Tag: Energy Security and Net Zero Department

The press release issued by the Department for Energy Security and Net Zero on 15 November 2024.

UK spearheads global efforts to combat climate change with a funding package to help developing countries transition to clean energy.

The UK will be leading support for countries on the front line of the climate crisis to make their transition to clean energy, in a new package of support unveiled by Energy Secretary Ed Miliband at COP29.

To tackle climate change at home and abroad, countries that are already suffering from its worst impacts need support to accelerate their transition to clean power, cut emissions and increase economic growth.

The funding will help climate vulnerable countries, including African nations and small island states, to develop new low-carbon technologies, with innovations in energy storage, zero emission generators and clean transport. It will also support innovations such as material and system efficiencies, which will be instrumental in decarbonising steel, chemicals, cement and concrete industries.

Delivering global action on climate change will help protect families and businesses in the UK and abroad, while accelerating global clean power to unlock the rewards of green economic growth.

The funding comes after the UK announced an ambitious target to reduce its emissions by 81 per cent by 2035 – showing leadership in tackling climate change while harnessing a range of benefits for the UK, including better jobs, cheaper bills and higher growth.

Energy Secretary Ed Miliband said:

Climate change does not respect borders, and the UK has seen a year of record-breaking warmth. That’s why we are determined to lead from the front and drive global change, to protect future generations at home and abroad.

This funding commitment from the UK is what we mean when we say we are back in the business of climate leadership, supporting the world’s most vulnerable and unlocking the global growth benefits of decarbonising economies.

Climate Minister Kerry McCarthy said:

Developing countries are often on the front line of the climate crisis, at higher risk of floods, heatwaves, and food insecurity, despite doing very little to cause it.

This funding is part of a key priority for us at COP29. It will support the flow of finance to these countries so they can adapt to a changing climate, building resilience and accessing clean energy for their own transition.

When the UK acts other countries follow, so we are leading by example to tackle the biggest challenge we face.

Funding pledges announced at COP29 include:

• £45 million of funding for the World Bank’s Energy Sector Management Assistance Programme (ESMAP) to support developing and emerging countries addressing energy challenges – making the UK the largest donor to a well-established World Bank Trust Fund.
• £15 million of funding for Innovate UK to support clean energy innovation in developing countries.
• £14 million of funding for United Nations Industrial Development Organisation (UNIDO) to support the development of innovation projects in industrial decarbonisation and clean hydrogen.
• £5 million to help developing countries tackle methane emissions in their fossil fuel, supporting delivery of the Global Methane Pledge launched at COP26.

The funding is part of the UK’s existing £11.6 billion International Climate Finance commitment between 2021/22 and 2025/26 which is allocated from the Official Development Assistance (ODA) budget – delivering on a global commitment of 0.5 per cent of Gross National Income for developing countries.

At COP29 the UK has also set the direction of voluntary carbon markets, so they can channel more finance to developing countries. A new set of UK Integrity Principles will raise integrity in the generation, trade and use of carbon and nature credits, so that voluntary markets work better for people, nature and the planet.

Notes to editors

The funding announcement comes as the government has started the most significant investment programme in homegrown British energy through its clean power by 2030 mission – unlocking thousands of jobs and driving investment into UK communities. So far, the government has:

• lifted the ban on onshore wind in England
• delivered a record number of clean energy projects through its renewables auction, securing enough clean power to supply the equivalent of 11 million homes
• approved unprecedented amounts of nationally significant solar – 2GW – more than the last 14 years combined
• launched Great British Energy
• fired the starting gun on the UK’s Carbon Capture and Storage industry, with funding agreed for two clusters in Teesside and Merseyside

A total of £29 million of funding for Innovate UK and the United Nations Industrial Development Organisation (UNIDO) is an allocation from the UK’s £1bn Ayrton Fund which supports clean energy innovation and industrial decarbonisation.

The press release issued by the Department for Energy Security and Net Zero on 14 November 2024.

Legislation will be introduced to restrict licences for new coal mines as UK embraces clean energy future.

Licensing of new coal mines is set to be restricted as the government commits to bringing in legislation which will prohibit new coal mining projects.

The government today (14 November) confirmed it will introduce new legislation as soon as possible to restrict the future licensing of new coal mines.

Coal power remains the largest source of energy-related CO2 emissions globally. Phasing it out is a crucial step to tackling climate change and limiting global temperature rises to 1.5C, while providing important health benefits through improved air quality.

Britain became the first major economy to stop burning coal for power in October, with the closure of the country’s last coal-fired power station at Ratcliffe on Soar, following 50 years of service. It means coal has gone from generating around 40% of the UK’s electricity supply in 2012 to 0%.

The Energy Minister has paid tribute to the coal miners who “powered our country”- saying that they leave a legacy that this country can be proud of.

As the coal age ends, the clean energy age is ramping up, with the government committing to unprecedented investment in homegrown clean energy in the UK including carbon capture and hydrogen.

As part of the government’s clean energy superpower mission, this continued transition away from fossil fuels will create hundreds of thousands of good new jobs across the UK and revitalise the country’s industrial heartlands.

It comes after the independent National Energy System Operator (NESO) confirmed last week that achieving clean power by 2030 is achievable and can unlock cheaper, more secure electricity.

Energy Minister Michael Shanks said:

Coal mining powered this country for over 140 years and we owe a huge debt to workers who kept the lights on for homes and businesses across the country.

Now the UK is in prime position to lead the way in phasing out coal power around the world, which remains the single largest contributor to global emissions.

By consigning coal power to the past, we can pave the way for a clean, secure energy system that will protect billpayers and create a new generation of skilled workers.

The UK has led the way in meeting global climate change targets to phase out coal-fired power. The government’s plan to prevent future coal mining is another step in its mission to make Britain a clean energy superpower, by transitioning away from fossil fuels to cleaner, homegrown energy sources.

Since July, the government has accelerated Britain’s transition, by reversing the onshore wind ban in England, approving 2GW of new solar projects to power hundreds of thousands of homes, announcing the biggest ever investment in offshore wind, and launching Great British Energy that will own and invest in clean power projects across the UK.

To support workers, the government has also set up the Office for Clean Energy Jobs to help the next generation of skilled workers to access UK-wide job opportunities that the government’s clean energy superpower mission will help create.

