Tag: Energy Security and Net Zero Department

The press release issued by the Department for Energy Security and Net Zero on 26 July 2024.

The Secretary of State for Energy Security and Net Zero met with COP leaders in London to discuss the need for greater urgency in tackling the climate crisis.

On Friday 26 July, the Secretary of State for Energy Security and Net Zero met with the Rt Hon Sir Alok Sharma, President for COP 26, HE Mukhtar Babayev, COP29 President Designate and HE Ana Toni, National Secretary for Climate Change from Brazil as COP 30 Presidency. This was part of a visit that included a roundtable with His Majesty King Charles III to discuss the need for greater urgency in tackling the climate crisis.

The Secretary of State welcomed the outcomes achieved through the UAE consensus, including the historic agreement to transition away from fossil fuels, and offered full support to Azerbaijan and Brazil for their upcoming COP 29 and COP 30 Presidencies. He underlined the UK’s determination to act as a global leader and reliable partner on climate action. Emphasising the importance of all countries, especially major emitters, taking action to implement the outcomes of the Global Stocktake and bringing forward 1.5°C aligned Nationally Determined Contributions (NDCs) as soon as possible, he offered to share the UK’s experiences from COP 26 in supporting ambition in NDCs. He further emphasised the UK’s commitment to working together with all Parties to agree an ambitious New Collective Quantified Goal (NCQG) on climate finance and accelerate the necessary reforms of the global financial architecture.

The Secretary of State underlined the importance of the UK’s renewed domestic leadership in encouraging ambitious action abroad. Climate and clean energy are at the heart of the new government’s agenda. The UK is taking immediate action to unlock investment in onshore wind, begin a solar revolution, and setting out our plans for Great British Energy.

The Secretary of State expressed the UK’s utmost concern at the growing scale and severity of climate impacts around the world, especially in developing countries, and emphasised our full commitment to working with the Troika and all Parties in this critical decade to deliver increased ambition to achieve the goals of the Paris Agreement, keep 1.5°C in reach and support the most vulnerable.

The press release issued by the Department for Energy Security and Net Zero on 21 May 2024.

Surplus from the UK’s third carbon budget will not be carried forward – proving the UK’s pragmatic approach to net zero is compatible with its climate targets.

Surplus greenhouse gas emissions cut over the last 5 years will not be carried forward into the next carbon budget, as the UK is set to meet ambitious targets to achieve net zero in 2050.

This builds on the UK’s success of becoming the first major economy to halve emissions since 1990, while growing the economy by around 80%.

The UK overachieved in delivering its legally binding emissions target by 15% between 2018 to 2022 as part of Carbon Budget 3. It is also set to overachieve on Carbon Budget 4 between 2023 to 2027 – proving the government’s proportionate approach to net zero is compatible with meeting UK climate targets, without burdening families with unnecessary costs.

Under the UK’s Climate Change Act, if the country emits fewer emissions than the legal limit, the government has the power to bank the surplus for later carbon budgets.

The government decision not to carry forward the surplus keeps the UK within its ambitious target with no additional headroom to emit greenhouse gases over the coming years. This is in line with advice provided by the independent Climate Change Committee.

Energy Security and Net Zero Minister Justin Tomlinson said:

By deciding not to carry forward our over-performance from the third carbon budget, we are doubling down on our commitment to reach net zero, and we’re already halfway there.

This will keep the UK at the forefront of global efforts to cut its emissions, but we will do this while also driving down consumer bills.

Professor Piers Forster, interim Chair of the Climate Change Committee, said:

The Committee congratulates the government on its decision not to carry forward any surplus from the Third Carbon Budget. It’s the right choice. It shows an understanding of both the climate science and the very real need to accelerate progress on emissions reduction.

We’ve cut our emissions by half since 1990. The next big challenge is to hit the UK’s 2030 target, which is to decarbonise by 68% against 1990 levels. The government has made a sensible decision, in line with our advice, not to kick the can down the road. Now is the time for more investment in low carbon solutions across the country. We’ll be advising on that more in the Committee’s upcoming Progress Report.

Today’s announcement confirms the UK has now over-achieved against 3 consecutive carbon budgets. The UK is also one of very few major economies to have a legally binding emissions reduction target covering 2035 – the target of a 77% cut on 1990 levels goes way beyond many other countries.

Not only are the UK’s carbon budgets some of the most ambitious in the world, but the government has set out more detail than any other G20 country on how they will be met.

Since 2010, the UK has seen £300 billion in public and private low carbon investment, with a further £100 billion of private investment expected by 2030, helping support up to 480,000 UK jobs in 2030. Since September alone, companies have also announced plans for around £24 billion of new investment, demonstrating their confidence in the UK’s net zero transition.

The press release issued by the Department for Energy Security and Net Zero on 8 May 2024.

£196 million for high-tech nuclear fuel facility and new measures for fusion energy.

The UK will be the first European nation to produce advanced nuclear fuel – a market currently dominated by Russia – to help fuel nuclear power plants at home and abroad. This is part of the government plan to push Putin out of the global energy market and drive down energy bills.

The UK will build Europe’s first facility to power future nuclear reactors – helping to isolate Russia from global energy markets, boost British energy security and provide reliable, affordable energy.

The government is awarding £196 million to Urenco to build a uranium enrichment facility. This will produce fuel by 2031 that would be ready to export or use domestically, and could power UK homes in the next decade. It will put an end to Russia’s reign as the only commercial producer of high-assay low enriched uranium (HALEU) and ensure other countries are not reliant on Russian exports.

The new facility will support around 400 highly-skilled jobs, helping to boost the local supply chain and grow the economy. Located at Capenhurst in Cheshire, this will cement the status of the North-West of England as a world leader in nuclear fuel production. This builds on the Prime Minister’s ‘national endeavour’ to secure the future of the UK’s thriving nuclear industry – investing at least £763 million in skills, jobs, and education.

