Tag: Energy Security and Net Zero Department

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.

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

Government announces plans for new environmental guidance for oil and gas firms as the North Sea transitions to its clean energy future.

The government has today announced plans for new environmental guidance for oil and gas firms to provide stability for industry, support investment, protect jobs, deliver economic growth, and meet its climate obligations, as the North Sea transitions to its clean energy future.

The guidance is necessary in light of a Supreme Court ruling that has implications for the assessment of new development consents. The landmark Finch ruling requires regulators to consider the impact of burning oil and gas, scope 3 emissions, in the Environmental Impact Assessment for new projects.

Having been elected on a mandate to deliver an orderly and prosperous transition in the North Sea that secures current and future generations of good jobs, and meets the UK’s legally-binding targets, the government is acting immediately. It will consult on new guidance in light of the Supreme Court ruling. Engagement with industry, workers, trade unions, and civil society will provide clarity and certainty for the industry and ensure a fair, orderly and prosperous transition in the North Sea in line with our climate and legal obligations.

The government is acting swiftly so that decisions on oil and gas development consents can be made. The government recognises the proud history of the UK offshore industry and the brilliance of its workforce, particularly in Scotland and the Northeast of England, and the ongoing role of oil and gas in the country’s energy mix.

Crucially, oil and gas production in the North Sea will be a key component of the UK energy landscape for decades to come as it transitions to our clean energy future in a way that protects jobs. The government believes that offshore workers will lead the world in the industries of the future.

With its number one mission of growth and wealth creation, ministers’ sleeves are rolled up ready to support investment and projects that can deliver jobs, growth, and energy security, and drives towards the UK’s clean energy future.

Since coming to office in July, there has been urgent action already taken toward the government’s clean energy mission. Great British Energy, which will be headquartered in Scotland, was launched by the Prime Minister and Energy Secretary last month, coming after the biggest ever investment in offshore wind, ending the onshore wind ban, and consenting homegrown solar; and steps taken to move ahead with new North Sea industries like carbon capture and storage and hydrogen.

Minister for Energy Michael Shanks said:

This government is committed to making Britain a clean energy superpower, helping to meet our first mission to kickstart economic growth. While we make that transition the oil and gas industry will play an important role in the economy for decades to come.

As we support the North Sea’s clean energy future, this government is committed to protecting current and future generations of good jobs as we do so.

We were elected with a mandate to deliver stability, certainty and growth. Every action we take will be in pursuit of that. We will consult at pace on new guidance that takes into account the Supreme Court’s ruling on Environmental Impact Assessments, to enable the industry to plan, secure jobs, and invest in our economy.

Background

• The government will not challenge the judicial reviews brought against development consent for the Jackdaw and Rosebank offshore oil and gas fields in the North Sea. This decision will save the taxpayer money.
• This litigation does not mean the licences for Jackdaw and Rosebank have been withdrawn.
• The government will also consult later this year on the implementation of its manifesto position not to issue new oil and gas licences to explore new fields.
• The government will aim to conclude its consultation by spring 2025. Further details including the timings for consultation will be published in due course. In the meantime, the government will be working in partnership with operators to navigate the implications for individual projects.

The press release issued by the Department for Energy Security and Net Zero on 31 July 2024.

Energy Secretary chairs first energy Mission Board to accelerate the UK’s efforts towards clean power by 2030 and energy independence.

The Energy Secretary continued his drive to make Britain a clean energy superpower with a push for British-based clean, homegrown energy, as he chaired the first Energy Mission Board today (Wednesday 31 July).

Ed Miliband convened Ministers from across government to ensure a relentless focus on delivering the Clean Energy Superpower mission, based on the twin objectives of delivering clean power by 2030 and accelerating towards net zero, to boost energy independence, protect consumers, and support jobs across the country.

The Energy Secretary will emphasise to colleagues the importance of the new forum as playing a vital role in driving forward ambitious, long-term plans to tackle the challenges the country faces and secure its energy independence.

He will work closely with colleagues to rapidly increase the rollout of homegrown, clean energy and reduce dependence on volatile fossil fuels, which is central to protecting billpayers, creating good, well-paid jobs and combatting the climate and nature crisis.

The first meeting follows the immediate steps the Energy Secretary has taken to kickstart this work – including scrapping the onshore wind ban, unlocking solar production, and launching Great British Energy’s major partnership with The Crown Estate. To further support the rollout of new clean energy projects, he has also today confirmed the biggest ever budget for this year’s renewables auction – at over £1.5 billion.

Energy Security and Net Zero Secretary Ed Miliband said:

In an unstable world, the best way to boost our energy security and protect billpayers permanently is to speed up the transition away from fossil fuels and towards homegrown energy – making Britain a clean energy superpower.

