The UK’s energy priorities: enhancing energy security and pathways to decarbonisation. Speech delivered by Business and Energy Secretary Kwasi Kwarteng at the Chatham House Second Century London Conference. A dependence on gas has left us more exposed. But this government has increased renewable capacity by 500% since 2010, and the current situation shows we need even more diversity. And of course the key to greater diversification of the energy market is unlocking private investment. Over the coming decades, Britain will need many hundreds of billions of pounds of investment into clean energy, grid upgrades and new nuclear power, for example. This investment will create hundreds of thousands of good jobs…in industries that will be built to last. Private finance is essential to the energy transition – it is not the enemy of that transition. And as I speak, 10GW of renewable power is currently being built, constructed, across the UK. That’s equivalent to the capacity of 3 Hinkley Point C nuclear power stations, and of course we have already installed today 12GW at the moment. But we need to go further. The Energy Security Bill will unlock our plans. Next month, I will announce the results of Allocation Round 4 – our biggest renewable energy auction ever. In the summer, I will set out options to fundamentally reform our electricity market. Then, later this year, we will update our planning policy and eliminate some of the bureaucracy, which can get offshore wind and solar projects off the ground. We’re driving local partnerships in England for onshore wind – which everyone should know is the cheapest and quickest way to build renewable power. All of these will be driven by a new Electricity Networks Commissioner who will be appointed, announced this month. We’re making great progress in this area. One area, of course, where we’re seeking to make even greater progress is hydrogen. Next month, we’ll accept bids to bring nuclear projects to maturity. We’re keen to revive sites from Hartlepool to Heysham, from Wylfa and Trawsfynydd. Thanks to the Nuclear Act, we have a new financing model to cut the cost of each new large-scale project by £30 billion. Great British Nuclear – our delivery vehicle – is up and running with Simon Bowen at the helm. It’s tasked with helping these projects through every stage of the development process and developing a resilient pipeline of new builds. Taken all together, we want to see progress on up to 8 new reactors this decade.

BEIS 23rd June 2022 read more »

No ‘top down’ onshore wind farm plan because ‘we’re not in China’, says Kwarteng. The Business Secretary said people can use their own ‘common sense’ when it comes to conserving energy. The Business Secretary has insisted that new onshore wind farms should be subject to “local consent”, arguing the infrastructure cannot be imposed “top down” because “we’re not in China”. He also said people can use their own “common sense” when it comes to conserving energy, saying it is not his role as a minister to say “you should wear an extra jumper over the winter”. The Government said in its recent energy strategy that it will not introduce “wholesale changes” to planning regulations on onshore wind which, along with a ban on subsidies for the technology that has been reversed, effectively halted the development of new farms in England. But it will consult on “developing partnerships with a limited number of supportive communities who wish to host new onshore wind infrastructure in return for guaranteed lower energy bills”.

Independent 23rd June 2022 read more »

Ember modelling of least-cost power system pathways reveals that a clean power system (70-80% wind and solar) by 2035 should be at the core of energy planning for a net-zero continent by mid-century. This study explores the least-cost pathways to a clean power system in Europe, compatible with the Paris Agreement climate goals (1.5C). Detailed, country-by-country, hour-by-hour power system modelling confirms the feasibility of almost completely decarbonising Europe’s power sector by 2035, while expanding the electricity supply. Key metrics are quantified in order to benchmark progress, while accounting for a range of uncertainties. Crucially, the costs of competing routes are assessed, including the costs of developing the power system according to current plans. This analysis reveals that an expanded and (~95%) clean power system in Europe can be achieved by 2035 at no extra cost above stated plans. Larger upfront capital costs for wind and solar in the power system are offset by avoided carbon costs and avoided costs associated with new nuclear and fossil capacities. There is no cost penalty for choosing the clean power path, even when the electricity supply is simultaneously expanded to enable further electrification. The three pathways modelled by Ember see a steady decline in nuclear power and no new nuclear plants. That’s because the models are optimised to minimise cost. Not building new nuclear plants is estimated to save €170 billion by 2035. In reality, several countries have taken decisions to back new nuclear plants, most notably France, Poland and the UK. So Rosslowe’s team ran a further experiment where they forced the model to deploy nuclear plants according to the number that countries have publicly said they will build. T he result: no significant difference to electricity system costs when compared with no new nuclear. “That’s a bit surprising, because nuclear has a reputation for being very expensive – it’s certainly expensive in terms of upfront costs,” says Rosslowe. However, he says there remain concerns over nuclear waste and the risk of nuclear plants not being deployed on time (as is happening in the UK).