In the 2 years since Putin illegally invaded Ukraine, the UK has led the way in cracking down on Russian oil and gas imports. Now, the UK is working with its nuclear allies to build a secure global uranium supply chain free from Russian influence.

The UK is also leading the way in fusion energy development, as engineering and construction companies will be invited on to bid for up to £600 million to build the first commercially viable fusion prototype power plant at a former coal plant in Nottinghamshire. Fusion could generate a near limitless source of clean electricity, securing the UK’s long-term energy independence.

Prime Minister, Rishi Sunak, said:

Building our own uranium enrichment plant is essential if we want to prise Putin’s blood-soaked hands off Europe’s energy market.

Russia has been the sole provider of this powerful nuclear fuel for too long and this marks the latest step in pushing him out of the energy market entirely.

The wider future of British nuclear remains a critical national endeavour –  guaranteeing nuclear and energy security, and reducing energy bills for Brits.

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

We stood up to Putin on oil and gas, and we won’t let him hold us to ransom on nuclear fuel.

Backing Urenco to build a uranium enrichment plant here in the UK will mean we are the first European nation outside Russia to produce advanced nuclear fuel.

This will support hundreds of new jobs, bring investment for the people in Cheshire and is a huge win for energy security at home and abroad.

HALEU is needed to power most advanced modular reactors which are crucial to meeting the UK’s ambition to quadruple nuclear capacity by 2050 – the biggest expansion in 70 years. Like small modular reactors, they can be made in factories and transform how power stations are built by making construction faster and less expensive.

These advanced reactors are more efficient and use novel fuels, coolants, and technologies to generate low-carbon electricity. Their high heat output means they can also be used to decarbonise industry, produce hydrogen for transport or heat for homes.

Meanwhile, the UK was the first country in the world to legislate for commercial fusion regulation, giving companies the confidence to invest here in the UK. New simpler planning measures will provide certainty to industry and strengthen the UK as a competitive location for companies to invest – putting the nation on the front foot before the technology is ready to be deployed.

A consultation launched today proposes designating all fusion plants nationally significant infrastructure projects that will be assessed by the Planning Inspectorate and ultimately decided on by the Secretary of State for energy.

Fusion power creates nearly 4 million times more energy for every kilogram of fuel than burning coal, oil or gas. Investment in the fusion technology of the future will help to create jobs, grow the economy, and strengthen the country’s energy security – delivering a cleaner energy system that will benefit future generations and bring the UK even closer to connecting fusion energy to the grid by the 2040s.

Separately, investment in high-tech nuclear fuel will unlock the market for advanced nuclear reactors and help the UK’s allies to build up their own nuclear capabilities without relying on Russia – bolstering Western energy security.

Urenco’s facility will have the capacity to produce up to 10 tonnes of HALEU per year by 2031. When fabricated into fuel, 10 tonnes of HALEU could contain as much energy as over one million tons of coal.

The funding is part of the £300 million HALEU programme announced in January this year. Urenco, which is part owned by the UK government and renowned for nuclear enrichment services, will co-fund the facility.

The programme builds on commitments made at COP28 which saw the G7 nuclear nations or ‘Sapporo 5’ – Canada, Japan, France, the UK and US – commit to increasing uranium production, as they are responsible for 50% of the world’s nuclear fuel conversion and enrichment capability.

Boris Schucht, CEO of Urenco, said:

The responsibility the nuclear industry has to help governments and customers to achieve climate change and energy security goals is clear.

We welcome this government investment, which will help accelerate the development of a civil HALEU commercial market and in turn the development of the next generation of nuclear power plants. These plants will have even higher safety standards and lend themselves to quicker licensing and construction processes.

Urenco has the knowledge and experience to play a leading role in the production of HALEU and other advanced fuels, operating securely under inter-governmental treaties to ensure the peaceful use and safeguarding of nuclear technology.

Paul Methven, CEO, UK Industrial Fusion Solutions, responsible for the delivery of the Spherical Tokamak for Energy Production (STEP), said:

We are looking towards a very significant milestone for STEP in the next 2 weeks as we are set to launch our search for industrial partners in engineering and construction who will join us in designing and delivering the STEP prototype plant at West Burton. This will demonstrate that fusion energy can work, and through that endeavour, we will develop an industry that can deliver commercial fusion for decades beyond.

The launch of formal consultation on a National Policy Statement for fusion energy is very welcome and an important milestone in the journey towards a new energy source, deployed in the right way. It reflects the UK’s proactive leadership in fusion energy by putting in place the critical enablers that all fusion developments will need, and in a way that will bring communities and the public along.

Zara Hodgson, Director of the Dalton Institute, said:

This is the biggest single investment in UK nuclear fuel production capability in decades, and it is especially welcome as it will accelerate the supply of the next generation of fuels that are vital for this new net zero nuclear era.

Urenco Capenhurst’s HALEU Enrichment capability will help hugely to unlock the deliverability of advanced nuclear projects, opening the door to sustainable  electricity and heat for industries from nuclear, across the UK and overseas.

North West of England is the home of the UK’s fuel production capability, and the Dalton Nuclear Institute celebrates this HMG and Urenco partnership that will be a catalyst for nuclear skills here and across the UK supply chain.

We look now towards to how we can support this important project through training and innovation.

Tom Greatrex, Chief Executive of the Nuclear Industry Association said:

This investment will enable the UK to fuel advanced reactors around the world, building on our existing capabilities to strengthen energy security for our allies while reducing their reliance on Russia.

Urenco at Capenhurst is at the very forefront of the UK’s capability, with this new facility bringing opportunities for the supply chain, new jobs and investment in the North West of England.

The press release issued by the Department for Energy Security and Net Zero on 7 May 2024.