As we move forward, our Mission Board will keep a laser focus across government on delivering clean, cheap energy to homes and businesses – but also on driving economic growth and creating skilled jobs right across the country.

Also meeting for the first time today is the new Onshore Wind Taskforce. Chaired by the Energy Secretary and CEO of EDF Renewables, Matthieu Hue, the Taskforce will drive action across industry and Government to unblock barriers to rapidly increase onshore wind capacity. This comes as this year’s renewables auction will see £185 million made available for established technologies, including onshore wind and solar, an uplift of £65 million.

CEO of EDF Renewables UK Matthieu Hue said :

Onshore wind is already playing a vital role in the UK and is one of the most cost effective forms of new electricity generation but more must be done to unlock its full potential. By bringing industry and government together, the taskforce is focused on creating practical solutions to overcome barriers to accelerate our journey to achieving net zero. So let’s get to work.

This also follows the launch of the department’s Mission Control – headed up by climate expert Chris Stark – to turbocharge the government’s mission to decarbonise Britain’s power system by 2030. Complementing the Mission Board, this will be focused on accelerating the transition away from volatile fossil fuel markets to clean, homegrown power by 2030 – boosting Britain’s energy independence.

The press release issued by the Department for Energy Security and Net Zero on 31 July 2024.

Government announces budget of over £1.5 billion to deliver homegrown clean energy projects and boost UK’s energy security.

Renewable industry to bid for record breaking funding as the Energy Secretary unveils the largest-ever budget for delivering new homegrown clean energy projects in the UK –  boosting energy security, securing cheap power for families, and unlocking economic growth and jobs for the country.

Ed Miliband today (Wednesday 31 July) announced the budget for this year’s renewable energy auction is being increased by £500 million to over £1.5 billion – a record budget – helping build new green infrastructure as part of the mission to deliver clean power by 2030.

Funding will accelerate the delivery of clean, cheap, low-carbon electricity to families and businesses, generated by renewable energy technologies such as wind turbines and solar panels.

Families across the country have suffered during the cost of living crisis, as the UK’s over-reliance on fossil fuel markets was exploited by Putin. Investing in clean energy is part of the government’s plans to make Britain a clean energy superpower. This will boost the country’s energy independence, so that families and businesses are never left that vulnerable again.

This includes £1.1 billion for offshore wind – the backbone of the UK’s clean energy mission –  which has more budget available than all of the previous auctions combined, sending a strong signal to industry to invest in UK waters.

The uplift comes on the day of the first meeting of the Clean Energy Mission Board – chaired by the Energy Secretary and attended by Ministers from across Whitehall – as part of plans for a mission-driven government. The board will meet to ensure a relentless focus on delivering the mission of clean power by 2030 and accelerating towards net zero.

Energy Secretary Ed Miliband said:

Last year’s auction round was a catastrophe, with zero offshore wind secured, and delaying our move away from expensive fossil fuels to energy independence.

Instead, we are backing industry to build in Britain, with this year’s auction getting its biggest budget yet. This will restore the UK as a global leader for green technologies and deliver the infrastructure we need to boost our energy independence, protect billpayers, and become a clean energy superpower.

Industry will now bid for a share of the funding through the government’s sixth renewable auction – known as the Contracts for Difference scheme – which provides developers with initial subsidies for clean electricity projects across Britain with a built-in design to keep costs low for billpayers.

These subsidies are paid back when wholesale electricity prices are higher than the agreed Contract for Difference price. 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 scheme’s design means the central government’s budget will not be impacted, following findings from a Treasury spending audit revealed £22 billion of unfunded pledges inherited from the previous government.

Overall, the funding uplift represents more than a 50% increase on the budget previously set in March, driving clean energy investment in the UK, supporting high quality jobs in industrial heartlands and coastal communities, while protecting household bills from volatile fossil fuel prices.

Energy Minister Michael Shanks said:

It is our mission for the UK to be more energy secure and to do that we need more renewable energy projects connected to the grid and powering our homes.

Increasing the budget by more than 50% will boost industry confidence to back clean energy, attracting cutting edge clean technologies to Britain as we accelerate to a decarbonised power sector by 2030.

The Contracts for Difference scheme works by developers bidding for contracts to help deliver renewable energy projects, with the scheme providing a guaranteed price for the clean electricity they generate. This gives industry greater certainty to invest, knowing that when electricity prices fluctuate, they will always get a set price for their projects.

The scheme’s design awards contracts through a series of competitive auctions, where the lowest price bids are successful – providing value for money and cheap power for consumers.