Unions worked closely with Ratcliffe on Soar’s owner, Uniper, on a strong redundancy package including identifying opportunities for the plant’s staff such as internal transfers, roles with external companies and training courses.

On top of this, the government recently confirmed £21.7 billion funding for carbon capture projects in the North West and North East of England, which is set to support up to 50,000 jobs, as well as £2.3 billion for the first round of electrolytic hydrogen production contracts.

At the COP29 Summit this week in Baku, Azerbaijan, the Prime Minister announced the Clean Industry Bonus that will offer £27 million per Gigawatt to offshore wind developers who invest in the UK’s historic industrial heartlands, coastal areas and oil and gas communities.

It follows confirmation that 120,000 former mineworkers will receive a 32% boost to their pensions, as £1.5 billion of money that was kept from their pensions is handed over to their schemes, ensuring those who powered the country for decades finally get the just rewards from their labour.

Notes to editors

Limited exceptions to the ban may be required for safety or restoration purposes. An exemption is also anticipated to protect the historic rights of freeminers to mine personal gales in the Forest of Dean.

The government has laid a Written Ministerial Statement confirming that it will introduce legislation to restrict the future licensing of new coal mines, by amending the Coal Industry Act 1994, when Parliamentary time allows.

The press release issued by the Department for Energy Security and Net Zero on 12 November 2024.

UK government announces new climate goals at COP29, including reducing emissions by 81% by 2035, as Prime Minister calls on other countries to bring forward ambitious targets.

Tackling the climate crisis is essential to our national energy security, economic growth, and our efforts to protect current and future generations, the UK government said as it unveils the UK’s new climate goals at the COP29 Summit in Baku, Azerbaijan today.

Today’s announcement will strengthen the UK’s position as a place for investment in the technologies and jobs that are driving growth across the world.

There are 640,000 green jobs in the UK, growing at a rate 4 times faster than overall UK employment.

To support the industry the government has announced a significant investment programme in homegrown British energy – including renewables, carbon capture and storage, nuclear and hydrogen.

The UK’s reliance on fossil fuels has also been felt by every family and business in the last few years with the worst cost of living crisis in memory, driven by energy price spikes from international gas markets.

That’s why the government’s mission is to tackle the climate crisis in a way that makes the British people better off by investing in clean homegrown power and unlocking thousands of jobs, having already seen £34.8 billion of private investment into the UK’s clean energy industries since July.

This ambitious and pragmatic new target supports the UK’s mission for growth, helping to attract further investment and jobs in low carbon technologies such as solar and wind, electric vehicles and batteries.

Energy Secretary Ed Miliband said:

The only way to protect current generations is by making Britain a clean energy superpower, and the only way to protect future generations is by tackling the climate crisis.

Britain is back in the business of climate leadership, with an ambitious new target that will protect our environment, deliver energy security and restore our global climate reputation.

We will cut emissions across the country, delivering for our environment and ending our exposure to spiking fossil fuel markets.

This ambitious and pragmatic new target – in line with the recommendation from the Climate Change Committee and previously legislated and legally-binding Carbon Budgets for the same period.

The target forms what is called the UK’s Nationally Determined Contribution (NDC): commitments that countries make to reduce their greenhouse gas emissions to mitigate climate change. It is aligned to 1.5C.

The UK has called for other countries to match the UK’s ambition to address the urgency of climate change, following stark warnings from the United Nations that the world is way off track to limit global temperature rises to 1.5C.

Since July the government has:

• lifted the ban on onshore wind in England
• delivered a record number of clean energy projects through its renewables auction
• consented unprecedented amounts of nationally significant solar – 2GW – more than the last 14 years combined
• launched Great British Energy backed by £8.3 billion to speed up the deployment of clean technologies
• fired the starting gun on the UK’s carbon capture, usage and storage industry, with funding agreed for 2 clusters in Teesside and the North West

Globally, the costs of renewables continue to fall, with solar and wind now cheaper than existing coal and gas power plants in most of the world.

Recent analysis from the International Energy Agency found that in 2023 for every $1 spent on fossil fuels, $1.7 was spent on clean energy. Global energy investment is set to be over $3 trillion in 2024, with $2 trillion of this on clean energy technologies and infrastructure.

Notes to editors

The target is in line with the recommendation of the independent Climate Change Committee, and with the UK’s share of limiting global warming to 1.5C .

The target is to reduce emissions by at least 81% on 1990 levels.

The target excludes emissions from international aviation and shipping in line with international standards, and is aligned with the UK’s sixth carbon budget.

By 2030, to combat climate catastrophe, global emissions need to fall by 43% on 1990 levels (whereas the most optimistic scenario of NDC implementation implies a reduction of around only 5.9% by 2030), climate finance needs to increase at least fivefold, we need to phase out coal 7 times faster and reduce forest loss 4 times faster.

That is why the UK has set an ambitious target and will be urging other countries to bring forward ambitious, economy-wide Nationally Determined Contributions by the February 2025 deadline to address the urgency of the climate crisis.

During COP29 in Baku the UK’s climate negotiations will be led by Energy Secretary Ed Miliband where he will be encouraging others – particularly major emitters – to submit their own target ahead of the deadline.

The government will submit the detail underpinning the Nationally Determined Contributions to the United Nations Framework Convention on Climate Change ahead of the February 2025 deadline. Steps are already being taken to hit the target through the government’s clean power by 2030 mission.

Stakeholder responses

Sir Ian Cheshire, Chair, We Mean Business Coalition said:

Prime Minister Keir Starmer has today sent a clear signal to the international community that the UK is back as a global leader on climate. This headline figure for cutting the UK’s emissions is consistent with the science and what is technologically and economically achievable.

Companies in the UK and around the world will welcome the clarity and stability that comes with a long-term plan for delivering the shift from fossil fuels to clean energy. Working closely with the private sector, the UK’s new climate plans should create jobs, drive investment in British industry and ensure energy security and affordability.

Rain Newton-Smith, CBI CEO, said:

As the world convenes at COP29 the UK has today demonstrated its international leadership credentials on climate. Setting an ambitious 2035 NDC (Nationally Determined Contribution) target to reduce emissions by 81% is a steadfast commitment to transitioning the UK to a net zero economy, capitalising on its strengths in climate finance, institutions, and policy design that can deliver a blueprint for other countries to build on.