A call for evidence launched today to explore new ways to transport captured CO2 that would enable more UK industries to adopt carbon capture technology.

Millions of tonnes of captured carbon dioxide (CO2) could be transported via road, rail, barge or ship, revolutionising the way it reaches offshore storage sites, helping more businesses cut emissions.

The government has today (7 May) launched a call for evidence for innovative new options for transporting CO2, on top of the existing network of pipelines, supporting industry on the path to net zero.

Carbon capture technology works by capturing CO2 before it reaches the atmosphere, storing it safely underground in offshore sites and reducing emissions.  The Climate Change Committee has described the technology as a necessity for meeting net zero targets.

With the ability to transport the CO2 by modes such as rail or shipping, industries across the country will be better primed to adopt carbon capture technology. As well as creating jobs and boosting the economy, it will help to transport CO2 in a way to suit businesses’ needs as part of their green transition.

Energy Efficiency and Green Finance Minister Lord Callanan said:

The UK has the right geology, talent and expertise to build a world-leading carbon capture industry, driving investment and economic growth to our industrial heartlands.

Businesses right across the country want to do their bit to reduce carbon emissions and I want to hear from them how we can deliver greener solutions for industry by giving them ever-greater access to this game-changing technology.

The UK has a distinctive geology and the capacity to store up to 20-30 million tonnes of CO2 annually by 2030, equivalent to removing 4 to 6 million cars from UK roads each year and supporting 50,000 jobs.

The government is championing this industry with a significant investment of up to £20 billion – one of the biggest in Europe.

The Call for Evidence delivers on a commitment made in the landmark Carbon capture, usage and storage (CCUS) vision published last December, which set out government plans for a new competitive UK carbon capture, usage and storage market by 2035.

Welcoming the move, Ben Burggraaf, CEO of Net Zero Industry Wales, said:

Deploying non-pipeline transport solutions, to ship captured CO2 from South Wales to a permanent store, is pivotal to the delivery of the South Wales Industrial Cluster Plan and kickstart the green industrial revolution in the region.

It is anticipated that projects using non-pipeline transport methods will be eligible for selection as carbon capture projects from 2025 onwards.

The Call for Evidence will run for 10 weeks and industry can share their views here.

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

Energy Security Secretary Claire Coutinho has appointed Dr Golby as the National Energy System Operator’s (NESO) inaugural chair.

Dr Paul Golby CBE is today confirmed as the first Chair of the National Energy System Operator (NESO).

NESO will be the new independent public body responsible for planning and operating Great Britain’s electricity and gas networks.

Soon to transition from the National Grid to public ownership, NESO will play a vital role in supporting the UK’s energy security, transition to net zero and minimising customers’ bills. In his role as chair, Dr Golby will help establish NESO as a trusted, expert body at the centre of the energy system.

He will take up his post on 6 May and oversee the creation of the new body. Once fully established later this year, he will take up appointment as the Independent Chair of NESO.

Dr Golby brings extensive experience to the new role – most recently serving as Chair of the National Air Traffic Service. He is the former CEO of E.ON UK and was previously Non-Executive Director and Chair of the Safety, Environment and Health Committee at National Grid. He is also recognised for his contributions to the engineering field as a Fellow of the Royal Academy of Engineering.

Energy Security Secretary Claire Coutinho said:

“Dr Golby brings extensive industry experience and will help our new energy system operator take its important first steps.

“With demand for electricity forecast to double by 2050, and with ambitious net zero goals to hit, this new organisation under his leadership will help us create a modern system that powers Britain with secure, clean energy, and keeps costs low for bill payers.”

Incoming NESO Chair, Dr Paul Golby, said:

“I am delighted to have been appointed as inaugural Chair of NESO and look forward to working with the board, management and team as it transitions out of National Grid and builds it capabilities to provide robust, data-based advice to Government.

“Decarbonising our energy system, whilst ensuring security of supply at an affordable cost, is one of the most important challenges facing the UK.

“I look forward to working with all stakeholders; Government, industry, regulators and community leaders as we continue on this critical journey.”

Dr Golby’s selection was scrutinised by the Energy Security and Net Zero Select Committee on 24 April after a competitive recruitment process.

Appointing Dr Golby as NESO’s inaugural chair is a key milestone that demonstrates the government is fulfilling its plan to deliver a more secure, clean energy system.

NESO is set to launch in summer 2024 as a public corporation free from commercial interests and operationally independent from government.

The Secretary of State for Energy Security will be sole shareholder of NESO, and Ofgem will regulate NESO and be responsible for approving its business planning.

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

Energy Security Secretary to set out strategy for gas in speech and take common-sense action to futureproof the country’s long term energy security.

The Energy Secretary has taken a common-sense decision to shore up the UK’s energy supply as the nation transitions to net zero.

In a plan set out today (Tuesday 12 March 2024), the government has committed to support the building of new gas power stations to maintain a safe and reliable energy source for days when the weather forecast doesn’t power up renewables.

No other major economy has done more when it comes to cutting emissions. The UK is the first major economy to cut its emissions by half since 1990, compared to the EU who have cut emissions by 30%, the US not at all and China’s emissions are up by 300%.

This is the latest step in efforts to reach net zero in a sustainable, pragmatic way that rids the UK of the need to rely on foreign dictators like Putin. The UK led the way on banning imports of Russian gas and is delivering new sources of home-grown energy: with new nuclear power plants, record investment in renewables, and new oil and gas licences in the North Sea.

The need for continued unabated gas generation into the 2030s as a back-up to ensure energy security and reduce costs has been recognised by the Climate Change Committee. Today’s plan keeps the UK on track to meet its net zero targets.

Prime Minister, Rishi Sunak, said:

Our record on net zero speaks for itself – the latest stats show that we’re already halfway there, with greenhouse gas emissions 50% lower than in 1990.

