clear and horrifying picture of just how widespread the forced installation of prepayment meters had become, with last year seeing an average of over 7,500 force-fitted a month.

Prepayment meters are right for some people, so I do not want to ban them outright, but I do have concerns that companies have not been treating their customers fairly, over an already difficult winter during which the government has tried to help families by paying around half the energy bill of the average household.

After my calls for change, I’m pleased that suppliers have made their actions public and agreed to put a stop to forcing prepayment onto vulnerable customers for good – but this cannot happen again.

I will be watching Ofgem’s ongoing review closely so customers get the support they need – and those vulnerable consumers who have wrongly suffered forced installations get the justice they deserve in the form of redress.

Minister for Energy Consumers and Affordability Amanda Solloway said:

Another increase in the number of energy bill support vouchers redeemed by customers is great news, but I urge those that haven’t done so to use them as soon as possible – and suppliers must continue to do everything they can to make sure this happens.

We will not stand for the mistreatment of vulnerable customers who have been forced onto prepayment meters. I welcome the move from Ofgem to make it easier for customers to report cases but this can’t be a one off, and suppliers must now offer redress to those they have wronged.

Prepayment meters allow customers to pay for gas and electricity on a pay-as-you-go basis and serve an important function by helping the avoidance of debt and court action.

However, an intervention from the Energy Security Secretary last month brought the practise to a firm halt, after evidence came to light of suppliers in forcing these meters on vulnerable households.

Mr Shapps demanded transparency from the sector over the number of forced installation warrants they had used, following a huge spike in applications as households grappled with high energy costs. Lord Justice Edis issued directions for magistrates’ courts to stop all warrants that allow companies to force-fit these meters, alongside the government’s crackdown unacceptable behaviour from suppliers.

This move follows the government’s unprecedented support to help families with their bills this winter, including households on prepayment meters.

Latest figures published today show 7.6 million Energy Bills Support Scheme vouchers have now been redeemed by households that use prepayment meters across Great Britain, as of February – saving them up to £400 on their energy costs.

Since the scheme launched the number of households redeeming their vouchers has steadily climbed with 78% used so far – up from 76% in January. Suppliers with the highest redemption levels include Shell Energy, E and Octopus Energy. However, those with the most vouchers still outstanding, with nearly 400,000 yet to be redeemed include Scottish Power, OVO Electricity and British Gas.

Customers will also benefit from new protections, announced in last week’s Budget, that will see households on prepayment meters pay no more than other customers for their energy.

The recent action from the government led the regulator, Ofgem, to launch a review into the use of prepayment meters in the sector. Companies have been instructed to revisit their past cases and offer redress, such as compensation, to customers where these meters were wrongly installed and regulations have not been followed.

Just last week, Ofgem also extended the ban on forced installations of prepayment meters until a new code of practice is agreed by energy companies, after British Gas was found to have broken into homes to fit the devices.

The government continues to work with the sector, as well as consumer groups, charities and local leaders to reach eligible customers with unused vouchers that have not yet benefitted from the Energy Bill Support Scheme. This includes ongoing information campaigns across community radio, social media, national magazine titles and roaming advert 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 22 March 2023.

Government awards £1.8 billion through Social Housing Decarbonisation Fund and Public Sector Decarbonisation Scheme to upgrade social homes and public buildings.

More than 115,000 homes across England are to get upgrades to improve their energy efficiency and save residents money on their bills as the government announces the allocation of nearly £2 billion in funding.

The Social Housing Decarbonisation Fund and Home Upgrade Grant are collectively worth £1.4 billion, which will be used to fund energy-saving measures ranging from loft insulation to new windows. An additional £1.1 billion in match funding for social housing provided by local authorities, providers of social housing and charities will bring the total investment to £2.5 billion to upgrade social and private homes in England.

The money will go towards improvements to vulnerable households and off-gas grid homes with an EPC rating of D or below and could save tenants between £220 and £400 a year on energy bills.

