Tag: Energy Security and Net Zero Department

  • PRESS RELEASE : Over £1 billion budget for renewable energy auction [March 2024]

    PRESS RELEASE : Over £1 billion budget for renewable energy auction [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.

    • Renewable electricity auction gets largest ever cash pot to support energy security
    • £800 million pledged for offshore wind to ensure Britain remains at forefront of technology
    • budget to boost renewables investment and help UK replace fossil fuels with cheaper, cleaner, domestic energy in the transition to net zero

    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
  • PRESS RELEASE : Demand for heat pumps surges as grant application increase by 39% [February 2024]

    PRESS RELEASE : Demand for heat pumps surges as grant application increase by 39% [February 2024]

    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.

    • Figures show applications up 39% on January 2023
    • scheme has issued more than £133 million in vouchers to customers
    • follows grants increasing to £7,500, making scheme one of the most generous of its kind in Europe

    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.

  • PRESS RELEASE : Boost for UK hydrogen as government backs world-leading industry [February 2024]

    PRESS RELEASE : Boost for UK hydrogen as government backs world-leading industry [February 2024]

    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.

    • Seven successful projects to make low carbon hydrogen with over £21 million in government support
    • from Suffolk to Shetland, projects will produce green fuel for buses, trucks and trains, while also supporting local businesses move away from natural gas
    • announcement made at the second Hydrogen Investor Forum, with industry leaders gathering to discuss growing economic opportunities in the UK

    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.

  • PRESS RELEASE : New package of measures to help families save even more on bills [February 2024]

    PRESS RELEASE : New package of measures to help families save even more on bills [February 2024]

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

    As energy prices fall to their lowest level in 2 years, the government is launching a package of measures to help families save even more with cheaper deals.

    • Energy Security Secretary welcomes £238 fall in Ofgem price cap
    • government invites views on making standard default tariffs more flexible, so families pay less if using electricity when prices are lower
    • scheme to help customers repair or replace smart meter in-home displays after one-year warranty is launched
    • companies to receive £10 million funding to test new technologies and tariffs with customers to make the most of cheap, low-carbon power

    A new package of measures to help families save on energy costs and access cheaper deals is being launched by the government, as figures published today show prices set to fall to their lowest level since Putin’s invasion of Ukraine.

    Ofgem confirmed the price cap – the maximum amount a typical household pays for gas and electricity – will fall by £238 from April. Energy Security Secretary Claire Coutinho has welcomed the decrease as a milestone in the government’s work to reduce costs for families – proof the plan to reduce bills for hardworking Brits is working.

    Long-term measures announced today include examining how standard energy deals should work to pass on the cheapest electricity costs, plus £10 million in funding for companies to test new technologies and tariffs with their customers, to make the most of cheap, low-carbon power.

    A new scheme to help customers repair or replace smart meter in-home displays after the one-year warranty is also being launched. Eight suppliers, covering the majority (60%) of the market, have signed up so far, including E, E.ON, Good Energy, Octopus, Ovo, Scottish Power, Utilita and Utility Warehouse. These displays provide an important service in helping families, including older and vulnerable people, keep track of their energy use. Extending support will help customers continue to make the most of the savings smart meters can offer as the price cap falls and competitive deals return to the market.

    Over half of British homes already use a smart meter, meaning they can access cheaper, off-peak energy tariffs. These deals can save households around £900 a year by charging an electric car, for example, at off-peak times such as during the night – with 63% of people saying they would be likely to switch to a flexible tariff to help them save money.

    The government is also putting out a call for evidence on standard energy tariffs, which customers are rolled onto at the end of fixed-term contracts, resulting in the vast majority paying a flat rate throughout the day and a potentially higher price than they need to. The government is seeking views on making these tariffs more flexible, so families pay less if using electricity at a time of day when prices are lower while protecting those who aren’t suited to a flexible tariff.

    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

    Energy Security Secretary Claire Coutinho said:

    Today’s announcement that energy bills will fall by £238 on average will be welcome news for families across the country. This means households will be paying the lowest cost for their energy since Putin’s illegal invasion of Ukraine 2 years ago.