But we need to reach our 2035 goals in a sustainable way that doesn’t leave people without energy on a cloudy, windless day.

I will not gamble with our energy security. I will make the tough decisions so that no matter what scenario we face, we can always power Britain from Britain.

Energy Security Secretary, Claire Coutinho, is expected to say:

There are no two ways about it. Without gas backing up renewables, we face the genuine prospect of blackouts. Other countries in recent years have been so threatened by supply constraints that they have been forced back to coal.

There are no easy solutions in energy, only trade-offs. If countries are forced to choose between clean energy and keeping citizens safe and warm, believe me they’ll choose to keep the lights on.

We will not let ourselves be put in that position. And so, as we continue to move towards clean energy, we must be realistic.

As part of the second consultation on the Review of Electricity Market Arrangements, the Energy Secretary has set out a plan to boost gas power capacity. Firstly, by broadening existing laws requiring new gas plants to be built net-zero ready and able to convert to low carbon alternatives in the future such as carbon capture and hydrogen to power. Secondly, these gas power plants will run less frequently as the UK continues to roll out other low carbon technologies. Finally, this is in line with wider government plans to deliver net zero whilst keeping costs down for billpayers.

Electricity is powering a growing share of the economy. This year the UK registered the one-millionth electric vehicle and applications to the electric heat pump scheme are up 50% year-on-year.

The UK has built the 5 largest operational offshore wind farm projects in the world, and the share of electricity coming from renewables has risen from 7% in 2010 to almost half today. That has allowed a phase-out of coal generation altogether, with the last major plant closing this year.

While the renewable share will increase in the years ahead, they aren’t failsafe, and future supply can only be calculated based on estimation. That is why flexible power generation is needed, to keep electricity secure and reliable, acting as back-up generators to keep the lights on.

The consultation also includes proposals to reduce people’s bills across the country. A significant proportion of the UK’s energy is located away from areas of high demand: for example, a quarter of the UK’s renewable energy is generated in Scotland. Different wholesale prices could better match supply and demand and bring down costs for people across the country. The reforms could save households £45 off their yearly energy bill and the government will consult on the proposals to deliver the long-term change the UK needs to make a brighter future for Britain, and improve economic and energy security for everyone.

Ms Coutinho is also expected to add:

From my time in this role, it is clear to me that we have entered a new era. It’s an era in which energy can be weaponised against us. An era where our adversaries can inflict harm directly on British families and businesses through energy prices.

If we cannot retain control of energy prices, if we cannot protect families and businesses from the threat of future shocks, then we are not really secure. So, we must be hard-headed about the future of our energy system. We must put national interest over ideology.

This builds on wider measures to reduce energy bills, including improving access to cheaper deals. For example, some households could save up to £900 a year – through cheaper, off-peak energy tariffs, such as by charging an electric car at off-peak times. In addition, energy prices have recently fallen to their lowest level since the war began.

It is yet another step to put more cash in people’s pockets – building on the Chancellor’s historic budget delivered this week, which has slashed National Insurance Contributions: giving the average worker an extra £900 a year.

Jon Butterworth, CEO at National Gas, said:

We welcome today’s announcement which will advance the electricity market arrangements review (REMA) in consultation with industry. Getting this right will play a critical role in our journey to net zero and help create a diverse, decarbonised energy system. Timely delivery of phase 2 and the review’s conclusion, will provide industry with policy confidence and unlock crucial investment.

Today’s announcement also states a requirement for unabated gas in the power system beyond 2030. Gas will continue to play an important role in keeping the lights on, acting as a bridge to a clean power system and complimenting the growth of renewables. In order to deliver a net zero power system, we must develop flexible power technologies including hydrogen, and gas with carbon capture and storage.

Kisha Couchman, Deputy Director at Energy UK, said:

With more of our power generated by a diverse range of clean energy sources and a growing role for flexibility, the energy system has continued to undergo significant change over recent years. We welcome the government pressing ahead with ensuring our electricity markets are fit for the future and capable of attracting the billions of pounds of investment we need for power generation, storage, and network infrastructure.

The challenge is to bring forward changes to support this aim while also providing the certainty essential to bring forward long-term investment – so it’s also right to look at the role that existing mechanisms can play.

Guy Newey, CEO at Energy Systems Catapult, said:

It is increasingly clear that the only way we can get to a net zero electricity system in time and without pushing up bills is to move to a market that reflects local supply and demand.

It is an essential step forward to see government proposing stronger locational signals in the wholesale market through zonal pricing and a strong push for a smarter energy system. While it is disappointing to see nodal pricing ruled out, improved locational signals will deliver significant benefits to consumers and opportunities for innovators.

The growing importance of electricity in the economy means security of supply is an essential partner of decarbonisation. Achieving security of supply means the rapid build-out of a raft of clean technologies as well as making our system as flexible as possible. And depending on how quickly we can build new renewables, nuclear, and other important technologies like Bioenergy Carbon Capture and Storage, it is also likely to require an ongoing role for rarely-used gas power plants to ensure security of supply in extreme weather events.

Delivering change at the pace and scale required means speeding up planning so that we can build new generation and transmission quickly, digitalising our energy system to make it more flexible, and fundamental reform to the power market.

James Waddell, Head of European Gas and Global LNG at Energy Aspects, said:

The UK and wider European power sector will over the coming years be dealing with increased intermittency of power generation because of the greater share of renewables within the energy mix. The electrification of the heating sector is also likely to significantly boost winter power demand relative to the summer meaning that technologies are required to manage that seasonal shift in demand.

Having enough dispatchable power generation from gas-fired and/or nuclear power plants to tackle periods of high power demand and low renewable generation over weeks or even months is essential to avoid significant price spikes and outages. Existing electricity storage solutions are only designed to handle much shorter mismatches of power supply and demand.

