Industry News Roundup October 2016
Monday 31/10—National Grid publishes its first Capacity Market Notice, indicating that there is an unacceptable gap between forecast electricity demand and supply. The Oil and Gas Authority announces it has attracted 29 applications in the latest frontier-focused offshore licensing round.
Friday 28/10 - The government consults on plans to change the method by which capacity market’s costs are recouped. It also confirms the final parameters for this winter’s two capacity market auctions. 3i Infrastructure announces that it had signed an agreement to invest £185mn to acquire the landfill gas business of the Infinis group. The European Commission should aim to cut the EU’s dependency on gas by ensuring that it is used efficiently, MEPs advise.
Thursday 27/10 - Business group the CBI says the government should use next month’s Autumn Statement to provide clarity on renewables support through the next contracts for difference allocation round. The government’s quarterly Public Attitudes Tracker shows support for shale gas development at 17%––the lowest level since the tracker was introduced in 2012. Official statistics also show coal’s share of the electricity mix in the three months to August dropped below 5%.
Wednesday 26/10 - The UK drops to an all-time low of 14th position in EY’s quarterly index of the most attractive locations for renewables investment. A coalition of organisations calls on the government to abandon its current proposals to remove support for solar thermal in the Renewable Heat Incentive. Vattenfall confirms that its Pen y Cymoedd windfarm, which will have a capacity of 228MW when completed next year, has generated its first power.
Tuesday 25/10 - Junior energy minister Jesse Norman indicates in a parliamentary answer that the government intends to open a consultation shortly on its intention to phase out unabated coal-fired power stations by 2025. Chancellor Phillip Hammond acknowledges that the UK will require “eye-wateringly” large amounts of investment to ensure its energy security over the coming decades. The International Energy Agency substantially increases its five-year growth forecast for renewable electricity capacity. The Carbon Disclosure Project finds that most multinational companies are yet to implement strategies that reflect the goals of the Paris climate agreement.
Monday 24/10 - Consultants Cornwall Energy warn against making “rushed changes” to the embedded benefits regime and says a more comprehensive review of network charging arrangements is necessary. A Bernstein survey finds strong interest from consumers around Europe in smart devices. Two task forces established by the Scottish government recommend that it re-thinks its definition of “fuel poverty” to ensure support can be more effectively targeted.
Friday 21/10 - The government confirms it will make an announcement about the next round of renewables subsidies available through the contracts for difference (CfD) scheme. In a response to the Scottish Affairs select committee, it also indicates it is considering options for a “subsidy-free” CfD for onshore wind. World Bank analysis finds a quarter of global emissions could be covered by a carbon price next year.
Thursday 20/10 - A poll conducted by ComRes for climate change charity 10:10 finds high levels of public support for onshore wind and solar. The Renewable Energy Association hails a compromise, put forward by the government, that will slow the planned reduction in subsidies for biomass combined heat and power projects.
Wednesday 19/10 - National Energy Action criticises the government for increasingly adding energy policy levies on domestic energy bills, despite knowing this approach can be regressive. The Scottish government grants planning consent for the 19-turbine Aikengall Ila windfarm. Research from Gocompare.com finds that 885,000 homeowners are in debt to their energy supplier, with collective debt totalling £103mn.
Tuesday 18/10 - The CMA invites views on a series of draft orders that would give effect to some of the remedies identified in its energy market investigation. Analysis from the National Audit Office finds that schemes under the Levy Control Framework are still forecast to exceed the framework’s cap and cost £8.7bn in 2020-21—a £1.1bn overspend. Alex Chisholm, permanent secretary of the business and energy department, confirms he expects the publication of an emissions reduction plan in February 2017, detailing how the government expects to meet its carbon budgets.
Monday 17/10 - The government invites applications from local authorities and public sector bodies for £39mn of funding to drive the deployment of heat networks. The Competition and Markets Authority (CMA) rules that Intercontinental Exchange (ICE) must sell energy trading firm Trayport as it is the only effective way to preserve competition in wholesale energy trading. Energy UK warns that the current electricity charging system is no longer fit for purpose and that current distortions between transmission- and distribution-connected generation could widen.
