Posted on: 19/11/2024
This week's energy news headlines: A funding deal is struck for a 2GW Scotland-England power link; Faster progress is urged as COP29 enters its final week; Five new undersea energy connection projects get the green light from Ofgem; Our industry round-up includes the latest updates from Government departments and energy regulators.
The Renewable Energy Association has published its latest annual assessment of the UK’s renewable energy and clean technology sector.
Energy UK has published a report on options for maximising the Corporate PPA market.
The Department for Energy Security and Net Zero has published an open consultation on additions to the CfD contract arising from the introduction of the Clean Industry Bonus.
Ofgem has closed compliance engagement with a business energy supplier in relation to overcharging of customers.
The latest decisions on applications for energy infrastructure developments have been published by the Government.
A £2 billion funding deal has been awarded by Ofgem for a new power link between Scotland and England to boost energy security and reduce bills.
The Eastern Green Link 1 will be able to transport 2GW of wind power and will be an important part of the Government’s Clean Power 2030 ambition.
The link between Torness, East Lothian and Hawthorn Pit, County Durham is also predicted to deliver annual savings of over £870m by reducing the need to compensate wind generators asked to turn off production during times of high wind due to lack of grid capacity.
The project is the second of 26 schemes to complete Ofgem’s new fast track Accelerated Strategic Transmission Investment (ASTI) framework.
Ofgem said the process provides developers with access to some initial upfront funding from the projected budget to secure the supply chain commitments needed to deliver projects as soon as possible.
The UN’s climate chief has urged COP29 negotiators to “get down to business” and agree a new finance deal to help fund a clean energy transition.
As the summit’s second week got under way, Simon Stiell said delegates needed to deal with less contentious issues quickly to leave enough time for the major political decisions.
The talks in Baku have a main goal of reaching agreement on scaling up finance to address the worsening impacts of global warming. However, progress so far on climate finance issues have been slow.
Stiell urged negotiators to “cut the theatrics and get down to real business”.
“Yes, there are headwinds, everyone knows that, but lamenting them won't make them go away. Now is the time to focus on solutions.”
Early progress at the summit has included an agreement on carbon credit quality standards to support a global carbon market that would fund projects that reduce greenhouse gas emissions.
Five major new undersea energy links have been given the green light by Ofgem in a move it said will further harness the potential of North Sea wind.
The projects include three interconnectors connecting England, Wales and Scotland with Germany, Ireland and Northern Ireland, along with connections between Dutch and Belgian offshore windfarms.
Ofgem said with GB expected to be a net exporter of energy by 2030, the projects will capitalise on the growing amount of homegrown wind power by providing additional channels for exporting in times of energy surplus and importing during times of more limited domestic supply.
Akshay Kaul, Director General for Infrastructure at Ofgem, said: “These new connections will help harness the vast potential of the North Sea and play a key role in making our energy supply cheaper and less reliant on volatile foreign gas markets and associated price spikes.”
The UK Government’s new 2035 target of reducing emissions by 81% from 1990 levels provides a clear goal to drive investment and action, according to business leaders.
Director of the UK Corporate Leaders Group, Beverley Cornaby, said that as the first G7 country to announce its 2035 Nationally Determined Contributions (NDC) target, the UK was sending a “powerful signal to industry, investors, and society”.
"However, to make reaching this longer-term target a reality, the UK must first maintain a strong focus on meeting its existing 2030 target by setting out a clear, decisive path forward. Government must work closely with business clearly defining their role and working collaboratively to deliver the transition,” she said.
Rain Newton-Smith, CBI CEO, said at a time of energy shocks and climate events “there has never been a more opportune time for businesses and governments to work in partnership to scale up investment in climate action and develop markets in decarbonisation technologies”.
A new parliamentary enquiry is to investigate how to unlock community energy at scale to help the UK’s Net Zero push.
The Energy Security and Net Zero Committee said despite strong public support and the affordability of renewables, the UK community energy sector is small and has seen little growth over recent years.
The committee’s inquiry will look into the policy, market and regulatory reforms needed to support the growth of community energy and realise in full the sector’s potential contributions to achieving the UK’s net zero targets.
Interested individuals and organisations are being asked to submit evidence on questions including possible reforms to enable community energy projects to sell the electricity that they generate to local customers.
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