14/03/2024
Welcome to our February / March Energy Matters Newsletter.
The energy sector is a rapidly changing market with daily updates on technological advances, regulatory reviews, policy updates, funding decisions. In each edition of our Energy Matters Newsletter, we aim to provide a user-friendly, summary update of some of the key issues we are seeing across the renewable energy and resource management sectors.
If you would like to discuss any of the issues raised, please contact a member of our energy team.
Energy Spotlight
The Government has recently released the amended CfD terms and conditions for Allocation Round (6) in addition to the recently released allocated budget for this round, which is:
- £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 ring fenced £10 million budget for tidal
- £800 million for offshore wind.
The amendments to AR6 are reflective of those proposed in the recent consultation documentation. In truth these are relatively minor and relate to (in summary):
- Confirmation that CfD applicants will not supply directly to (or via a private network) to Offshore oil and gas installations
- Enhanced Know Your Customer requirements on Generators
- Relief provided to Generators in respect of delayed receipt of information from MoD re interference with MoD radar systems
Overview Quick Links
- Contracts for Difference
- District Heating
- Hydrogen
- Solar
- Carbon Capture Usage and Storage
- Battery
- Net Zero
- Onshore / Offshore Wind
- Electric Vehicles
- Energy from Waste
- Net Zero Cities
- Marine
Contracts for Difference
Contracts for Difference - £1bn budget allocation for round 6
Department for Energy Security and Net Zero | 7 March 2024
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.
Proposed amendments to Contracts for Difference for Allocation Round 7 and future rounds
Department for Energy Security and Net Zero | 11 January 2024
We're seeking views on potential amendments to Allocation Round 7 and future rounds of the Contracts for Difference scheme, which supports renewable electricity generators.
Contracts for Difference (CfD) Allocation Round 6: Allocation Framework
GOV.UK | 6 March 2024
The Government has released the amended CfD terms and conditions for Allocation Round (6)Allocation Framework sets out the rules for Contracts for Difference (CfD) Allocation Round 6 (AR6) and the eligibility requirements applicants must satisfy.
AR6: Is the government about to make another costly mistake?
Regen | 7 March 2024
With the parameters for the CfD Allocation Round 6 now announced, once again the government is lagging behind the market. Here Regen director Johnny Gowdy argues that, if we have another energy price spike, consumers will again be exposed to higher electricity prices.
District Heating
Heat pump and EV charger roll-out supercharged by new partnership between Octopus Energy and National Grid
National Grid | 8 February 2024
Alongside Octopus Energy, National Grid have introduced a new process to speed up the installation of heat pumps and other low carbon technologies, such as domestic batteries and electric vehicle chargers.
UK to scrap ‘boiler tax’ after makers raise prices to cover any fines
The Guardian | 4 February 2024
The UK government is poised to scrap the so-called “boiler tax” after manufacturers hiked the price of new gas boilers to cover the fines they have to pay if new targets to fit eco-friendly heat pumps in homes are missed.
Hydrogen
Hydrogen net zero investment roadmap updated
Department for Energy Security and Net Zero | 27 February 2024
This net zero investment roadmap summarises government’s hydrogen policies and available investment opportunities.
Boost for UK hydrogen with £21m government funding
Department for Energy Security and Net Zero | 27 February 2024
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.
Ellesmere Port hydrogen energy plant plans approved
BBC News | 10 January 2024
A subsidiary of Essar Oil plans to build HyNet's new hub at the Stanlow Manufacturing Complex in Ellesmere Port, Cheshire.
Major boost for hydrogen as UK unlocks new investment and jobs
Department for Energy Security and Net Zero | 14 December 2023
Over 700 jobs will be created across the UK in a world-leading hydrogen industry from the South West of England to the Highlands of Scotland, backed by £2 billion in government funding over the next 15 years.
Solar
Lullington Solar Park Ltd v Secretary of State for Levelling Up, Housing and Communities
King’s Bench Division Planning Court | 16 February 2024
The High Court rejected a challenge of an inspector’s decision to dismiss an appeal against a local planning authority’s decision to refuse planning permission for a solar development. The grounds were concerned with the inspector’s approach to considering a site selection search submitted to demonstrate the availability of best and most versatile agricultural land in locations in the district within a defined search area.
Installation of rooftop solar panels in UK hits 12-year high in 2023
The Guardian | 11 January 2024
The number of households and businesses installing rooftop solar panels has reached its highest level in 12 years, while heat pump installations climbed to record highs in 2023, according to the industry’s official standards body.
Carbon Capture Usage / Storage
DESNZ publishes government response to CCUS T&S revenue support regulations consultation
Department for Energy Security and Net Zero | 29 February 2024
The government response provides a high-level summary of the responses, highlighting: some of the key comments on the proposed revenue support regulations and our position on each question.
Carbon capture and clean hydrogen technology will drive growth and generate jobs on Humberside
Ofgem | 18 January 2024
Tens of thousands of new jobs across Britain must be created across the country to underpin the growth of the carbon capture and storage industry, according to Ofgem CEO Jonathan Brearley.