Ember 22nd June 2022 read more »

When politicians and pundits take to the airwaves to address climate change, they regularly reduce the challenge to a matter of tradeoffs: audiences are told that, while we must end our use of fossil fuels, doing so will incur tremendous economic costs. But a major new study from Europe suggests this line of reasoning is false. According to energy research think-tank Ember, massively expanding Europe’s electricity system by quadrupling renewable energy generation and building out electrical infrastructure could save the EU upwards of $1 trillion by 2035, while delivering energy security and cleaner air.

Forbes 22nd June 2022 read more »

Ed Miliband said. “Now, of course, fossil fuels are not the answer. And in a country like ours, where you see the price of renewables are something like a quarter of that of fossil fuels – a quarter of the price of gas – shrinking back from the green transition is not the answer, and we need to assert that.” Miliband cited a report last year by the Office for Budget Responsibility (OBR), which highlighted the economic benefits of accelerating decarbonisation efforts, compared to delaying action to tackle the climate crisis and contending with the worsening impactsof a warming planet. “[The OBR report] says that delaying by a decade doubles the cost of the transition as we lock in high carbon choices,” Miliband said. “And this is incredibly important: We have got ethics on our side, but we’ve also economics.”

Business Green 23rd June 2022 read more »

Oil and gas bosses rounded on Rishi Sunak over his new windfall tax at a private 40-minute meeting in Aberdeen as they step up efforts to shape the policy before legislation is passed. Executives warned that the higher tax on profits will make the UK a less attractive prospect and was forcing them to rethink investment plans just as the Government tries to boost domestic energy supplies, sources said. Shell is said to have described the tax as a “negative” signal to investors. “No-one held back,” said one industry source. “Larger companies said it showed the UK was not a stable place.” Another source added: “The Chancellor sort of bounced in bright-eyed and bushy-tailed, and he went out with the tail between his legs. There was annoyance with where things are going.” The Government is hiking the tax rate on oil and gas producers from 40pc to 65pc to try and raise cash to help households struggling with soaring bills due to high oil and gas prices.

Telegraph 23rd June 2022 read more »

Energy prices are now the biggest concern for businesses, according to a new report from npower Business Solutions (nBS). In a survey of 200 large businesses, 77% put energy costs as their biggest concern followed by 72% identifying the ongoing recovery from Covid-19. Nine out of ten businesses predict their energy costs will increase over the next 12 months, and 80% have reported that energy is now a board-level issue.

Current 23rd June 2022 read more »

UK ‘scrap and replace’ scheme ‘could be an option’ to ditch petrol and diesel cars for EVs. A SCRAPPAGE scheme could be used in the future across the UK to help accelerate the transition to electric cars happen even faster, similar to measures taken in New Zealand. The New Zealand Government announced plans to cut greenhouse gases including a “scrap and replace” scheme for drivers. Drivers of polluting petrol and diesel vehicles will be able to replace them with cleaner hybrid or electric cars.

Express 23rd June 2022 read more »

GRIDSERVE and Moto have unveiled 17 new electric vehicle (EV) chargers across two sites, as they continue to roll out their Electric Super Hubs. Six 350kW-capable EV chargers have been installed at Moto Severn View and 11 at Moto Heston, with both sites chosen to help expand the charging options of those travelling between London, South Wales and the South West. All of the new chargers have been designed to include both CCS and CHAdeMO connectors, to accept contactless payments and to provide at least one extra-wide accessible charging bay for every six EV charging spaces.

Current 23rd June 2022 read more »

NHS Property Services, which manages more than 10% of the NHS’s estate, has pledged to switch to electric vehicles (EVs) and to draw up a long-term biodiversity plan by 2025. The commitments form part of a new ‘Green Plan’ from the Government-owned company, which outlines steps to be taken before the end of the 2024-25 financial year to support the NHS’s transition to net-zero emissions by 2040. The NHS has reduced its emissions by 3% on average each year since 2010, but that rate will need to reach 8% to achieve the long-term climate target.

