Businesses benefit from net zero Government funding
UK Government awarding new oil and gas licenses
Net zero transition more cost effective than relying on gas, says OBR
Resource efficiency key to ‘clean energy’ transition
UK nature’s recovery campaign
Spotlight on renewables

This summer, the impacts of climate change have been clear for us all to see. Southern Europe, China and the US have all experienced extreme heat waves, devastating wildfires have broken out across several countries, and record-breaking global temperatures have resulted in the hottest July on record1. In our oceans, the average global temperature record has been beaten for each of the last three months, and Antarctic sea ice is at a record low. Scientists have warned of the impacts the scale and pace of these changes could have on wildlife, food production, homes and health.

The unprecedented intensity of these events highlight the need for more urgent action. With the world’s media focused on the consequences of climate change, it’s time to use this attention to drive solutions forward. This month we take a look at some of the more encouraging news for business and beyond, in the world of energy and sustainability. Here’s what you need to know:

Businesses benefit from net zero Government funding

In the last month, the UK Government has awarded £80 million in funding for businesses to help them decarbonise and switch to low-carbon energy sources2. The funding supports projects across a range of industries, including food and drink, manufacturing and energy. It will see exciting innovations receive backing, including a hydrogen-heated cereal production process, thermal energy storage for low-carbon whisky distillation and renewable electricity-powered biscuit manufacturing.

Awards were given from across three separate schemes from the Government’s Net Zero Innovation Portfolio (NZIP). Set up in 2021, NZIP is a £1 billion fund with 10 pots of funding for Government priority areas, including offshore wind and new technologies, which will help the UK accelerate its journey towards net zero.

In the latest funding to be announced from the NZIP projects:

  • 13 businesses in heavy-industry sectors have received a total of £52.5 million from the Industrial Fuel Switching competition. This will support development of solutions to replace fossil fuel use with alternatives such as hydrogen or biofuels.
  • Five firms have been awarded a total of £21.2 million during phase 2 of the Hydrogen BECCS (bioenergy with carbon capture and storage) Innovation Programme. The projects selected help produce hydrogen from biomass and waste, such as sewage, with carbon capture.
  • 11 projects were given a total of £9.2 million through the Carbon Capture, Usage and Storage (CCUS) Innovation 2.0 competition, with proposals such as recycling carbon for fertiliser production.

Over the coming years, NZIP projects are set to move from concept stages to prototypes of winning projects and technologies. To find a list of NZIP schemes, including funding your business may be able to apply for, click here.

The good news continues, with UK energy regulator Ofgem approving £95.3 million funding for 10 energy network projects3 as part of its Strategic Innovation Fund. The programme has been set up to find and support innovative technologies which could accelerate the low-carbon transformation of gas and electricity networks.

Ofgem says the latest initiatives to receive backing have the “potential to be widely adopted” and cover:

  • Energy system integration, from flexibility services to better management of offshore wind generation
  • AI (artificial intelligence), which will help predict and prevent risks and faults in energy networks.

To find out more about the projects, click here.

The funding comes as 86% of organisations globally have said they plan to boost their investments in sustainability initiatives within the next year4. Honeywell’s Environmental Sustainability Index (ESI) also shows nearly three-quarters of respondents cited sustainability as their top priority – an encouraging sign, with so many businesses taking action to cut their emissions. You can download the report here.

UK Government awarding new oil and gas licenses

Another key story this month was the announcement that the UK Government will be awarding more than 100 new oil and gas licenses. Despite this being a push for energy independence, the United Nations, the International Energy Agency, and the Government’s own climate advisors (CCC)5 argue that investing in new oil and gas is incompatible with reaching net zero emissions.

For more commentary on this development, visit here.

Net zero transition more cost effective than relying on gas, says OBR

Completing the transition to net zero would be cheaper in the long run for the UK than continuing its dependence on gas at the current level, according to the Office for Budget Responsibility (OBR)6.

The OBR, which provides independent economic forecasts and analysis of public finances to the UK Government, says the UK is more exposed to sudden changes in global gas prices because it’s one of the most gas-dependent economies in Europe. Its latest Fiscal Risks and Sustainability report estimates that if reliance on gas remains unchanged, it could cost the UK between 2–3% of GDP annually. This would add 13% of GDP to public debt by 2050, over double the cost of completing the net zero transition by that year.

The report should help address concerns over the financial impact of the UK’s net zero policies. On top of this, the transition to renewables will also bring benefits such as improved air quality and fewer emissions compared to remaining reliant on gas.

Click here to read the full OBR report.

Resource efficiency key to ‘clean energy’ transition

The Energy Transitions Commission (ETC) has published a new report on the natural resources and materials needed to meet the needs of the energy transition7.

Findings show that, under a new net zero energy system, the water needed would account for only about 2% of total global annual water consumption. For context, the figure is similar for fossil fuel extraction and power generation, and far lower than the 70% currently used for agriculture.

The ETC report also covers how the mining of raw materials would look in a future system, saying recycling will be key and will help reduce pressures on supply chains. While the energy transition will increase demand for some critical raw materials, the good news is that there are enough resources available and 95% of the materials needed (steel, aluminium and copper) can be easily recycled. And with advancing technology, recycling rates could reach up to 60% for those materials. It is hoped such innovations will also improve efficiency and ease-of-recycling for other key transition materials. such as lithium and copper.

Find out more by downloading the ETC report here.

UK nature’s recovery campaign

A coalition of 80 UK nature charities has called on all political parties to include a “five-point plan” to restore nature in their general election manifestos8. The report says the UK is one of the most nature-depleted countries in the world and no political party currently has an adequate recovery plan.

Charities leading the Nature 2030 campaign include the National Trust, The Wildlife Trusts, RSPB and the Woodland Trust. The five points call for parties to commit to:

  • Doubling the annual budget for nature-friendly farming and land management to £6 billion a year. Nature-friendly farming uses practices such as conserving water and protecting biodiversity in farming, while still producing food.
  • Introducing a ‘nature recovery obligation‘ for major economic sectors to help finance nature recovery.
  • Fulfilling the UK’s Global Biodiversity Framework 30×30 commitments to protect 30% of Earth’s lands and oceans, coastal areas and inland waters by 2030.
  • Establishing a National Nature Service, offering on-the-job training for “green” skills and investing in nature recovery projects.
  • Making access to a “clean and healthy environment” a human right, as part of an “Environmental Rights Bill”.

You can read the Nature 2030 report here.

Meanwhile, an independent audit shows UK solar farms can have a positive impact on biodiversity9. The assessments revealed 9 out of 10 farms showed positive results. Five of those achieve a biodiversity net gain when compared with the pre-existing habitat, with one recording a 280% improvement. The results show solar farms can have a positive impact on the natural environment when biodiversity is considered throughout the entire project, and comes ahead of changes to UK law. From November 2023, all projects granted planning permission in England must deliver at least 10% biodiversity net gain (BNG).

The findings come after another study from Solar Energy UK, reported in June’s Bryt Insight, found that well-managed solar farms can help address the loss of biodiversity in the UK.

Spotlight on renewables

Proposals for what will be the UK’s second largest offshore wind farm has received the go-ahead from the UK Government10. Once completed, the wind farm off the Yorkshire coast will contain 180 turbines and generate 2.6GW of renewable electricity.

This positive news comes in contrast to that of another major offshore wind project, which has been paused11. The decision regarding the 1.4GW farm off the coast of Norfolk was reportedly down to pressures on supply chains and cost increases facing the offshore wind industry. Previously-announced reform plans of Contracts for Difference (CfD), a Government auction scheme which supports renewable electricity generation, could see factors such as supply chains, skills gaps and grid flexibility become part of the bids. These proposed changes add hope for the continued growth of the sector, as the UK aims to grow offshore wind capacity to 50GW by 2030.

Looking beyond the UK, renewables are expected to exceed one-third of global electricity generation for the first time by 202512. The International Energy Agency (IEA)’s latest Electricity Market Report Update shows renewable energy generation is expected to grow by 11% next year. The report also says this is enough to cover all additional electricity demand, which the IEA expects to be over 3% in 2024. In more good news, the report expects the use of fossil fuels for power generation to decline by 1.2% in the same year. To read the IEA report, click here.

TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 01217267575 or at heretohelp@brytenergy.co.uk.

Sources
  1. https://www.theguardian.com/environment/2023/aug/08/july-2023-worlds-hottest-month-climate-crisis-scientists-confirm
  2. https://www.gov.uk/government/news/80-million-boost-to-help-uk-businesses-tackle-carbon-emissions
  3. https://www.ofgem.gov.uk/publications/ten-trailblazing-projects-secure-investment-ofgems-strategic-innovation-fund-sif-part-drive-decarbonise-energy-system-lowest-cost-consumers
  4. https://www.honeywell.com/us/en/company/sustainability/environmental-sustainability-index
  5. https://www.edie.net/rishi-sunak-to-give-the-go-ahead-for-100-north-sea-oil-and-gas-licences/
  6. https://obr.uk/frs/fiscal-risks-and-sustainability-july-2023/
  7. https://www.energy-transitions.org/new-report-scale-up-of-critical-materials-and-resources-required-for-energy-transition/
  8. https://www.wcl.org.uk/nature2030.asp
  9. https://www.wsp.com/en-gb/news/2023/independent-wsp-audit-of-lightsource-bp-solar-farms-shows-biodiversity-boost-around-uk-sites
  10. https://www.gov.uk/government/publications/hornsea-project-four-offshore-wind-farm-development-consent-order-planning-act-2008
  11. https://www.reuters.com/sustainability/vattenfall-halts-project-warns-uk-offshore-wind-targets-doubt-2023-07-20/
  12. https://www.iea.org/reports/electricity-market-report-update-2023
Rooftops can unlock UK’s solar potential
Climate Change Committee urges Government to accelerate net zero progress
Ofgem will be required to take net zero responsibility
Spotlight on renewables
News in brief

As we reach the height of the summer season, we will shine a spotlight on some of this month’s recommendations, breakthroughs and success stories for UK solar energy. We’ll also look at the stark results from the Climate Change Committee’s (CCC) report to Parliament on progress towards net zero, and what they might mean for businesses. Here’s what you need to know this month:

Rooftops can unlock UK’s solar potential

The UK Government’s newly formed Solar Taskforce is urging organisations to embrace solar energy installations on sites such as offices, schools, warehouses, and car parks1. The Taskforce believes the “untapped potential” of rooftop solar installations could play a pivotal role in meeting the UK’s solar targets.

The Taskforce was set up by the Government earlier this year to help reach the UK’s target of increasing solar capacity by almost five times to 70GW by 2035. At its first meeting, the Taskforce discussed how to drive more rooftop installations, and agreed that reducing costs for businesses and households looking to install solar panels will be a priority.

Also on the agenda was the plan to publish a solar roadmap next year to outline how to reach the Government’s 2035 target. This includes plans to upskill and grow the UK’s solar workforce and secure resilient supply chains. The latter is particularly significant for UK businesses, with the Taskforce envisioning opportunities to showcase their expertise and drive innovation on the international market.

A recent study conducted by the CPRE, the Countryside Charity, also looks at the untapped potential for UK solar. The findings show the installation of solar panels on unutilised rooftops and covered car parks could unlock at least 40GW of renewable energy in England by 2035, a figure the CPRE calls for the Government to adopt as a national target2.

The CPRE report finds that, with the right investment, this potential could reach up to 117GW by 2050. Its report makes recommendations to the Government such as amending planning rules to require all new suitable buildings to have solar panels. This would involve updating regulations so that solar capacity becomes a requirement of planning permission for major refurbishments and new residential, commercial and industrial buildings. For more details, the report can be found here.

While the Solar Taskforce and CPRE are bringing attention to the potential for more rooftop installations, the UK Government has granted consent for the construction of what will be one of the country’s largest ground-mounted solar farms3. Located near Terling in Essex, Longfield Solar Farm will boast a generating capacity of up to 500MW and will incorporate battery storage and grid connection infrastructure.

It is likely that deploying both of these approaches will give the UK the best chance of reaching its 2035 target. To learn more, read the latest from the Solar Taskforce here, or read the CPRE’s report, here.

Climate Change Committee urges Government to accelerate net zero progress

The Climate Change Committee (CCC) – the Government’s independent advisor on climate change – has published its 2023 Progress Report to Parliament4, warning the UK is off-track to meet its 2050 net zero target.

The annual report gives an overview to Parliament of how prepared the Government is to reduce emissions and deliver the UK’s legally-binding net zero target based on its current policies. This year’s publication outlines a general “lack of urgency” and highlights specific areas of concern within sectors making slower progress. For example, it warned that policies for the surface transport sector – which includes road and rail – meets just 38% of the required emissions reductions needed by the mid-2030s.

The report made a total of 300 recommendations to accelerate progress, including 27 priorities which address areas such as industry, energy supply and buildings. Key recommendations that might be of interest to businesses include:

  • Providing adequate support to accelerate industrial decarbonisation.
  • Ensuring net zero is consistently prioritised through the planning system to facilitate the uptake of low-carbon infrastructure.
  • Supporting existing energy efficiency programmes with long-term guarantees or suitable replacements. For example, although the Climate Change Agreement (CCA) scheme has been extended by two years to 2027, its longer-term future is still uncertain.
  • Publishing guidance for businesses on what activities it is appropriate to use carbon credits to offset, specifying that they can only do so to claim net zero once all possible emissions are reduced. Guidance should also encourage companies to disclose why carbon credits are used.

Kat Wilton, Head of Marketing & Sustainability, Bryt Energy, said: “The latest CCC Progress Report to Parliament is a stark reminder that more needs to be done if the UK is to keep pace with its net zero targets. The good news is the solutions and low carbon technology needed to reduce greenhouse gas emissions are not only widely available but are also becoming increasingly affordable. What we need now is rapid action across all sectors and systems to accelerate the transition to net zero.”

Further guidance for businesses and Government has also been released with the CCC’s The Power of Partnership report. The CCC has recommended that businesses and Government collaborate to follow the “Five I’s” framework, which involves measuring emissions, investing and implementing low carbon solutions, piloting emerging technology and helping to engage and influence public action on net zero. These five business actions, under the headings of Integrity, Investment, Implementation, Innovation and Influence, should be enabled and supported through Government policy and a “net zero business partnership”5.

To find out more about the recent CCC publications, read the Progress Report to Parliament here, and the Power of Partnership report here.

Ofgem will be required to take net zero responsibility

The Energy Bill currently going through Parliament will now require energy regulator Ofgem to consider and prioritise the UK’s 2050 net zero target when making decisions. This will help ensure the UK’s energy system is aligned with the 2050 goal – for example when approving new energy projects, Ofgem could prioritise low-carbon schemes. The amendment was adopted by the Government, having been put forward following growing calls from environmental groups and businesses. Ofgem has welcomed the amendment, saying it sends “a clear message” that the UK must end its “historic dependency” on fossil fuels6. The regulator added that the move showed that net zero was the “best option” for achieving greater energy security and lower costs.

Spotlight on renewables

In further good news for solar this month, a report by the International Energy Agency (IEA) has found solar investments are set to surpass those in oil production for the first time in history7. The “World Energy Investment 2023” report says $382 billion is set to be allocated to solar this year, versus $371 billion for oil production. In total, more than $1.7 trillion is expected to be invested in “clean energy technologies” in 2023, which includes renewables, electric vehicles, storage and heat pumps. It comes as the IEA reports in a separate study that global oil demand will reach its peak in 2028, with demand then set to decrease8. The report attributes these changes to a range of factors, including the global switch to low carbon energy sources and the increased emphasis on energy efficiency improvements. For more information, download the World Energy Investment report here, and the IEA’s Oil 2023 report here.

