Posted on: 12/11/2024
This week's energy news headlines: The UK sets out its energy transition ambitions at COP29; Ofgem unveils proposals to speed up grid connections; The new system operator believes a clean power system by 2030 is achievable; Our industry round-up includes the latest updates from Government departments and energy regulators.
Ofgem has issued a notice of a proposed financial penalty on a supplier following an investigation into its compliance with Standard Licensing Conditions.
The Renewable Energy Association has published the latest issue of its Energy Transition Readiness Index Report (ETRI) report. It assesses the readiness of 14 European countries for the energy transition from the perspective of investors.
The latest decisions on applications for energy infrastructure developments have been published by the Government.
The latest monthly data on the number of certificates issued for generation under the Renewables Obligation has been published.
The Department for Energy Security and Net Zero has published a report looking at future opportunities for electrification to decarbonise UK industry.
The UK will lead the world in a clean energy transition than supports economic growth, pledged Prime Minister Keir Starmer as the COP29 summit started.
His comments came as the UK was expected to announce a new target for cutting emissions by 81% compared with 1990 levels by 2035, in line with recommendations from the Climate Change Committee.
At the summit meeting in Azerbaijan Starmer said a new Clean Industry Bonus will be launched to incentivise offshore wind developers to invest in the UK’s industrial heartlands, coastal areas and oil and gas communities.
The scheme will come with a provisional £27m per gigawatt of offshore wind projects. which could mean a budget of £200m if between 7 to 8GW of offshore wind applies.
Starmer said: “By acting decisively and early, the UK has an opportunity to lead the world in the industries of the future — working in partnership with business — creating real energy security, cutting energy bills and building jobs and supply chains in the UK.”
Ofgem has set out a series of proposals to overhaul the system for getting new renewable and storage projects connected to the energy system.
The regulator said the new approach would slim down the 722GW of projects in the queue, with schemes prioritised if they can be operational within five years, and contribute to the right mix of generation types in the right location and at the right voltage to hit the Government’s 2030 goal.
It also said new rules aim to ensure networks connect to the grid “quickly, reliably, and using every part of their network capacity”.
“We are also looking at strengthened protections for customers connecting to the grid if they receive poor service in order to keep investment flowing. Without this, we risk falling short of providing cleaner, more affordable and more secure energy for everyone,” Ofgem said.
Ofgem is proposing companies could face stronger licences, financial penalties and tougher enforcement if they don’t hit stricter milestones and deadlines with the tougher regime in place within 12 months.
A clean energy system by 2030 is achievable but urgent progress needs to be made, according to a new report.
The National Energy System Operator (NESO)’s Clean Power 2030 report, commissioned by the Government, sets out the steps needed to achieve the goal.
NESO said renewable and battery storage capacity must expand significantly, with key roles for nuclear and technologies such as carbon capture and storage (CCS) and low-carbon hydrogen generation.
Upgrades and construction of new network infrastructure must proceed at four times the rate of the past decade to ensure system reliability and cost efficiency.
In response, Energy Secretary Ed Miliband said: “The Government is determined to ensure the significant reforms to planning and grid we need so we can back the builders and support investors to make this once in a generation upgrade of Britain’s energy infrastructure happen.”
A “landmark” rule change is set to give independent aggregators of electricity flexibility access to the wholesale electricity market.
Independent aggregators are currently only allowed to offer services in the Balancing Mechanism on behalf of the flexibility providers they represent.
Under the change to the Balancing and Settlement Code made by Elexon, independent aggregators will be able to compete in the wholesale market against suppliers by registering as a ‘virtual trading party’.
Elexon said the rule change will help decarbonisation of the electricity system, as many independent aggregators represent consumers such as shops and businesses that are prepared to either increase or reduce power consumption and help to keep the electricity system in balance.
The new system operator’s Clean Power 2030 report showed that around 12GW of demand flexibility could be available by 2030 compared with 3GW in 2023.
Five suppliers failed to meet their obligations under the Renewables Obligation by the deadline leaving a shortfall of more than £14m.
The latest figures from Ofgem show the shortfall in the buyout funds by the 1 September was less than the threshold required for mutualisation.
The deadline for the suppliers to make late payments is 31 October.
When Ofgem redistributes the late payments, it will also confirm the final recycle value which will include an extra amount on top of the £5.81 per ROC.
The shortfall figure is almost double that seen last year when four suppliers failed to meet the September deadline.
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