Walking the walk requires a laser focus on delivery and the UK’s business community stands ready to play its part. In a world where the growth and resilience of our economies continues to be adversely tested by the impacts of energy shocks and climate events, there has never been a more opportune time for businesses and governments to work in partnership to scale up investment in climate action and develop markets in decarbonisation technologies.

Rachel Solomon Williams, Executive Director at the Aldersgate Group, said:

This ambitious NDC is a welcome display of global leadership from the UK government. Alongside sector-specific goals such as 2030 clean power, it will significantly strengthen our standing on the world stage at a time when international climate leadership is urgently needed. The UK has already demonstrated that ambitious climate targets can spark the creation of thriving new industries and accelerate growth, and this new target shows other nations that we have confidence in this approach and will lead by example in our domestic policy.

The press release issued by the Department for Energy Security and Net Zero on 4 October 2024.

Government confirms funding to launch the UK’s first carbon capture sites, set to bring thousands of new skilled jobs, billions in private investment and support acceleration to net zero.

The UK today enters a new era for clean energy investment and jobs, as the government announces it has reached commercial agreement with industry, and funding to launch carbon capture in the UK.

Major funding for 2 carbon capture sites will inject growth into the industrial heartlands of the North West and North East of England – directly creating 4,000 jobs and supporting 50,000 jobs in the long-term while powering up the rest of the country.

This comes 10 days before the government’s set-piece International Investment Summit which is poised to put the UK back at the global table – kickstarting a decade of economic renewal and giving business confidence and opportunity to invest in the United Kingdom.

CCUS technology removes CO2 emissions before it reaches the atmosphere and stores it safely beneath the seabed – using tried and tested technology that has been deployed across the globe for over 20 years.

In a boost for economic growth and protecting the environment, the new carbon capture and CCUS enabled hydrogen projects will create 4,000 new jobs, sustain important British industry, and help remove over 8.5 million tonnes of carbon emissions each year – the equivalent of taking around 4 million cars off the road.

Prime Minister Keir Starmer, the Chancellor Rachel Reeves, and Energy Secretary Ed Miliband are visiting the North West today to confirm the funding for 2 sites in Teesside and Merseyside, which are expected to bring in £8 billion of private investment into these communities.

These projects will set the UK on course to become a global leader in CCUS and hydrogen – delivering good jobs and turbocharged growth for decades to come.

Prime Minister Keir Starmer said:

We’re reigniting our industrial heartlands by investing in the industry of the future.

For the past 14 years, business has been second-guessing a dysfunctional government – which has set us back and caused an economic slump.

Today’s announcement will give industry the certainty it needs – committing to 25 years of funding in this groundbreaking technology – to help deliver jobs, kickstart growth, and repair this country once and for all.

Today’s announcement confirms up to £21.7 billion of funding available, over 25 years, to make the UK an early leader in 2 growing global sectors, CCUS and hydrogen, to be allocated between these 2 clusters. The UK’s commitment was first made in 2009, and the confirmation of funding today represents a major success story for British industry.

In the week in which Britain became the first industrialised nation to end its 150-year usage of coal to produce power, the nation now begins a new era of clean energy technology. The UK has enough capacity to store 200 years’ worth of emissions – making CCUS a revolutionary method in tackling the climate crisis and helping industry to decarbonise.

Energy Secretary Ed Miliband said:

On Monday, 150 years of coal in this country came to an end. Today, a new era begins.

By securing this funding, we pave the way for securing the clean energy revolution that will rebuild Britain’s industrial heartlands.

I was proud to kickstart the industry in 2009, and I am even prouder today to turn it into reality. This funding is a testament to the power of an active government working in partnership with businesses to deliver good jobs for our communities.

Chancellor of the Exchequer Rachel Reeves, said:

This game-changing technology will bring 4,000 good jobs and billions of private investment into communities across Merseyside and Teesside, igniting growth in these industrial heartlands and powering up the rest of the country.

Working in partnership with business is at the heart of our plan to deliver strong growth and investment, so we can rebuild Britain and make everyone better off.

This announcement will also help turbocharge the low carbon hydrogen sector by paving the way for the UK’s first large-scale hydrogen production plant, decarbonising vital industrial sectors.

It also marks a game-changing development in the mission to tackle climate change – protecting the environment from harmful emissions at a time when the UK has seen a year of record-breaking temperatures. It follows advice from the independent Climate Change Committee, who described CCUS as critical for decarbonising the UK’s heavy industry and a “necessity” for the UK to reach its legally binding target for net zero emissions by 2050.

Similarly, the International Energy Agency and the Intergovernmental Panel on Climate Change have endorsed CCUS as a critical tool in decarbonisation, particularly in heavy industry such as cement and steel.

The carbon capture, usage and storage industry is expected to support 50,000 good, skilled jobs as the sector matures in the 2030s, helping to support the oil and gas sector’s transition away from high emission fossil fuels by using the transferable expertise of their workforce. This supports the UK’s mission for growth, while putting the country at the cutting edge for developing the skills of the future.

An up and running carbon capture industry is expected to add around £5 billion per year to the UK economy by 2050 and the backing of these 2 sites sends a clear signal to investors that the UK is open for business.

As part of the partnership with GB Energy and The Crown Estate, the progress on Track-1 comes as The Crown Estate awarded an Agreement for Lease to Eni to repurpose existing infrastructure to transport and store CO2, reducing cost and environmental impact.

Louise Kingham, SVP Europe and head of country, UK for bp, said:

This announcement represents another step forward for the Northern Endurance Partnership and East Coast Cluster.

Major projects like these have the potential to help stimulate economic growth – supporting thousands of jobs, helping UK companies prosper through the vast supply chains involved and creating the infrastructure to help major industrial companies with their decarbonisation plans.

Collaboration is key in helping to progress and deliver the energy transition in the UK, and we look forward to continuing to work alongside the government and our partners to move these innovative projects forward.

Alex Grant, SVP and head of country, UK for Equinor, said:

We welcome this major milestone in progressing these 2 key projects and applaud the hard work and collaboration that has led us here.

Equinor has been an energy partner with the UK for over 45 years and today’s announcement is a step for both Equinor and the UK to progress our energy partnership further.

