Industry News Roundup February 2018
Wednesday 28/02 – Cold weather pushes wholesale gas prices to 12-year highs of 190p per therm. The Scottish government publishes its third Climate Change Plan, setting out its decarbonisation plans for 2018-32, in which it anticipates 50% of Scottish energy demand will be met by renewables by 2030 among other targets. The Public Accounts Committee concludes that the Nuclear Decommissioning Authority “completely failed” in both the procurement and management of the contract to clean up the Magnox nuclear reactor and research sites. E3G calls on the government to launch a UK-wide energy efficiency infrastructure programme.
Tuesday 27/02 – The Business, Energy and Industrial Strategy Committee holds its first public evidence session in its inquiry into electric vehicles. The committee hears a lack of vehicle models as well as costs and a weak second-hand market are among the barriers to EV growth. The European Council approves the reform of the EU Emissions Trading System for the period 2020-30.
Monday 26/02 – Labour Leader Jeremy Corbyn calls for the UK to remain part of the EU Internal Energy Market and to continue participating in agencies such as Euratom. European electricity and gas trade associations present two reports on flexibility in the energy transition and call on EU policy makers to integrate the roles of Distribution System Operators related to flexibility in future electricity and gas policy and legislation.
Friday 23/02 – The National Audit Office concludes that BEIS did not achieve value for money when rolling out the Renewable Heat Incentive. Energy UK warns that government plans to improve energy efficiency in the private rented sector do not go far enough. The Gas for Climate initiative finds that the smart use of renewable gas will be required for Europe to achieve its climate goals, and that it could also generate savings of up to €140bn (£124bn) per year.
Thursday 22/02 – BEIS’s latest energy trends statistics are released, revealing low-carbon generation accounted for a record high of 47% of UK electricity supply from major power producers in 2017, up from 42.5% the year before. Energy and Clean Growth Minister Claire Perry tells the Environmental Audit Committee that the UK is still an attractive and stable environment for renewable energy investment.
Wednesday 21/02 – The Green Alliance warns that failure to prioritise trade with the EU runs the risk of a “significant setback” to the UK's low-carbon sector. The latest Electric Insights Quarterly report finds that renewable energy produced enough power in 2017 to meet Britain’s electricity demand in 1958, with wind power accounting for a record share of the country’s electricity. A UK Energy Research Centre paper details the risks and opportunities posed to UK heat sector businesses by a potential transformation towards a low-carbon heat system in the UK.
Tuesday 20/02 – Business and Energy Secretary Greg Clark states that the government is confident that there will be enough capacity to compensate for any delay to construction of Hinkley Point C and that the government remains committed to a diverse supply mix. The International Renewable Energy Agency finds that the EU could increase the share of renewables in its energy mix to 34% by 2030, while also creating a net positive economic impact. A report by the Energy Institute finds global oil and gas professionals believe gas will still be playing a major role in the global energy system by 2050, but that it will be used in different ways.
Monday 19/02 – BEIS announces it is looking for a supplier with experience of delivering digital services to work on a project to encourage SMEs to adopt energy efficiency measures. Kiwi Power completes its largest behind-the-meter battery to date – a 4MW installation at Cenin Renewables in south Wales. Media reports suggest National Grid is assessing the practicality of plans to install a network of ultra-rapid charging points for electric vehicles at key locations.
Friday 16/02 – The first Annual Monitoring Report from the National Infrastructure Commission welcomes the progress made in transforming the UK’s energy networks towards a smart future.
Thursday 15/02 – It is confirmed that BEIS Permanent Secretary Alex Chisholm will be questioned next week by the Committee on the work of the department, while Energy and Clean Growth Minister Claire Perry will appear before the Environmental Audit Committee as part of its inquiry into Green Finance. The London Assembly warns the capital must begin to limit the amount and type of waste that is sent to energy from waste facilities. Statoil announces that its Hywind Scotland floating offshore windfarm has “performed better than expected” during its first three full months in production, with a ~60% capacity factor.