Despite increasing global competition, the UK has maintained its position as the fourth most attractive country for renewable energy investment, according to EY’s Renewable Energy Country Attractiveness Index (RECAI)9. Recent positive developments have contributed to the UK holding its ranking, including:

  • an increase in the allocation for the Contracts for Difference (CfD) auction round to £205 million, with the inclusion of onshore wind for the first time
  • the target of hosting 10GW of green and blue hydrogen generation capacity by 2030, with at least half being green hydrogen (a sustainable alternative to fossil fuel gas, which is made using water and an electrolyser powered by renewable electricity)
  • the proposed creation of a globally-recognised green hydrogen certification scheme by early 2025.
News in brief
  • At the IEA’s Global Conference on Energy Efficiency, policy makers from around the world endorsed the goal of doubling the rate of energy efficiency improvements by 203010. The IEA said achieving the goal would be key to both reaching net zero emissions and meeting the Paris Agreement’s goal to limit global warming to 1.5°C above pre-industrial levels. Doubling the rate of energy efficiency investments could see benefits such as reduced energy bills and lower levels of air pollution. Global leaders hope the public sector could be a role model for improving energy efficiency and thereby encourage other sectors such as industry, service, buildings, transport and agriculture to follow suit.
  • LinkedIn’s Global Green Skills Report 2023 shows 33% of postings in the past year on its UK site were “green jobs” – representing the highest proportion of postings globally11. LinkedIn’s definition of “green jobs” includes roles in low-carbon sectors such as renewable energy and EV manufacturing, as well as corporate sustainability positions. Despite the positive demand, LinkedIn’s report also revealed just one in eight workers globally possess “green skills”, highlighting a need for rapid upskilling in this area. You can read the report here.
  • The Department of Energy Security and Net Zero (DESNZ) have released figures showing that almost half of electricity in quarter one of 2023 came from renewable sources. The record share of 47.8% of total electricity generation is 2.4% higher than the same period last year, and a momentous increase from the same period in 2010 when the proportion of electricity from renewables was just 5.8%12.
TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 01217267575 or at heretohelp@brytenergy.co.uk.

Sources

 

1. https://www.gov.uk/government/news/untapped-potential-of-commercial-buildings-could-revolutionise-uk-solar-power

 

2. https://www.cpre.org.uk/news/rooftops-can-provide-over-half-our-solar-energy-targets-report-shows/

 

3. https://www.gov.uk/government/news/longfield-solar-farm-development-consent-decision-announced

 

4. https://www.theccc.org.uk/publication/2023-progress-report-to-parliament/

 

5. https://www.theccc.org.uk/publication/the-power-of-partnership-unlocking-business-action-on-net-zero-expert-advisory-group/

 

6. https://www.ofgem.gov.uk/publications/ofgem-welcomes-proposed-legal-mandate-prioritise-uks-2050-net-zero-target

 

7. https://www.iea.org/news/clean-energy-investment-is-extending-its-lead-over-fossil-fuels-boosted-by-energy-security-strengths

 

8. https://www.iea.org/reports/oil-2023/executive-summary

 

9. https://www.ey.com/en_gl/recai/will-local-ambition-fast-track-or-frustrate-the-global-energy-transition

 

10. https://www.iea.org/news/at-iea-conference-45-governments-endorse-goal-of-doubling-global-energy-efficiency-progress-by-2030

 

11. https://economicgraph.linkedin.com/research/global-green-skills-report

 

12. https://www.current-news.co.uk/renewables-accounted-for-almost-half-of-electricity-in-q1-2023/

Still chance to apply for additional Energy Bills Discount Scheme discounts
UK could see £70 billion economic benefits from going ‘beyond net zero’
Demand Flexibility Service cut more than 3.3GWh of peak electricity use over winter
Call for businesses and nations to accelerate climate action after stark warming predictions
Spotlight on renewables
News in brief

We’re not yet halfway through 2023 and the UK has sadly already passed Earth Overshoot Day1 (May 19th). This is the day on which, if every country used the world’s resources at the same rate as the UK currently does, we would have used more than the Earth can replenish in one year. Compare this to the global Earth Overshoot Day of August 2nd and it’s clear to see that the UK must use its resources in a more sustainable way. This month’s Bryt Insight also features some significant updates on the UK’s journey towards net zero, and the opportunities and challenges businesses face, as well as the latest good news for UK renewables. Here’s what you need to know:

Still chance to apply for additional Energy Bills Discount Scheme discounts

With the application deadlines for the additional ‘Energy and Trade Intensive Industries’ and ‘Qualifying Heat Suppliers’ discounts approaching, we’d recommend anyone that thinks they may be eligible to apply. These discounts are extra to the Energy Bills Discount Scheme (EBDS) and could see eligible businesses receiving a higher level of support until 31st March 2024. 

You have until the 25th July 2023 to apply via the Government portal, where the Department for Energy Security and Net Zero (ESNZ) will then determine whether your business qualifies. 

To check whether you are eligible, you can review the applicable SIC (Standard Industrial Classification) codes, here.    

If you cannot apply online, or have any questions about the discount, please get in touch with ESNZ’s EBDS customer support team on support@ebds.beis.gov.uk or on 030 0400 5251. 

To learn more about EBDS and how these additional discounts work, read our up-to-date blog or visit our range of FAQs. 

UK could see £70 billion economic benefits from going ‘beyond net zero’

A new report has found that the UK could see more than £70bn in economic benefits and export £17bn of renewable energy annually if it goes “beyond net zero”2.

The “Sustainability Superpower UK” report has been produced by the UK Business Council for Sustainable Development in conjunction with Inspired Energy. To go “beyond net zero”, also referred to as becoming “climate positive”, would require the UK to remove more carbon from the atmosphere than is emitted.

The report says the UK is uniquely well positioned to benefit from going beyond net zero, due to its strong competitive advantages in renewable and low carbon energy generation. It also says that the achievement would create an additional 279,000 jobs and turn the country from a net importer to an exporter of renewable energy. To learn more about the benefits of going ‘beyond net zero’, you can read the full report, here.

Currently, the UK Government is taking steps to reach its target of net zero by 2050. As part of its strategy, it has set up the Net Zero Council which had its first meeting in May3. The group brings business leaders to the table with Government Ministers to discuss progress on the UK’s 2050 target and identify challenges.

The council’s key objectives include; ensuring that businesses have a pathway to net zero, identifying barriers to reducing their carbon footprint, and supporting their energy transition. It will also review financing challenges and how to address them.

Going forward, the Council will meet four times a year, making sure businesses are a key part of the UK’s path to net zero. To find out more, click here.

Demand Flexibility Service cut more than 3.3GWh of peak electricity use over winter

The Demand Flexibility Service (DFS) – a National Grid ESO (Electricity System Operator) pilot that ran from November 2022 to March 2023 – successfully delivered more than 3.3GWh of electricity savings across the UK4. The DFS trials saw consumers and businesses reduce their electricity demand at peak times in return for financial incentives – in total, 1.6 million businesses and households participated.

The scheme gave those who took part the opportunity to shift their electricity use away from specific time periods – providing the first service to successfully deliver consumer demand flexibility at scale in Britain. It enabled participants to play a more active role in managing the electricity network by optimising their usage to support the grid.

National Grid ESO says it is now reviewing the DFS alongside participants to see how it could be improved in the future. Full results of the review will be published later this year before a decision is made on the next steps of the scheme.

To find out more about the Demand Flexibility Service, visit the National Grid ESO website. Or to learn more about the benefits of optimisation to both businesses and the grid, you can read our dedicated blog here.

Call for businesses and nations to accelerate climate action after stark warming predictions

A new report from the World Meteorological Organization (WMO)5 has warned that global average temperatures are likely to exceed 1.5°C above pre-industrial levels within the next four years, surpassing the limit set out in the Paris Agreement.

The report found that while there is a 66% chance of this happening, exceeding 1.5°C is likely to be a temporary breach. It’s a warning, however, of the urgent need for businesses and nations to help slow and halt temperature rises. Additionally, to adapt to a warming planet, the World Meteorological Organisation has officially recognised early warning systems as a priority, with their aim to ensure “everyone on Earth is protected against hazardous weather” that is made more likely by climate change6.

This story comes as the UK’s Office for National Statistics (ONS) released its latest climate change insights data for 20237, revealing this year has, so far, been “warmer than average“. According to the ONS, UK provisional mean temperatures for January and February 2023 were 1.7°C above the 1991–2020 average. Figures also show that in the most recent decade, the UK experienced a 26% rise in the average number of days that surpass 25°C.

“These latest releases show global warming will only continue in the next decade and beyond. It is a stark reminder to businesses of all sizes to both adapt to a changing planet and act to slow down warming. The technology that can help businesses do this not only exists right now, but is becoming more cost effective and easily available – and many already have what they need to get started on their net zero journey, right away.” – Ian Brothwell, Managing Director, Bryt Energy

Spotlight on renewables

A new report has found that six proposed pumped storage hydro projects in Scotland could see a major boost for the UK economy, jobs and renewables8.

The report, by Scottish Renewables, said the projects could create up to 15,000 jobs and generate up to £5.8 billion for the UK economy by 2035. It also found the projects would increase pumped storage hydro capacity by 4.9GW – with the UK expected to need 15GW by 2050. Pumped storage hydro systems work in principle like a battery – when there is an excess of electricity on the grid, water is pumped up and stored. When electricity demand is high, the water is released through the hydro turbine, generating renewable electricity.

The findings of this report come after the announcement of a significant £100 million boost for a proposed 1.5GW pumped hydro facility on the shores of Loch Lochy, as featured in our previous edition of Bryt Insight.

Meanwhile, yet another positive record has been broken for wind power, which generated more electricity than gas in the UK in the first quarter of 20239. More than 32% of the UK’s electricity was supplied by wind power between January and March, with gas delivering 31.7%.

It’s hoped this trend can continue, with the UK’s offshore wind industry continuing to grow – generating 45TWh of electricity in 202210. In total, the amount of electricity generated from offshore wind farms in the UK last year was up from 37TWh in 2021 and saw a sixfold increase over the past 10 years. Offshore wind is now on track to generate enough electricity to meet the needs of nearly half of UK homes by the end of this year.

A new study from Solar Energy UK has found that well-managed solar farms can help address the loss of biodiversity in the UK11. The low intensity of management required makes them an ideal place for a variety of invertebrate species to thrive. These species go on to support other species – either as food, or pollinators that can benefit local agriculture. The study found several declining bird species such as the Linnet, Yellowhammer and Skylark are present at half of the solar farms which took part in the survey. It’s hoped the study’s sites could provide useful case studies for best practice for improving biodiversity alongside the generation of renewable electricity.

Further away from home, the European Space Agency (ESA) has signed contracts for two concept studies focused on commercial-scale space-based solar power plants12. The trials will guide future research and development, with the aim of creating power plants capable of generating solar energy in Earth’s orbit and transmitting it wirelessly back to help meet energy demand. Results will inform a decision by 2025 on a full development programme.

News in brief
  • The Government has awarded £24.3 million to help UK businesses with high energy use cut their carbon emissions through energy efficiency and new technology projects13. The funding comes from the second phase of the Industrial Energy Transformation Fund (IETF). Applications for the second phase of the scheme have closed but the Department for Energy Security and Net Zero (ESNZ) will be opening phase three, worth £185 million, early next year. More information about the fund can be found on the Government’s website.

 

  • Climate champion Nigel Topping has said he is looking forward to supporting businesses in the net zero transition after being appointed as the Climate Change Committee’s (CCC) business champion14. The committee is the UK Government’s independent advisor on climate change, and with his new role, Nigel Topping has said he will use his position to push for policies that “support and encourage businesses to lead the charge” towards net zero.
TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 01217267575 or at heretohelp@brytenergy.co.uk.

Sources
  1. https://www.overshootday.org/newsroom/country-overshoot-days/

 

  1. https://ukbcsd.co.uk/report2023/

 

  1. https://www.gov.uk/government/news/government-holds-first-net-zero-council

 

  1. https://www.nationalgrideso.com/news/demand-flexibility-service-delivers-electricity-power-10-million-households

 

  1. https://public.wmo.int/en/media/press-release/global-temperatures-set-reach-new-records-next-five-years

 

  1. https://public.wmo.int/en/media/press-release/early-warnings-all-officially-becomes-wmo%E2%80%99s-top-priority

 

  1. https://www.ons.gov.uk/economy/environmentalaccounts/articles/climatechangeinsightsuk/may2023

 

  1. https://www.scottishrenewables.com/news/1295-six-pumped-storage-hydro-projects-to-create-up-to-14800-uk-jobs-new-report-finds

 

  1. https://www.current-news.co.uk/wind-generates-more-electricity-than-gas-in-britain-for-first-time/

 

  1. https://www.thecrownestate.co.uk/en-gb/media-and-insights/news/the-crown-estate-launches-offshore-wind-report-2022/

 

  1. https://solarenergyuk.org/news/solar-farms-can-be-wildlife-havens/

 

  1. https://www.esa.int/Enabling_Support/Space_Engineering_Technology/SOLARIS/ESA_developing_Space-Based_Solar_Power_plant_plans

 

  1. https://www.gov.uk/government/publications/industrial-energy-transformation-fund-ietf-competition-winners/ietf-phase-2-spring-2022-competition-winners

 

  1. https://www.theccc.org.uk/2023/05/16/ministers-appoint-new-business-champion-to-the-ccc/
The latest on the Energy Bills Discount Scheme
One step closer to a net zero electricity system
World’s largest cross-border power line announced to connect wind farms to the UK
Decarbonising UK power system and heavy industries requires major low carbon energy investment
Impact of climate change on UK businesses outlined in study
Renewables in brief
News in brief

As the UK continues on its net zero journey, National Grid ESO (Electricity System Operator) has reached a major milestone in its aim to decarbonise the electricity transition network with its Stability Pathfinder project. Meanwhile, the announcement of a cross-border power line, which will connect the UK and Netherlands to wind farms in the North Sea, is just one of the many good news stories for renewables this month. More information on the Energy Bills Discount Scheme (EBDS) has also recently been released – here’s what you need to know:

The latest on the Energy Bills Discount Scheme

More details about the Energy Bills Discount Scheme have recently been announced by the UK Government.

If your business is looking to apply for the additional ‘Energy and Trade Intensive Industries’ (ETII) discount or ‘Qualifying Heating Suppliers’ discount, the Government portal to submit your applications is now live. Businesses have until 25th July 2023 to apply for these additional discounts, and can now contact support@ebds.beis.gov.uk for any support regarding the application process.

To learn more about EBDS and how these additional discounts work, read our up-to-date blog or visit our range of FAQs.

One step closer to a net zero electricity system

National Grid ESO (Electricity System Operator) has reached a major milestone on the path towards decarbonising the transmission network, with the completion of phase one of its Stability Pathfinder project1.

The project is focused on finding cost-effective ways to address stability issues in the electricity system, including tackling the loss of “inertia”, as the UK looks to reduce its reliance on gas and coal-fired power plants. Inertia is inherent in these fossil fuel-based facilities, where kinetic energy from turbines is converted into electricity; These large turbines store enough inertia to dampen the effects of sudden fluctuations of power, making it vital for the stability of the grid. As the UK aims to move away from fossil fuel power stations with this type of ‘built-in stability’ and towards renewables where there is a lack of inertia, ESO is trialling other ways to keep the grid frequency stable.

During phase one of the Stability Pathfinder project, work was completed on 12 “synchronous compensator” units; these are rotating stabilisers, capable of providing inertia to the grid in place of fossil fuelled power stations. Over their lifetime, National Grid ESO expects the 12 units to reduce CO2 emissions by around 6 million tonnes and save energy users £128 million1.

As National Grid ESO explain, “By separating inertia generation from the process of generating electricity we can also improve the flexibility of the network, allowing more renewables to operate at any given time”.