    My mission is to cut costs and get bills even lower so that families can spend their money on the things that matter most to them. Today we’re announcing further measures to slash bills for families and improve access to cheaper, flexible deals.

    Minister for Energy Affordability and Skills Amanda Solloway said:

    Households will soon see their energy bill fall to the lowest level in 2 years. And to bring them down ever further, we want more families to able to benefit from the real savings that smart, flexible energy deals can offer.

    Over half of British homes already have the potential to access cheap off-peak power through a smart meter but we can all fall victim to not having time to shop around for a good energy rate.

    These new measures will ensure people can access these savings even if they’re on the standard basic tariff, so even the busiest families don’t miss out on cheaper bills.

    As previously announced by Ofgem, from April 2025 suppliers will start to be charged by how much electricity their customers use during half-hour intervals – rather than via estimated daily or monthly usage. The government expects the low off-peak prices this generates to be available to every single household, including those who are on default tariffs, so that they are not overcharged.

    The government has also today set out further plans to drive forward innovation in the energy market, to open up new offers and energy saving technologies for customers.

    This includes:

    • £10 million for 3 projects that will give communities the chance to trial innovative energy tariffs and technology. Families across the UK will be able try out new services to help them manage energy use at home – such as personalised tariffs that offer them cheap off-peak prices which fit with their daily routine, or smart chargers for electric vehicles that switch on at night when electricity is cheaper
    • setting up 2 new working groups on customer protections and innovation, bringing together consumer advocates and suppliers to push the market ever further in delivering high-quality, cheaper energy deals. The commitment follows the government’s call for evidence on innovation in the consumer energy market last year

    Daniel Portis, Deputy Director at Energy UK said:

    A smart, flexible energy system will bring benefits for all customers. Energy suppliers are investing and innovating to meet this challenge with new products and services that help their customers have more control over their bills and take advantage of times when energy is cheapest.

    So we welcome today’s package from government which could help households make the most of smart technology, provides important funding for innovation and kickstarts a vital conversation about how we ensure the future energy market works for all customers.

  • PRESS RELEASE : UK departs Energy Charter Treaty [February 2024]

    PRESS RELEASE : UK departs Energy Charter Treaty [February 2024]

    The press release issued by the Department for Energy Security and Net Zero on 22 February 2024.

    The UK government confirms its withdrawal from the Energy Charter Treaty after efforts to agree vital modernisation fail.

    • European countries have been unable to reach agreement on modernisation of the Energy Charter Treaty
    • UK joins France, Spain and the Netherlands in withdrawing from the Treaty
    • strong legal framework is already in place to ensure continued investment in UK energy sector

    The UK will leave the Energy Charter Treaty (ECT) after the failure of efforts to align it with net zero, the government has announced today (Thursday 22 February).

    Signed in 1994, the Energy Charter Treaty was designed to promote international investment in the energy sector, historically providing protections for investors in fossil fuels. Proposals to modernise the ECT better to support cleaner technologies have been subject to months of talks between European countries, resulting in a stalemate.

    Energy Security and Net Zero Minister Graham Stuart announced in September 2023 that the UK would be reviewing its membership of the ECT if plans to update it were not adopted.

    Today, the UK joins 9 EU member states, including France, Spain and the Netherlands, in withdrawing from the treaty. The decision will support the UK’s transition to net zero and strengthen its energy security.

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

    The Energy Charter Treaty is outdated and in urgent need of reform but talks have stalled and sensible renewal looks increasingly unlikely.

    Remaining a member would not support our transition to cleaner, cheaper energy, and could even penalise us for our world-leading efforts to deliver net zero.

    With £30 billion invested in the energy sector just since September, we continue to lead the world in cutting emissions, attracting international investment and providing the strongest legal protections for those who invest here.