This will help decarbonise the country’s industrial heartlands and achieve its net zero ambitions whilst providing jobs and value creation.

The UK will continue to be a key market for Equinor, building on our history of significant energy provision along its East Coast, which is transitioning from traditional oil and gas demand to renewables and low carbon options like CCS and hydrogen.

Eni CEO, Claudio Descalzi, said:

Today’s news is an important step towards the creation of a new business chain linked to the energy transition.

HyNet will become one of the first low-carbon clusters in the world and the project will decarbonise one of the key energy-intensive industrial districts as well as unlock significant economic growth in this region of the UK.

This commitment is clear evidence of how governments and industry can work together to implement pragmatic and effective industrial policies, in order to accelerate decarbonisation. On our side, it reaffirms Eni’s role as a key partner with the UK in enabling its journey towards Net Zero.

James Richardson, Acting Chief Executive of the Climate Change Committee, said:

It’s fantastic to see funding coming through for these big projects. We can’t hit the country’s targets without CCUS so this commitment to it is very reassuring. It will no doubt provide comfort to investors and business about the direction of travel for the country.

We know these projects will provide good, reliable jobs in communities that need them. It is important that prosperity for these parts of the country is built into a clean energy future.

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

CCUS is a tool in our armoury of technologies which we need to decarbonise parts of energy that we currently can’t do with clean electricity, such as major industrial processes.

The energy transition is gathering pace, and the development of CCUS here for industrial processes unlocks inward investment, creates jobs and helps areas with a proud history of engineering and industry pioneer the technologies of the future in the UK.

Olivia Powis, CEO of the Carbon Capture and Storage Association (CCSA), said:

The government’s confirmed support for carbon capture and storage and hydrogen demonstrates their commitment to the UK’s journey to net zero.

Today’s announcement shows that decarbonisation does not mean de-industrialisation, and highlights the UK’s leadership in these important technologies.

The industry has made significant strides towards deploying carbon capture projects and by establishing the first 2 CCUS clusters in the North West and North East of England, it means that we can deliver thousands of new highly skilled jobs whilst reducing our CO2 emissions and retaining existing jobs in our industrial areas in critical industries like cement and manufacturing across the UK.

Celia Greaves, CEO of the Hydrogen Energy Association, said:

This is a vital step forward, catapulting hydrogen towards long-term certainty we need in the UK. Supporting hydrogen at scale in 2 of the biggest UK industrial clusters is the government giving hydrogen another green light as a key component of its green energy ambitions. We particularly welcome the news that this will provide thousands of new jobs given the HEA’s solid focus on hydrogen’s role in delivering clean growth.

Our own project map has built up a blueprint of hydrogen endeavours across all parts of the UK and this significant investment in carbon capture clusters is going to bring forward the first large scale projects we have seen in the country. What’s more, it will inject further enthusiasm for wider investment to power-up business confidence which will have a knock-on effect of continuing to position the UK as a global player in hydrogen technology and innovation.

Clare Jackson, CEO of Hydrogen UK, said:

We are thrilled to see the UK government’s commitment to advancing Track-1 clusters in partnership with the private sector. This initiative is a crucial step forward for regional development, driving economic growth, and creating high-quality jobs across the country.

The integration of CCUS technology with hydrogen production is pivotal for achieving our net zero targets. CCUS-enabled hydrogen not only provides a low carbon, and scalable energy solution but also ensures the UK remains at the forefront of the global hydrogen economy.

By moving forward with Track-1, we are laying the foundation for a cleaner, more resilient energy future for all.

Mike Clancy, General Secretary of Prospect union, said:

Funding the development of commercial carbon capture and storage is an important part of the transition to a low carbon economy.

Siting this new technology in areas where high carbon jobs are being phased out is also vital to support our industrial heartlands and ensure future jobs and skills.

CCUS also allows the UK to retain and develop domestic energy intensive industries while still cutting carbon. The alternative is simply offshoring industry, losing jobs and failing to genuinely cut emissions.

Rain Newton-Smith, CEO, Confederation of British Industry (CBI):

This latest announcement demonstrates the UK’s continued leadership in driving the net zero transition. Investments in CCUS will not only enable key decarbonisation projects to become a reality but will pave the way for meaningful industrial decarbonisation. It also has the potential to unlock high quality jobs and commercial opportunities, as well as further develop existing supply chains. Green growth can undoubtedly be the engine that powers the UK’s economy for decades to come and this moment represents a critical milestone as we create and shape the markets of the future.

The press release issued by the Department for Energy Security and Net Zero on 2 October 2024.

Taskforce to accelerate the UK’s solar energy rollout to strengthen energy independence and deliver updated roadmap as part of 2030 clean power mission.

Solar power will be a key driving force behind the 2030 clean power mission, Energy Secretary Ed Miliband told industry today (Wednesday 2 October) during the first meeting of the government’s reactivated Solar Taskforce.

The taskforce brings together leading figures from DESNZ, industry and regulatory organisations and will focus relentlessly on accelerating the delivery of solar energy across the country. Homegrown, renewable energy projects including solar will help build the UK’s energy independence and reduce dependence on volatile fossil fuels – protecting consumer bills and providing clean power.

Reflecting the government’s ambitions to generate more solar power by 2030, the taskforce will build on its strong foundations, and has committed to delivering an updated solar roadmap within the coming months.

To inform this work, this first meeting focused on renewed efforts to expand solar energy initiatives, including actions to develop ethical, resilient and innovative supply chains and to ensure that a skilled and properly resourced workforce is in place to scale up solar installations across the UK.

This comes after plans were announced in July for a ‘solar rooftop revolution’, which will see millions more homes nationwide equipped with solar panels, significantly boosting solar power’s contribution to the UK’s renewable energy transition and protecting household bills.

In just a few months, the government has also consented unprecedented amounts of nationally significant solar – 2GW – more than the last 14 years combined.

Energy Secretary Ed Miliband said:

The relaunch of the Solar Taskforce is essential for accelerating action and innovation in our journey towards clean power by 2030 – and to achieve this we are committed to working in lockstep with industry.

The taskforce has shared ambitions to go further and faster, and as solar is one of the cheapest sources of power to build and operate, it is just common sense to make sure it powers even more UK homes and businesses.