Wednesday 14/02 – Analysis by the OECD finds that energy taxes currently only provide limited incentives to reduce energy use, improve energy efficiency and drive a shift towards less harmful forms of energy. A Lloyd's study, analysing the future for renewable technology worldwide, finds 58% of respondents believe that renewables will not overtake fossil fuels in their country until after 2025. SSE CEO Alistair Phillips-Davies states that following Brexit, the “key principle” of the future energy relationship between the UK and EU should be collaboration.
Tuesday 13/02 – National Grid, in its role as EMR Delivery Body, publishes the final results of the T-1 2018-19 Capacity Market Auction, with an additional 15MW of battery projects securing agreements. A WindEurope report reveals that during 2017, a record 16.8GW of wind capacity was installed in Europe, taking total installed capacity to 169GW. The International Energy Agency’s latest Oil Market Report predicts that in 2018, oil production from non-OPEC countries is likely to grow by more than demand.
Monday 12/02 – National Grid issues its first annual forward plan for the electricity system operator, setting out its priorities and what it aims to deliver for both customers and stakeholders in 2018-19. Ofgem delivers its outline business case for its faster switching programme. BEIS allocates £30mn of funding to unlock the balancing potential of electric vehicles through research into vehicle to grid technologies
Friday 09/02 – BEIS welcomes the Capacity Market results as having secured homes and businesses in Britain with reliable electricity supplies for 2021-22 at a “record low cost”. Energy UK states it will continue to work with government as the Capacity Market evolves, including the possible inclusion of renewables in future auctions, and in the forthcoming review of Electricity Market Reform. BEIS indicates the European Commission has no objections to remote island wind projects being able to apply for a Contract for Difference as a less established technology.
Thursday 08/02 – The T-4 2021-22 Capacity Market auction clears at a record low price of £8.40/kW/year, with existing capacity making up 86% of cleared capacity. The London Assembly calls for the government to adopt a higher cost cap of £5,000 for landlord energy efficiency improvements to meet the April 2019 Minimum Energy Efficiency Standards. The Anaerobic Digestion and Bioresources Association welcomes the announcement that reforms to the Renewable Heat Incentive have been laid before Parliament after a “long delay”.
Wednesday 07/02 – Committee on Climate Change Chair Lord Deben appears before the BEIS Committee as part of its inquiry into the Clean Growth Strategy, arguing further progress is needed on carbon capture and storage. The Forties oil pipeline shuts down briefly due to the unexpected closure of a feed control valve connecting to the Kinneil gas plant. National Grid completes the £1bn London Power Tunnels project, creating an “electricity superhighway” to better manage the capital’s future electricity needs.
Tuesday 06/02 – Government statistics reveal the UK cut total greenhouse gas emissions by 41% between 1990 and 2016, with transport overtaking energy as the sector with the most emissions (26%). New research from WindEurope finds offshore wind increased by 25% in 2017, pushing the total European capacity to 15.8GW, with the UK (1.7GW) and Germany (1.3GW) accounting for the majority of this.
Monday 05/02 – Analysis by UCL recommends removing barriers to mature renewable technologies as one way to lower industrial electricity prices. A coalition of trade associations writes to Business and Energy Secretary Greg Clark to express concern over the delay to a planned consultation on the future of the Feed-in Tariff scheme.
Friday 02/02 – Energy UK calls for a comprehensive energy and climate chapter to be part of any future trade agreement with the EU. After failing to secure an agreement in the Capacity Market auction the 2GW Eggborough coal-fired power station confirms it will cease operations this year.
Thursday 01/02 – The T-1 2018-19 Capacity Market auction clears at £6.00/kW, the lowest price yet seen. The Scottish government and Zero Waste Scotland launch a new energy efficiency cashback scheme for businesses in Scotland, helping them to deal with energy costs and cut their carbon footprint. The European Academies’ Science Advisory Council warns that relying on negative emission technologies to compensate for failures to adequately mitigate emissions could have “serious implications” for future generations.
Written By Graham Paul