    Discussions around reform of the Energy Charter Treaty have gone on for several years. After 2 years of negotiations, in 2022, the UK helped broker a landmark agreement to modernise the ECT. This would have maintained its current benefits, while supporting the transition to cleaner energy by extending protections to renewables like carbon capture, utilisation, and storage (CCUS) and hydrogen.

    However, this led to an impasse and the modernised ECT, which should have been adopted in November 2022, was rejected by 9 EU member states. This included France, Germany, Spain and the Netherlands – all of whom decided to withdraw. The European Parliament elections in 2024 mean modernisation could now be delayed indefinitely.

    After considering the views of businesses, industry and civil society, ministers will now instigate the UK’s withdrawal, which will take effect after one year, removing protections for new investments after this period.

    Shaun Spiers, executive director, Green Alliance said:

    Civil society organisations and parliamentarians from all political parties have been clear that the Energy Charter Treaty is an out-of-date agreement and undermines our efforts to tackle climate change. We welcome the UK’s decision to leave, which will strengthen global efforts to roll out cheap, clean renewable energy.

    Meanwhile, the UK remains an attractive destination for investors across all energy technologies, with government continuing to support investment in the North Sea oil and gas as part of the transition to net zero, alongside the drive towards renewables, such as wind power and hydrogen. The government is also committed to ensuring fairness for and support for UK investors operating abroad.

  • PRESS RELEASE : Department appoints 2 new non-executive directors [February 2024]

    PRESS RELEASE : Department appoints 2 new non-executive directors [February 2024]

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

    Humphrey Cadoux-Hudson CBE and Dame Mary Archer to join Departmental Board.

    The Department for Energy Security and Net Zero (DESNZ) has appointed a new Lead Non-Executive Board Member (NEBM), Humphrey Cadoux-Hudson CBE, and Non-Executive Board Member, Dame Mary Archer.

    The Department welcomes Humphrey Cadoux-Hudson as the Lead NEBM, for a term of 3 years from 1 February 2024. Humphrey brings a wealth of commercial energy experience to the Department, working most latterly as Managing Director of Nuclear Development at EDF UK (post ended June 2022) after a 32-year career in the energy industry.

    The Department also welcomes Dame Mary Archer as a NEBM on the Departmental Board, for a term of 3 years from 23 February 2024. Mary is an experienced Non-Executive Director, and is a scientist by profession, specialising in solar power conversion. She was the founder chair of the National Energy Foundation, and then subsequently its President.

    Secretary of State for Energy Security and Net Zero, Claire Coutinho, welcomed the new appointees to her Departmental Board:

    Humphrey and Mary have an outstanding track record in the energy sector, and I am delighted to be welcoming them to our leadership team. They will provide expert guidance as we drive down bills through a cleaner and more secure energy system.

    The Permanent Secretary, Jeremy Pocklington, commented on the new appointments:

    We are looking forward to welcoming Humphrey and Mary to the Department. Their significant commercial experience and technical knowledge will be an asset to the Department as we secure the UK’s energy supply and meet our net zero goals.

    Humphrey Cadoux-Hudson CBE said:

    I am delighted to join the Department for Energy Security and Net Zero as the Lead Non-Executive Board Member. Achieving net zero and securing our energy supply is a challenge, but I am looking forward to supporting the Department in delivering its priorities and positioning the UK as a leader in reaching net zero.

    Dame Mary Archer said:

    I am looking forward to joining the Department as a Non-Executive Board Member and supporting the Secretary of State and her team in achieving the Department’s objectives.

    Humphrey and Mary join current NEBMs Peter Mather and Vikas Shah on the DESNZ Departmental Board.

  • PRESS RELEASE : UK strengthens collaboration on energy security and fusion [February 2024]

    PRESS RELEASE : UK strengthens collaboration on energy security and fusion [February 2024]

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

    The Energy Security Secretary, Claire Coutinho, met with European allies this week to discuss plans to transition away from Russian liquefied natural gas (LNG), following the UK’s lead.

    At a ministerial meeting of the International Energy Agency (IEA) in Paris, the Secretary of State also signed a landmark new fusion partnership with Canada, bringing the UK a step closer to developing a near limitless source of clean energy.