Transitional support mechanism for large-scale biomass electricity generators Department for Energy Security and Net Zero | 18 January 2024
The Government are consulting on potential transitional support arrangements to support large-scale biomass electricity generators in their planned move to power bioenergy carbon capture and storage
Department for Energy Security and Net Zero | 20 December 2023
The plan – named the CCUS Vision – sets out how the UK will transition from early projects backed by government support to becoming a competitive market in this area by 2035, meaning UK companies will compete to build carbon capture facilities and sell their services to the world.
Battery Storage
Bristol energy developer acquired in a £20m deal
The Business Desk | 13 February 2024
Fig Power, a UK-based developer focused on battery storage, was formerly a sister company of consultancy Hydrock. The deal will further TRIG’s technological diversification and bolster the development pipeline with 400MW of advanced stage battery storage projects.
Net Zero
Energy Secretary takes action to reinforce UK energy supply
Department for Energy Security and Net Zero | 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.
Ofgem gives provisional green light to projects to power millions of homes
Ofgem | 1 March 2024
Plans for two high voltage cable links to Europe which could help power millions of homes and harness the power of the North Sea have been recommended for approval by energy regulator Ofgem.
The projects being considered would provide more capacity for both exporting and importing energy, something which is needed as Great Britain moves toward a net zero energy system, which is more reliant on intermittent sources of generation such as wind and solar power.
UK Parliament | 23 February 2024
The Government has confirmed that it will not introduce quarterly reporting on how it is meeting net zero targets while enhancing energy security when it rolls out new oil and gas licences in the North Sea. While the Environmental Audit Committee (EAC) appreciates there will be a role for oil and gas in the net zero transition, MPs had raised concerns that the issue of new fossil fuel licences could send mixed signals to the market about the Government’s appetite for decarbonisation.
Strategy and policy statement for energy policy in Great Britain
Department for Energy Security and Net Zero | 21 February 2024
Strategic policy statement setting out the government’s priorities for energy policy in Great Britain
UK departs Energy Charter Treaty
Department for Energy Security and Net Zero | 22 February 2024
The UK will leave the Energy Charter Treaty (ECT) after the failure of efforts to align it with net zero, the government has announced. 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.
More support for industry to cut emissions and energy bills
Department for Energy Security and Net Zero | 22 January 2024
Over £190 million will be made available to help industry in the transition to net zero, reducing emissions as they switch to cleaner, cheaper energy. The Minister for Energy Efficiency and Green Finance Lord Callanan has announced 12 winners from the Local Industrial Decarbonisation Plan competition, who will each benefit from a share of up to £6 million to develop plans for a low carbon future
Department for Energy Security and Net Zero | 11 January 2024
The government outlines plans for the biggest expansion of nuclear power for 70 years to reduce electricity bills, support thousands of jobs and improve UK energy security – including exploring building a major new power station and investing in advanced nuclear fuel production.
Government pledge to simplify retrofitting of listed buildings
Department for Energy Security and Net Zero | 3 January 2024
The wide-ranging actions which the government has committed to take forward will ensure that this country’s historic homes are fit for the future and play their part in helping us to meet our 2050 target.
New UK levy to level carbon pricing
HM Treasury | 18 December 2023
The UK is to implement a new import carbon pricing mechanism by 2027 to support the decarbonisation drive.
Ofgem kickstarts conversation on future energy price controls funding to pave the way for net zero
Ofgem | 13 December 2023
A major consultation to decide the 2026-2031 electricity transmission and gas network price controls has been launched by Ofgem covering a critical five-year period on the transition to net zero. It is a key step in agreeing the proposed RIIO-3 price control methodology to invest in the energy system into the next decade.
Onshore / Offshore Wind
Developing local partnerships for onshore wind in England
Department for Energy Security and Net Zero | 15 February 2024
This consultation sought views on improvements that could be made to the existing system of community engagement and community benefits for onshore wind in England. The majority of respondents supported the proposals and the government intends to take these forward.
Electric Vehicles
Rollout of electric vehicle chargepoints to be accelerated
Department for Transport | 5 February 2024
New measures to support electric vehicle drivers from the government’s Plan for Drivers have launched including grants for schools, cash for councils and new proposals to boost chargepoint numbers.
Energy from Waste
Sewer power to heat homes and businesses and help keep bills low after government backing
Department for Energy Security and Net Zero | 25 January 2024
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. 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.
Net Zero Cities
Review of electricity market arrangements (REMA): second consultation
Department for Energy Security and Net Zero | 12 March 2024
Energy Security and Net-Zero Secretary Claire Coutinho has today (12 March) set out proposed measures to shift to zonal pricing – whereby electricity costs differ regionally.
Marine
Liverpool announces proposals for world’s largest tidal project
Liverpool City Region Combined Authority | 8 March 2024
Advanced proposals to build the world’s largest tidal scheme on the banks of the River Mersey have been unveiled by the Liverpool City Region’s Mayor Steve Rotheram.
If you would like to discuss any of the issues raised, please contact a member of our energy team.
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