Statkraft, our parent company and Europe’s largest generator of renewable energy, has been part of phase one, supporting National Grid ESO’s decarbonisation targets with the development of two Greener Grid Parks, in Liverpool and Moray in Scotland.

Statkraft’s Head of Greener Grid Parks, Guy Nicholson, said: “Achieving a renewable powered net-zero electricity system is now within our reach, and with five further grid stability projects under development in England, Scotland and Wales, Statkraft will continue to play a leading role in making it happen.”

You can find out more about Statkraft’s Greener Grid Parks by clicking here.

World’s largest cross-border power line announced to connect wind farms to the UK

Ministers in the UK and the Netherlands have announced a multi-purpose interconnector (MPI) that will enable 1.8GW of renewable electricity to be carried between wind farms in the North Sea and the two countries2.

The power line, called LionLink, will connect the UK and Netherlands to each other and at the same time to offshore wind farms in the North Sea. It aims to provide a reliable, affordable and secure source of power for businesses and homes, as well as help the UK meet its carbon reduction targets by increasing access to renewable energy.

The project is being developed by the National Grid and Dutch electricity network TenneT, and plans to be operational by the early 2030s.

This new project comes after separate announcements from the National Grid and the Government offshore wind champion, Tim Pick, to improve grid connections and infrastructure. In its “Great Grid Upgrade”, National Grid said it was aiming to build significant new infrastructure across England and Wales, which will move more renewable energy from “where it is generated to where it is needed”3. It called the plans “the largest overhaul of the grid in generations”, adding it would help the UK meet its net zero ambitions and reduce reliance on fossil fuels. More information about the plans can be found here.

Government offshore wind champion, Tim Pick, has also called for accelerated grid upgrades and improved connection times to achieve the full potential of the UK’s wind sector4. His independent report, “Seizing our Opportunities”, recommends several measures, including reforming the connections queue process, accelerating work to increase the grid’s physical capacity, and giving energy regulator Ofgem powers to support the UK’s net zero transition.

To read the report, click here.

Decarbonising UK power system and heavy industries requires major low carbon energy investment

A predicted 200GW of low carbon energy infrastructure must be invested in within the next 12 years to decarbonise power and end heavy industry’s reliance on costly fossil fuels, according to a new report5.

The report has been published by the Aldersgate Group – a multi-stakeholder alliance which champions a competitive and environmentally sustainable economy. It warns that current policy delivery is not moving at the pace required to meet the UK’s target of decarbonising the power system by 2035 – but does offer hope.

The report emphasises how substantial decarbonisation of heavy-industrial sectors such as cement, glass, steel and chemicals, is an essential part of both meeting the target and remaining internationally competitive.

It also makes 15 recommendations to the Government on policy priorities for both power system decarbonisation and industrial electrification, including:

  • Making it quicker and easier to connect low carbon energy projects to the grid, including upgrades to industrial networks.
  • Developing the regulatory framework to enhance investment in network capacity.
  • Collaborating across heavy industry, with Government and Ofgem part of the process, to efficiently construct necessary grid infrastructure.
  • Simplifying the planning process for low-carbon projects and scaling up workforce to manage the increased demand.
  • Extending and improving the Contracts for Difference scheme to support greater diversity in renewable energy.

The report says the actions would give the Government the opportunity to create a long-term future for more sustainable heavy industry sectors, as well as accelerate the transition to a low carbon economy.

You can read the Aldersgate Group report here.

Impact of climate change on UK businesses outlined in study

In a study of more than 1,500 UK business decision makers, half say their companies have already been impacted by the effects of climate change, and nearly three quarters are concerned about its impact over the next decade.

The research6 shows four in 10 respondents had spent money on taking steps towards mitigating the impact of climate change, and encouragingly, more than half planned to over the next two years.

The most common actions of businesses planning to protect themselves against climate change include:

  • Committing to reduce carbon emissions
  • Reviewing their insurance policies
  • Setting a net zero target
  • Investing in low-carbon technologies

The study also showed the approaches businesses are already taking to reduce their wider impact, such as reducing paper use, using renewable energy, and switching to automatic lighting and LED bulbs.

Read more about the report and reactions from businesses, here.

Renewables in brief

The UK recorded a 23% increase in wind generation capacity last year, according to the latest Global Electricity Review by energy think-tank Ember7. This led to a year-on-year rise of 15TWh, described in the report as a “significant increase”. Wind power now accounts for a quarter of generation in the UK – an encouraging step towards the UK’s net zero target.

It’s also been a good-news month for Scottish renewables, as Scottish Water has switched on nearly 8,500 ground-mounted solar panels8. The £5 million installation at its East Dunbartonshire site will provide 19% of the site’s electricity needs, generating 4.45 GWh of energy every year. Scottish Water says the investment will save around 1,100 tonnes of CO2 equivalent annually, a positive movement towards Scotland’s net zero target for 2045, which is five years before the rest of the UK.

Meanwhile, another project that will go towards this target is Scotland’s first floating solar array, set to be installed later this year9 after receiving a £6.4 million grant from the Scottish National Investment Bank. Our parent company, Statkraft, is also developing floating solar panels at the Banja hydropower plant in Albania10. In addition to generating renewable energy, this research and development project also serves to help understand the potential benefits of this technology.

News in brief
  • Businesses are being urged to report their plastic production and use for the first time through CDP’s (Carbon Disclosure Project’s) global environmental disclosure system11. CDP, which assesses companies on a number of environmental factors, is encouraging companies in packaging, fashion and food industries to be the first to use the function. It requires companies to categorise their plastics use into packaging, polymers, and durable plastics categories. It’s hoped the move will encourage businesses to better understand how they contribute to plastic pollution. For more information, including tools to support businesses with plastic disclosure, click here.

 

  • Energy regulator Ofgem could be legally required to assist in delivering net zero, after members of the House of Lords passed an amendment during its third reading of the Energy Security Bill12. The amendment was put forward after energy trade associations expressed concerns over the extent of powers Ofgem has to deliver net zero. It will be considered by MPs in the Commons this month.

 

  • As leaders prepare to meet at the G7 Summit in Japan this month, the We Mean Business Coalition of business leaders has written to G7 ministers calling on them to deliver commitments to phase out coal fired power by 2030 and decarbonised power grids by 203513. The letter says businesses are ready to deploy solutions needed for the energy transition, but need supportive policies, investments and timelines to do so at the speed required. The coalition also called for G7 leaders to rapidly scale up renewable generation and make sure that by 2035 all new vehicle sales are zero emissions. They also want to see that the 2016 G7 commitment to eliminate fossil fuel subsidies by 2025 is being delivered.
TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 0330 053 8620 or at heretohelp@brytenergy.co.uk.

Sources
  1. https://www.nationalgrideso.com/news/first-phase-stability-pathfinders-delivered
  2. https://www.gov.uk/government/news/worlds-largest-of-its-kind-power-line-to-deliver-clean-power-to-18m-uk-homes-and-boost-energy-security
  3. https://www.nationalgrid.com/national-grid-launches-largest-overhaul-grid-generations
  4. https://www.gov.uk/government/publications/accelerating-deployment-of-offshore-wind-farms-uk-offshore-wind-champion-recommendations
  5. https://www.aldersgategroup.org.uk/publications/post/a-zero-carbon-power-grid-and-the-electrification-of-heavy-industry-how-to-deliver-on-a-twin-challenge/?origin=/publication/type/reports-and-briefings/
  6. https://www.ajg.com/uk/news-and-insights/2023/april/half-of-uk-businesses-already-impacted-by-climate-change/
  7. https://ember-climate.org/insights/research/global-electricity-review-2023/
  8. https://www.scottishwater.co.uk/About-Us/News-and-Views/2023/04/260423-Solar-Giant-Switched-on-in-East-Dunbartonshire
  9. https://www.gov.scot/news/floating-solar-panels-ready-in-first-for-scotland/
  10. https://www.statkraft.com/newsroom/news-and-stories/2023/statkraft-completes-construction-of-first-rd-floating-solar-plant-in-albania/
  11. https://www.cdp.net/en/articles/media/cdps-environmental-disclosure-system-opens-for-reporting-on-plastics-for-first-time-at-request-of-investors-with-us130-trillion-in-assets
  12. https://www.current-news.co.uk/energy-bill-amendment-grants-ofgem-net-zero-mandate/
  13. https://www.wemeanbusinesscoalition.org/blog/we-mean-business-coalition-letter-to-g7-ministers/
The latest on the Energy Bills Discount Scheme
Call for urgent action in latest IPCC report
UK Government announces “Powering Up Britain” and Budget plans
Spotlight on Renewables
News in brief

We’ve now had time to digest a range of major climate and energy announcements made during the last month. This edition of Bryt Insight looks at what your business needs to know from the Intergovernmental Panel on Climate Change (IPCC)’s summary report, as well as the UK Government’s Spring Budget and Powering Up Britain policy announcements on energy security and net zero. The headlines are stark, and require swift and robust action to reduce the impacts of climate change – but there is hope, with solutions already widely available. We also look at the latest updates on the Government’s Energy Bills Discount Scheme – here’s what it all means for businesses:

The latest on the Energy Bills Discount Scheme

The UK Government has recently released more details around the new Energy Bills Discount Scheme (EBDS). Set to come into effect on 26th April 2023, EBDS will (retrospectively) run from 1st April 2023 – 31st March 2024, to help support businesses with the cost of wholesale energy for an additional 12 months.

The scheme also includes additional support through the ‘Energy and Trade Intensive Industries’ and ‘Qualifying Heating Suppliers’ discounts. Take a read of everything we know so far about the scheme, and what it could mean for your business, in our latest blog.

You can also find our comprehensive list of Frequently Asked Questions about EBDS on our website, here.

Call for urgent action in latest IPCC report

The Intergovernmental Panel on Climate Change (IPCC) has published its latest summary report, with scientists warning “there is a rapidly closing window of opportunity” to “secure a liveable and sustainable future for all”1. Some of the impacts of global warming are now unavoidable, with every temperature increment increase leading to more extreme climate changes. The report says the world is not yet on track to achieve the Paris Agreement’s goals of limiting warming to 1.5°C, or well below 2°C, above pre-industrial levels.

Although the warnings are stark, scientists make clear that “multiple, feasible and effective options” to reduce greenhouse gas emissions are “available now” and increasingly affordable, but rapid action across all sectors and systems is needed.

The report pulls together key findings from recent IPCC assessments and presents policymakers around the world with updated recommendations. These findings include:

  • The global temperature has already increased by 1.1°C above pre-industrial levels. It is now likely to reach and exceed 1.5°C between 2030 and 2035, but it is possible for temperatures to fall below this again with immediate action to reduce greenhouse gas emissions.
  • Calls for widespread adoption of innovative low-carbon technologies – such as wind turbines, solar panels, and carbon capture and storage. These solutions are not only widely available but in many cases, are also rapidly falling in cost. As well as helping individual businesses with their own energy transition, these solutions will contribute to the required large-scale investment and deployment of renewable energy.
  • Calls for a “substantial” reduction in the overall use of fossil fuels, as well as a shift in how we use energy. This should include decreasing our energy demand as well as optimising what we do use to become more efficient. The report also emphasises the need for greater integration across the energy system, which would see players across the industry working more closely together on the planning and operation of the system as a whole.
  • More ambitious pledges and swifter action to cut greenhouse gas emissions, with UN Secretary General, António Guterres, calling on all countries to bring their net zero plans forward by a decade.

Although the findings and recommendations are largely aimed at Governments, action involves everyone, from businesses to individuals.

“At Bryt Energy, we echo the sentiments of the report – that it is not too late to act. The report makes clear that a massive increase in renewable energy investment is critical to tackling the climate crisis. What’s more, the solutions and low carbon technologies needed to reduce emissions are already available and becoming increasingly affordable for businesses who want to accelerate their net zero journey, now.” – Ian Brothwell, Managing Director at Bryt Energy.

Our parent company, Statkraft, also reacted to the report, saying: “The report gives a bleak picture of the consequences from climate change and the state of global climate action, but it also gives room for hope as we have the technologies and the know-how needed for rapid reduction in global greenhouse gas emissions.” – Barbara Flesche, Executive Vice President for Europe, Statkraft.

Meanwhile, in the UK, the Climate Change Committee (CCC) has published its Delivering a reliable decarbonised power system report, outlining the steps needed to support the energy industry’s journey to net zero2. Like the IPCC summary report, the CCC makes its own clear warning that the UK is not currently on track to meet its climate commitments. It does, however, say the UK can build a resilient decarbonised energy system by 2035 if policymakers act now to accelerate the delivery and deployment of renewable generation and infrastructure. Launching the report, Committee Chair Lord Deben said the offer of cheap, decarbonised electricity was now within reach for every business and that renewables were “cost effective, reliable and secure”.

Both the IPCC and the CCC reports detail that – despite the need for rapid Government-level intervention – tools and technologies are available now to enable businesses to play their part in the energy transition.

For full details, you can read the IPCC report here and the CCC report here.

UK Government announces “Powering Up Britain” and Budget plans

A wide range of new and updated plans to increase energy security, lower energy costs and reach net zero emissions have been announced by the UK’s Department for Energy Security and Net Zero3. The “Powering Up Britain” policy paper includes both net zero growth and energy security plans. Here are some of the key takeaways:

  • The Government intends to increase its solar power capacity fivefold to 70GW by 2035. The Government will set up a taskforce to deliver this ambition, accepting the recommendations from the net zero review published earlier this year by Chris Skidmore, covered in February’s Insight.
  • A review of the planning process will take place to encourage more onshore wind farms and speed up the building of offshore wind and solar infrastructure. Meanwhile, the Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS) has also been announced. This will provide £160 million to kick start investment in port infrastructure projects needed to deliver the floating offshore wind ambitions.
  • Support for businesses to invest and accelerate the transition to electric vehicles – with the specific details of this help to follow. Meanwhile, local authorities will receive £380 million funding to boost EV charging points and infrastructure across the country.
  • A £30 million Heat Pump Investment Accelerator will help leverage up to £270 million of private investment to boost UK manufacturing and support the commitment to install more than 600,000 heat pumps per year by 2028. Additionally, financial support will be extended to 2028 to facilitate the continued growth of low carbon heat networks, including £220 million for the Heat Network Transformation Programme.
  • Confirmation of £240 million funding for the first winners of the Net Zero Hydrogen Fund. This aims to support the commercial deployment of new low carbon hydrogen production projects this decade. Our parent company, Statkraft, is one of the companies to have been awarded funding, which will go towards its Trecwn Green Energy Hub, that will produce green hydrogen in Pembrokeshire, Wales4.

Meanwhile, in his first Spring Budget, Chancellor Jeremy Hunt made some important announcements for energy and renewables that will be of interest to businesses5, including:

  • The Extension of the Climate Change Agreement (CCA) scheme for two years. This means businesses who qualify for the scheme will continue to be eligible for a discount on the Climate Change Levy, a tax added to energy bills, if they meet agreed efficiency or emission reduction targets.
  • The announcement of capital allowances. One is a “full expensing” allowance, enabling businesses to deduct 100% of the costs on qualifying plant and machinery from their profits before paying tax. This is to encourage investment in new, generally more energy and water-efficient technology and equipment. This includes computers, vans, lorries and tractors, warehouse and construction equipment, and tools. Another is a 50% “first-year allowance” has also been announced for special rate and long-life assets – equipment with an expected business life of 25+ years. 
  • A £20 billion support package for the development of carbon capture and storage (CCS) technologies.
Spotlight on Renewables

In other news, a proposed 1.5GW pumped hydro storage facility in Scotland has received a £100 million boost6. Coire Glas, on the shores of Loch Lochy, would more than double Britain’s existing electricity storage capacity. The project received planning permission from the Scottish Government three years ago but is expected to require a £1.6 billion capital investment to construct and would require final approval. The latest investment is seen as a significant milestone on the journey to delivering the project.