    The Memorandum of Understanding with Canada on fusion energy will seek to improve collaboration on research and development, harmonise the approach to regulation, and develop the workforce and skills base. This will strengthen cooperation between the UK and Canada to support the deployment of fusion worldwide. It will also support the UK’s £650 million fusion programme, cementing the UK as a world leader in this innovative technology.

    The energy generated from fusion is many million times more efficient than burning coal, oil or gas and could generate a near unlimited supply of clean electricity – transforming global efforts to reach net zero and delivering long-term energy independence.

    This is the UK’s second formal international fusion collaboration following the announcement of a partnership with the USA in November 2023.

    The Energy Security Secretary also met with allies to discuss energy security and how to build on the progress made to date to target Russia’s energy sector, with the UK having led the way in banning all imports of Russian oil and gas after Putin’s illegal invasion.

    It follows the UK recently announcing a £300 million investment to become the first country in Europe outside of Russia to launch a high-tech HALEU nuclear fuel programme, driving Putin further out of global energy markets.

    Energy Security Secretary Claire Coutinho said:

    A more diverse and secure energy mix will bring down bills in the long term and that’s why we are working closely with our European allies to end dependency on Russian gas.

    The UK is also leading the world in fusion research, which could provide a near limitless supply of clean energy. This landmark partnership with Canada will strengthen co-operation between our countries and support our record-breaking British research – bringing us closer to making fusion a reality.

    The UK has provided £150 million for Ukraine’s energy sector since the start of the full-scale Russian invasion and is a key partner in supporting Ukraine to rebuild and transition.

    The UK also announced £12 million at COP28 for the IEA’s Clean Energy Transition Programme to support developing countries to accelerate their green transitions – the biggest ever voluntary contribution.

    The event in Paris was the first international meeting of energy ministers since COP28 and marks the 50th anniversary of the IEA.

  • PRESS RELEASE : UK first major economy to halve emissions [February 2024]

    PRESS RELEASE : UK first major economy to halve emissions [February 2024]

    The press release issued by the Department for Energy Security and Net Zero on 6 February 2024.

    New official statistics confirm UK has cut emissions by 50% between 1990 and 2022.

    • The UK has cut its greenhouse gas emissions by 50% between 1990 and 2022, while growing the economy by nearly 80%
    • UK has over-achieved on the third carbon budget

    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% – new official statistics released today confirm.  This compares to a 23% reduction in France and no change in the USA between 1990 and 2021.

    With renewables now accounting for more than 40% of the country’s electricity – up from just 7% in 2010, this shows the UK is leading the way on cleaner energy.

    These reductions are largely due to cutting emissions from energy generation, through the shift away from using coal to using renewables. In 2012, coal provided almost 40% of UK electricity, but later this year, this will be zero.

    The UK is over-delivering on its commitment to reduce emissions, having already slashed emissions by 50%. We have also cut emissions faster than any other G7 country over the last decade. This has allowed us to take a more realistic approach while reaching our green targets, to ease the burden on hardworking families.

    But work isn’t stopping here – since September alone companies have announced plans for £30 billion of new investment across the energy sector, including to advance green technologies and support green industries of the future.

    Not only has the UK cut emissions faster than any other major economy since 1990, but also has some of the most ambitious legally binding targets. We have also set more stretching targets for 2030 than most countries. We plan to cut emissions by 68% by 2030, which is more than the EU, Japan or the United States.

    Today’s statistics also confirmed the UK has over-achieved on the third carbon budget – making this the third carbon budget target in a row for which the UK has over-achieved, as it did for the first and second carbon budgets.

    Energy Security Secretary Claire Coutinho said:

    The UK is the first major economy – of the top 20 countries – to halve its emissions. This is an enormous achievement by itself but also because we have done this in a pragmatic way – growing our economy by 80% at the same time and protecting family finances.

    We have also increased our renewables electricity generation from just 7% in 2010 to nearly 50% now.