Dan Monzani, Managing Director, UK and Ireland at Aurora Energy Research, said:

We need urgent action to ensure energy security in a future net zero system. Well-designed market reform and accelerated network build would mean renewable electricity is able to meet more of our needs more often.  The final few hours of energy demand each year will always be the hardest to decarbonise.

So we need to double down on firm low carbon technologies, like nuclear, carbon capture and long-duration storage but we also need to invest in maintaining reserve gas capacity. In a net zero system in 2035, we will need to run gas 90% less often but we still need to maintain two-thirds of the current gas capacity to ensure our energy needs are met at all times.

Alex Grant, Senior Vice President and UK Country Manager at Equinor said:

As the single largest supplier of gas to the UK we welcome the UK’s focus on energy security alongside the energy transition in an increasingly challenging global energy context and are pleased to be supporting. A growing renewables-based electricity system will require market reform in order support the transition to net zero at lowest cost.

With Equinor’s broad energy portfolio in the UK including offshore wind, CO2 capture and storage, hydrogen and battery storage, we welcome the publication of the 2nd REMA consultation and the focus on zonal pricing in place of nodal, which will help maintain investor confidence. We look forward to working with DESNZ and wider industry to support progression of these reforms.

A spokesperson for the Electricity System Operator said:

The ESO welcomes this important step forward in the Review of Electricity Market Arrangements.  Establishing the right market incentives is essential to ensuring delivery of the clean power required to deliver affordable, clean power and maintain energy security. Locational pricing can deliver £15 billion to £50 billion in consumer savings, incentivise new industries such as green hydrogen, maximising benefits that can arise from decarbonisation of existing industry in Great Britain. We look forward to continuing to support Ofgem and the Department for Energy Security and Net Zero as the next stage of assessment of options for electricity market reform are assessed.

David Whitehouse, CEO at Offshore Energies UK, said:

It is right for the nation’s energy security to replace ageing infrastructure with new gas fired power stations. Today gas remains the single largest source for UK electricity generation and will remain a critical part of our energy mix in the decades to come.

On our journey to net zero, we should be making the most of our own UK gas reserves rather than imports. Backing our homegrown energy sector grows our economy, boosts jobs across our world class supply chain and delivers reliable supplies of cleaner energy for the UK.

Esbjorn Wilmar, UK Country Director at Boralex, said:

As significant UK energy investors and generators we welcome that the government is ruling out the introduction of the misconceived nodal pricing plan which the evidence showed would have needlessly inflated the costs of UK energy for billpayers and substantially undermined the investment case for UK energy infrastructure, undermining UK energy security.

Saurabh Shah, Head of New Asset Development UK at Renantis, said:

Today’s announcement to exclude nodal pricing is very encouraging. To prioritise achieving the 2035 decarbonised power system target and passing the benefits on to consumers, it’s imperative to incentivise investment in low carbon generation, particularly in regions abundant in renewable resources.

Richard Dunkley, CEO at OnPath Energy, said:

As significant UK energy investors and generators we welcome ruling out the introduction of nodal pricing which would have needlessly inflated the costs of energy for British billpayers and undermined the investment case for new energy infrastructure.

Kate Mulvany, Principal Consultant at Cornwall Insight, said:

Today’s consultation gets the UK one step closer to a secure and future-proofed energy landscape. Bolstering national power infrastructure and ensuring energy security will not only help insulate future bill-payers from global uncertainties, but also foster a sustainable path towards net zero.

We cannot achieve long-term reduction in energy prices or our net zero ambitions without the delivery of home-grown energy and it is good to see the government prioritising this critical work.

There’s still plenty to do and it’s crucial to move beyond just a statement of intentions. The energy industry stands ready to tackle these substantial issues, and we eagerly await more information, so we can get to work on fortifying our energy security, ensuring a stable present and a resilient future.

The press release issued by the Department for Energy Security and Net Zero on 11 March 2024.

Tech companies collaborate on the government’s Pumpwatch scheme to bring down road fuel prices for drivers.

Leaders from top comparison sites, RAC and The AA will be among those meeting the Energy Affordability Minister today (11 March), to help share new fuel price data and keep costs down for motorists.

Price comparison sites and map apps will have access to this new data as part of the government’s PumpWatch initiative, which aims to drive down prices at the pumps. The scheme will look to make fuel prices, updated within 30 minutes of changes, available to the public by the end of this year. The move will further drive competition and place even more power back into hands of consumers and motorists to get the cheapest fuel available in their area.

The latest step follows the government’s plans and support for motorists in the Spring Budget 2024, as fuel duty is frozen for a further 12 months, extending the 5p fuel duty cut and cancelling any increase with inflation. This has saved the average car driver around £250 over the past 3 years and is worth £13 billion.

Minister for Energy Affordability and Skills Amanda Solloway said:

The government is already working to bring down fuel prices and we will all see the difference of the 5p fuel duty cut extension at the pumps.

We want fuel prices at your fingertips, refreshed within 30 minutes of changing, so everyone can save when filling up their tank – even when visiting an area they don’t know.

The government and tech firms are working together to make sure PumpWatch is a success, so we can put hard-earned pounds back in families’ pockets.

PumpWatch will increase transparency to give consumers better information to shop around for cheaper fuel and reignite competition in the market to drive prices lower.

Working with The AA, Confused.com, Go.Compare, PetrolPrices.com and RAC, the government is making sure the freely available data will be simple and easy to understand. The data could be used by journey planning sites and in-car devices too, to help over 41 million drivers to help save money wherever they live in the UK.

The government presses on with work to keep bringing down costs for hardworking families. The fuel duty cut extension, alongside maintaining fuel duty rates at their current levels for another year, will save families 7p a litre for petrol and diesel compared to previous plans.

Head of Roads Policy at The AA, Jack Cousens, said:

What the government and the CMA is achieving with its pump-price transparency scheme is fast on the road to what the AA has called for and envisaged for more than a decade. For years, European countries have provided their motorists with the ability to check pump prices wherever they go and thus spur competition. The UK is now getting there.