This will not only help to cut carbon emissions but communities stand to benefit too from secure homegrown energy and lower energy costs.

Chris Hewett, CEO Solar Energy UK, said:

I am excited to be working with the new Secretary of State on getting the solar taskforce back to work for the country.

More solar power means cheaper, more secure and more sustainable energy, alongside jobs and economic growth.

To deliver on those aims, the forthcoming solar roadmap will outline how the UK will overcome critical barriers to the sector’s growth, among them skills and access to the electricity grid.

The press release issued by the Department of Energy Security and Net Zero on 23 September 2024.

New plans to boost minimum energy efficiency standards for all rented homes.

Over 1 million households are set to be lifted out of fuel poverty, as the government announces plans for the biggest potential boost to home energy standards in history.

Families across the country are continuing to grapple with the consequences of high energy bills amid a cost-of-living crisis – with too many tenants exposed to a harsh daily reality of cold, draughty homes and expensive bills.

Government intervention is now well overdue to transform living standards and deliver the safety and security of warmer, cheaper homes that are free from damp and mould.

The Energy Secretary pledged to take action to reverse these failures of the past and stand with tenants, with a commitment to consult by the end of the year on boosting minimum energy efficiency standards for private and social rented homes by 2030.

Currently, private rented homes can be rented out if they meet Energy Performance Certificate E, while social rented homes have no minimum energy efficiency standard at all.

The government will now shortly consult on proposals for private and social rented homes to achieve Energy Performance Certificate C or equivalent by 2030.

The government has also announced a new Warm Homes: Local Grant to help low-income homeowners and private tenants with energy performance upgrades and cleaner heating, and confirmed the continuation of the Public Sector Decarbonisation Scheme, as well as the Warm Homes: Social Housing Fund, which replaces the Social Housing Decarbonisation Fund, to support social housing providers and tenants.

Today’s announcements kickstart delivery of the government’s Warm Homes Plan, which will transform homes across the country by making them cleaner and cheaper to run, from installing new insulation to rolling out solar and heat pumps.

Notes to editors

The number of tenant households in fuel poverty which are set to benefit from higher minimum energy efficiency standards is a preliminary estimate using the DESNZ National Buildings Model based on the assumptions from the government’s preferred position in the 2020 consultation on Improving the Energy Performance of Privately Rented Homes in England and Wales . The same assumptions were also applied to social housing to estimate the impact of new standards in the social rented sector. This includes assuming an energy efficiency target rating of C based on SAP2012 and the estimate refers to fuel poor households in England only. No account is taken of other future policies that might interact, such as the Warm Homes: Social Housing Fund. Fuller analysis will be set out in an Impact Assessment for the Regulations.

Guidance for Local Authorities on the new Warm Homes: Local Grant, which replaces the Local Authority Delivery scheme, and which will start delivery in 2025. The expression of interest window for local authorities wishing to participate will open in October this year. Low-income, private tenants will be eligible for support, with the agreement of their landlord. Private tenants are also eligible for support under the Energy Company Obligation. Further details of the Warm Homes Plan will be set out through the Spending Review.

Guidance for Wave 3 of the Warm Homes: Social Housing Fund, which opens for applications in week commencing 30 September.

Guidance for Phase 4 of the Public Sector Decarbonisation Scheme, which is delivered by Salix Finance.

We will shortly set out a consultation with proposals for improvements to Energy Performance Certificates to make them more accurate and reliable.

The press release issued by the Department for Energy Security and Net Zero on 20 September 2024.

New government consultation will investigate introducing regulations for third-party services in the energy retail market to protect consumers and businesses.

Energy brokers and price comparison websites will be among those set to be held to account by a new regulatory regime, to provide better protections and save money for consumers and businesses.

These new government proposals are a response to unacceptable instances of consumers and businesses being scammed by unregulated rogue brokers and other Third-Party Intermediaries (TPIs) in the energy retail market.

Many TPIs provide valuable services to consumers, helping them to shop around for the best deals and secure energy contracts which are best tailored to their needs.

However, examples of unethical behaviour have included adding hidden fees in exchange for their services or offering unsuitable contracts for customers’ specific requirements – all in a market where their clients have little, or no, route for redress.

The proposals published today seek to stop this practice by regulating the market, and aim to restore trust in these organisations. They would make it mandatory for TPIs to provide transparent information on their fees and clarity over the terms of their contracts to ensure consumers can make informed decisions on whether to sign on the dotted line. Universal standards of practice to prevent mis-selling and improve dispute resolution mechanisms would also be introduced to safeguard consumer rights.

As well as helping families and businesses secure a fair deal, TPIs could also offer complementary services to empower consumers to reduce their carbon footprint by advising them on the best ways to improve their energy efficiency and cut carbon emissions – which in turn could also help bring down their bills.

Minister for Energy Consumers Miatta Fahnbulleh said:

Too many families and businesses, already struggling with the effects of the energy crisis, have fallen victim to poor practices by energy intermediaries. These unregulated third parties and rogue brokers have had license to scam consumers without oversight or facing consequences.

We will bring these intermediaries under control and put an end to hidden fees and other unethical tactics.

A new regulatory framework, coupled with clear rules and standards, will restore trust and protect consumers while helping to build an energy market fit for the future – one where these organisations help people save money through fairer practices and show them the best ways to reduce their carbon footprint.

Tina McKenzie, Policy Chair, Federation of Small Businesses (FSB), said:

We are very pleased to see that the government is proposing that energy brokers will be compelled to be more transparent about fees and contract terms, and that the complaint and dispute resolution process will be more robust.

The energy market can be very confusing to navigate for small firms, and many find brokers are helpful to find the best possible deal. However, this is not the case for all third-party intermediaries and there is widespread scepticism among small businesses as to whether they truly act in the small business customer’s best interests. FSB has long called for tougher rules to crack down on questionable practices among a significant minority of third-party intermediaries, to make the energy market work better for small business consumers.

This will drive up confidence and create a fair and level playing field for small businesses as they get past the energy crisis and look to the future, with the right deal for them.

Taken together, the measures being proposed are all designed to protect consumers, but also raise standards and ensure fair competition in the energy market of the future.