    With some of the most ambitious targets in the world, we should be proud that we’ve over-achieved on our carbon budget for the third time in a row. We will continue to meet out targets but in a pragmatic way that doesn’t clobber extra costs onto hard working families.

    Today’s publication covers greenhouse gas emissions statistics up to 2022, and show total greenhouse gas emissions were 50% lower in 2022 than in 1990. Despite rises in some sectors from 2021 levels, as the UK continued to recover from COVID-19, 2022 saw an overall fall in greenhouse gas emissions in the UK – with a decrease of 3.5% from 2021, and 9.3% lower when compared to 2019, the most recent pre-pandemic year.

    These statistics show the UK is making significant progress towards net zero. While statistics from recent years remain impacted by the unprecedented economic impacts of the coronavirus pandemic, the long-term trend shows that UK is rapidly driving down emissions – meeting and exceeding its carbon targets.

  • PRESS RELEASE : Heat pump applications up by almost 50% as families make the most of government grant increase [January 2024]

    PRESS RELEASE : Heat pump applications up by almost 50% as families make the most of government grant increase [January 2024]

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

    New figures show applications to the government’s Boiler Upgrade Scheme in December jumped by 49% compared to the same month in 2022.

    • Figures for December show applications jumped by 49% year on year
    • increase to grants have made the Boiler Upgrade Scheme one of the most generous of its kind in Europe
    • families can now receive £7,500 grants towards the cost of a heat pump

    More people are taking advantage of increased heat pump grants with applications having risen by almost 50% compared to last year.

    New figures released show the number of people applying through the government’s Boiler Upgrade Scheme in December jumped by 49% compared to the same month in 2022.

    The scheme helps families make the switch from fossil fuel heating systems to a cleaner heat pump alternative, without a substantial upfront cost.

    The surge in applications follows a 50% increase in grants for air source heat pumps announced by the Prime Minister in October last year. Grants for heat pumps were boosted to £7,500 making the scheme one of the most generous of its kind in Europe.

    Energy Security Secretary, Claire Coutinho, said:

    We recently made our Boiler Upgrade Scheme one of the most generous schemes in Europe. Applications are now up by nearly 50% compared to last year.

    Helping people, rather than forcing them, to make the right choices for their homes will always be my priority.

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

    These figures show more people want the cleaner heating and more stable bills you get with a heat pump.

    Our approach to reaching net zero works and because of increased heat pump grants, there’s never been a better time to make the switch.

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

    The South West has seen the most with 3,655 installations, followed by the South East (excluding London) with 3,605 and then the East with 2,452.

  • PRESS RELEASE : Sewer power to heat homes and businesses and help keep bills low after government backing [January 2024]

    PRESS RELEASE : Sewer power to heat homes and businesses and help keep bills low after government backing [January 2024]

    The press release issued by the Department for Energy Security and Net Zero on 25 January 2024.

    Homes and businesses to benefit from greener, low-cost heating as 4 new Green Heat Network projects receive a share of £80.6 million.

    • £80.6 million to develop greener, low-cost heating systems in 4 new projects across England
    • nearly 2,000 homes and businesses to be powered by excess heat taken from a sewer
    • more than £8 million will upgrade inefficient heat networks to reduce bills and improve reliability

    Nearly 2,000 homes and businesses could be heated with sewer power, as a new green heating project receives a share of £80.6 million from the government today (25 January).

    The new project, backed by £11 million from the government, will see Bolton residents keep their homes and businesses warm with waste heat from the town’s sewer. Energy will be extracted from both sewage and waste hot water from washing machines, bathrooms and kitchens to fuel a new heat pump, as part of Bolton’s first district heating network, helping to keep bills low.

    The move will provide a recycled heating source for the local community – including the University of Bolton and the Town Council – helping keep energy bills down. It is one of 4 innovative green heating projects to receive grants today from the government’s Green Heat Network Fund.

    The projects in Exeter, London and Hull will help cut carbon emissions from homes and businesses – and put the UK a step closer to reaching net zero by 2050.

