Tag: Energy Security and Net Zero Department

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

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

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

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

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

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

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

Energy Security Secretary Claire Coutinho said:

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

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

Incoming NESO Chair, Dr Paul Golby, said:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Prime Minister, Rishi Sunak, said:

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

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

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

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

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

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

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

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

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

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

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

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

Ms Coutinho is also expected to add:

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

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

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

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

Jon Butterworth, CEO at National Gas, said:

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

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

Kisha Couchman, Deputy Director at Energy UK, said:

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

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

Guy Newey, CEO at Energy Systems Catapult, said:

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

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

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

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

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

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

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

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

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

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

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

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

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

A spokesperson for the Electricity System Operator said:

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

David Whitehouse, CEO at Offshore Energies UK, said:

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

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

Esbjorn Wilmar, UK Country Director at Boralex, said:

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

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

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

Richard Dunkley, CEO at OnPath Energy, said:

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

Kate Mulvany, Principal Consultant at Cornwall Insight, said:

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

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

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

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

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

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

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

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

Minister for Energy Affordability and Skills Amanda Solloway said:

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

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

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

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

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

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

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

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

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

CEO of Confused.com, Steve Dukes, said:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Energy Security Secretary Claire Coutinho said:

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

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

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

Minister for Nuclear and Renewables Andrew Bowie said:

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

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

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

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

The Allocation Round 6 budget includes:

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

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

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

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

Neil McDermot, CEO, Low Carbon Contracts Company said:

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

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

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

Dan McGrail, Chief Executive of RenewableUK said:

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

Notes to editors

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

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

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

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

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

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

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

Energy Security Secretary, Claire Coutinho, said:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Secretary of State for Energy Security Claire Coutinho said:

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

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

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

Minister for Energy Efficiency and Green Finance Lord Callanan said:

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

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

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

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

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

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

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

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

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

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

CEO of Hydrogen UK Clare Jackson said:

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

Director at Hygen Energy Jamie Burns said:

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

Exolum Clean Energies Lead Andres Suarez said:

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

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

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

Director of Hydrogen UK at RWE Steve Boughton said:

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

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

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

CEO of Veri Energy Salman Malik said:

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

CEO of Shetland Islands Council Maggie Sandison said:

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

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

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

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

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

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

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

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

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.

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.

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.

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.

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.

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.