Posted on: 01/10/2024
This week's energy news headlines: Flexibility contracts are opened up to help balance the grid this winter; Windy weather helps renewable generation surge in the second quarter of the year; Network operators remove zombie projects from the connections queue. Our industry round-up includes the latest updates from Government departments and energy regulators.
The Department for Energy Security and Net Zero has launched an open consultation to identify emerging generating technologies that may be eligible to participate in capacity market auctions. It closes on 1 November.
Ofgem is consulting on its minded-to positions for Last Resort Supply Payment claims. It closes on 18 October.
Ofgem has set out its decision to approve BSC Modification P475 allowing all storage sites to set and fix their own production or consumption flags.
The Department for Energy Security and Net Zero has published the outcome of its call for evidence on enabling industrial electrification.
Ofgem has set out its decision on BSC Modification P463 around a new process to progress and implement changes to documents and processes which are identified as being low risk, repeatable and predictable.
The first demand turn-up and generation turn-down contracts are being offered to help ensure security of supply this winter.
National Grid Electricity Distribution (NGED) said the contracts, aimed at owners or operators of flexible assets which can respond within a day’s notice, would help the Distribution Systems Operator to balance the grid.
Three locations in the South West, South Wales and the Midlands are available totalling 2,811MWh as part of the procurement round.
Helen Sawdon, NGED’s DSO Flexibility Commercial Manager, said the contracts will help match the volume of energy demand with the volume of generation, “incentivising energy consumers to use electricity at times when it’s in abundance”.
The window to bid for a flexibility contract is open now and will run until Monday 4 November. Following the trial in three locations, National Grid hopes to roll it out wider in the future.
Strong wind conditions helped UK renewable generation increase by 19% in the second quarter of the year.
Latest figures from the Government showed renewables accounted for a record 51.6% share of the electricity mix during the period, up from 51.1% the previous quarter.
Wind energy contributed 26.8% to the total, with onshore wind up 42% year-on-year and offshore wind increasing 13% to 9.7TWh.
Solar generation was down 9.5% due to a drop in average sun hours.
The data showed that UK energy production across all sectors was down 7% year-on-year due to lower fossil fuel generation.
So-called “zombie” projects totally 10GW have been removed by network operators to free up grid capacity.
The Energy Networks Association (ENA) said the stalled or speculative schemes have been withdrawn from the queue thanks to work being undertaken by network operators, the regulator and the system operator.
Further initiatives are underway to accelerate the speed of grid connections including ensuring all projects within the queue are “on track” and meeting the milestones set out within their contracts.
Lawrence Slade, Chief Executive of the ENA, said: “Removing these stalled schemes is a necessary step to make the UK’s grid connection process faster but it’s just one part of the solution and work must continue at pace.
“We also shouldn’t forget that these projects are a sign that the ‘connection queue’ itself requires further reform, as there was 252GW more generation and supply capacity in the queue last year than is required by 2050 in even the most ambitious plans for the UK’s grid.”
Construction work has started on a £4.3bn subsea power link between Scotland and England.
The 2GW link will run 436km from Peterhead to Drax, near Selby in North Yorkshire and aims to unlock the renewable energy capacity of Scotland and significantly increase the UK’s capacity to deliver clean energy.
The EGL2 project is the first of four currently proposed 2GW projects between Scotland and England to begin construction and in total these projects, delivered in partnership by National Grid, could provide enough renewable electricity to power eight million homes.
Akshay Kaul, Ofgem Director General for Infrastructure Group, said: “Harnessing homegrown clean energy will help build a secure energy future for Britain, and projects like EGL2 are pivotal in our move towards that.”
The project is expected to be operational in 2029.
Countries are off track for a target of tripling renewable energy capacity by 2030 but the goal is still within reach, according to a new report.
The update from BloombergNEF argues that strategic investment in battery storage and electricity grids and more support for emerging markets and developing economies are key to getting on track.
Although it expects around 10.3 terawatts of renewable power capacity to be in operation by 2030, up from 4.1 terawatts at the end of 2023, the figure is still 13% short of what is needed for a net-zero pathway.
“Since COP28, we’ve seen real progress in renewable energy investment, but it’s not happening fast enough,” said Michael R. Bloomberg, UN Secretary-General’s Special Envoy on Climate Ambition and Solutions.
“The more the public, private, civil society, and nonprofit sectors come together to develop and implement concrete plans for eliminating barriers to investment, the better chance we have of reaching our net-zero goals, growing the global economy, and saving more lives.”
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