Following on from last month’s Bryt Insight, there has been more progress on sustainable wind turbine blades – which have previously been difficult to recycle or reuse. The UK offshore wind project, which is being built off the North East coast, will deploy recyclable blades on nearly half of its turbines to begin with7. The agreement with manufacturer Siemens Gamesa will see 132 individual recyclable blades installed at the 1.4GW wind farm.

News in brief
  • Responses to the UK Government’s Review of Electricity Market Arrangement (REMA) consultation show 80% of businesses from across the energy industry feel the current energy market is not fit for purpose8. The Government will now move on to a second consultation later this year to investigate options for reforming market arrangements in the UK. These include how to support the “significant investment” needed in new low carbon electricity generation, as well as how to deliver flexibility technologies.

 

  • After 10 years of negotiations, the United Nations has reached an agreement to protect 30% of the world’s high seas by 20309. Before the “High Seas Treaty” was agreed in New York, just 1% of international waters were protected, leaving marine species at risk. The treaty will therefore safeguard biodiversity and also help achieve the global goal of protecting 30% of the world’s oceans by 2030 – a goal agreed at the COP15 biodiversity conference.

 

  • A new campaign has been launched by the Government to help UK businesses become more energy efficient and reduce costs10. Aimed at small and medium-sized businesses in particular, the campaign will offer guidance on simple measures organisations can put into place that could make significant savings in both energy usage and costs. You can access the energy efficiency advice here.
TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 0330 053 8620 or at heretohelp@brytenergy.co.uk.

Sources

1: https://www.ipcc.ch/report/sixth-assessment-report-cycle/

2: https://www.theccc.org.uk/publication/delivering-a-reliable-decarbonised-power-system/

3: https://www.gov.uk/government/news/shapps-sets-out-plans-to-drive-multi-billion-pound-investment-in-energy-revolution

4: https://www.statkraft.co.uk/newsroom/2023/trecwn-green-hydrogen-project-awarded-funding-from-uk-government/

5: https://www.gov.uk/government/publications/spring-budget-2023/spring-budget-2023-html

6: https://www.bbc.co.uk/news/uk-scotland-highlands-islands-65015217

7: https://www.rwe.com/en/press/rwe-offshore-wind-gmbh/2023-03-09-rwes-sofia-offshore-wind-farm-to-use-recyclable-blades/

8: https://www.gov.uk/government/consultations/review-of-electricity-market-arrangements

9: https://news.un.org/en/story/2023/03/1134157

10: https://businessenergyefficiency.campaign.gov.uk/

Energy Market Update
Business priorities for newly-created energy department
Taskforce launched to accelerate energy efficiency in buildings and industry
Energy storage vital for renewable future
Guides launched to boost sustainability knowledge
Spotlight on renewables
Companies leading the way on net zero contributing £71 billion to UK economy
News in brief

From the UK Government’s Energy Bill Relief Scheme (EBRS) ending in March, to changes from the Targeted Charging Review coming into effect alongside the removal of Guarantee of Origin certificates (GoOs) from April, there’s a lot happening in the energy industry. We’ve summarised the main things you and your business need to know, to help you navigate these changes.

Read on to learn more about the changing energy market, as well as the latest in the world of renewables and sustainability.

Energy Market Update

Energy Bills Discount Scheme

With the UK Government’s Energy Bill Relief Scheme (EBRS) coming to an end in March, it is important to begin planning ahead. The Energy Bill Discount Scheme (EBDS) will replace the scheme, running from 1st April 2023 – 31st March 2024, to help support businesses with the cost of wholesale energy for an additional 12 months.

Eligible non-domestic consumers will receive a per-unit discount to their electricity bills during the 12-month period, subject to a maximum discount, and those in energy and trade intensive sectors are set to receive a higher level of support.

However, it should be noted that there will be a reduction in the level of support for businesses facing high energy costs, and for many eligible businesses the discount looks likely to fall below 2p per kWh.

The full details are yet to be announced, but we’ll be updating customers when we can. In the meantime, we’ll be sharing any further information on our website.

 

The Targeted Charging Review

April will also see changes related to Ofgem’s Targeted Charging Review (TCR) come into effect. The TCR has established a new system by which network owners charge energy customers for the use of the electricity networks in the UK, replacing a Triad consumption-based system for a banding-based daily charging system.

Changes to the Distribution Use of System (DUoS) tariffs went live in April 2022 and, following some delays, changes to the Transmission Network Use of System (TNUoS) tariffs will come into effect from April 2023.

We look at how upcoming changes to the TNUoS charges could impact businesses, especially Bryt Energy customers, in our latest article.

 

Guarantees of Origin Certificates

Another change to be aware of is that, from April 1st 2023, the UK will no longer recognise EU Guarantees of Origin (GoO) certificates.

European GoOs are certificates purchased by electricity suppliers as proof that the electricity supplied to their customers has been matched with verified, renewable sources. With GoOs no longer being recognised from this April, we discuss what this change could mean to your business, and how we’ve prepared to support our customers, in our blog.

Business priorities for newly-created energy department

The Department for Energy Security and Net Zero, launched last month, has published its list of “priority outcomes”1. Echoed by Secretary Grant Shapps in a recent speech2, the priorities signal a clear focus on decarbonisation, energy independence and economic growth.  The list includes:

  • Ensuring energy supply security to help bring down energy bills
  • Making sure the UK is on track to meet its net zero commitments by accelerating the delivery of network infrastructure and domestic energy production
  • Improving the energy efficiency of non-domestic buildings and homes, to help meet the 15% national demand reduction target
  • Developing options for long-term reform to improve how the electricity market works
  • Seizing the economic benefits of net zero – including jobs and growth in “green industries”
  • Passing the Energy Security Bill to support the hydrogen sector and new carbon capture technologies, as well as reducing the time taken to approve offshore wind.

The department will also be charged with delivering current schemes, such as the EBDS discussed above.

In last month’s Bryt Insight we discussed the net zero review, which contained 129 recommendations to help the UK Government deliver a “pro-business” pathway to net zero. The new department will be responsible for reviewing and implementing these recommendations. These include creating a roadmap for net zero technology as well as reviewing the tax system to see how it could better incentivise decarbonisation.

Taskforce launched to accelerate energy efficiency in buildings and industry

Measures to help businesses use less energy will be one of the key focuses of the UK Government’s newly-launched Energy Efficiency Taskforce3.

The Taskforce was announced last November at the Autumn Statement and launched last month. It has been tasked with finding ways to reduce national energy consumption by 15% from 2021 levels by 2030 across industrial processes, as well as commercial and residential buildings. Its brief includes contributing to the design and allocation of future funding schemes.

NatWest Group CEO Alison Rose will co-chair the Taskforce with Lord Callanan, who is currently Parliamentary Under-Secretary at the Department for Energy Security and Net Zero.

Energy storage vital for renewable future

The case for wider energy storage and optimisation has been strengthened after figures showed the UK had 1.35TWh of excess wind capacity curtailed between October 2022 and January this year4.

The additional wind energy would have been enough to power 1.2 million homes and coincided with a winter period in which the UK imported more than £60 billion of gas. This shows just how much of an impact nationwide energy storage and optimisation could have on the UK’s energy use and mix.

Meanwhile, the importance of battery storage to the energy transition was also recognised with a strong set of results in the UK’s capacity auctions for 2023.

The UK’s Capacity Market, which incentivises providers through payments set at auctions to keep electricity resources ready to help meet the country’s security of electricity supply, concluded its 2023 auctions late last month. In the T-4 (four years ahead) auction, battery storage won 1.29GW of the 46.03GW of total awarded contracts5. It followed the T-1 (one year ahead) auction where battery storage secured 627MW out of the total 5.78GW awarded6.

Both auctions saw year-on-year increases in contracts awarded to battery storage – a huge vote of confidence in its importance to the UK’s net zero transition.

Guides launched to boost sustainability knowledge

A suite of introductory-level learning resources, designed by the UK Green Building Council to build business knowledge and confidence on sustainability topics, has been launched7.

The bitesize guides cover topics such as Scope 1, 2 and 3 Emissions, Renewable Energy, and Net Zero Carbon Buildings and Infrastructure. Although some topics are tailored for property and construction sector workers, the explainers are useful for all professionals looking to play their part in the net zero transition. You can access the guides here.

Spotlight on renewables

Last year saw the record for new UK offshore wind capacity “smashed”, according to new research published by RenewableUK8. It says three major offshore wind projects went fully operational in 2022, adding 3.2GW of new capacity – enough to power 3.2 million homes. This broke the previous annual record of 2.1GW set in 2018, and was significantly higher than the 48MW commissioned in 2021.

There is also more good news for UK offshore wind, with the pipeline of projects at all stages of development about to hit 100GW9, according to RenewableUK’s Energy Pulse. It added that the UK retains the second largest offshore wind pipeline globally, accounting for 8.5% of the world’s 1,174GW total.

In other positive news for wind, turbine blades could be reused instead of ending up in landfill, thanks to a new solution unveiled by manufacturer Vestas10. A newly discovered chemical technology, which breaks down hard-to-recycle epoxy resin used in blades, can be applied to those currently in operation, meaning they can be disassembled and reused. It’s encouraging to see sustainability options now available and a huge boost to the industry, which had been searching for a solution to avoid thousands of epoxy-based blades from ending up in landfill.

Companies leading the way on net zero contributing £71 billion to UK economy

Almost 20,000 UK businesses are operating within the net zero economy and adding £71 billion (3.7%) to UK gross value added (GVA) – a measure of the value of goods and services produced11.

The report by CBI Economics and the Energy and Climate Intelligence Unit (ECIU), Mapping the net zero economy, adds that these businesses are also supporting 840,000 jobs.

These figures demonstrate the potential value of the net zero transition, and its benefits to the UK economy as a whole.

News in brief
  • The UK’s greenhouse gas emissions (GHG) remained below pre-pandemic levels in 2021 according to official figures released by the Office of National Statistics (ONS)12. However, the 427 million tonnes of CO2 equivalent (MtCO2e) was up 5% on the 2020 figure – with the Government saying the easing of COVID-19 restrictions had a significant impact. The rise illustrates that there is still work to be done for businesses coming out of the pandemic to re-evaluate their energy usage and optimise their operations. For more information about the benefits of optimisation to your business, click here.

 

  • The Government has awarded £12.4 million to 22 projects across energy-intensive industries to help them cut their emissions – something which will be vital to hitting the UK’s net zero 2050 target13. The latest round of grants from the Industrial Energy Transformation Fund (IETF) have been awarded to businesses across a range of key sub-sectors, including companies producing tarmac, lightweight vehicles and food. You can find out more about the IETF application process, by clicking here.

 

  • Employees would leave businesses that fail to showcase strong social and environmental values, according to research from former Unilever chief executive Paul Polman. The Net Positive Employee Barometer14, launched last month, surveyed more than 4,000 workers across the UK and USA. It found 68% of UK employees are not currently satisfied with corporate efforts to improve societal wellbeing and the environment. The report also described an era of “conscious quitting”, finding 45% of respondents would consider resigning if the company’s values did not align with their own, and 35% had resigned from another job for this reason. It shows most people want to work in companies that have a positive impact on the world – a belief we share. Our 2022 Bryt by Nature report shows how we work to make Bryt Energy a positive, diverse and inclusive place to work, including initiatives such as paying a Living Wage and offering sustainable travel polices to staff. And we are seeing the impact of these initiatives, with 98% of our employees saying they are committed to our sustainability journey in our 2022 employee survey.
TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 03300538620 or at heretohelp@brytenergy.co.uk.

Sources
  1. https://www.gov.uk/government/publications/making-government-deliver-for-the-british-people/making-government-deliver-for-the-british-people-html
  2. https://www.gov.uk/government/speeches/chatham-house-speech-on-greater-energy-independence
  3. https://www.gov.uk/government/news/alison-rose-appointed-to-help-accelerate-energy-efficiency
  4. https://electricalreview.co.uk/2023/02/09/uks-lack-of-energy-storage-meant-1-35twh-of-renewable-energy-was-lost/
  5. https://www.gov.uk/government/publications/capacity-market-auction-auction-monitor-report-for-t-4-auction-for-2026-to-2027
  6. https://www.gov.uk/government/publications/capacity-market-auction-auction-monitor-report-for-t-1-auction-for-2023-to-2024
  7. https://www.ukgbc.org/news/ukgbc-launches-new-series-of-bitesize-learning-resources-to-accelerate-sustainability-knowledge/
  8. https://www.renewableuk.com/news/630636/Only-two-turbines-installed-in-England-last-year-while-new-UK-offshore-wind-capacity-hit-new-record.htm
  9. https://www.renewableuk.com/news/632004/UK-offshore-wind-pipeline-reaches-nearly-100-gigawatts—while-global-pipeline-hits-over-1100GW-.htm
  10. https://www.vestas.com/en/media/company-news/2023/vestas-unveils-circularity-solution-to-end-landfill-for-c3710818
  11. https://eciu.net/analysis/reports/2023/mapping-the-uk-net-zero-economy
  12. https://www.gov.uk/government/statistics/final-uk-greenhouse-gas-emissions-national-statistics-1990-to-2021
  13. https://www.gov.uk/government/news/energy-intensive-industries-given-12-million-boost-to-cut-emissions-and-costs
  14. https://www.paulpolman.com/conscious-quitting-has-arrived/
Recommendations for a “pro-business” net zero transition
Have your say on energy supply security proposals
Potential of EV smart charging to be unlocked
First live Demand Flexibility Service event a success
Spotlight on renewables
News in brief

As the UK continues to work towards reaching net zero by 2050, an independent review has been published looking into the opportunities the transition could bring to businesses. In this extended edition of Bryt Insight, we take a look at what the review’s recommendations mean for your business.

The last month has also seen progress towards the UK’s renewable ambitions, as well as a historic first live event for the Demand Flexibility Service. Here’s what you need to know: 

Recommendations for a “pro-business” net zero transition

The independent net zero review, Mission Zero, has been published by MP Chris Skidmore, to explore the best ways to maximise business and economic growth whilst working towards the net zero target. 

Commissioned last September, the review involved engaging with businesses, the public and climate experts and resulted in 129 recommendations for the Government1. 

From this, Mr Skidmore urged ministers to grasp the “historic opportunity” that net zero presents, saying that the UK should be proud of the lead it has taken in tackling climate change. The review however states the importance of the Government supporting businesses, describing them as “critical” to the net zero transition. He adds that “their investment and innovation will bring low carbon technology to the mass market. They will drive many of the benefits we will all experience from net zero, not least economic growth”. 

The review is split into two parts – with the first explaining the opportunity and benefits to business, individuals and the economy as a whole, and the second outlining how this can be achieved. 

The review recommends the Government should consider the following to support businesses: 

  • Reviewing business incentives to invest in decarbonisation 

The Government should review how the Treasury incentivises businesses to invest in decarbonisation and improve energy efficiency. This could be through the tax system, business rate reform or capital allowances, helping to remove potential financial barriers to adopting carbon reduction programmes. 

 

  • Providing clarity on the future of the Emissions Trading Scheme (ETS) 

The review recognises that the UK’s Emissions Trading Scheme (ETS) – a cap and trade scheme which caps the total level of greenhouse gas emissions a business can emit – provides a clear incentive for businesses to invest in decarbonisation. The review points out that the cap only runs until 2030, and having no plan for beyond that date is contributing to delays in investments. It says the UK Government should work with the rest of the ETS Authority – which also includes the Scottish and Welsh Governments and Northern Ireland’s Department of Agriculture, Environment and Rural Affairs – to develop a pathway for the scheme to 2040. This would provide clarity and certainty to businesses’ future decarbonisation strategies.  

 

  • Building the skills needed for the net zero transition 

The delivery of previous Government recommendations and commitments set out in the Green Jobs Taskforce and the 2021 Net Zero Strategy should be driven forward, with regular reporting on progress made. These included targets, training and provisions for “green” skills and jobs. 