Edie 23rd June 2022 read more »

A trial of vehicle-to-grid (V2G) charging has shown that electric vehicle (EV) owners can use the technology to save money on their energy bills while helping to take the stress off the electricity grid. Run by Western Power Distribution (WPD) and CrowdCharge, the Electric Nation project recruited 100 Nissan EV owners across England and Wales that were able to charge their vehicles at off-peak times when energy is cheaper and greener, and then can sell it back into the grid to help minimise energy demand at peak times. The trial has proven that V2G charging works both from a technical point of view, and from the perspective of customer acceptance, according to WPD.

Current 23rd June 2022 read more »

People Hate the Idea of Car-Free Cities—Until They Live in One. London had a problem. In 2016, more than 2 million of the city’s residents—roughly a quarter of its population—lived in areas with illegal levels of air pollution; areas that also contained nearly 500 of the city’s schools. That same air pollution was prematurely killing as many as 36,000 people a year. Much of it was coming from transport: a quarter of the city’s carbon emissions were from moving people and goods, with three-quarters of that emitted by road traffic. But in the years since, carbon emissions have fallen. There’s also been a 94 percent reduction in the number of people living in areas with illegal levels of nitrogen dioxide, a pollutant that causes lung damage. The reason? London has spent years and millions of pounds reducing the number of motorists in the city. It’s far from alone. From Oslo to Hamburg and Ljubljana to Helsinki, cities across Europe have started working to reduce their road traffic in an effort to curb air pollution and climate change.

Wired 21st June 2022 read more »

RenewableUK has published its new manifesto for a fully decarbonised electricity system by 2035, setting out key measures such as market and regulatory reforms needed to cut emissions. The report urges the government to act in order to accelerate the pace and scale of decarbonisation dramatically, to reduce the UK’s exposure to the volatile international gas market by expanding domestic renewable generation and rapidly develop a green hydrogen industry. Roadmap to net zero: a manifesto for a fully decarbonised power system by 2035 includes wide-ranging recommendations, including a call for the Contracts for Difference (CfD) scheme to be reformed to attract more investment, in particular into supply chains. While the CfD has been a success, RenewableUK notes, the current market set up may not be able to deliver the volume of projects needed to decarbonise by 2035. As global demand for offshore wind surges, there is increasing competition for investment as well as supply chains coming under more pressure. This, coupled with the maturing technology, means the trend of ever cheaper offshore wind prices may be at an end. Beyond the CfD, the government should consider innovative new policies to make the UK more attractive for investment in supply chains, argued RenewableUK. For example, it could create new wind enterprise zones where businesses can qualify for tax relief or credits as is happening in the US. A fundamental redesign of the way network infrastructure is planned and delivered is needed to allow more offshore wind to connect to the grid and to minimise the impact on local communities. RenwableUK’s manifesto recommends using the current Offshore Transmission Network Review to establish a long-term solution for grid infrastructure planning. Finally to maximise deployment, the trade association is calling on the government to review research and development funding levels to ensure support is at a similar level to that available to other strategic sectors such as oil and gas, automotive and aerospace.

Current 22nd June 2022 read more »

RenewableUK’s chief executive Dan McGrail said that, if the measures listed in the manifesto are delivered in full, the UK could attract £200bn in private investment and deliver more than 120,000 jobs in wind energy alone by 2030.

Edie 22nd June 2022 read more »

The UK’s Infrastructure Bank has outlined how it plans to invest £22bn to “tackle climate change and regional inequalities”, with clean energy listed as the largest area of investment across technologies like subsidy-free renewables, low-carbon hydrogen and carbon capture and storage (CCS). The UK’s Infrastructure Bank launched 12 months ago, with Chancellor Rishi Sunak promising that it will funnel billions of pounds into the UK’s net-zero transition. Based in Leeds, the Bank has received £22bn of financial capacity in the first instance; £10bn of government guarantees, £8bn of debt and equity and £4bn for local authority lending. It has a target to help unlock at least £40bn of investment from the private sector. Having already invested in seven deals worth £610m in its first year, the Bank has, for the first time, outlined its spending and investment plans.

