Posted on: 06/08/2024
This week's energy news headlines: The Government announces a major increase to the CfD budget for green energy projects; Ofgem sets proposals to fund the grid upgrades needed for Net Zero; Renewable energy generation in the UK set more records last year. Our industry round-up includes the latest updates from Government departments and energy regulators.
The Department for Energy Security and Net Zero has published details on how to apply for the Heat Network Efficiency Scheme (HNES) which supports performance improvements to existing district heating or communal heating projects.
The Department for Energy Security and Net Zero has published its latest Digest of UK Energy Statistics (DUKES).
The Government has published the outcome of a consultation on amendments to Electricity Supplier Obligation Regulations to implement the power CCUS Dispatchable Power Agreement business model.
Ofgem has published details of the Renewables Obligation Quarter 4 Mutualisation payment distribution for 2021-22.
Ofgem has published a consultation seeking views on delivery of a Flexibility Market Asset Register. The closing date is 23 September.
Industry leaders have welcomed a major boost to the next CfD auctions to back new renewable energy projects.
The Government said the budget for this year’s round is being increased by £500m to a record of over £1.5 billion.
The figure includes £1.1 billion for offshore wind which has more budget available than all of the previous auctions combined.
RenewableUK's Chief Executive Dan McGrail said: “These new wind and solar farms will improve our energy security, drive economic growth, support thousands of new green jobs and ensure we continue to create a lowest cost electricity system for billpayers.”
However, he cautioned that the auction will not unlock investment in all shovel-ready projects, and the Government needs to ensure the next auction rounds focus on project delivery.
Ofgem has launched a consultation on a funding framework for the next wave of grid infrastructure investment.
The consultation follows work by the system operator to identify the network reinforcements needed beyond 2030.
The investment would support the connection of up to 86GW of offshore wind generation, including 21GW in the ScotWind leasing round,3 45GW solar, 22GW batteries and 10GW of electrolysers to support the government’s Net Zero obligations under the sixth Carbon Budget.
The regulator said it was proposing a multi-track funding approach for projects that takes account of their different levels of maturity and mitigates the risk to consumers from inefficient investment.
The consultation closes on 30 August.
Renewable energy generated a record annual share of the UK’s electricity in 2023, new figures have confirmed.
Renewables provided 46.4% of the UK’s electricity last year, an increase from 41.5% in 2022, according to the Digest of UK Energy Statistics (DUKES), published by the Department for Energy Security and Net Zero. Fossil fuels contributed 36.7%.
Wind remains the UK’s biggest source of clean power, generating a record 28.1% of electricity in 2023.
RenewableUK’s chief executive Dan McGrail said: “As these record-breaking figures show, renewables are now the backbone of the UK’s electricity system, keeping the country powered up as we transition away from expensive fossil fuels towards cheap electricity and our net zero goals.”
The first meetings have been staged of two new bodies aimed at accelerating the UK’s efforts towards clean power by 2030 and energy independence.
Energy Secretary Ed Miliband convened ministers from across government for the first meeting of the Energy Mission Board which he said has a vital role in driving forward long-term plans to tackle the challenges the country faces.
The new Onshore Wind Taskforce, which aims to unblock barriers to rapidly increase onshore wind capacity, has also met for the first time.
CEO of EDF Renewables UK Matthieu Hue said: “By bringing industry and government together, the taskforce is focused on creating practical solutions to overcome barriers to accelerate our journey to achieving net zero.”
The UK is to host a major energy security summit next year.
The International Energy Agency said the event in London will assess the existing and future risks facing the global energy system and prioritise the solutions and opportunities available for addressing them.
UK Energy Secretary Ed Miliband said: "In an unstable world, the only way to guarantee our energy security and protect against volatile energy price spikes is to speed up the transition away from fossil fuels to clean, homegrown energy.
“Together we can mobilise international action for cheap, clean, secure energy as we drive forward the global energy transition."
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