These schemes could also support around 20,000 jobs in the construction and home retrofit sectors, helping to deliver on our promise to grow the economy and create better paid jobs, whilst supporting families across the country.

On top of this, a further £409 million has been granted through the Public Sector Decarbonisation Scheme to help public sector buildings such as schools and hospitals drive down their carbon emissions. Upgraded heating systems, powered by cleaner, cheaper, renewable energy, will reduce the use of fossil fuels exposed to volatile global energy prices – supporting thousands of jobs and saving taxpayers hundreds of millions of pounds.

Secretary of State Grant Shapps said:

We know this is a difficult time for families, which is why the government is covered around half a typical household’s energy bill this winter.

This is a huge investment that will help households save hundreds on energy bills and see them heat their homes for less, and stay warm for longer.

Not only this but the funding is also a huge boost for job creation and economic growth, opening up new and exciting opportunities across the UK’s ever-expanding green sector.

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

The UK is truly a world-leader when it comes to reducing carbon emissions and the progress we’ve made over the last decade has been remarkable. But we can’t rest on our laurels and must continue to drive forward progress, setting a standard for other countries to follow.

Reaching net zero means considerable action from the public sector as well as private sector. Through the Public Sector Decarbonisation Scheme funding allocation announced today, we are empowering public bodies to save the taxpayer hundreds of millions while packing a punch on our ambitious and necessary climate goals.

Local authorities, providers of social housing and charities have been awarded a huge injection of £630 million, to come from Phase 2 of the latest stage of the Home Upgrade Grant, while £778 million will be provided through the most recent wave of the Social Housing Decarbonisation Fund. An additional £1.1 billion in match funding will be added to this through the Social Housing Decarbonisation Fund, bringing the total to £2.5 billion to upgrade social and private homes in England.

The funding will be rolled out from April 2023 to upgrade homes over the next 2 years.

Energy cutting and cost saving measures provided through the schemes include exterior wall insulation, cavity wall insulation, loft insulation, new windows and doors and draft proofing measures, as well as heat pumps and solar panel installation.

The schemes form 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 greater energy independence.

The Home Upgrade Grant is supporting over 25,000 low-income homes across England by installing energy efficiency measures and low carbon heating. Those being aided are typically the worst quality, off-grid homes most in need of upgrading, with an EPC rating of D to G. Improving these homes comes with the added benefit of supporting 7,000 jobs.

Aliye Galloway lives in social housing in Northamptonshire with her partner and 5 children. Through the Social Housing Decarbonisation Fund her home was fitted with an air source heat pump, solar panels and more efficient doors and windows.

She said that even with the recent energy price rises, the family’s energy bills are significantly lower since the work has been completed.

Aliye explained:

Already we are seeing a massive change with our energy consumption and energy costs and already that’s having a positive impact on us a family.

We are very happy with how it all works. We would recommend it to any tenant who is approached by the scheme. It will have a huge positive outcome.

It’s supposed to be more eco-friendly too so I’m very happy we managed to get rid of the gas to be honest. We are literally just electric now.

We are going to massively save. Even though the prices have gone up, we are still putting in less than we were before.

Emma Pinchbeck, Chief Executive of Energy UK said:

Improving the energy efficiency of Britain’s draughty homes and buildings is the best way to cut energy bills permanently, while also boosting the UK’s energy security and reducing carbon emissions.

Today’s announcement will rightly prioritise those who need support the most like low- income households, social housing and public buildings.

Industry will work with government to build on these vital schemes and to remove any barriers that prevent households and businesses from saving money on their bills by reducing heat loss and conserving energy.

The government has also announced today that over £400 million has been allocated to public sector bodies across England to help reduce their carbon emissions. 144 public sector organisations responsible for hospitals, schools, leisure centres, museums and universities will benefit from this support.

This funding is being delivered through the Public Sector Decarbonisation Scheme, which provides grants to public sector bodies to fund low carbon heating, renewable energy and energy efficiency measures such as heat pumps, solar panels and insulation. The scheme is being delivered on behalf of the government by Salix Finance.