Subject to the consultation, a new regulatory regime will:

• put in place a coherent approach to regulation of TPIs
• ensure fairness, equity and consumer empowerment in interactions with TPIs, enabling informed decision-making
• require price transparency for consumers within the TPI sector
• provide a suitable remedy for customer harm if it does occur
• accommodate both existing and future TPI business models whilst also being proportionate to the harm or risk of harm identified
• encourage innovation, measures that will contribute towards net zero, and fair market competition

These measures and standards will also be future-proofed, enabling this relatively new market to continue evolving, and making use of new technologies such as artificial intelligence to deliver the best service, and savings, for consumers and businesses.

The press release issued by the Department for Energy Security and Net Zero on 13 September 2024.

National Energy System Operator will support the UK’s energy security, help to keep bills down in the long term, and accelerate the government’s clean power mission.

Britain’s energy system will be planned by a new publicly owned organisation as part of a new more strategic approach, which will help to deliver clean power by 2030.

The new National Energy System Operator (NESO) will help connect new generation projects with the electricity grid, working alongside Great British Energy to deploy renewable energy, so bill payers can reap the benefits of clean, secure, homegrown power.

It comes as the government today reached an agreement with National Grid to acquire the Electricity System Operator, which will be transferred to public ownership.

Set to start work on 1 October, NESO will be chaired by former E.ON CEO Dr Paul Golby, with Fintan Slye as the Chief Executive Officer.

Energy Secretary, Ed Miliband, said:

Today marks a milestone for Britain’s energy system as we bring the system operator into public ownership to provide impartial, whole-system expertise on building a network that is fit for the future.

The new National Energy System Operator has a huge role to play in delivering our mission to make Britain a clean energy superpower.

We need to move Britain off expensive, insecure fossil fuel markets, and onto clean, cheap homegrown power that we control. This is how we reduce bills in the long term, strengthen our energy independence and support skilled jobs across the country.

This is another step forward by a government in a hurry to deliver for the British people.

Currently, there is no single body responsible for overseeing the strategic planning and design of the country’s electricity and gas networks.

NESO will fill this gap – breaking down the siloes which currently exist between the planning of electricity and gas systems, with independent oversight for the design of all Great Britain’s energy networks.

The move will enable investors to build out new energy infrastructure with confidence in how their project will fit into the country’s wider clean energy plan.

The new independent body will support the government’s rapid action to accelerate to net zero.

The government’s Mission Control – headed up by Chris Stark – has already given NESO one of its first tasks – commissioning it to provide advice on how the UK will hit its goal to deliver clean power by 2030.

It comes on top of launching Great British Energy, lifting England’s onshore wind ban, approving four major solar farms and launching the Clean Energy Mission Control Centre.

John Pettigrew, Chief Executive of National Grid, said:

We look forward to working together with NESO to continue to drive the UK’s energy transition forward at pace; accelerating the decarbonisation of the energy system for the digital, electrified economies of the future.

Paul Golby, Chair of the National Energy System Operator said:

This is a pivotal moment as we head closer to the launch of the National Energy System Operator on 1 October. NESO will support a more integrated and coordinated strategy to meet the unprecedented challenges of climate change, ensuring security of energy supply and keeping bills as low as possible.

NESO brings together critical roles and responsibilities under one roof, creating an environment that is essential for success. We will have a broad strategic oversight of both the electricity and gas systems, managing system planning, market operations, and ensuring that our energy infrastructure is secure, resilient, flexible, and future-proof.

The National Energy System Operator has been established through powers under the Energy Act 2023. This sets out the responsibilities of the new public body to maintain the UK’s energy supplies, protect energy consumers and plan for an efficient clean energy system that is fit for the future.

As part of this, NESO will take a cross-sector approach to planning the country’s energy system in the best interests of the British public – looking across electricity, gas and hydrogen, as well as renewable generation, storage and other emerging technologies like carbon capture usage and storage. The independent organisation will map out the country’s future energy networks – helping both the government and Ofgem make informed decisions when considering new infrastructure, speeding up grid connections and progressing the UK’s net zero goals.

Fintan Slye, Chief Executive of the National Energy System Operator, said:

Today is a crucial step in our journey to become the National Energy System Operator and we’re delighted that the Energy Secretary has confirmed 1 October will be the launch day of this new independent organisation.

We are excited to take this bold step forward to help unify and optimise our national approach to energy and to deliver the clean, secure, decarbonised energy system that is affordable and fit for the future.

We are ready, and look forward to providing expert independent advice and working collaboratively across all parts of the energy sector, with government, the regulator and within our communities across Great Britain.

Jonathan Brearley, Chief Executive of Ofgem, said:

The setup of NESO is a huge step forward in ending Britain’s exposure to volatile energy markets and getting clean, renewable power to every single one of us.

Its work is central to long-term energy security and to running the system day to day.

We look forward to working with NESO to ensure Britain gets the clean power system it needs at the lowest possible cost to consumers and taxpayers.

The press release issued by the Department for Energy Security and Net Zero on 12 September 2024.

The UK and Scottish governments have announced a joint investment plan for Grangemouth following Petroineos’ decision to decommission its oil refinery and pledged to work together for an industrial future for the site (12 September).

The company has confirmed it will cease refining oil at the site during the second quarter of 2025 onwards due to global market pressures and competition from bigger, more modern and efficient sites in the Middle East, Asia and Africa. This follows years of loss-making, with the company stating that it has lost more than $775 million since 2011, despite having invested more than $1.2 billion to maintain the refinery’s safe operation.

The UK Government has been working with the Scottish Government to deliver an investment plan that will help secure Grangemouth’s industrial future and protect its skilled workforce.

This includes:

• £100 million package: This includes £20 million in joint funding from the UK and Scottish governments announced today on top of £80 million in joint funding from the 2 governments for the Falkirk and Grangemouth Growth Deal. This funding will support the community and its workers, investing in local energy projects to create new opportunities for growth in the region. Over the next 30 years, it is estimated that the Falkirk & Grangemouth Growth Deal will deliver over £628 million in economic benefits and create 1,660 jobs across the Falkirk Council area
• Immediate career support for workers: UK and Scottish governments to provide tailored support that will help affected workers in finding new employment
• Investment in the site’s long-term future: The £1.5 million joint-funded Project Willow study has identified a shortlist of 3 credible options to begin building a new long-term industry at the refinery site, including low carbon hydrogen, clean eFuels and sustainable aviation fuels

It comes as the UK Government confirmed today it stands ready to engage on how the National Wealth Fund could back projects that have the potential to yield a viable long-term future for the site. Ministers have confirmed that both governments will put local businesses, workers, and trade unions at the heart of decision-making on determining the region’s industrial future.