The report also recommends further support for businesses taking on apprentices, and suggests training courses related to net zero should be accelerated to rapidly upskill and retrain the existing workforce. 

For small and medium-sized businesses, a Help to Grow Green campaign should be launched to offer information resources and vouchers to help them plan and invest in the net zero transition. 

 

  • Recognising businesses’ sustainability efforts 

A “Net zero charter mark” is proposed to recognise the efforts of businesses that are decarbonising their operations and supply chains. Not only would this promote a firm’s carbon credentials, it would also give investors and other stakeholders confidence in how a business is progressing towards net zero.  

 

  • Protecting industrial businesses from environmental undercutting 

Progress should be made on the Government consultation on a range of ‘carbon leakage’ mitigation options. Carbon leakage occurs when operations – and their associated emissions – are transferred across jurisdictions to countries with less ambitious carbon policies, which can lead to a net increase in global emissions. As the UK’s generally more ambitious climate targets and policies can often bring higher carbon prices, the Government is looking at measures such as a carbon border adjustment mechanism which could help level the playing field for British industry against their international counterparts. For energy-intensive businesses, this could reverse the risk that carbon leakage currently poses to growth in the UK, preventing the ‘offshoring’ of production and jobs. 

 

These are just some of the review’s 129 recommendations, which shows the scale of the opportunity the Government and businesses have. To learn more, you can read the full review here. 

Ian Brothwell, Managing Director at Bryt Energy, said: “This review is a comprehensive action plan for the Government to take notice of. It reflects the fact businesses are absolutely critical in driving the net zero transition and, by working collaboratively with the right support, this goal is firmly within our grasp. We join the report’s authors in urging ministers to grab the ‘historic opportunity’ offered by net zero, and to use the UK’s leading position in tackling climate change to its full potential.” 

Have your say on energy supply security proposals

Businesses are being given the opportunity to comment on plans to modernise the Capacity Market – a key aspect of the UK’s electricity security – which would see the mechanism strengthened and provide greater alignment with the net zero transition2.

Launched in 2014, the Capacity Market is used to ensure the security of electricity supply to meet the country’s demand. By payment through auctions, providers are incentivised to keep capacity resources ready to generate or reduce electricity when needed. The Department for Business, Energy and Industrial Strategy (we discuss their recent disbanding in our ‘News in brief’) has said the Capacity Market now needs reforming to reflect the changes seen in the UK’s energy mix since then, as well as to support future decarbonisation plans. 

Changes would provide greater clarity for investors around the net zero transition, prepare for the adoption of renewable energy technologies and significantly tighten the emissions limits on fossil fuel plants by the middle of the 2030s. 

If you are interested in having your say, you can take part in the consultation, which runs until March 3rd 2023, by clicking here. 

Potential of EV smart charging to be unlocked

The Electric Vehicle Smart Charging Action Plan has been published by the UK Government and watchdog Ofgem3, which would see a more efficient charging system widely implemented. 

The plan sets out steps being taken to provide more support for smart charging – which intelligently optimises the charging process, for example, to enable users to top-up Electric Vehicles (EVs) when electricity is cheaper or the carbon intensity of the grid is lower. The Government wants to make it the preferred method of long duration charging by 2025, and has also announced £16 million funding from the Net Zero Innovation Portfolio (NZIP) for technologies that harness the potential of smart charging.  

The move has benefits for both businesses and the wider grid, with smart charging favouring renewable electricity. Investing in EV fleets and charging, with a strong EV strategy, is a good way for businesses to optimise their energy usage and support the grid.

Find out more about the new Electric Vehicle Smart Charging Action Plan, here.

First live Demand Flexibility Service event a success

National Grid ESO (Electricity System Operator) ran its first live Demand Flexibility Service (DFS) event on January 24th, which involved businesses optimising their usage to support the grid.

The operator outlined some of the benefits businesses have seen so far4, with one business having earned £1,726 by taking part in a single event. It also shared the example of a manufacturing business that had reduced its working day to take part and saw no impact on productivity – showing that optimising your energy usage doesn’t have to negatively impact your operations.

The first live event took place after months of successful tests which offer businesses and individual consumers a simple way to get involved with grid optimisation. If your business wants to learn more about optimisation, click here.

*please note Bryt Energy are not currently participating in this scheme.

Spotlight on renewables

Here’s what you need to know about UK renewables this month:

  • Renewables have generated more electricity than gas in the UK this winter5. New analysis from the Energy and Climate Intelligence Unit (ECIU) shows between October 1st 2022 and February 10th 2023, renewables generated a combined 42TWh of electricity – reducing the need for 85TWh of gas over the same period.
  • Leases for six new offshore wind projects, with a potential capacity of 8GW, have been agreed by The Crown Estate6. The projects could be up and running and producing electricity by 2030, with enough power to supply more than 7 million homes. The six sites, in the Irish Sea and off Yorkshire and Lincolnshire, would push UK offshore wind leases beyond 40GW – which would achieve the UK’s 2030 offshore wind generation target7.
  • The European Marine Energy Centre (EMEC) has provided an update on its proposed 100MW floating offshore wind test site. It now expects the project, in Orkney, Scotland, to generate £690 million for the UK economy and add 4,160 new jobs around the country, across its expected 25-year lifespan8.
News in brief
  • The Department for Business, Energy and Industrial Strategy (BEIS) has recently been disbanded and split into three new departments: the Department for Business and Trade, the Department for Energy Security and Net Zero, and the Department for Science, Innovation and Technology9. Grant Shapps, previously Secretary of State for BEIS, will head up the new Department for Energy Security and Net Zero.
  • The Government has announced proposals to increase minimum energy performance standards for lighting in buildings. The new standards could see businesses save £2,000–£3,000 over the lifetime of a bulb. The report is available alongside a consultation which runs until April 4th. Businesses involved in the lighting sector or working towards net zero targets are encouraged to have their say10.
  • The search continues to find a lower-carbon alternative to red diesel – a fossil fuel used in industrial off-road vehicles and machinery. Used in UK industries including construction, mining and quarrying, in vehicles such as bulldozers, forklifts and cranes, lower-carbon options will be vital for enabling users in hard-to-abate sectors to decarbonise. And with the announcement of the second phase of the Government’s Red Diesel Replacement Competition, that solution is a step closer11. Learn more about the competition, here.
  • Environmental, social and governance (ESG) is the top trend that will drive investment this year, according to a survey of financial companies12. As part of its 2023 Global Innovation Report, financial services technology firm FIS asked 2,000 industry executives what their key areas of investment in 2023 were, with 84% of respondents listing ESG – emphasising the importance of these standards to businesses’ strategies.
TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 0330 053 8620 or at heretohelp@brytenergy.co.uk.

Sources

1. https://www.gov.uk/government/news/net-zero-review-uk-could-do-more-to-reap-economic-benefits-of-green-growth

2. https://www.gov.uk/government/news/reforms-outlined-for-britains-capacity-market-to-secure-a-clean-energy-future

3. https://www.gov.uk/government/news/new-plan-for-smart-electric-vehicle-ev-charging-could-save-consumers-up-to-1000-a-year

4.  https://www.nationalgrideso.com/news/world-first-demand-flexibility-service-exceeds-expectations

5. https://www.current-news.co.uk/news/renewable-generation-cuts-85twh-of-the-uks-gas-consumption

6. https://www.thecrownestate.co.uk/en-gb/media-and-insights/news/2023-the-crown-estate-seals-landmark-agreements-for-offshore-wind-energy-to-power-7-million-homes/

7. ​​https://www.gov.uk/government/news/new-plans-to-make-uk-world-leader-in-green-energy

8. https://www.emec.org.uk/emec-floating-wind-demo-site-offers-690-million-opportunity-to-uk/

9. https://www.edie.net/rishi-sunak-divides-beis-cabinet-reshuffle-energy-security-net-zero/

10. https://www.gov.uk/government/news/leading-the-world-in-lighting-efficiency-lightens-the-load-on-energy-bills

11. https://www.gov.uk/government/news/government-to-support-british-industry-in-cutting-fossil-fuels-with-325-million

12. https://www.fisglobal.com/en-gb/global-innovation-report

Energy Bills Discount Scheme
Demand reduction and savings achieved across successful tests
Corporate climate disclosure requests jump year-on-year
A happy new year for wind generation
COP15 biodiversity conference round-up
News in brief

With 2022 the UK’s hottest year on record, as we enter a new year, our actions to tackle climate change are more important than ever. There are already some positive signs heading into 2023, including record-breaking renewables and successful optimisation schemes. In this edition we’ll also look at the new ‘Energy Bills Discount Scheme’ recently announced by the Government. Here is our round-up of all you need to know: 

Energy Bills Discount Scheme

The UK Government has recently announced a new ‘Energy Bills Discount Scheme’, which will replace the current ‘Energy Bill Relief Scheme’ that ends in March 2023.

The new Energy Bills Discount Scheme will run from 1st April 2023 – 31st March 2024, to help support businesses with the cost of wholesale energy for an additional 12 months.

Eligible non-domestic consumers will receive a per-unit discount to their electricity bills during the 12-month period, subject to a maximum discount, and those in energy intensive sectors are set to receive a higher level of support.

We will be contacting our customers once more details of the Government’s scheme are published, and we will continue to update our website and social channels with the latest information. In the meantime, you can learn more about the new scheme on the Government’s website, here.

Demand reduction and savings achieved across successful tests

The initial five Demand Flexibility Service tests have delivered more than 780MWh of demand reduction, according to National Grid ESO1.

The scheme, launched at the beginning of November, gives households and businesses the opportunity to shift their electricity use away from specific time periods – providing the first service to successfully deliver consumer demand flexibility at scale in Britain. It enables participants to optimise their usage to support the grid and make both cost and energy savings.

National Grid ESO described the tests so far as a success. Currently settlement data is only available for the first two tests, showing a total of 314.2 MWh was delivered.

More than 1 million businesses and households have now signed up to participate, with 26 electricity suppliers currently involved. Small and medium-sized businesses are still able to sign up for the service if their supplier is participating in the scheme*.

To learn more about optimisation and its benefits to both businesses and the grid, click here to read our blog. Or you can find out more about the Demand Flexibility Service by visiting the National Grid ESO website.

*please note Bryt Energy are not currently participating in this scheme.

Corporate climate disclosure requests jump year-on-year

Last year saw some encouraging steps forward for environmental transparency, with the number of businesses reporting under The Carbon Disclosure Project (CDP) increasing by 42%2.

The CDP runs the global environmental disclosure project, and assesses companies based on a number of factors, such as their environmental practices, performance and progress, and awareness of climate issues, and gives a score based on their Climate Change disclosure and environmental performance.

In 2022, more than 280 companies were ranked as “A-listers” on their corporate Climate Change disclosures, marking the year-on-year improvement.

The increase in reporting was despite more stringent scoring being implemented, which judged whether corporate emissions targets were aligned with keeping the global temperature rise below 1.5°C above pre-industrial levels, and whether climate transition plans were robust and credible.

There is, however, still much room for improvement – with CDP noting that 30,000 large businesses did not respond to its disclosure requests. There’s more to be done in 2023, so to learn more about the CDP, what the benefits are for your business and how you can start reporting today, click here.

A happy new year for wind generation

The future for wind is looking bright, with 2023 already seeing a new UK energy generation record3. National Grid ESO has confirmed the record 21.6GW of electricity generated by wind in the 30-minute period between 6pm and 6:30pm on January 10th, providing 50.4% of Britain’s electricity. This beats the previous record set less than a month ago on December 30th last year, of 20.9GW, which itself was the third wind energy record set in 2022. That same day saw another record broken, with 87.2% of daily electricity coming from zero carbon sources. As the cheapest source of new electricity and the ability to reduce the UK’s use of fossil fuels and drive down energy bills, the continuous spell of record-breaking wind generation is good news for British businesses.

The UK currently has 15GW of installed onshore wind generation capacity, and the Government has been advised by the Climate Change Committee (CCC) that it must reach 35GW by 2035. With public support for renewables hitting new highs, it’s emerged that the development of 45GW of onshore wind farms (a target previously considered by the Government) would take up just 2.1% of the UK’s total land space, according to the Energy and Climate Intelligence Unit (ECIU)4.

Meanwhile, UK onshore wind could see a boost on a policy level. The Department for Levelling Up, Housing & Communities has published a consultation seeking views on its proposed update to the National Planning Policy Framework5. This includes changes to policy for onshore wind to provide local authorities with more flexibility to respond to the views of their communities. Changes would also put into practice commitments set out in the previously-announced British Energy Security Strategy to support the repowering of onshore wind and to review the barriers to installing energy efficiency measures.

Businesses can respond to the whole consultation by March 2nd. Click here to find out more.

COP15 biodiversity conference round-up

A major breakthrough for nature recovery has been achieved at the UN’s Biodiversity Conference.

COP15 took place in Montreal recently and ended with an agreement which has been deemed the “30×30” target, with nations agreeing to adopt four goals and 23 targets for 20306. These include protecting 30% of Earth’s lands, 30% of Earth’s oceans, coastal areas and inland waters, whilst also restoring 30% of degraded ecosystems through “effective conservation and management”. The agreement has also put in place targets to reduce public and private subsidies that harm biodiversity by $500 billion, and cut food waste in half by the end of the decade.

Meanwhile, the Business for Nature group used the occasion to highlight its campaign to call for mandatory requirements for all large businesses and financial institutions to assess and disclose their impacts on biodiversity as well as their dependencies on nature by 20307. More than 330 organisations from 56 countries have already joined the call.

News in brief
  • The Department for Business, Energy and Industrial Strategy (BEIS) has announced the Energy Intensive Industries Renewables Obligation (EII RO) exemption will remain at 85% throughout the 2023-24 obligation year8. The exemption helps energy intensive industries in the UK remain cost competitive by assisting them with the indirect costs of the RO.

 

  • Low-carbon energy sources have generated more than half of the UK’s electricity this winter, according to RenewableUK9. Renewables (40%) plus nuclear energy (14%) has provided 54% of the country’s power since the end of October. This has enabled the UK to reduce its gas imports by more than 3.5 billion m3, which would otherwise have cost UK bill payers £5.7 billion.

 

  • The UK Government has confirmed that geothermal power will be eligible for the fifth allocation round (AR5) of the Contracts for Difference (CfD) scheme10. It’s expected new participants will be able to apply to the scheme from March. Projects in the geothermal category would come online in 2026/27 or 2027/2811. A letter from the Environmental Audit Committee also confirmed the Government is continuing to monitor geothermal heating technology development and how it could play a part in the UK’s future energy mix.
TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 0330 053 8620 or at heretohelp@brytenergy.co.uk.

Sources

1: https://www.nationalgrideso.com/news/demand-flexibility-service-delivers-mws-and-savings  

 

2: https://www.cdp.net/en/companies/companies-scores 

 

3: https://www.renewableuk.com/news/627829/Wind-generates-21-gigawatts-of-electricity–first-new-record-of-2023.htm 

 

4: https://eciu.net/media/press-releases/2022/wind-farms-would-affect-just-0-02-of-uk-land-3-400-times-less-than-farmed-land 

 

5: https://www.gov.uk/government/consultations/levelling-up-and-regeneration-bill-reforms-to-national-planning-policy/levelling-up-and-regeneration-bill-reforms-to-national-planning-policy

 

6: https://www.cbd.int/article/cop15-cbd-press-release-final-19dec2022 

 

7: https://www.businessfornature.org/cop15-business-statement  

 

8: https://www.gov.uk/government/publications/renewables-obligation-level-calculations-2023-to-2024 

 

9: https://www.renewableuk.com/news/626598/Low-carbon-power-is-generating-most-of-Britains-electricity-this-winter-saving-consumers-billions-.htm 

 

10: https://committees.parliament.uk/committee/62/environmental-audit-committee/news/175167/geothermal-technologies-considered-for-government-funding/ 

 

11: https://www.gov.uk/government/publications/contracts-for-difference-cfd-allocation-round-5-core-parameters

Key outcomes from COP27
Grid stability and decarbonisation
UK energy and renewables news
Have your say on net zero guidelines for businesses
News in brief

As the year draws to a close, we’ve seen a number of energy announcements made by the UK Government. Further afield, the 27th annual climate change summit – COP27 – recently took place in Sharm el-Sheikh. We have plenty to update you on, so here’s what you need to know:

Key outcomes from COP27

The main announcement from COP27 was the agreement of a ‘loss and damage’ fund to support the most vulnerable countries harmed by the impacts of the climate crisis1. The details of this are still yet to be decided but a committee is to make recommendations at COP28 in Dubai next year. In relation to this, the UN also launched a new action plan to create an early warning system to protect the global population from extreme weather events, which have increased in frequency, in part due to human-induced climate change.