Announced today, organisations set to receive funding include Adur and Worthing Councils, Salisbury NHS Foundation Trust, Northumbria University, Greater Manchester Academies Trust and many other worthy recipients across England looking to improve the sustainability of their buildings.

The 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. 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.

Salix Finance Chief Executive Annie Shepperd OBE, said:

There is a huge amount of passion and expertise in the green energy sector, and Salix is proud to be supporting the hundreds of decarbonisation projects that have been made possible through the Public Sector Decarbonisation Scheme. Each one represents the best evidence of government and public bodies working together to achieve great things.

In the meantime, the government has partnered with Energy Systems Catapult today to launch a freely accessible suite of tools, templates and guidance to support the public sector in further decarbonising their sites. This support will help public sector bodies from the first stages of developing a strategy, through funding, installation and completion, to help make achieving net zero sites and energy savings simpler.

This is a continuation of the government’s award-winning Modern Energy Partners programme which has worked with 42 sites to explore different avenues for decarbonisation.

Stakeholder reactions

Social Housing Decarbonisation Fund and Home Upgrade Grant

Adam Scorer, Chief Executive of National Energy Action (NEA) said:

This vital investment is desperately needed. Low-income households, in the least efficient homes, are being hardest hit by the energy crisis and are having to pay hundreds of pounds more than the typical household just to heat and power their home to a minimum reasonable standard.

As well as helping to abate the impact of high energy bills for thousands more households, we hope the investment can lessen some of the physical and mental health impacts for people unable to keep warm at home.

Both the Social Housing Decarbonisation Fund and Home Upgrade Grant can also help us make progress with our legal fuel poverty targets, helping millions more of the poorest households, who are massively exposed to high energy prices and pay an ‘energy inefficiency premium’ just to stay warm and safe at home.

Tracy Harrison, Chief Executive, Northern Housing Consortium said:

This latest wave of funding adds to the momentum already built around green home upgrades in the North.

Retrofitting homes towards net zero is a key priority for councils and housing associations across the North. Our members want to continue to scale their activity to support the development of the supply chain, and to deliver good, green jobs.

We were delighted to see even more ambitious partnership bids submitted to this Wave – an approach which we hope to see followed through in delivery. But most importantly, these successful projects will help create warmer homes and improve the physical and mental health of people in our communities.

Carol Matthews CBE, Chief Executive of The Riverside Group said:

We are delighted that we have secured just short of £12.7 million from the Social Housing Decarbonisation Fund from the Department for Energy Security and Net Zero. This funding will enable us to improve the energy efficiency of our homes and protect our residents from rising fuel bills and cost of living crisis.  Riverside will be match funding and investing £15 million as part of our retrofitting and net zero commitments. We are looking forward to working with the government to improve over 1,100 homes and the lives of our residents living in them.

Public Sector Decarbonisation Scheme

Cllr Helen Silman, Worthing Council’s Cabinet Member for Climate Emergency, said:

Worthing Borough Council is delighted to receive this latest round of Public Sector Decarbonisation Scheme funding, which will help us to secure Worthing’s sustainable future through infrastructure and innovation.

The decarbonisation of heating is key to our goal of being a carbon neutral council by 2030, and a challenge we’ll continue to rise to as we look ahead to meeting our 2045 target of a carbon-neutral Worthing.

Cristina Calleja, Sustainability Manager at South Warwickshire University Foundation Trust, said:

Our estates, capital and sustainability teams worked very hard to put together an innovative and detailed grant application, which will reduce our organisation’s carbon emissions and benefit our staff, patients and visitors. Therefore, we are extremely delighted to have received this grant that demonstrates our commitment to climate change at the Trust.

Canterbury City Council’s Director of Strategy and Improvement, Peter Davies, said:

We are really pleased to have secured a grant from the Public Sector Decarbonisation Scheme, which will allow us to significantly reduce emissions at Kingsmead Leisure Centre. By their very nature, leisure centres are energy intensive buildings and we have been conscious of the need to put in place measures to lessen the impact of Kingsmead on the environment. This grant will enable us to do a huge amount using some of the latest technology.