UK Government Energy Secretary Ed Miliband said:

It is deeply disappointing that Petroineos have confirmed their previous decision to close Grangemouth oil refinery.

We will stand with the workforce in these difficult times, that is why we are announcing a package of investment to help the workforce find good, alternative jobs, invest in the community and serve a viable industrial future for the Grangemouth site, with potential for future support from the National Wealth Fund.

Unlike in the past, the government is working in lockstep with the Scottish Government across every front. Workers and their families should be in no doubt this is a government that stands with workers, trade unions, and businesses to fight for jobs and investment in Scotland.

Scottish Government Cabinet Secretary for Net Zero and Energy Gillian Martin said:

My immediate thoughts are with the workforce. This is a very challenging time for them and their families, and we will support every worker affected by this decision.

We are working very closely with the UK Government and together we have communicated our disappointment to Petroineos today.

The Scottish Government has consistently made clear our preference was for refining to continue as long as possible, and we have continued to press the shareholders for a positive decision until the 11th hour.

This significant package of support combines immediate help for affected workers and a long-term contribution to ensure that Grangemouth continues to thrive in the future. We are clear that there should be a just transition for the refinery site and we remain committed to bringing forward low carbon opportunities that will sustain skilled jobs across the wider area for many years to come.

Secretary of State for Scotland Ian Murray said:

I understand this is a worrying time for the workers at the refinery and the UK Government is working closely with the Scottish Government and Petroineos to ensure they are being supported.

Both governments have invested in Project Willow to examine how Grangemouth remains an energy hub in Scotland. The enhanced £100 million Falkirk and Grangemouth Growth Deal announced today will help ensure the long-term future of the site – a key part of our journey to clean energy by 2030.

 We remain committed to working together looking at how we can help the area build on its skilled workforce and local expertise to boost economic growth.

The Energy Secretary Ed Miliband and Scottish Cabinet Secretary for Net Zero and Energy Gillian Martin have taken joint action to urgently engage with Petroineos, industry experts, and trade unions in exploring all possible solutions to secure a viable industrial site for the future, in the event of a decision from the company to close the refinery.

Ministers continue to urge the company to keep refining open for as long as possible, emphasising the company’s responsibility to its employees and the community. As the company has made clear that there is no viable commercial future for the refinery business, the UK and Scottish governments have today unveiled a package to help the workforce, invest in the area and secure a viable industrial future for the Grangemouth site, as one of Scotland’s key industrial heartlands.

The company’s decision to convert to an import terminal means that their fuel supply will now be maintained by importing refined products directly, rather than importing crude oil to refine on site. This will form part of the UK’s diverse and resilient fuel market, covering both imported fuel and refined oil production. Since 2013, the UK has been a net importer of refined products, with imports accounting for 51% of UK demand for all petroleum products in 2023.

In response to today’s news from the company, the Energy Secretary Ed Miliband will co-chair an immediate virtual meeting of the Grangemouth Future Industry Board, with Cabinet Secretary for Net Zero and Energy Gillian Martin, and the UK Government Secretary of State for Scotland Ian Murray. Ministers will discuss next steps with local industry leaders, Falkirk Council, trade bodies and unions – ahead of an in-person meeting of the Grangemouth Future Industry Board later in Autumn.

Further information

The Grangemouth support package announced by UK and Scottish governments today includes:

Joint Grangemouth support package

The UK and Scottish governments have today confirmed a joint £100 million support package for Grangemouth.

This includes a total of £20 million in additional investments, to support the local Grangemouth community following the closure of the refinery. It covers:

• The £10 million Scottish Government ‘Greener Grangemouth’ programme, that aims to deliver projects at the heart of Grangemouth’s just transition
• £10 million from the UK Government for local energy projects, as well as new skills support from the Office for Clean Energy Jobs to help the site’s workers into good clean energy jobs

Today’s additional funding comes on top of an £80 million Falkirk and Grangemouth Growth Deal, match-funded by the 2 governments, to back new industries across the region. The Growth Deal will support a range of new projects, including:

• A bioeconomy plant already in the pipeline, which could use waste whisky and food in chemical production processes to reduce reliance on fossil fuels – via technology currently unavailable in the UK
• A new £9 million technology centre to support the development, manufacture and use of low carbon technologies. This will help companies substitute their products and industrial processes for greener alternatives, and will be linked to wider hydrogen and carbon capture use and storage projects
• An employment hub led by one of the UK’s largest operators, Forth Ports, will help develop the skilled workforce needed to support emerging energy sectors. The move will help to drive innovation and attract new investment across sectors, such as offshore wind energy, renewable energy production, storage and distribution, and tidal power

Immediate career support for workers

The UK and Scottish governments are working closely with the company, Petroineos, to provide immediate support for affected workers at Grangemouth refinery, while longer-term projects get up and running on the site.

The trade body Fuels Industry UK will ensure affected Grangemouth workers have direct access to a wide range of potential employers. The association will also work with the specialist skills provider Cogent to host job vacancies from relevant employers for the Grangemouth workforce.

Workers at the refinery will also receive tailored advice, helping them to identify new training opportunities – backed by the Scottish Government’s Partnership Action for Continuing Employment framework.

The UK Government has also confirmed that Grangemouth will be among the first areas that the new Office for Clean Energy Jobs will work with to help deliver a just transition for workers.

Project Willow

A range of proposals to deliver a viable long-term future for the Grangemouth refinery site have been shortlisted by the UK and Scottish Governments, as part of a joint-funded £1.5 million feasibility study.

The project is exploring how the region can build on its skilled workforce, local expertise and long heritage as a fuel leader in Scotland to forge a new path in clean energy production.

Following an initial research phase, the project has identified 3 potential industries that could be hosted on the refinery site.  These are:

• The production of low-carbon hydrogen
• Clean eFuels synthesised from chemical components like hydrogen or carbon dioxide
• Sustainable aviation fuels which use lower carbon sources like forestry and agricultural waste, used cooking oil and carbon captured from the air to produce jet fuel

These options will now be tested against their potential to create long-term industries in Grangemouth, support new jobs and contribute to the UK’s clean energy transition. The project will engage extensively with the local community, trade unions, businesses, and industrial experts on rapidly assessing the most viable candidates for industrial production on the Grangemouth site.