Despite the positive focus on adaptation, there were key concerns that language around the phasing out of fossil fuels was weakened, with some arguing that the goal of limiting warming to 1.5°C is a goal that’s no longer alive. This has led businesses to try and step in, with hundreds of firms delivering a joint declaration of action to meeting 1.5°C, calling on nations to decide where they stand on raising ambitions in order to meet the target.

Meanwhile, UK Prime Minister Rishi Sunak, speaking in Sharm el-Sheikh, announced a new package of climate finance measures3. These included:

  • tripling the climate adaptation fund to £1.5bn
  • investing £90 million into supporting conservation projects in the Congo Basin – the world’s second-largest tropical forest
  • committing £65 million to support indigenous and local forest communities.
  • providing £65.5 million to the Department for Business, Energy and Industrial Strategy (BEIS)’s ‘Clean Energy Innovation Facility’, which backs low-carbon technologies in developing nations.

The annual climate conference comes after the recently published UN Environment Programme (UNEP) annual report, which highlighted the emissions gap between promised and needed emission reductions, finding the international community was falling “far short” of the Paris Agreement’s goal to limit global warming to 1.5°C above pre-industrial levels4.

Other key announcements included:

  • US Climate representative John Kerry announced a new Energy Transition Accelerator (ETA) to finance low carbon energy deployment in developing countries whilst also decommissioning coal5.
  • New recommendations to help businesses avoid greenwashing have been launched by a UN body6.
  • The UN announced it is set to launch a new satellite system to detect methane hotspots – the Methane Alert and Response System (MARS)7.
  • The Global Renewables Alliance was also launched, which combines industry bodies and organisations to accelerate the uptake of renewables. The Alliance will “act as a unified voice that represents renewables industries and technologies” such as solar, wind, hydropower, green hydrogen, geothermal and energy storage9.

Georgina from the Sustainability Team at Bryt Energy said “We’re pleased to see the various commitments made at COP27 to support global adaptation to the climate crisis, as well as the ground-breaking loss and damage fund that will go a long way to address the inequities of climate-related disasters. Although pledges to phase out fossil fuels were noticeably lacking, it is encouraging to see businesses still committed to limiting warming to 1.5°C, and at Bryt Energy we echo this, determined to do everything we can to mitigate further climate change.”

Grid stability and decarbonisation

Back in the UK, National Grid ESO has awarded new grid stability contracts which could deliver nearly £15 billion in savings over 10 years from 202510.

These new contracts have been allocated to six companies across England and Wales as part of a third phase of stability pathfinders to redefine how the network operates. Statkraft, our parent company and Europe’s largest generator of renewable energy, was awarded contracts to develop three further Greener Grid Parks. These will provide inertia to the grid and help replace coal or gas-powered turbines which are traditionally used to provide stability to the electricity system11.

For more information on this exciting new project, click here.

UK energy and renewables news

Meanwhile, the UK Government has extended its windfall tax to include low carbon and renewable electricity generators, as well as oil and gas companies12. The announcement in Chancellor Jeremy Hunt’s Autumn Statement introduced the tax of 45% which will be levied on “extraordinary returns” from low-carbon UK electricity generation. The Energy Generator Levy will come into force on January 1st 2023 and comes alongside an expansion and extension to the Energy Profits Levy – the oil and gas windfall tax announced in May; This will be increased from 25% to 35% from January 1st 2023, and will now end in 2028, three years later than originally planned.

As expected, there has been criticism of this new tax, with trade body Renewable UK highlighting that “Unlike in oil and gas (Energy Profits Levy), companies which are making significant investments in renewables will get no tax relief and will be hit by a higher windfall rate”13, whilst Solar Energy UK argue that the levy could slow investment in renewable energy14.

In other news, the UK’s ‘renewable energy and clean tech sector’ is projected to more than double in size by 2035. That’s according to The Association For Renewable Energy and Clean Technology (REA)’s annual Review22 report16. It projects the UK sector will increase from £22 billion to £46 billion in that time and employ more than 210,000 people, up from 140,000 currently. The report explains the renewable sector showed “great resilience and ingenuity” following the Covid-19 pandemic, with the forecasts showing promising signs for the future.

Have your say on net zero guidelines for businesses

UK businesses have received a first look at what corporate net zero transition plans should include in order for them to be considered the “gold standard”15. The UK’s Transition Plan Taskforce published its first proposals for the guidelines, which will include advice on when, where and how to transition to net zero and avoid greenwashing. Market participants and other stakeholders have been asked to provide comments which will inform the final version of the guidelines. The consultation survey will close on the 28th of February 2023 and you can have your say here.

News in brief
  • The Greater London Assembly has announced it will go ahead with plans to expand the Ultra-Low Emissions Zone (ULEZ) to cover all Greater London. The move is part of plans to reach net zero carbon emissions by 203017. The ULEZ expansion will come into place from August 2023.
  • Europe’s largest battery energy storage facility has come online18. The 98MW/196MWh storage project “Pillswood”, just outside of Hull, is located at the connection point for the first two phases of the Dogger Bank wind farm – which, when completed, will be the world’s largest offshore wind farm. When the wind farm produces more electricity than the grid needs, batteries can store the excess energy and export it back to the grid during times of high demand. This project highlights the important relationship between renewables and storage technologies as the UK transitions to a net zero grid.
  • The UK Government has announced that £32.9 million in funding has been awarded to projects across the country to develop new long duration energy storage technologies19. The competition aims to support innovative new energy storage technologies that will increase the UK’s energy independence capabilities and play a key role in supporting a low carbon energy system.
TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 0330 053 8620 or at heretohelp@brytenergy.co.uk.

Sources

1. https://unfccc.int/news/cop27-reaches-breakthrough-agreement-on-new-loss-and-damage-fund-for-vulnerable-countries

 

2. https://www.wemeanbusinesscoalition.org/cop27-all-in-for-one-point-five/

 

3. https://www.gov.uk/government/news/uk-announces-major-new-package-of-climate-support-at-cop27

 

4. https://www.unep.org/resources/emissions-gap-report-2022?gclid=EAIaIQobChMI5I7D8pvY-wIVGOztCh3dAgBfEAAYASAAEgJP-vD_BwE

 

5. https://www.state.gov/u-s-government-and-foundations-announce-new-public-private-effort-to-unlock-finance-to-accelerate-the-energy-transition/

 

6. https://www.un.org/sites/un2.un.org/files/high-level_expert_group_n7b.pdf

 

7. https://www.unep.org/news-and-stories/press-release/un-announces-high-tech-satellite-based-global-methane-detection

 

8. https://www.iso.org/netzero

 

9. https://www.edie.net/clean-energy-sectors-unite-to-form-global-renewables-alliance-at-co27

 

10. https://www.nationalgrideso.com/news/eso-announces-new-contracts-deliver-over-ps14-billion-savings

 

11. https://www.statkraft.co.uk/newsroom/news-and-stories/archive/2022/statkraft-takes-leading-role-in-decarbonising-britains-electricity-system/

 

12. https://www.gov.uk/government/publications/changes-to-the-energy-oil-and-gas-profits-levy/energy-oil-and-gas-profits-levy

 

13. https://www.renewableuk.com/news/623374/Windfall-tax-risks-severely-damaging-investment-in-vital-renewable-energy-projects-.htm

 

14. https://solarenergyuk.org/news/windfall-tax-will-have-perverse-impact-on-solar-power/

 

15. https://transitiontaskforce.net/get-involved/

 

16. https://www.r-e-a.net/review22-the-reas-annual-state-of-the-industry-report-is-published/

 

17. https://tfl.gov.uk/modes/driving/ultra-low-emission-zone/ulez-expansion-2023

 

18. https://www.edie.net/europes-biggest-battery-storage-facility-comes-online-near-hull/

 

19. https://www.gov.uk/government/collections/longer-duration-energy-storage-demonstration-lodes-competition#stream-2:-prototype-demonstration

Energy Bill Relief Scheme update
New green hydrogen hub could provide UK environmental and business boost
Renewables reducing UK’s reliance on gas imports
Business can support the public behaviour change needed to achieve net zero
News in brief

As the UK continues its journey towards net zero, our latest Bryt Insight looks at some promising news for low carbon fuels and renewable electricity. We’ll also break down some of the latest reports and analysis for the energy industry and find out what it means for you.

Energy Bill Relief Scheme update

Before getting into this month’s updates, we know the Energy Bill Relief Scheme (EBRS) and the coming winter is still at the forefront of businesses’ minds. The EBRS legislation came into force on 1st November and you can find the rules, guidance and scheme documents on the Government’s website, here. You can also find the full regulations of the scheme, here.

We’ve also put together a number of resources to help you understand how the scheme works and what help is available. You can find out more information about EBRS, including eligibility requirements, in our full statement, here. We have also put together a comprehensive list of frequently asked questions around the scheme that you may find helpful, here.

New green hydrogen hub could provide UK environmental and business boost

Plans for a new green hydrogen plant have been announced by Statkraft1. Traditionally produced using fossil fuels, hydrogen at the Trecwn Green Energy Hub will be extracted from water in a process powered by fully-renewable electricity.

It’s hoped the plant will lead the way in making low carbon fuel for businesses in Wales, enabling buses, HGVs, trains, and industrial firms to reduce their greenhouse gas emissions. Statkraft, our parent company, hopes the plant will generate around three tonnes of green hydrogen a day, powered by electricity from three wind turbines and ground-mounted solar panels that will be part of the Trecwn site. This would be enough to run a single bus for more than 40,000 miles every day, or the equivalent of making 350 journeys from Fishguard to Cardiff – without producing the emissions associated with traditional fuels.

On a wider environmental scale, the project would help support the Welsh government’s net zero target, which includes producing the equivalent of 70% of electricity consumption in Wales through renewable sources by 2030.

As well as the environment, the proposed hub would give a significant boost to local businesses. Hydrogen generated at Trecwn is intended to be used to power trains running on railway lines west of Swansea, delivering many of the benefits of electrification, such as using a zero carbon fuel, but at much lower cost and with fewer requirements for new infrastructure.

Statkraft hopes to submit the plans by the end of 2023, which could mean the site becoming operational by the end of 2026.

For more information on this exciting new project, click here.

Renewables reducing UK’s reliance on gas imports

Analysis by Carbon Brief has shown the UK’s gas imports could have been 13% lower over the past decade if the Government had not cut support for energy efficiency and renewables2. The report shows if the UK Government had not cut the “green cap” starting in 2013, a total of 65 TWh of imported gas could have been avoided which would have saved around £5 billion.

The figures do however emphasise the positive impact renewables have had in the UK. They show that without the growth in renewables the UK would have needed to double the 254 TWh of gas used to generate electricity last year. This demonstrates that with the right support, renewables can effectively reduce the UK’s reliance on gas imports, which is good news for sustainability and system resilience.

To see the full analysis, click here.

Business can support the public behaviour change needed to achieve net zero

Changes in individual behaviour will be required in order to achieve the UK’s net zero goals, according to the House of Lord’s Environment and Climate Change Committee3. The report says nearly a third of the emissions reductions required up to 2035 will have to come from the public making more environmentally friendly choices – such as adopting low carbon technologies, products and services, and reducing carbon-intensive consumption. It calls on the Government to do more to bring about the change in mindsets. The report recommends leaders follow examples of where it has enabled the necessary behaviour changes before in areas such as travel, diet, consumption and energy usage. Other recommendations to the Government included launching a public engagement campaign to help people be more energy efficient.

When asked last month to outline its approach to encouraging behaviour change, the Government pointed to its October 2021 net zero strategy, which outlined six principles that applied to businesses, including SMEs, as well as the public. Those principles were:

  • sending clear regulatory signals,
  • making the environmentally friendly choice the “easiest” and most affordable,
  • empowering businesses to make their own decisions,
  • explaining why major changes are necessary,
  • presenting a clear vision of how we will get to net zero and
  • explaining what the role of businesses and people will be.

At Bryt Energy, behaviour change and the idea of ‘good grid citizenship’ is something we strongly believe in. Chris Curry, Head of Energy Transition at Bryt Energy, commented: “Achieving a net zero system is about mindsets as well as technology. In a net zero system, we’ll all need to be more responsible in our energy usage and see ourselves as engaged ‘citizens’, rather than simply energy consumers. ‘Good grid citizenship’ is about only taking what’s needed and thinking of the grid as something that is shared, with users contributing to its reliable and affordable operation so that it works for everyone.”

News in brief
  • For the first time in its history, Greece ran its electricity system entirely on renewables for five hours last month5. It used solar, wind and hydroelectric power to cover 100% of its demand for that period of time on Friday, October 7th. In good renewables news closer to home, UK wind generation hit a new record on October 26th, with 19.94GW being produced on that day. Additionally, experts believe this record could be broken repeatedly over the next few years as more wind farms come online6.
  • Meanwhile, the Environmental Audit Committee (EAC) has called on ministers to harness the full potential of geothermal energy. It says the source, which is the energy stored beneath the surface of the Earth, has the potential to fulfil much of the UK’s heating demand7.

Bryt Energy’s Sustainability Manager, Jos Mister, said: “We’re delighted to be able to report on stories so frequently that show renewable electricity going from strength to strength in the UK and around the world. Whether it’s increased availability of wind or solar power or new investments in renewables, these are all encouraging signs that we hope continue.”

  • Wildlife campaigners are hoping stark figures outlined in the WWF’s latest Living Planet Report will act as a wake up call for leaders. The report reveals nature degradation is happening more rapidly and more intensely than previously thought, with the population sizes of animals (excluding insects) having decreased by an average of 68% between 1970 and 20208. It’s hoped the report will encourage policy-makers to take further action as they meet at the UN Biodiversity Conference in December.
TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 0330 053 8620 or at heretohelp@brytenergy.co.uk.

Sources

1. https://www.statkraft.co.uk/newsroom/news-and-stories/archive/2022/statkraft-announces-first-uk-green-hydrogen-project-pembrokeshire/ 

2. https://www.carbonbrief.org/analysis-uk-gas-imports-would-be-13-lower-if-it-had-not-cut-the-green-crap/

3. https://committees.parliament.uk/committee/515/environment-and-climate-change-committee/news/173479/government-must-support-behaviour-change-to-meet-climate-targets/

4. https://lordslibrary.parliament.uk/net-zero-and-behaviour-change/

5. https://news.sky.com/story/for-five-hours-last-week-greece-ran-entirely-on-electricity-from-solar-wind-and-water-12720353

6. https://www.current-news.co.uk/news/wind-generation-hits-highest-ever-availability-with-a-peak-of-17-6gw

7. https://committees.parliament.uk/committee/62/environmental-audit-committee/news/173703/geothermal-energy-has-potential-to-fulfil-much-of-uks-current-heating-need/

8. https://www.edie.net/living-planet-report-nature-loss-reaching-catastrophic-levels-globally/

Energy Bill Relief Scheme
£50m available for Industrial Fuel Switching
Widespread support for UK wind and solar
News in Brief
Energy Bill Relief Scheme

Over the past few months, the UK has never before seen such high and volatile wholesale energy prices. With Russia’s invasion into Ukraine, gas prices have soared, and when coupled with a post-Covid increase in demand, as well as electricity shortages in Europe, electricity prices in the UK have been driven up to extreme levels. This has created unprecedented challenges for many businesses and their employees. 