    Today’s funding comes alongside more than £8 million of government investment to improve 34 inefficient heat networks. The money will enable upgrades, creating a more reliable heating supply for more than 9,000 residents, hospital patients, students and public sector workers, as well as keeping bills down.

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

    These innovative projects will help drive down energy costs while also demonstrating why the UK has led the way in cutting carbon emissions.

    They show how energy sources can be found in the most unexpected places – as more homes and businesses will benefit from cleaner heating and lower energy bills.

    Our upgrades will also make sure our existing heat networks are upgraded – so customers can get the reliable heating supply they deserve.

    Other projects to receive a share of the £80.6 million from the Green Heat Network Fund include:

    • the Exeter Energy Network, which will receive £42.5 million to build a heat network using air source heat pumps and the UK’s largest high-temperature water source heat pump. Buildings connected to the network will see an initial reduction of 65-75% in carbon emissions compared to gas heating
    • the Hull East District Heat Network, awarded £22 million to build a heat network using excess heat generated by a nearby chemicals park. The project will provide low carbon heating to 14 public sector council buildings and industrial businesses
    • the Greenwich Peninsula ESCO District Heating Network in London will receive £4.6 million to connect more than 9,000 existing and new homes, as well as over 94,000 square metres of commercial space to low-carbon heating. This cleaner energy will be powered by an air source heat pump fixed on the roof of the Greenwich Peninsula Energy Centre

    Heat networks supply heating and hot water to homes and businesses via heat pumps or sources from underground, manufacturing, and waste management. They help cut carbon emissions by supplying heat to multiple buildings from a central source, avoiding the need for households and workplaces to rely on individual, energy-intensive heating solutions, such as gas boilers.

    The transition to heat networks forms a major part of the UK’s carbon reduction commitment, with heating in buildings making up 30% of all UK emissions.

    Today’s £8 million investment from the government’s Heat Network Efficiency Scheme will support vital upgrades to 34 heat network projects across England and Wales. The scheme will enable network operators to replace inefficient or old equipment to offer a more reliable service and improved heating.

    Projects to receive funding to improve heat networks include:

    • Newport City Homes Housing Association Limited, which has been awarded £3.7 million to upgrade the Duffryn District Heating System, improving the performance of the network for more than 970 homes, a local school, and businesses. Funding will go towards replacing over 3km of pipework across the network, while also upgrading control systems and insulation
    • Bristol Heat Networks Limited, which will receive £746,582 for the Redcliffe Heat Network, with 740 residents benefitting from improvements. Funding will help replace the pipework across the network
    • the University of Plymouth, which has been awarded £243,280 to upgrade to a sustainable heating system in the Portland Square area of its campus. The funding will improve the efficiency of the network allowing fossil fuel-powered appliances to be replaced with heat pumps and electric boilers

    Stephen Knight, Managing Director at Heat Trust, the national consumer protection scheme for heat network customers, said:

    At Heat Trust we sadly hear of far too many examples of inefficient and poorly performing heat networks. These can result in much higher heating costs for residents, overheating corridors and frequent breakdowns.

    The steep rises in gas prices over the last few years has meant that inefficient heat networks can be very expensive for residents.

    The government’s Heat Network Efficiency Scheme (HNES) is therefore an important step in the right direction, and we welcome today’s announcement of funding.  I would urge all those responsible for running existing heat networks to consider bidding for this funding in future rounds.

    Sarah Honan, Head of Policy at the Association for Decentralised Energy, said:

    Today’s announcement takes us an important step closer to heat networks’ ultimate role in decarbonising the bulk of heat across the UK’s cities, towns and buildings. As we embark on the journey towards regulation, heat network zoning and the expansion of existing schemes, the ADE is very glad to see government supporting sector growth and high industry standards.

    Heat networks are a key solution in the mix of technologies that will make up the energy system of the future – not only will they be essential in decarbonising our homes and offices, factories and shops, but without them, the UK will not be able to build the truly resilient and flexible grid needed for the future.