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

The Budget sets out key measures to support households with energy bills and strengthen the UK’s energy security.

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

UK government confirms budget for this year’s Contracts for Difference scheme as it enters its first annual auction, boosting energy security.

Britain’s rollout of clean, affordable, home-grown energy is moving full speed ahead, with the UK government offering £205 million in its latest renewables auction, boosting energy security, growing our economy and powering more of Britain from Britain.

The Contracts for Difference (CfD) scheme is the government’s flagship mechanism for supporting new British low-carbon electricity generation projects, so far awarding contracts to projects totalling nearly 27GW of low carbon capacity. This has 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.

Today’s announcement of a budget of £205 million for the fifth CfD allocation round – which is the first CfD auction to run annually – confirms another year of significant financial backing by government for green industries and jobs. This will bolster investment into the sector every year, helping to support green energy and jobs of tomorrow, level up Britain, and replace expensive fossil fuels with cheaper, cleaner, domestic sources of energy.

This includes £170 million for established technologies such as offshore wind, ensuring Britain remains a front runner in global offshore wind, and £10 million ring-fenced budget available for tidal stream technologies, unlocking a thriving tidal power industry here in the UK.

Building a cleaner, more secure energy future with thriving green industries will also help 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 competitive nature of the Contracts for Difference scheme has already proven successful at placing downward pressure on prices since the first auction was held. This process, together with solar and wind now amongst the cheapest form or electricity generation in the UK, means the scheme will play an increasingly important role in helping to meet the Energy Security Secretary’s ambition for Britain’s wholesale electricity prices to be among the cheapest in Europe.

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

Our flagship Contracts for Difference scheme is already delivering clean, homegrown energy as well as growing a green economy with green jobs.

Today’s budget announcement, the move to annual auctions and continued investment in renewable energy will limit the impact of events like Putin’s illegal war in Ukraine and drive our overriding priority for the UK to have amongst the cheapest wholesale electricity prices in Europe.

I am excited to see the opportunities that will open for Britain’s world-class renewable industries as annual auctions kick off this year, enhancing the UK’s reputation as among the most attractive places to invest in for a secure, affordable and prosperous future.

The UK government continues to support the deployment of renewable power right across Britain, with the scheme so far having awarded contracts to 52 projects in Scotland, which represents around 30% of all CfD projects and around 25% of total CfD capacity.  In Wales, the scheme has so far awarded contracts to 9 projects, totalling around 260MW of capacity.

The scheme is designed to be fair and deliver low carbon deployment at low-cost to consumers – so that when wholesale electricity prices are higher than the price agreed in the CfD, generators pay back the difference. This will be passed on to energy suppliers and over time, is expected to translate to lower bills for consumers.

Offshore wind has been at the heart of the scheme and the industry is a major UK success story thanks to Britain’s flagship CfD scheme. The UK has the largest operational fleet in Europe, the world’s 4 biggest individual windfarms and a world-leading ambition to deploy up to 50GW by 2030, including up to 5GW of floating offshore wind, which the scheme continues to help deliver. As set out in the British Energy Security Strategy, by 2030 the UK is set to generate more than enough electricity from offshore wind to power every home in Britain, attracting vital investment to UK coastal communities, supporting 90,000 direct and indirect jobs.

This follows an unprecedented £20 billion investment into carbon capture announced yesterday in the Spring Budget, alongside the first state backing of a nuclear project in almost 40 years at Sizewell C and confirming the next steps for Great British Nuclear to revolutionise how new nuclear projects are delivered in the UK.

Neil McDermott, CEO of the Low Carbon Contracts Company (LCCC), said:

We welcome the announcement from the government on CfD Allocation Round 5. We look forward to working with investors and generators for these important projects as we continue the journey to Net Zero.

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

Government announces members of Energy Efficiency Taskforce following first meeting.

A stellar team of leading experts has today been announced as the members of a new dedicated taskforce charged with improving the energy efficiency of the nation’s homes and buildings and with it, cutting the country’s energy use.