We therefore welcome the Government’s recent announcement of their ‘Energy Bill Relief Scheme’ to support businesses during the current energy crisis.

The scheme will provide a discount on wholesale electricity and gas prices for all non-domestic customers, calculated by reference to a supported price set by the government. 

The Government Supported Price has been set at £211/MWh for electricity, though the level of discount will vary for each business depending on their contract type and circumstances.   

The scheme’s discount will be applied to energy usage initially between 1st October 2022 – 31st March 2023. It will apply to fixed contracts agreed on or after 1st December 2021, as well as to deemed, variable and flexible tariffs and contracts.  

 

Eligibility 

The eligibility for the scheme has been defined by The Department of Business, Energy & Industrial Strategy (BEIS) as follows:     

Everyone on a non-domestic contract including:   

  • businesses  
  • voluntary sector organisations, such as charities  
  • public sector organisations such as schools, hospitals and care homes  

who are:   

  • on existing fixed price contracts that were agreed on or after 1st December 2021
  • signing new fixed price contracts  
  • on Deemed/Out of Contract or variable tariffs  
  • on flexible purchase or similar contracts  

If you are on a fixed contract, your discount will be determined by the date you signed your contract. We recommend that you check the date you signed your contract to get an indication of whether you will be eligible for a discount on the electricity you consume between 1st October 2022– 31st March 2023.  

You can view the dates and discounts you may receive on the Government’s website, here. 

If you are eligible, you will not have to take action or apply to the scheme to receive support. Suppliers will automatically apply the associated discounts to all eligible customers’ bills for their electricity consumption from 1st October 2022.

The Government will review the scheme in 3 months’ time to inform decisions on future support after March 2023, focusing primarily on assisting the most vulnerable non-domestic customers.  

 

Learn more 

We have a range of FAQs on the ‘Energy Bill Relief Scheme’ and the energy market more generally that we continue to update, which you may find helpful during this time: https://www.brytenergy.co.uk/faqs/

You can also read more about the new support for businesses on the Government’s website, here.

£50m available for Industrial Fuel Switching

The Government has unveiled nearly £50 million of new funding to help firms in heavy-industry sectors decarbonise and accelerate their journey to net zero1.

Those applying for funding will need to put in proposals for pre-commercial solutions to replace fossil fuel use with: 

  • Hydrogen 
  • Electrification 
  • Biomass, waste-derived fuels, and other net zero compatible fuels.  

The competition is open to all industrial sectors and fuel switching technology developers. Applicants must register by November 11th and complete their applications by November 25th. Successful participants will then receive a funding share of between £1 million – £6 million. To find out more, click here. 

Widespread support for UK wind and solar

Polling from across Britain has shown strong support for renewable solutions to help tackle rising electricity prices2. The analysis, commissioned by RenewableUK, shows 77% of people in the UK think the Government should use new wind and solar farms to reduce electricity bills, with 76% of respondents supporting new projects in their local area.

Meanwhile, the UK Warehousing Association (UKWA) says warehouse roofs could provide 15GW of solar energy a year if properly utilised3. That space currently totals around 18,500 acres of land – it says this could help British industry play a vital role in scaling renewable technologies and generation. UKWA’s report also highlighted that if a third of all warehouses utilised solar generation, they could double the UK’s solar PV capacity and also deliver the entire requirement for the UK’s 2030 target.

News in Brief
  • The new Chancellor Kwasi Kwarteng’s ‘mini budget’ featured plans to “unlock the potential of onshore wind”. It means planning rules for turbines in England will be relaxed to bring consent in line with other infrastructure, making them easier to deploy. The Government hopes the move will help accelerate infrastructure and energy projects in the UK4.

 

  • The ‘clean energy transition’ could generate global savings of up to £10.2 trillion, according to an Oxford University study5. The report looks at historic price data for renewables and fossil fuels and models how they are likely to change in the future. Researchers say the findings should help dispel concerns that the net zero energy transition will be costly.

 

  • Ofgem and the UK Government have released the Electricity Networks Strategic Framework, which spells out the “unprecedented scale and pace” the electricity network will need to transform at in order to support Britain’s decarbonisation6. The two bodies will ensure an independent “Future System Operator” will advise key decision makers and ensure the transition is properly planned. Learn more about the actions set out to achieve a net zero energy system, here.
TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 0330 053 8620 or at heretohelp@brytenergy.co.uk.

Sources

1. https://www.gov.uk/government/publications/industrial-fuel-switching-competition-phase-2-demonstration-projects 

2. https://www.survation.com/polling-in-every-constituency-in-britain-shows-strong-support-for-building-wind-farms-to-drive-down-consumer-bills/

3. https://www.ukwa.org.uk/market-intel/time-to-act-on-extortionate-and-obstructive-electricity-grid-if-we-are-to-tackle-the-energy-crisis-say-uk-warehouse-owners/ 

4. https://renewablesnow.com/news/uk-to-ease-onshore-wind-permitting-with-new-infrastructure-reforms-799083/

5. https://www.cell.com/joule/fulltext/S2542-4351(22)00410-X

6. https://www.gov.uk/government/publications/electricity-networks-strategic-framework

Electricity market reforms
Attitudes towards energy and renewables
Good news for renewables
Net zero and sustainability
News in Brief

July saw the Met Office’s first ever Red weather warning and temperatures in the UK rise above 40°C for the first time, with scientists “absolutely clear” climate change was the driver1. On the back of such a warning so close to home of the need to tackle climate change, August’s Bryt Insight looks at how proposed reforms to the UK’s energy market and wider system could help us reach net zero by 2050, to prevent global temperatures rising further.

Electricity market reforms

The UK government has launched a consultation on plans for what it called the “biggest electricity market reform in a generation”. The Department for Business, Energy and Industrial Strategy (BEIS) is looking for energy industry views on changes to the wholesale electricity market, which are designed to address volatile gas prices.

The transformational Review of Electricity Market Arrangements (REMA) covers a wide range of options to address the combined challenges of responding to higher global energy costs, the need to further boost energy security and the UK’s transition to a net zero energy system. With electricity demand set to double over the next 13 years, its aim is to identify and implement UK electricity market reforms that work for businesses, industry and households.

Some of the proposed changes being consulted on include:

  • Introducing incentives for consumers to draw energy from the grid at cheaper rates
  • Reforming the capacity market to increase participation of low-carbon flexibility technologies
  • Decoupling costly global fossil fuel prices from electricity produced by cheaper renewables

The consultation lasts until October this year, so if you’d like to get involved and have your say, click here.

 

Meanwhile, in its discussion paper Net Zero Britain, Ofgem has put forward a range of potential reforms to reduce Britain’s reliance on expensive fossil fuels, and transition to a home-grown energy future. Last October, the Government pledged to decarbonise all of the UK’s electricity generation by 2035 – a key milestone on the path to hit net zero emissions by 2050. Ofgem’s discussion paper responds to this and identifies two key areas of reform, which would help deliver the energy system needed to put the UK on the path to achieving net zero by 2050:

  • To introduce an independent Future System Operator to lead strategic planning of the energy system at not just national level – as previously proposed – but also to oversee the net zero energy transition at a local level.
  • To reform the electricity wholesale market, including limiting the price setting potential of natural gas and using pricing signals to run the system more efficiently.

To find out more, click here.

Attitudes towards energy and renewables

Unsurprisingly, the cost of electricity is worrying British consumers, according to new research into attitudes and concerns around energy conducted on behalf of our parent company, Statkraft3.

The survey captured opinions from more than 2,000 members of the public and found:

  • 76% were worried about rising electricity prices
  • 59% were concerned their savings won’t cover their bills this winter
  • 83% believed the UK should be energy independent

Respondents also had their say on renewables:

  • 55% are concerned climate change targets will be forgotten due to the current energy crisis
  • 88% were unable to name any specific activities the UK has in place to achieve net zero goals
  • 75% said the UK should have started investing in renewable and “green” energy a long time ago

The survey results come after BEIS found more than 80% of Brits would be happy to have ground-mount solar panels in their local area4.

And another survey of 300 hospitality and leisure business owners5 found most were exploring enhanced energy efficiency measures and 50% were considering installing on-site solar panels to help slash their electricity bills.

Despite the immediate focus on rising electricity prices and energy security, it’s encouraging to see the results of these three separate surveys show that businesses and the general public still support and prioritise renewables and low-carbon technologies.

You can read more about the Statkraft survey by clicking here.

Good news for renewables

In a major boost for UK renewables, the country added one-fifth of global offshore wind capacity in 2021, according to the latest Crown Estate Offshore Wind Report6. The analysis found global offshore wind capacity reached more than 48.2GW, of which more than 20% came from the UK. In Britain, enough offshore wind was generated to power one-third of UK homes, up from 4% 10 years ago.

This figure looks set to continue to grow after the Government has revealed the results of the fourth and “most successful ever” Contracts for Difference (CfD) auction round, securing contracts for a total of 93 renewable electricity projects totalling 11GW in capacity. Once all the projects are operational, this will increase the UK’s overall offshore wind capacity by a third, boosting the Government’s aim of installing 50GW by 2030. The BEIS report also noted that prices for contracts of offshore wind are 70% lower than those secured in the first CfD allocation back in 2015.

This is potentially good news for businesses looking at their long-term energy costs, with analysis from the Energy and Climate Intelligence Unit (ECIU) showing the projects could save about £7 billion on electricity costs under current wholesale prices7.

It’s more good news on the sustainability front, after Europe’s most powerful electric vehicle (EV) charging hub opened in Oxford8. The station, part of the Energy Superhub Oxford project, provides 42 fast and ultra-rapid chargers, capable of charging 400 vehicles. Encouragingly, not only is the technology itself low-carbon but it’s also being powered entirely by renewable electricity, with 10 MW of installed capacity on-site.

Net zero and sustainability

The High Court has ruled the Government’s net zero strategy as unlawful9, following a successful legal challenge brought by the Good Law Project, Client Earth, Friends of the Earth and others. The strategy was first published last October – but the High Court ruled plans were “too vague”, meaning there were no detailed measures that assured targets to decarbonise the UK economy by 2050 could be met.

Businesses and others had hoped the original strategy would contain time-bound, sector-specific reductions goals. The Government now has eight months to flesh out and amend the net zero strategy. This means we can expect a more detailed plan to be produced, which should include specific industry emissions reductions targets that could be relevant to your sector and business.

Bryt Energy’s Sustainability Manager, Jos Mister, added: “At Bryt Energy, we aim to support businesses throughout their decarbonisation journeys. Key to those journeys is planning and, in this High Court ruling, there are key learnings we can take at a microlevel. If your business is setting its own carbon reduction goals, you should aim to set time-bound targets, as well as being prepared to share details of how targets will be met, to back up your plan.”

Meanwhile, a major new report on The emerging sustainability information ecosystem, from professional services giant EY, has put forward a number of recommendations for businesses reporting Environmental, Social and Governance (ESG) targets and data10. EY found that many businesses are using different definitions of ESG and different methodologies to measure performance. As a result, the report calls for ESG data and ratings agencies to be more transparent about how they source their data and calculate their scores. It says that more standardisation and regulation in ESG-related disclosures is necessary to help stamp out greenwashing.

News in Brief
  • The UK’s first Electricity Networks Commissioner has been appointed11 as part of the country’s Energy Security Strategy – Nick Winser CBE. His role will be to reduce timelines for delivering onshore transmission infrastructure and making sure the right infrastructure to boost electricity flow is in place. It should ensure businesses will be able to benefit from a more affordable, renewable supply of electricity sooner than previously planned.
  • As the race to be the UK’s next Prime Minister continues, both remaining candidates, Rishi Sunak and Liz Truss, have pledged to maintain the Government’s goal of reaching net zero carbon emissions by 205012.
TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 0330 053 8620 or at heretohelp@brytenergy.co.uk.

Sources
  1. https://news.sky.com/story/uk-weather-its-no-longer-denial-its-here-why-climate-change-will-make-this-weeks-uk-heatwave-more-dangerous-12653155
  2. https://www.ofgem.gov.uk/publications/ofgem-proposes-reforms-power-uk-forward-net-zero-home-grown-energy-system
  3. https://www.statkraft.co.uk/newsroom/news-and-stories/archive/2022/majority-british-consumers-call-for-energy-independence/
  4. https://www.solarpowerportal.co.uk/news/over-80-of-public-happy-with-solar-in-their-local-areas-in-ringing-endorsem
  5. https://www.edie.net/uk-hospitality-and-leisure-firms-eyeing-on-site-solar-and-energy-efficiency-amid-price-crisis-survey-finds/
  6. https://www.thecrownestate.co.uk/media/4095/2021-offshore-wind-report.pdf
  7. https://www.current-news.co.uk/news/cfd-projects-to-save-britain-7bn-under-current-prices
  8. https://energysuperhuboxford.org/europes-most-powerful-ev-charging-hub-energy-superhub-oxford/
  9. https://friendsoftheearth.uk/climate/govts-climate-strategy-deemed-unlawful-historic-ruling
  10. https://www.ey.com/en_vn/public-policy/five-priorities-to-build-trust-in-esg
  11. https://www.gov.uk/government/news/new-electricity-networks-commissioner-appointed-to-help-ensure-home-grown-energy-for-britain
  12. https://www.gov.uk/government/news/uk-strengthens-protections-for-taxpayers-in-energy-treaty-negotiations
  13. https://www.channel4.com/news/tory-leadership-race-will-new-leader-pledge-to-2050-net-zero-goal
Renewables
Sustainability
Energy
News in brief

In this month’s Bryt Insight we look at the measures put in place to mitigate the effects of the energy price crisis on business, and whether the path to net zero stays on track, given the shift in focus from sustainability to price and energy security.

Renewables

With the rising cost of energy continuing to affect businesses of every size, a lot of weight has been put on the importance of the government’s Energy Security Strategy – which was announced in April and aims to increase the UKs energy independence while the nation paves its way to net zero.

Included in the strategy is an aim for offshore wind generation to achieve 50GW by 2040, up from today’s total of 10GW. The recent announcement by The Crown Estate that it will be doubling its original investment of £25 million in its Offshore Wind Evidence and Change Programme to £50 million will support this target. The Programme aims to accelerate the UK’s offshore wind energy ambitions whilst protecting and maintaining clean, healthy, productive, and biologically diverse seas.

The additional funding will support research into the impact of offshore wind development on biodiversity, including the potential impacts on birds, marine mammals, and the seabed habitat. These results will hopefully define best practice for protecting and enhancing biodiversity, and so speed up the deployment of future offshore wind energy projects. This resonates with the sustainability strategy of our parent company, Statkraft, which is committed to mitigating its impact on biodiversity in a responsible way.

 

In other news, RenewableUK has unveiled a manifesto for decarbonising the UK electricity system by 2035. This would be achieved by targeting investment in the UK’s most affordable sources of renewable power – wind and solar – and reducing the UK’s vulnerability to volatile gas prices. Building up a new green hydrogen industry would also be a priority.

The organisation also called for an ‘evolution’ of the Contracts for Difference (CfD) auction mechanism, to incentivise long-term capital investment in major projects, develop supply chains and ensure consumers can count on ‘clean’ energy at low and stable prices.

