04/11/2024
Welcome to our November 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
Autumn Budget 2024: what it means for the energy sector
Last week the UK Government published the Autumn Budget, outlining its plans for the economy across the next fiscal year, with notably the energy sector being identified as one of the key growth areas for the new Government.
What are the takeaways from the Autumn Budget?
The following announcements were made which will be of particular relevance to the energy sector:
- The National Wealth Fund, the UK’s new impact investor, will mobilise over £70 billion of investment into the UK’s world leading clean energy and growth industries and support the delivery of the Industrial Strategy.
- £3.9 billion will be provided for Carbon Capture, Usage and Storage Track-1 projects so to further support decarbonisation of the industry, support flexible power generation, and capitalise on the UK’s geographic and technical strengths.
- £3.4 billion will be allocated through the Warm Homes Plan so to help address heat decarbonisation and household energy efficiency over the next three years. This includes £1.8 billion to support fuel poverty schemes.
- £2 billion will be provided for 11 new green hydrogen projects across England, Scotland and Wales, among the first commercial-scale projects anywhere in the world.
- £200 million will be invested to accelerate Electric Vehicle (EV) chargepoint rollout, including funding to support local authorities to install on-street charge points across England. Rates for zero emission cars will be frozen at £10 until 2029-30 while rates for hybrid and petrol/diesel cars will rise from 1 April 2025.
- An initial investment of £125 million will be allocated to the publicly-owned, clean energy company, Great British Energy.
The Autumn Budget is arguably a strong indicator of the Government’s continued ambition to become a “clean energy superpower”. All in all, the budget provides a significant boost to the energy industry as a whole, while also, debatably, positively facilitating the Government’s pledge to become a net zero economy by 2050.
Overview Quick Links
Energy Efficiency and Retrofit
Carbon Capture Storage and Usage
District Heating
Six towns and cities to pilot clean heating innovation
Department for Energy Security and Net Zero 25 October 2024
Government announces England's first-ever heat network zones, supporting businesses and building owners to benefit from low-cost, low-carbon heating.
Heat Network Efficiency Scheme guidance updated
Department for Energy Security and Net Zero 11 October 2024
The Department for Energy Security and Net Zero has updated its guidance on the Heat Network Efficiency Scheme (HNES), including details on new funding rounds and additional application form guidance.
Solar
Tesco agrees largest UK corporate PPA for solar power
Tesco 16 October 2024
Tesco has today announced the signing of its largest UK Power Purchase Agreement (PPA), facilitated by EDF, securing 65% of the solar power generation from Cleve Hill Solar Park.
Landfill to become ecopark with 4,000 solar panels
BBC News 8 October 2024
Construction is under way to transform a landfill site into an "ecopark", which could power up to 2,500 homes annually. It will include 4,000 solar panels that produce "green and cheaper electricity" for Gloucester, said developers.
Solar taskforce meets in drive for clean power
Department for Energy Security and Net Zero 2 October 2024
Taskforce to accelerate the UK's solar energy rollout to strengthen energy independence and deliver updated roadmap as part of 2030 clean power mission.
Electricity
Department for Energy Security and Net Zero 15 October 2024
The government are seeking views on proposed changes to the Capacity Market (CM) to maintain the security of our electricity supply and to enable unabated gas plants to decarbonise.
Ofgem launches consultation on future of BAT after March 2025
Ofgem 9 October 2024
Ofgem has launched a consultation on extending the Ban on Acquisition only Tariffs (BAT) until 31 March 2026, following its July 2024 decision to retain the BAT until 31 March 2025.
Net Zero
Strategic plan for long-term energy infrastructure
Department for Energy Security and Net Zero 22 October 2024
The location for new energy infrastructure will be set out in a strategic plan to speed up the transition away from fossil fuels and accelerate the government’s clean energy superpower mission.
Faster grid hook-ups planned for some green energy projects
BBC News 18 October 2024
Wind and solar farms that are ready to be built would be allowed to jump the queue for a connection to the UK’s electricity system under government plans.
The Parliamentarians' Guide to Climate Change
University of Exeter 16 October 2024
The Parliamentarians’ Guide to Climate Change brings together analysis from world-leading climate scientists, giving policymakers reliable insights to inform action on the greatest challenge facing humanity today.
Energy experts appointed to deliver clean power 2030 mission
Department for Energy Security and Net Zero 10 October 2024
Government appoints leading industry and academic experts to the Clean Power 2030 Advisory Commission to help accelerate UK's mission to decarbonise the electricity grid.
New scheme to attract investment in renewable energy storage
Department for Energy Security and Net Zero 10 October 2024
The UK is a step closer to energy independence as the government launches a new scheme to help build energy storage infrastructure. These technologies work like giant batteries by storing renewable energy and releasing it onto the grid and into homes when needed. This includes pumped storage hydro, which stores electricity by pumping water up a reservoir, to be released later.
Green energy firms promise more than £24bn of new investment in Britain
Prime Minister's Office 10 October 2024
Thousands of jobs in green industries announced as the UK Government welcomes more than £24 billion of private investment for pioneering energy projects.
DESNZ and Ofgem publish joint response to energy code reform consultation
Department for Energy Security and Net Zero 8 October 2024
The Department for Energy Security and Net Zero and Ofgem have published a joint response to the consultation on the energy code governance reform proposals, which covers code manager licensing and secondary legislation, confirming their decision to proceed with these proposals.
National Energy System Operator launches
National Energy System Operator 1 October 2024
This new organisation will have broad strategic oversight of both the electricity and gas systems, ensuring that Great Britain’s energy infrastructure is secure, resilient, flexible, and future-proof as the country decarbonises to reach net-zero.
UK Power Networks sets new emissions targets aligned with SBTi Net-Zero Standard
Edie 17 October 2024
The UK’s largest electricity distribution network operator has had its new emissions targets, including a long-term goal to reach net-zero by 2040, validated by the Science-Based Targets Initiative.
Energy Efficiency and Retrofit
National Wealth Fund 17 October 2024
Barclays UK Corporate Bank and Lloyds Banking Group will each deliver £500 million of lending to the market that has been enabled by financial guarantees of up to £750m provided by the NWF.
Onshore and Offshore Wind
Department for Energy Security and Net Zero 21 October 2024
The Department for Energy Security and Net-Zero said wind farms will be able to bid for financial support to undergo repowering while they are still operating. It will come into effect for the next round of the CfD, under which successful projects will be announced in mid-2025.
Battery Storage
UK's largest battery energy storage site goes live
BBC News 8 October 2024
The UK's largest battery energy storage system has gone live in North Yorkshire.
Lakeside Energy Park is a 100MW facility in Drax, near Selby, which can provide power to about 30,000 homes a day across England and Wales.
Carbon Capture Storage / Usage
Funding announced for the clean energy sector in Autumn Budget
HM Treasury 30 October
The UK’s clean energy sector will benefit from £3.9 billion of funding in 2025‑26 for Carbon Capture, Usage and Storage Track-1 projects to decarbonise industry and contracts with 11 green hydrogen producers.
Department for Energy Security and Net Zero 15 October 2024
The Department for Energy Security and Net Zero has published the government response to its 2023 consultation on its updated proposals for carbon capture readiness (CCR) requirements, which include renaming CCR as decarbonisation readiness.
Nearly £22bn pledged for carbon capture projects
BBC News 4 October 2024
The government has pledged nearly £22bn for projects to capture and store carbon emissions from energy, industry and hydrogen production.
If you would like to discuss any of the issues raised, please contact a member of our energy team.