Edie 23rd June 2022 read more »

Our pathetic energy regulator has overseen a total disaster. Ofgem must act fast to protect vulnerable customers after a string of terrible mistakes. Household energy bills could pass the £3,000 mark for the first time ever when the next price cap rise kicks in, in October, making the findings of The National Audit Office (NAO) a timely reminder of the part the very body tasked with policing the industry has played in the horrible mess. The contents of the NAO’s report make for genuinely jaw-dropping reading. Customer credit balances were built up by effectively overcharging on monthly direct debits. In some cases those then disappeared as executives extracted millions of pounds in salaries and fees before the companies went under, with customers and taxpayers left to foot the bill. Incredibly, about £400m of customer deposits has vanished after nearly 30 suppliers went bust. But the cost to us as taxpayers from the vast clean-up effort is far greater – £2.7bn onto everyone’s bills, equivalent to £94 per household so far. As the NAO says: “Consumers have borne the brunt of supplier failures at a time when many households are already under significant financial strain having seen their bills go up to record levels.” This cannot be allowed to happen again. Ofgem has said it accepts the NAO’s findings and is working to fix the problems raised, but can it really be trusted to get its own house in order after the mess that it has presided over?

Telegraph 22nd June 2022 read more »

The supply of home electric car chargers could be disrupted after some manufacturers threatened to pull their products from sale in a dispute over new regulations. Manufacturers and retailers approached by The Times said that they had not been given enough time to certify that their devices met rules that will come into effect at the end of the month. “Without intervention, there is a risk that the majority of home and workplace charging solutions available in the UK will have to be withdrawn from sale,” according to a draft letter from industry leaders to ministers.

Times 23rd June 2022 read more »

Energy watchdog Ofgem has been accused of allowing an industry to develop on “shaky foundations” in which a series of supply companies collapsed. All billpayers are paying about £94 more each to cover the £2.7bn cost of the failure of 28 suppliers which folded after wholesale prices soared. The National Audit Office (NAO) said Ofgem had allowed a market to develop that was vulnerable to large shocks. The regulator said it was already addressing the issues raised. Meg Hillier, who chairs the Public Accounts Committee, said: “Ofgem’s approach created an energy market built on shaky foundations. As a result, many companies simply collapsed under the shock of energy price increases. “Once again, it’s the public who has to pay for the mistakes of those charged with protecting them. It’s unacceptable.”

BBC 22nd June 2022 read more »

Billions of pounds have been added to UK household energy bills because the regulator developed a market that left the risk and costs of supplier failures with consumers, an investigation by parliament’s spending watchdog has found. Customers are expected to pay an estimated £ 2.7bn to cover the cost of 28 energy suppliers collapsing since June 2021, the National Audit Office said. The burden of the failures has been distributed across all energy bills, rather than just those of customers of suppliers that went bust, and equate to about £ 94 per customer, it added.

FT 22nd June 2022 read more »

Every household in Britain will have to pay £94 via their energy bills to cover the costs of 28 suppliers collapsing over the past year, the public spending watchdog has warned. Failings by Ofgem, the energy regulator, in licensing and monitoring suppliers “increased the risk and cost of them failing”, which is now estimated at £2.7 billion, the National Audit Office (NAO) said in a report. The figures exclude costs associated with the failure of Bulb Energy, the biggest supplier to collapse last year, which is being dealt with through a separate government process that is so far expected to cost taxpayers £1.9 billion.

Times 22nd June 2022 read more »

British households face an eye-watering £2.7bn clean-up bill following market carnage across the energy sector, with customers expected to shoulder the burden for the collapse of 28 suppliers since last June. This is a 50 per cent hike on Ofgem’s previous estimates, with the watchdog originally designating £1.8bn in billpayer funds to compensate energy companies ferrying 2.4m stranded customers from fallen firms to surviving suppliers via its last resort process. The National Audit Office (NAO) today laid the blame at the regulator’s door, hammering Ofgem for its ‘low bar’ to entry into the energy market.

City AM 22nd June 2022 read more »