The press release issued by the Department for Energy Security and Net Zero on 3 September 2024.

Sixth renewables auction delivers record smashing 131 clean energy projects powering equivalent of 11 million homes.

Millions of homes and businesses across Britain will be powered by a new supply of clean, cheap, homegrown energy as a record number of projects receive funding through the government’s most successful renewables auction to date.

In a key milestone towards delivering clean power by 2030, the latest auction round delivered 131 new green infrastructure projects. This makes it the biggest round ever with significant numbers for onshore wind, solar and tidal energy, which will power the equivalent of 11 million British homes.

The results are a marked improvement on the previous auction round in 2023, which saw zero offshore wind projects agreed.

These successful results come after the government last month moved quickly to increase the budget by 50% – a record funding uplift and 7 times bigger than the previous round’s pot.

As a result, offshore wind is back for business in UK waters – the backbone of the clean energy mission – with 9 contracts awarded including securing both what will be Europe’s largest and second largest windfarm projects, Hornsea 3 and Hornsea 4 off the Yorkshire coast.

A new rollout of low-carbon electricity is a key step for UK energy independence and energy security, helping protect families and businesses from spiking global fossil fuel prices.

Projects have been agreed at well below the upper limit on the price set for the auction – meaning the government has bought a record amount of clean power at much lower cost to consumers than the maximum price – providing value for money and cheap power.

Funding awarded today will also help support new green jobs across the country, increasing prosperity in industrial heartlands and rural communities, and unlocking green economic growth from the Scottish Highlands to the Suffolk coast.

Energy Secretary Ed Miliband said:

We inherited a broken energy policy, including last year’s disastrous auction round which gave us no successful offshore wind projects.

Today we have now achieved a record-setting round for enough renewable power for 11 million homes, essential to give energy security to families across the country. It is another significant step forward in our mission for clean power by 2030 – bringing Britain energy independence and lower bills for good.

These results show that together, this government and the energy industry are securing investment into our country. This auction has produced a record number of solar projects bolstering our mission for a solar revolution, we have powered forward with onshore wind, secured the largest commercial floating offshore wind project in the world and got the offshore industry back on its feet.

As we accelerate our plan for clean power by 2030 the government will work with the industry on how we can build on this success to ensure we can go even further and faster to deliver the power we need.

On the back of this successful auction, the Energy Secretary is working with the industry to accelerate ways that the Contracts for Difference system and other energy policies can be expanded, so that more renewable energy, including offshore wind, can be connected to the grid, and quicker.

The 131 projects this year is the biggest auction to date – exceeding the 92 projects delivered in the last auction round.
This includes:

• the largest offshore windfarm project in Europe – the Hornsea 3 project off the Yorkshire coast
• the largest floating offshore wind project in the world to reach market, Green Volt, which is double the size of Europe’s total installed floating offshore wind capacity
• 6 new tidal projects, building on the UK’s world leading position, with just under half of the world’s operational tidal stream capacity being situated in UK waters
• a combined 115 solar and onshore wind projects, which is more than the total number of projects delivered in the last auction round

Energy Minister Michael Shanks said:

Securing new wind turbines, solar panels and cutting-edge technologies such as tidal will boost growth, catalyse investment and support good jobs across Great Britain.

We’ve done this while ensuring value for money for billpayers, delivering the biggest auction round to date at competitive prices, helping turbocharge our mission for energy independence and clean power by 2030.

CEO of Low Carbon Contracts Company, Neil McDermott, said:

We are delighted with the outcome of Allocation Round 6 (AR6) which has awarded contracts to the largest number of projects ever.

The results of AR6 increase our total renewable electricity CfD portfolio to 39GW and 372 contracts. CfDs support technologies including offshore and onshore wind, solar, as well as emerging technologies of floating wind, tidal and geothermal.

The success of this allocation round not only boosts our ability to decarbonise the economy and enhance energy security, but also unlocks exciting new opportunities for innovation and growth. We look forward to working closely with our new generators to deliver these projects, accelerating the delivery of net zero and a sustainable, low-carbon future.

Today’s announcement is the latest step the government has taken to accelerate the mission for clean, secure power by 2030. In just 3 months the government has:

• lifted the ban on onshore wind in England
• launched Great British Energy in partnership with the Crown Estate, backed by £8.3 billion of new money, which is estimated to create up to 20-30GW of new offshore wind developments reaching seabed lease stage by 2030
• approved 3 major solar farms powering the equivalent of around 400,000 new homes
• launched its Clean Energy Mission Control centre, led by former Climate Change Committee Chief Executive Chris Stark, to accelerate the deployment of clean power

All these measures combined will support the mission to decarbonise the electricity grid by 2030 and hit net zero in 2050, helping transform the country into a clean energy superpower.

Notes to editors

Funding is awarded through the government’s Contracts for Difference scheme which provides developers with subsidies for clean electricity projects across Britain with a built-in design to keep costs low for billpayers.

When wholesale electricity prices are high, generators pay back into the scheme with money passed back to consumers.  In recent years the cost of renewable energy has fallen below the market price for electricity, meaning that the scheme has paid money back to consumers, helping reduce energy bills.

This was seen over Winter 2022/2023, when Contracts for Difference payments reduced the amount needed to fund government energy support schemes by around £18 per typical household.

The homes powered estimate reflects the equivalent number of homes that could be powered based on an estimate of the annual generation from the capacity procured in AR6. It is not possible to continuously power a home through intermittent renewables – this capacity will work alongside the rest of the electricity system to power homes and businesses. The estimate is calculated using household consumption estimates sourced from the published Subnational Electricity and Gas Consumption Report and technology specific load factors published in the CfD Allocation Round 6 Standard Terms Notice. The actual generation will vary based on site specific factors.

Comparisons of global offshore wind and floating offshore wind project sizes are based on analysis of RenewableUK EnergyPulse global projects data and include projects that have reached market (operational, under construction or secured financing).

See the full list of Contracts for Difference Allocation Round 6 results.