Bringing tech firms into the picture will help that process and lead to innovative use of the price data. An example of innovation is the Fuel Price Checker in Northern Ireland that allows drivers to see the towns offering the cheapest fuel. However, there is so much more that can be done with the data and bringing in the digital experts will hopefully unlock that.

CEO of Confused.com, Steve Dukes, said:

Fuel has become one of the biggest expenses for drivers as prices have remained high for the past few years. This, paired with rising insurance and maintenance costs, along with the general cost of living increasing has made it harder for many drivers to run their car. In fact, recent Confused.com research shows that 1 in 5 (19%) UK drivers are using their car less due to the cost of living.

Encouraging fuel retailers to share up-to-date pricing information through the PumpWatch initiative will make a huge difference to drivers who are trying to manage costs. Naturally they may be tempted to go to their closest station. But being able to research cheaper pumps nearby could save a considerable amount of money when filling up. We hope that drivers having this transparency will only encourage retailers to be more competitive with their prices where they can.

Managing Director of PetrolPrices.com, Andrew Watson, said:

We welcome the news earlier in the week to continue the 5p cut in fuel duty rates for a further 12 months supporting UK drivers with rising prices. The upcoming Pumpwatch legislation scheme, coupled with this fuel duty support is much needed for motorists up and down the country.

We’ve been helping drivers save money at the pumps since 2005. I know our 2 million users will welcome the changes PumpWatch will bring in making fuel prices more up to date, allowing consumers to make the best decision for themselves.

The meeting comes as the public have their last chance to provide their views on new rules that would mean fuel retailers must share fuel prices within 30-minutes of changes. The consultation closes at 11.59pm on 12 March 2024.

The press release issued by the Department for Energy Security and Net Zero on 7 March 2024.

Government announces the largest ever budget for the upcoming Contracts for Difference auction round.

Britain’s flagship renewables scheme has received its biggest ever funding boost from government, with more than £1 billion for its upcoming auction.

The budget for the sixth Contracts for Difference (CfD) allocation round – confirmed by the Chancellor at Spring Budget – signals large-scale government backing to drive further investment into the UK’s thriving renewables sector and roll out more clean, secure and affordable energy – while helping grow the economy.

This represents the latest step to deliver the long-term change that Britain needs – to improve economic security and opportunity for everyone – while helping protect families and businesses from volatile global gas prices. It is part of government’s plan to strengthen energy security and bring down energy bills in the long-term.

Following an extensive review of the latest evidence, including the impact of global events on supply chains, the government has allocated a record £800 million for offshore wind, which has been given a separate funding pot. This makes this the largest round yet, with 4 times more budget available to offshore wind than in the previous round.

This follows the increase in the maximum price for offshore wind and floating offshore wind in November and will ensure Britain remains a global pioneer in wind power – as home to 5 of the world’s largest offshore windfarm projects. It will also help to deliver the UK’s ambition of up to 50GW of offshore wind by 2030, including up to 5GW of floating offshore wind.

The CfD scheme gives renewable energy projects a guaranteed price for the electricity they generate, boosting investment in the UK – which has increased renewable electricity generation from 7% in 2010 to over 40% now.

Since 2010, the UK has seen £300 billion of public and private low carbon investment.  A further £100 billion of private investment is expected for the UK’s energy transition by 2030, which could support up to 480,000 jobs, including 90,000 jobs in the offshore wind sector.

Separately, the Chancellor has this week confirmed further backing for the UK’s green industries, with an extra £120 million for the Green Industries Growth Accelerator. This takes its total funding to over £1 billion and will boost advanced manufacturing across clean energy supply chains.

Energy Security Secretary Claire Coutinho said:

When it comes to renewables, we have a record to be proud of. In 2010, just 7% of our electricity came from renewables, this is now up to over 40% today.

We have the second largest renewables capacity in Europe, which is backed by £300 billion of investment since 2010, with £24 billion since September alone.

We are sticking to the plan to deliver the long-term change our country needs to deliver a brighter future for Britain – securing more homegrown, green energy we can protect billpayers from volatile gas prices.

Minister for Nuclear and Renewables Andrew Bowie said:

This unprecedented renewables budget funding to the tune of over £1 billion will keep the UK at the cutting edge of the industry.

This announcement will ensure we offer certainty to developers and continue to attract investment in the UK.

I am excited to see the opportunities that will open for our world-class renewable industries, reducing emissions and delivering reliable clean energy for the British people.

The CfD scheme provides valuable price stability for developers. The 2-way design of the scheme also protects consumers and businesses from future uncertainty on the global energy market. This is because when wholesale electricity prices are higher than the agreed CfD price, generators pay back into the scheme. This was seen over Winter 2022/2023, when CfD payments reduced the amount needed to fund our energy support schemes by around £18 per typical household.

The Allocation Round 6 budget includes:

• £120 million for established technologies such as onshore wind and solar
• £105 million for emerging technologies such as floating offshore wind and geothermal, including a ringfenced £10 million budget for tidal for a second consecutive year
• £800 million for offshore wind

CfD contracts are awarded through a series of competitive auctions, which ensure value for money for consumers. This has reduced prices since the first auction and contributed to solar and wind being amongst the cheapest form of electricity generation in the UK.

The government is making progress on the network reforms announced at last year’s Autumn Statement. This includes offering earlier grid connection dates to projects worth £40 billion, alongside transmission network companies announcing investment plans worth up to £85 billion. From next January, a new process will ensure that only projects which can show progress will be offered a connection date to join the grid.

A new public register of community benefits for transmission network infrastructure will be published to ensure developers are held accountable for delivering ambitious community benefit packages in local communities where new infrastructure is built. A new taskforce, to be chaired by Rt Hon Julian Smith CBE MP, has also been announced to help un-block disputes between landowners and electricity network operators.