Building new, clean renewables also reduces exposure to volatile global gas prices which drove peak average wholesale electricity prices to record highs in 2022. Investing in renewables will protect household bills in the long-term and put Britain in control of its energy security.

Developers can bid for more funding and bring forward more renewable energy projects, which will deliver the government’s 2030 clean power target while supporting local economies grow across the country.

Following the increase, the Allocation Round 6 (AR6) budget includes:

• £1.1 billion for offshore wind, an uplift of £300 million
• £185 million for established technologies such as onshore wind and solar, an uplift of £65 million
• £270 million for emerging technologies such as floating offshore wind and tidal, an uplift of £165 million

The increase means the AR6 budget is 7 times higher than that of Allocation Round 5 (AR5).

Responding to the government’s announcement on the next Contracts for Difference auction round (AR6), Energy UK’s chief executive, Emma Pinchbeck said:

It’s a real boost for our clean energy ambitions that the upcoming auction round will now be able to deliver more renewable power. The sooner we can get new wind and solar projects up and running, the sooner we can boost our energy independence with clean, homegrown power that reduces our reliance on expensive foreign gas and helps protect us from a repeat of the price shocks that have hit customers hard in recent years.

Offshore wind is critical to hitting the government’s 2030 target and we know that the vast majority of this capacity must be delivered through this auction round and next year’s. That remains a huge challenge but this is certainly a big step in the right direction and another welcome demonstration of the government’s ambitions.

As the latest figures show, renewables supplied almost half of the UK’s power last year so we’ve already seen what can be achieved – not just through generating our own clean energy but also how such projects can bring investment, growth and high-quality jobs to all parts of the country, boosting local economies and supply chains.

Dan McGrail, Chief Executive of Renewables UK, said:

It’s great to see government choosing to unlock more investment in renewable energy projects by increasing the budget for the next Contracts for Difference auction. These new wind and solar farms will improve our energy security, drive economic growth, support thousands of new green jobs and ensure we continue to create a lowest cost electricity system for billpayers.

This builds on a series of positive announcements from government which are increasing investor confidence in the UK, including ending the ban on onshore wind in England and approving new large-scale solar farms.

This auction will not unlock investment in all shovel-ready projects, so the government will need to ensure that the next auction rounds focus on project delivery to ensure we achieve the Prime Minister’s clean power mission and increase the confidence of investors in the UK’s supply chain.

Neil McDermott, CEO, LCCC, said:

The increase in budget allowance acknowledges the critical role the Contracts for Difference plays in accelerating Net Zero.

At LCCC we stand ready to work with new and existing generators to bring new renewable generation online.

Claire Mack, Chief Executive of Scottish Renewables, said:

Heightened ambition for 2030 must be matched by bold action and the welcome increase to the Allocation Round 6 budget sends a positive signal to industry that the UK government is serious about achieving its clean power mission.

To maintain our globally competitive advantage, empower our supply chains and enrich our communities, it is essential that we enable deployment at pace across all clean energy technologies through the Contracts for Difference scheme.

Unleashing the full potential of Scotland’s renewable energy pipeline, in particular floating and fixed offshore wind, will require building on Allocation Round 6 to maximise deployment through future allocation rounds.

This will drive economic growth, deliver energy security and achieve the UK government’s clean power mission.

Last week the government 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.

The budget increase for Contracts for Difference marks the latest milestone in the government’s clean energy superpower mission, building on the lifting of the onshore wind ban and the approval of major solar farms powering the equivalent of almost 400,000 homes.

Now the budget has been set, the auction will take place in August with successful projects to be announced in September 2024.

Notes to editors

A Contract for Difference (CfD) is a private law contract between a low carbon electricity generator and the Low Carbon Contracts Company (LCCC), a government-owned company.

CfDs work by guaranteeing a set price for electricity – known as a strike price – that generators receive per unit of power output.

When the market price for electricity generated by a CfD Generator is below the strike price set out in the contract, payments are made by the LCCC to the CfD Generator to make up the difference. However, when the market price is above the strike price, the CfD Generator pays LCCC the difference.

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 which is then passed back to billpayers.

In this auction the maximum strike price for this auction are as follows:

• offshore wind £73/MWh
• onshore wind £64/MWh
• solar £61/MWh
• floating offshore wind £176/MWh
• geothermal £157/MWh
• tidal £261/MWh

Today also saw the first inaugural meeting of the Onshore Wind Taskforce which brings together industry experts to accelerate the development of onshore wind across England.

Explanatory notes

Pot budgets, including this year’s £1.555 billion 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
• equivalent to approximately £2.215 billion in today’s prices, based on CPI inflation (June 2024 CPI, ONS data)

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.