Friday 14/10 - National Grid predicts that the UK will have an electricity capacity margin of 6.6% this winter––up from its earlier projection of 5.5%. Think tank the Adam Smith Institute finds that solar panels are “highly ineffective” in the UK and generate less than a tenth of their possible output. Some 57GW of capacity pre-qualifies for the next T-4 capacity auction. Greenpeace research finds the use of LEDs in office and other commercial building could save around 4.5GW.
Thursday 13/10 - The government acknowledges that it will need to do more to ensure that the UK meets its carbon budgets, and pledges to detail the way forward in a new emissions reduction plan. The Committee on Climate Change calls on government to decide whether hydrogen could be used in a strategy for decarbonising the gas grid. British Gas Business has unveiled a new energy management tool—Panoramic Power—to help businesses reduce costs.
Wednesday 12/10 - Chancellor Phillip Hammond announces that the National Infrastructure Commission is to be put on a permanent footing. Figures from Energy UK confirm that the number of customers switching their electricity suppliers increased by 21% year-on-year in September. Engineering firm Lockheed Martin and developer CoGen sign an agreement to jointly pursue opportunities to develop energy from waste projects for commercial and industrial businesses in the UK.
Tuesday 11/10 - The Competition and Markets Authority opens a consultation on its plans for a price cap for prepayment customers. The government confirms that it is to adjust the rules for the contracts for difference scheme to strengthen the incentives for successful large scale renewables projects to deliver on time. The UK falls out of the top 10 of the World Energy Council’s table of nations that are successfully balancing the challenges of the energy trilemma.
Monday 10/10 - Environmental charities WWF, Friends of the Earth and RSPB jointly call for the Scottish government to set a target to deliver 50% of Scotland’s energy from renewable sources by 2030. The World Energy Council claims that per capita primary energy demand will peak by 2030 owing to the development of new technologies and a more stringent policy framework. Investment in the global energy efficiency sector was two thirds higher than that in generation last year, according to the International Energy Agency.
Friday 07/10 - The Scottish government announces that it is to implement a ban on underground coal gasification. The Green Investment Bank commits £28mn of debt finance to a new energy-from-waste plant near Edinburgh. OVO Energy reports a pre-tax profit for the first time in its seven-year history and says it aims to reach 1mn customers in two years’ time. Ofgem E-Serve publishes an updated table of generation and export tariffs for the small scale feed-in tariff renewables support scheme that will apply from October.
Thursday 06/10 - Communities secretary Sajid Javid overturns Lancashire County Council’s decision to reject Cuadrilla’s application to frack for shale gas at its Preston New Road site in Lancashire. The British Chambers of Commerce welcomes the government’s decision to progress shale gas exploration in an important Lancashire test case. The Association for the Conservation of Energy calls on the government to introduce mandatory minimum energy performance standards at the point-of-sale for all buildings. Clive Lewis is appointed to the role of shadow business, energy and industrial strategy secretary by Labour leader Jeremy Corbyn.
Wednesday 05/10 - Prime minister Theresa May indicates that her government could intervene in the retail energy market to support customers who do not seek a better deal. Changing staff behaviour can be effective in raising energy efficiency and could save UK businesses as much as £860mn, according to research from RWE npower. A paper by the Green Alliance warns that the current design of the government’s capacity market scheme is undermining investment in assets that support system flexibility. Energy minister Baroness Neville-Rolfe says “well-planned” energy storage systems will be crucial in the delivery of a secure low-carbon electricity system.
Tuesday 04/10 - Renewable Energy Association research finds the UK has around 3.23GW of operational energy storage capacity. Consultants DNV GL warn that failing to invest in pumped storage hydro could jeopardise the future deployment of intermittent renewables such as wind and solar. The European Parliament votes overwhelmingly to ratify the Paris climate agreement, backing the treaty by 610 votes to 38.
Monday 03/10 - Business and energy secretary Greg Clark says in his speech to the Conservative Party conference that the government will put clean energy “at the heart” of the UK’s industrial future. A new study by Tidal Lagoon Power suggests that the development of a tidal lagoon sector in the UK will represent a major industrial opportunity.
Written By Graham Paul