The new Energy Efficiency Taskforce is chaired by Minister Lord Callanan and NatWest CEO Alison Rose, and has a clear target to support cutting energy use in the UK down by 15 per cent by 2030, from 2021 levels.

The membership of this group includes Chair of the National Infrastructure Commission Sir John Armitt, head of leading housebuilder Barratt Developments, David Thomas and leading experts from the University of Salford, the Green Industries Council and National Energy Action to name but a few.

Drawing on their unique experiences and perspectives, they bring together a vast wealth of knowledge to deliver on the government’s ambitious commitments, which in turn will help grow the economy, create new jobs and cut bills for people across the country.

The Energy Efficiency Taskforce was first announced by the Chancellor in last year’s Autumn Statement and has been established to support a step change in the reduction of energy demand through accelerated delivery of energy efficiency measures across the economy.

The Taskforce will devise a workplan to help reduce total UK energy demand by 15% from 2021 levels by 2030 across domestic and commercial buildings and industrial process – while cutting bills and helping push down inflation. This will include accelerating household insulation and boiler upgrades. As the work of the Taskforce progresses, it will also look at ways of drawing on the expertise of a wider group of stakeholders.

The Taskforce has met for the first time to establish key priorities and explore ways of working to reach the 15% reduction ambition, sounding out avenues such as green finance, the resolution of supply chain issues and changing consumer behaviour.

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

We have scoured the UK’s industry to amass a top team of the best and brightest, and I am excited to learn from the unique expertise that each member brings to the table.

We firmly believe the will of people and industry to drive down energy use is there, but we need to put in place the right mechanisms to channel this. That means smart investment, effective engagement, and building the right skills base – and this is precisely what the Taskforce will be focussing on.

Alison Rose, Energy Efficiency Taskforce co-chair and Chief Executive Officer of NatWest Group, said:

I am delighted to welcome experts from across industry, academia and government to the Energy Efficiency Taskforce. Addressing the climate crisis is a team sport, and building vital partnerships between the public and private sector is key to tackling this challenge. The Taskforce is bringing together a breadth of experience and expertise from a range of sectors and we will work together to deliver concrete proposals that help support the ambition of reducing total UK energy demand from 2021 levels by 15% by 2030.

Our focus on reducing energy use across homes, commercial buildings and industrial processes is important not only for cutting carbon emissions but also for delivering greater energy security and lower bills for people, families and businesses up and down the UK.

Responding to industry’s call for long-term funding certainty to help strengthen UK supply chains, £6 billion of government funding will be available from 2025 to support this objective, in addition to the £6.6 billion allocated this Parliament – taking the total to £12.6 billion this decade.

The Energy Efficiency Taskforce Steering Group is comprised of the following individuals:

Co-Chairs:

• Lord Callanan, Minister for Department for Energy Security and Net Zero
• Alison Rose DBE, Group Chief Executive Officer, NatWest Group

Additional Steering Group members:

• David Thomas, Chief Executive Officer, Barratt Developments
• David Halpern, Chief Executive Officer, Behavioural Insights Team
• Graham Bell, Chief Executive Officer, B&Q
• Mitesh Dhanak, Chief Executive Officer, Cenergist
• Laura Sandys, Chair, Government’s Energy Digitalisation Taskforce
• Professor Will Swan, Director, Energy House Laboratories at University of Salford
• Emma Pinchbeck, Chief Executive Officer, Energy UK
• Dr Rhian-Mari Thomas, Chief Executive Officer, Green Finance Institute
• Michael Liebreich, Chairman and CEO, Liebreich Associates
• Stephen Phipson, Chief Executive of Make UK
• Adam Scorer, Chief Executive Officer, National Energy Action
• Sir John Armitt, Chair, National Infrastructure Commission
• Carl Ennis, Chief Executive, Siemens plc
• David Postings, Chief Executive Officer, UK Finance
• Simon McWhirter, Deputy Chief Executive Officer, UK Green Building Council