Posted on: 30/07/2024
This week's energy news headlines: A partnership deal aims to unleash a wave of offshore wind investment; Ofgem sets out steps to enable greater energy flexibility; The targets for the upcoming Capacity Market auctions are announced. Our industry round-up includes the latest updates from Government departments and energy regulators.
Ofgem has published a consultation seeking views on delivery of a Flexibility Market Asset Register. The closing date is 23 September.
The Government has published a policy paper looking at its plans for Great British Energy.
The Department for Energy Security and Net Zero has published a letter setting out the Capacity Market auction parameters for the T-1 auction for 2025 to 2026 delivery year, and the T-4 auction for 2028 to 2029 delivery year.
Ofgem has published its decision that Elexon will be the market facilitator delivery body.
National Grid ESO has published its 2024 update to the Future Energy Scenarios report which looks at different pathways to Net Zero.
A new partnership has been launched between the Government’s GB Energy and the Crown Estate to unleash a fresh wave of investment in offshore wind.
The Government said the deal had the potential to leverage up to £60 billion of private investment into the UK’s drive for energy independence.
This partnership will see the public sector taking on a new role undertaking additional early development work for offshore wind projects. The move aims to ensure that future offshore wind development has lower risk for developers, enabling projects to build out faster after leasing and crowding in private sector investment.
It will also help boost new technologies such as carbon capture and storage, hydrogen, wave and tidal energy.
Prime Minister Keir Starmer said: “This innovative partnership is an important step toward our mission for clean energy by 2030, and bringing down energy bills for good.”
Ofgem has set out measures to help build what it says is a pathway to a more flexible energy future.
The moves include confirming Elexon as market facilitator for local energy flexibility with a mission to enable greater flexible energy use across distribution networks.
The regulator has also launched a consultation on a proposed common Flexibility Market Asset Registration solution to provide a single point of registration for flexible consumer assets such as EV chargers, heat pumps and home battery storage systems.
Ofgem said a shift to more flexible energy use is needed as Great Britain becomes increasingly dependent on intermittent low carbon generation such as wind and solar power. At the same time power demand is expected to rise by 50% by 2035.
Ofgem Director Eleanor Warburton, said: “To successfully operate the developing low carbon energy system of the future we need more flexible tools to make the best use of our intermittent wind and solar potential along with network and consumer assets to meet demand.”
The targets for the next Capacity Market auctions have been announced.
New Energy Security and Net-Zero Secretary Ed Miliband has set a target capacity of 6.5GW for the T-1 auction for 2025/26, a small decrease on the system operator’s recommended target of 6.8 GW, and 45GW for the T-4 auction for 2028/9. The auctions will take place next March.
The government has also published its response to a consultation on the Capacity Market Phase 2 consultation and 2024 rule amendments to support auction liquidity, and set out changes to Capacity Market rules.
These include a change to address barriers faced by storage in managing battery degradation by introducing an amendment to enable permitted augmentation of battery storage sites.
Reforms to the planning system for energy infrastructure are needed to deliver net zero whilst protecting landscapes and nature, according to a new report.
Interim findings from the Aldersgate Group, RenewableUK, and CPRE, the countryside charity, said planning needs increased strategic direction, stronger resourcing and improved engagement.
Polling released alongside the report finds that the public support further investment in renewable energy. 64% of those polled support investment in renewable energy, and 60% believe their local MP should advocate for further renewable energy investment.
Rachel Solomon Williams, Executive Director, Aldersgate Group, said: “Planning reform will play an important role in ensuring that we can deliver the necessary infrastructure to enable the energy transition, while thinking holistically about the nation’s land use.”
Home battery storage installations have hit a record high so far in 2024, as new figures show strong growth in domestic green energy investments.
Figures from the Microgeneration Certification Scheme show there have been almost 8,000 certified battery installations in 2024, which is already more than any previous year with six months still to go.
More than 80,000 homes have also had certified solar panels installed so far in 2024, having surpassed the 1.5 million installations mark earlier this year.
The UK is also on track to see more heat pumps installed than ever before with 26,797 in the first half of the year.
United States
Australia