Neil McDermot, CEO, Low Carbon Contracts Company said:

We welcome the news from DESNZ on the budget for Allocation Round 6 which has a combined total of £1,025 billion across 3 pots. As the private law counterparty for the Contract for Difference scheme, LCCC looks forward to welcoming future projects into its portfolio which currently consists of over 31GW of renewable electricity generation and 240 contracts across 12 technology types.

The announcement today marks a positive step towards homegrown energy security and economic prosperity.

We are proud to be playing a part in accelerating the journey to net zero.

Dan McGrail, Chief Executive of RenewableUK said:

We welcome this budget increase, as it recognises that global economic conditions have changed, and it will secure a significant amount of new offshore wind capacity and private investment, as well as creating thousands of new jobs.

Notes to editors

• Pot budget estimates, including this year’s £1,025 million budget split across the 3 pots, are presented in 2011-2012 prices, in line with what has been published in the Budget Notice. These figures are:
  • an estimate of annual support in the years following deployment. Actual annual figures will vary over the lifetime of the contract depending on future wholesale electricity prices, and outcomes of the auction process
  • approximately equivalent to around £1,400 million in today’s prices, based on CPI inflation
• the CfD budget is set based on a wide range of factors, including an assessment of the pipeline of projects that could participate in the auction
• after all applications have been reviewed, the Delivery Body (National Grid ESO) provides Secretary of State with a valuation of eligible projects. The Secretary of State has the option to revise the budget upwards. This will be between late May and early August

The press release issued by the Department for Energy Security and Net Zero on 29 February 2024.

New figures show applications for the government heat pump grants are up by 39% compared to January 2023.

Demand for heat pumps continues to grow with the Boiler Upgrade Scheme enjoying the third best month for applications in its history.

Figures for the Boiler Upgrade Scheme released today (29 February) show there were over 2,000 applications for heat pump grants in January 2024 – only exceeded by October and November last year, which immediately followed the increase in government-funded heat pump grants.

The January figure is up 39% on the same month last year as families take advantage of the 50% grant increase introduced by the government last autumn, making the initiative one of the most generous of its kind in Europe.

The news follows recent government figures showing the UK is the first major economy to halve its emissions – having cut them by 50% between 1990 and 2022, while also growing its economy by 79%.

Energy Security Secretary, Claire Coutinho, said:

I don’t want families to have to choose between cutting costs and cutting emissions. I want families to feel supported, not forced, to make changes that are right for them.

After we made our heat pump scheme one of the most generous in Europe, applications have soared by 40% year on year – showing that our approach is the right one.

The figures also revealed the average monthly number of applications from November 2023 to January 2024, the months after the grant increase, has been 39% higher than the monthly average before the uplift.

Up to the end of January, the scheme has now received 33,424 applications in total and has issued more than £133 million in vouchers to customers.

The Boiler Upgrade Scheme helps households make the switch from fossil fuel heating systems to cleaner low carbon heating alternatives, by covering the majority of the average upfront cost of an air source heat pump.

In October, the Prime Minister increased grants for the installation of air source and ground source heat pumps to £7,500. The scheme also offers £5,000 off the cost of a biomass boiler.

The figures released today also show a regional breakdown of where heat pumps have been installed in England and Wales.

The South West has seen the most with 3,894 installations, followed by the South East with 3,886 and then the East with 2,671.

Chief Executive of the Heat Pump Association, Charlotte Lee, said:

It’s great to see interest in the Boiler Upgrade Scheme increasing, supporting the installation of over 20,200 heat pumps to date across England and Wales.

The uplift in the grant value for air source and ground source heat pumps in October 2023 to £7,500 has been well received by both the sector and consumers and we hope this increasing interest will be a trend which continues forward as we move to decarbonise home heating in line with the government’s legally binding net zero targets.

The press release issued by the Department for Energy Security and Net Zero on 27 February 2024.

Low carbon hydrogen to get a further boost with over £21 million of government support for 7 projects to make green fuel.

Low carbon hydrogen will get a further boost with over £21 million of government support for 7 projects to make green fuel, powering up local transport and businesses from Suffolk to Shetland.

Four projects will develop plans for new hydrogen production plants, to supply cleaner fuel to companies across a range of industries – from pharmaceuticals to automotive, boosting our energy security for the long term.

The remaining projects are set to get spades in the ground in Aberdeen, Tees Valley and Suffolk, helping to secure the UK’s energy supply by producing more home-grown hydrogen for industry and transport, with projects including:

• Suffolk Hydrogen run by Hydrab Power, which will make green hydrogen for low carbon service vehicles at the Sizewell C nuclear site
• Tees Valley Hydrogen run by Exolum, which will build a new hydrogen refuelling station to help supply the local transport sector
• Aberdeen Hydrogen Hub run by BP and Aberdeen City Council, which will provide cleaner fuel for the local fleet of electric buses

Secretary of State for Energy Security Claire Coutinho said:

We are cementing the UK’s place as a world leader in hydrogen.

The new projects we’re funding across the country will boost our supply of clean homegrown energy for use in buses, trains and local businesses.

By backing the UK hydrogen industry, we can support over 12,000 jobs and up to £11 billion in private investment by 2030.

Minister for Energy Efficiency and Green Finance Lord Callanan said:

We expect hydrogen to play a vital role in decarbonising businesses and transport as we work towards meeting our net zero targets.

These new projects announced today are further proof of our enduring commitment to supporting the UK’s growing hydrogen industry on that journey.

This follows our announcement of over £2 billion for 11 other green hydrogen production projects, making sure more of our energy is made at home in the UK.

The 7 projects have the potential to increase our capacity to make hydrogen by 800MW, supporting local communities to cut their emissions while moving towards net zero.

