Posted on: 17/09/2024
This week's energy news headlines: The sale of the ESO to the Government paves the way for a new system operator; Industry leaders propose a series of changes to improve the CfD scheme; Two thirds of businesses now have a Net Zero target in place according to a survey. Our industry round-up includes the latest updates from Government departments and energy regulators.
Renewable UK has published its submission to the UK Government ahead of the Autumn Budget.
The Department for Energy Security and Net Zero has published its decision on the change of Elexon ownership, transfer of Electricity System Operator (ESO) into public ownership, and licensing and designation of NESO.
The outcome of a call for evidence on enabling industrial electrification has been published by the Department for Energy Security and Net Zero.
Ofgem has published details of the total obligation for 2023/24 under the Renewables Obligation.
The Government has published the latest decisions on energy infrastructure development applications.
The new National Energy System Operator (NESO) will launch on 1 October in a move the Government said is a major step towards reaping the full benefits of clean domestic power.
The announcement came as a deal was reached between the Government and National Grid to acquire the existing system operator, which will now be transferred to public ownership.
The new organisation will be chaired by former E.ON CEO Dr Paul Golby with Fintan Slye as the Chief Executive Officer and it will work alongside GB Energy to deploy renewable energy, helping to connect new generation projects with the grid.
Energy Secretary Ed Miliband said bringing the system operator into public ownership would provide impartial, whole-system expertise on “building a network that is fit for the future”.
“Currently, there is no single body responsible for overseeing the strategic planning and design of the country’s electricity and gas networks,” he said.
“NESO will fill this gap – breaking down the siloes which currently exist between the planning of electricity and gas systems, with independent oversight for the design of all Great Britain’s energy networks.”
As part of the changes Elexon, which manages the Balancing and Settlement Code (BSC), will become independent of National Grid ESO’s ownership.
A series of “simple” reforms to the CfD scheme would deliver a step-change in the UK’s renewable energy deployment, according to industry leaders.
RenewableUK highlighted measures including ensuring the parameters of the auction reflect the realities of the market more accurately and setting specific targets for each technology.
It also calls for the length of CfD contracts to rise from 15 to 20 years to reflect the longer lifecycle of modern projects, and more flexibility on which year developers can deliver their projects.
RenewableUK’s Chief Executive Dan McGrail said: “Several of the proposals can be implemented without major legislative reform in time for the next auction round in 2025, reducing costs whilst ensuring we procure increasing levels of new renewable energy as we look towards 2030 and beyond on our journey to becoming a clean energy superpower.”
Two thirds of businesses have now set a Net Zero target, according to a new survey.
The UK Net-Zero Business Census, conducted by the UK Business Climate Hub and Planet Mark, also found that a further 18% of businesses intend to set a target soon.
Most of the targets set so far are for dates between 2035 and 2050.
Ed Lockhart, Convener of Broadway Initiative who manage UK Business Climate Hub, said: “The leadership shown by many UK organisations in the census is deeply inspiring, helping accelerate our collective progress towards a more sustainable future.
“Despite these significant strides, substantial challenges remain, particularly for small and medium size enterprises who often lack the same access to resources available to larger organisations.”
The Crown Estate has set out its vision for how the UK’s seabed can support the transition to a cleaner energy future.
The organisation said its Marine Delivery Routemap would create a “holistic and long-term view” of how the seabed is used.
It said the work will provide visibility and certainty for developers across a wide range of sectors, helping boost market confidence and attract international investment.
It will also accelerate the delivery of offshore renewables, addressing current pinch-points such as consenting and grid connections.
Gus Jaspert, Managing Director, Marine at The Crown Estate, said: “With increasing demands and pressures offshore, we need a forward plan to release the true potential of our seas. Our plans mark an important step towards a more coordinated, long-term approach to managing the increasing demands off our coast in partnership with a range of industries and stakeholders.”
A total of 19 groups are to share in £1.5m of funding to support community renewable energy generation projects.
The support from the Scottish Government will enable community groups to develop their own projects, including installing wind turbines and solar panels to meet local needs.
The organisations will also be able to earn money from their projects by, for example, selling the excess energy generated back to the grid.
The funding forms part of the Scottish Government’s Community and Renewable Energy Scheme (CARES), which to date, has awarded more than £65m in funding to over 900 renewable projects across the country.
Acting Minister for Climate Action, Alasdair Allan said: “It is crucial that communities are at the heart of Scotland’s ambition to become a renewable energy powerhouse – and this fund helps to ensure that they can lead and benefit from this era defining transition.”
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