The government has also launched a call for evidence on the hydrogen and carbon capture, usage and storage (CCUS) elements of the Green Industries Growth Accelerator.

Announced at last year’s Autumn Statement, the £960 million Green Industries Growth Accelerator will speed up advanced manufacturing capacity in sectors including offshore wind, networks, carbon capture, usage and storage, hydrogen and nuclear.

The announcements were made at the government’s second Hydrogen Investor Forum, where industry leaders gathered to discuss the economic and net zero opportunities offered by the UK’s hydrogen economy.

This follows government support for 11 major new hydrogen production projects in December 2023, which are expected to support over 700 jobs and unlock £400 million in new investment, positioning the UK as a global leader in this industry.

This builds on significant steps to deliver cheap, clean, British energy and create a strategic advantage in emerging industries including:

• progressing a number of new carbon capture and hydrogen projects across the UK to capitalise on this emerging market backed by £20 billion
• opening a competition to build small modular reactors – one of the most advanced nuclear technologies in the world – backed with investment
• launching a £160 million fund to support the emerging UK floating offshore wind sector
• opening bids for new British low-carbon electricity generation projects, worth £205 million this year alone

CEO of Hydrogen UK Clare Jackson said:

Today’s endorsement of 7 pioneering hydrogen projects underscores the transformative power and versatility of hydrogen as a bedrock for secure, clean energy solutions. Such pivotal announcements fortify the UK’s burgeoning hydrogen economy, accelerating us towards meeting our ambitious production.

Director at Hygen Energy Jamie Burns said:

We are delighted that the Suffolk Hydrogen Hub has been selected for government NZHF funding; with plans to deliver a clean hydrogen production, refuelling and transportation system for the region. End-to-end solutions such as this are crucial to ensure we implement a successful supply and demand equation and continue the transition to a low-carbon, sustainable future.

Exolum Clean Energies Lead Andres Suarez said:

Exolum is committed to driving the energy transition and championing the deployment of green hydrogen. We are therefore proud to have achieved this important milestone in the development of our Tees Valley Hydrogen Vehicle Ecosystem project. This project will support the decarbonisation of heavy-duty vehicles in the Tees Valley, with the wider consortium rolling out an initial 25 vehicles to commence operations in applications such as refuse collection, freight transport, and supermarket home deliveries.

Chief Executive of bp Aberdeen Hydrogen Energy Ltd Oliver Taylor said:

bp Aberdeen Hydrogen Energy Ltd welcomes today’s announcement that the Aberdeen Hydrogen Hub will benefit from funding from the UK government’s Net Zero Hydrogen Fund. This is an important step towards considering final investment decision on the project to deliver phase one of a scalable green hydrogen production, storage and distribution facility in Aberdeen. By harnessing natural resources, a skilled workforce, and the pioneering spirit of the north-east of Scotland, the Aberdeen Hydrogen Hub could create a new energy solution that builds on the region’s strong oil and gas heritage.

Director of Hydrogen UK at RWE Steve Boughton said:

RWE is delighted to be awarded funding from the Net Zero Hydrogen Fund for its Pembroke Green Hydrogen Phase 2 project.

The Pembroke Green Hydrogen Phase 2 project is a 200MW electrolytic hydrogen production plant: the second stage of green hydrogen development at RWE’s Pembroke Net Zero Centre (PNZC) initiative. The project is anticipated to be operational in the late 2020s and a will play a key role in decarbonising the South Wales Industrial Cluster.

As a company with ambitions to develop approximately 2 gigawatts of green hydrogen projects across all our markets, and to invest around 8 billion euros net in clean energy infrastructure in the UK between 2024-2030, RWE looks forward to playing a key role in helping build a thriving hydrogen ecosystem in the UK.

CEO of Veri Energy Salman Malik said:

We are pleased to have been selected by the Net Zero Hydrogen Fund to receive funding to support a Front-End Engineering and Design study for a 50MW green hydrogen plant at the Sullom Voe Terminal.  This is significant first step in support of our ambitions to produce multi gigawatts of green hydrogen as Sullom Voe by leveraging existing skills and infrastructure. Significant additional work is required to establish feasibility of the project. Collaboration with local and national governments, Shetland’s community, and strategic partners, will be critical to our success.

CEO of Shetland Islands Council Maggie Sandison said:

This is the first hydrogen project for Shetland and we are delighted that Veri Energy has received funding support to progress a Front-End Engineering and Design study. This is clear recognition from the UK government of the strategic importance of the Sullom Voe Terminal and its significance to Scotland as a whole.

Head of Power to X at EDF Renewables UK Matthew Day said:

Today’s announcement is another positive step forward for Tees Green hydrogen and our ambition to make the North East region a world-leader in green technology. Expanding the capacity of Tees Green hydrogen in phase 3 will mean we can have an even greater impact on decarbonising industry in the region. Support from the government within the development stages is a great vote of confidence in our capability to deliver this transformative project.

Head of Electrolytic & Industrial Hydrogen at Progressive Energy Ltd Adam Baddeley said:

We are delighted to receive this funding and vote of confidence in relation to our Grenian Hydrogen Speke project, which is under development by partners Statkraft, Foresight and Progressive Energy.

The Speke area of Liverpool City Region is a local industrial powerhouse, providing jobs and driving growth within the automotive, pharmaceuticals and speciality chemicals sectors, with companies such as Ford, Jaguar LandRover and Astra Zeneca all located within the manufacturing cluster.

The support from government is critical to funding the necessary engineering design work to enable development of Grenian’s hydrogen infrastructure. This will be used to decarbonise not only industry, but also, potentially aviation, as Speke is also host to Liverpool John Lennon Airport.

We plan to bid the project into the government’s HAR2 process to secure a 15-year Low Carbon Hydrogen Agreement by early 2025, which enable commencement of operation in 2028.