Its report outlines areas in which the industry is making good progress towards the 2035 goal and where policy gaps remain. As well as reform of CfDs, it suggests that innovative new policies should be introduced to attract inward investment in supply chains — for example, creating new enterprise zones for offshore wind and applying tax relief or tax credits to businesses investing there, as happens in the US.

In addition, the report recommends streamlining the process of developing new offshore wind sites, consolidating skills, experience, and capacity into a centralised regulatory authority for consenting and licensing; as well as highlighting the need for a “fundamental redesign of the way we plan and deliver network infrastructure to connect offshore wind farms to the grid, to minimise the impact on local communities.”

Sustainability

A major new report from the International Energy Agency (IEA) has found that one third of the reduction in global annual carbon emissions needed to reach net zero by 2050 could be achieved by 2030, merely by accelerating existing energy efficiency improvements.

The IEA found that doubling the current global rate of improvement in energy intensity (a measure of how energy efficient an economy is in relation to GDP) to 4% a year had the potential to avoid over 26,000 TWh a year in energy consumption by the end of the 2020s.

This would be enough to:

  • reduce global CO2 emissions by an additional 5 billion tonnes a year by 2030
  • significantly move the world onto a pathway to net zero by 2050 with 1/3 of the total required emissions already achieved
  • cut global spending on energy, which could see businesses save hundreds of billions of dollars a year on energy bills
  • help create 10 million additional jobs in fields ranging from building retrofits to manufacturing and transport infrastructure.

One of the most effective ways for businesses to begin to improve their energy efficiency is by getting to know their energy consumption via a data visualisation platform, such as Bryt Envision. After understanding their usage, businesses are able to start to make behavioural changes based on these insights, to optimise their usage and reduce costs over time.

Energy efficiency can play a significant role in the environmental sustainability of a business, but research by Treedom has revealed that two thirds of employees are unaware of the sustainability policies of the companies they work for.

The study found even though 64% of European businesses have sustainability targets in place, the majority were not explaining to staff what they mean. Of the 7,000 workers surveyed, one in five said they were not sure whether their company even had a policy.

Here’s Jos Mister, Sustainability Manager at Bryt Energy, on how we connect employees with our sustainability work:

“We believe employers need to see sustainability as more than a tick-box exercise when it comes to communicating with their employees about company policies. Done right, it can encourage staff to make a real difference in the business — and in their homes and communities. At Bryt Energy, we found that talking to our team members about our commitment to sustainability from their initial induction helps them to feel connected to our goals, and we continue to keep everyone updated with our progress in company-wide updates and meetings. Some of our best carbon reduction initiatives have been suggested by our employees, so be sure to ask your team for their ideas!”

Energy

The parliamentary bill introducing a controversial ‘windfall tax’ on large oil and gas companies – first announced by Rishi Sunak back in May – has now been passed by lawmakers under new Chancellor Nadhim Zahawi. The new “Energy Profits Levy” is expected to raise £5 billion in its first year and was introduced as one of a number of measures designed to help consumers deal with rising energy prices. The bill went through parliament on Monday 11th July and at the time of writing is still to be approved by the House of Lords but is unlikely to see any more major changes. It sets an additional 25% windfall tax on oil and gas producers in the British North Sea and, after amendments, includes a definitive end date for the new taxation in December 2025. Cash raised through the levy until then will then help fund initiatives to support households with their rising energy bill.

But now the dust has settled on the announcement, analysts mulling over its ramifications are wondering whether the package, designed to help bill-payers, may have the opposite effect on the climate; Alongside the windfall tax, the Government announced that energy companies will be able to claim an investment allowance that will effectively give them 91% in tax relief on new investments. Eyebrows were raised when the Treasury released details which stated tax relief would only apply to new fossil fuel extraction, and not to investments in projects related to the net zero energy transition.

Despite being at odds with UK climate goals, this investment allowance was not changed by the new Chancellor. However, the bill does allow firms to mitigate the effects of the windfall tax by spending on decommissioning old oil fields and investing in the electrification of existing oil fields.

The Energy Profits Levy only applies to oil and gas companies; Renewable electricity generation and supply companies will not be subject to any additional tax, which should come as a relief to companies promoting the electrification of transport and heating as part of the move to Net Zero.

News in brief

The UK Government has confirmed it will start consulting on imposing a carbon tariff on imports. Proponents say it will tackle “carbon-leakage” and ensure low-carbon British businesses are not undercut by low-cost higher-emission imports. The proposed carbon border adjustment mechanism (CBAM) is similar to moves by the US and EU. Read more here.

_________________

The latest Climate Change Committee (CCC) Progress Report to Parliament warns that current policies will fail to achieve Net Zero unless focus shifts firmly to delivery. The private sector needs clear direction from the Government, credible delivery mechanisms and suitable incentives, yet in no sector of the economy is that yet complete.

Positives include:

  • Emissions from electricity generation have fallen by nearly 70% since 2010, thanks to the growth in renewables.
  • EVs are being adopted at pace and ahead of CCC and government projections.

Could do better:

  • The Government must get to grips with the gaps in policy to better insulate homes, to cut emissions and bills.
  • The report calls for a renewed focus on agriculture and land use, which has some of the weakest policy areas, despite being vital to Net Zero, food security and biodiversity.

Learn more about the report, here.

 

________________________
At their recent Berlin summit, G7 leaders made scant progress on accelerating the energy transition. However, they did agree to create a ‘Climate Club’, which aims to ‘advance ambitious and transparent climate change mitigation policies towards climate neutrality’.

You can learn more about the Climate Club here.

TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 0330 053 8620 or at heretohelp@brytenergy.co.uk.

Sources

 

 

 

 

 

 

 

 

 

 

 

 

 

UK Government announces New Energy Bill
Consultation launched on climate transition plans
New strategic innovation fund available
Post-transition UK energy oversupply could create opportunities for flexible demand
In other news…
UK GOVERNMENT ANNOUNCES NEW ENERGY BILL

For the first time in more than a decade, the UK Government will introduce a new Energy Bill. Announced in the Queen’s Speech1last month, the Bill aims to help the UK build a more secure, homegrown energy system that is both ‘cleaner’ and more affordable. The ultimate aim is to end fossil-fuelled electricity generation by 2035, as announced by the Government last month as part of its Energy Security Strategy.

For businesses, some core elements of the Bill should help make their electricity costs lower in the long term. The government says the key part of the bill will include:

  • Providing a more organised overview of electricity and gas networks with a new Future System Operator to drive the transition to net zero – which will ultimately help businesses better control energy costs.
  • Help reduce the risk of fuel supply disruption by giving the Government the power to provide financial assistance to or require information from core fuel sector businesses.
  • Bring in new business models for carbon capture usage and storage (CCUS).
  • Britain’s first large-scale trial of heating with low-carbon hydrogen.
  • Setting up a new market standard and a trading scheme for heat pumps, and appointing Ofgem as regulator for heat networks.
  • Competition in onshore electricity networks to try and encourage investment and innovation by businesses.
  • Creation of a new pro-innovation regulatory environment for fusion energy and a safe clean up of legacy nuclear sites.
  • For residential consumers, an extension of the energy price cap.

While business leaders have largely welcomed the announcements, there’s a feeling the Government could go further to protect them from market volatility now and in the future2. There was also disappointment that ministers did not commit to funding for a retrofit strategy, to insulate buildings, which would lower emissions and energy bills.

Reacting to the announcement, Commercial Director of Bryt Energy, Sally Masters said: “We know businesses will be looking very closely at the Energy Bill this and other Government announcements to try and see how ministers are planning to provide help, throughout the current energy price crisis and beyond.

It’s important that a balance is found between increasing the UK’s energy independence and reducing costs, without losing sight of the UK’s net zero goal.

At Bryt Energy, we’re here to support businesses and help them understand what these policies mean for you; our team are on hand at heretohelp@brytenergy.co.uk if you have any questions.”

CONSULTATION LAUNCHED ON CLIMATE TRANSITION PLANS

UK businesses have a unique chance to shape the future of net zero, with the launch of a consultation on the development of a “gold-standard” for climate transition plans.

Launched by HM Treasury, the recently unveiled Transition Plan Taskforce (TPT) is now asking businesses what key principles should be accounted for and included in the framework, which will be used to support corporate climate transition strategies.

The Taskforce’s ultimate aim is to set up a framework for corporate transition plans for companies across all sectors. As part of the consultation it hopes to discover whether firms believe plans should be aligned with the UK’s wider 2050 net zero target, feature shorter-term decarbonisation action plans, and enable periodic reporting.

The TPT’s Call for Evidence3 runs until July 13th, following which, the taskforce will develop the framework and aim to publish a draft for consultation by the end of year, ready for finalisation in early 2023.

If you’d like to respond on behalf of your business, use the feedback form at transitiontaskforce.net.

NEW STRATEGIC INNOVATION FUND AVAILABLE

With the UK’s net zero transition picking up pace, more initiatives are being launched that will enable businesses to further play their part.

One opportunity launched earlier last month is the second round of funding under Ofgem and Innovate UK’s Strategic Innovation Fund (SIF)4. It aims to support innovative projects that can help accelerate energy networks’ transition to net zero. The SIF opens for applications in early September and applicants must meet one of the four challenge areas, which are:

 

  • Supporting a just energy transition – ideas that present new ways to identity and support vulnerable customers and help those who are disadvantaged.
  • Preparing for a net zero power system – to help discover new ways to support older energy systems and use new energy sources.
  • Improving energy system resilience and robustness – including ways to develop multi-energy systems and strengthen system robustness.
  • Accelerating decarbonisation of major energy demands – innovators could help manage large-scale demands from heat or transport or improve the energy efficiency of demanding systems.

 

An initial discovery phase will enable innovators to apply for £150,000 to develop their ideas, then projects deemed to have the greatest potential will be awarded up to £500,000 for further development. More funding will then be available for successful projects.

You can learn more about the SIF here.

POST-TRANSITION UK ENERGY OVERSUPPLY COULD CREATE OPPORTUNITIES FOR FLEXIBLE DEMAND

Achieving new energy targets set out in the UK Government’s recently released Energy Strategy could create 72TWh of excess renewable and nuclear energy by 2030 – creating valuable opportunities for flexible demand which can utilise this excess power.

According to research from LCP5, this expected excess demand is equivalent to almost 25% of current demand. Using all of this excess would require 50GW of demand-side flexibility from energy storage, such as batteries, electrolysers and interconnectors to enable exporting. Accelerating the growth in demand-side flexibility would have benefits such as reducing the costs of balancing the grid and helping to mitigate some of the decreasing revenues available for renewable generators to reduce subsidies.

To learn more, click here.

IN OTHER NEWS…
  • The International Energy Association (IEA) is predicting another bumper year for renewables. It comes after the world added a record 295 gigawatts of new renewable power capacity in 2021, a figure which is set to grow further in 2022. But the body warned that stronger policies would be required from world governments to keep the momentum up beyond this year6.
  • With the Government aiming to make the UK “the world’s leading green economy”, the first meeting of the Green Jobs Delivery Group took place last month. The group will support the delivery of up to 480,000 skilled ‘green’ jobs by 2030. According to Government data, more than 68,000 green jobs have already been created or are in the pipeline since the Prime Minister’s Ten Point Plan in November 2020. These include EV manufacturing in Sunderland, new hydrogen facilities in Teesside, and offshore wind in Yorkshire and Humber7.
  • The government has appointed the UK’s first Offshore Wind Champion, Tim Pick, who will spearhead work to accelerate new offshore wind projects around the UK8. New initiatives include the Floating Offshore Wind Manufacturing Scheme, which will provide £160 million in government funding to boost capacity around the UK. The emerging sector already has two operational projects, including the Kincardine site in Scotland – the world’s largest floating wind farm – the electricity from which is supplied to our parent company, Statkraft, under a long term Power Purchase Agreement (PPA).
TALK TO OUR TEAM

If you have any questions on how any of the updates might affect your business, our team of experts is on hand to answer them. You can get in touch with us on 0330 053 8620 or at heretohelp@brytenergy.co.uk.

Sources

1. https://www.gov.uk/government/news/beis-in-the-2022-queens-speech

2. https://theenergyst.com/paying-the-bill-energy-figures-react-to-queens-speech/

3. https://www.e3g.org/wp-content/uploads/TPT_Call-for-Evidence_Embargoed.pdf

4. https://www.ofgem.gov.uk/publications/ofgem-strategic-innovation-fund-announces-challenge-areas-second-round-funding-help-accelerate-transition-net-zero-0

5. https://www.lcp.uk.com/media-centre/2022/05/government-energy-strategy-seeds-complex-task-of-balancing-future-electricity-supply-and-demand/

6. https://www.iea.org/news/renewable-power-is-set-to-break-another-global-record-in-2022-despite-headwinds-from-higher-costs-and-supply-chain-bottlenecks

7. https://www.gov.uk/government/news/green-jobs-delivery-steps-up-a-gear

8. https://www.gov.uk/government/news/offshore-wind-champion-appointed-as-160m-floating-offshore-wind-fund-opens-for-expressions-of-interest

The UK’s new Energy Security Strategy
Continued help for energy intensive industries to negotiate the energy crisis
IPCC report outlines emission reduction measures
New TCFD rules come into force
New public body launched to manage UK net zero energy transition
More action on the horizon…

April saw some major announcements for the energy world, from the UK government’s new Energy Security Strategy to the latest part of the IPCC’s major climate change report. There’s a lot to take in, but what does it all mean for businesses? Read on to find out.

The UK’s new Energy Security Strategy

The rising cost of energy continues to be a concern, affecting businesses of every size, as well as households. Because of this, there was added focus on the release of the government’s Energy Security Strategy1 aimed at increasing the UK’s energy independence.

So what is in the Energy Security Strategy and how does the government plan to make the UK more energy independent?

 

  • On renewables, the aim is for 95% of the UK’s electricity to come from low-carbon sources by 2030. This includes increasing offshore wind capacity from today’s total of 10.4GW, to up to 50GW.

 

  • In addition, solar power capacity is planned to increase five-fold from its current 14GW by 2035. In part, this would be achieved by relaxing planning rules for solar panels on commercial buildings.

 

  • Targets for low carbon hydrogen production capacity are being doubled to up to 10GW by 2030, to help organisations in heavy industry and transport to reduce emissions.

 

Other announcements include the building of eight new nuclear reactors around the UK. New licences are also planned for oil and gas production in the North Sea which, the government says, would carry a lower carbon footprint than importing gas from abroad.

The government says the strategy will result in greater energy self-sufficiency with cheaper bills for businesses and homes in the long term2. However, some critics say it lacks plans for more immediate energy saving projects, such as insulating buildings3, and will increase carbon emissions from oil and gas production4.

Continued help for energy intensive industries to negotiate the energy crisis

High energy use businesses are set to receive extra Government support to help mitigate the cost of energy.

As part of the Energy Security Strategy, the Energy Intensive Industries Compensation Scheme is being extended by three years to 2025 and the level of support is increasing. Additionally, the current budget to support energy intensive industries is doubling to help businesses cover the costs of the UK Emissions Trading Scheme and Carbon Price Support mechanism in electricity bills. The scheme will now also provide support for companies that manufacture batteries for electric vehicles.

The government says the move will help ensure the UK remains “a desirable location for energy intensive industries”. If you already receive funding through the scheme, you will receive your payments as usual on a quarterly basis. For more information, click here.

IPCC report outlines emission reduction measures

In the third part of its Sixth Assessment Report, Climate Change 2022: Mitigation of Climate Change5, the UN’s Intergovernmental Panel on Climate Change (IPCC) says it’s “now or never”6 to limit global warming to 1.5°c. In its pathway to reduce emissions to levels that avoid the worst of the climate crisis, the report pushes for: investment in renewable energy, more wind and solar power generation, ending fossil fuel subsidies, low-carbon transport and buildings, energy storage, nature restoration and the decarbonisation of heavy industries.

It also looks at the role of technology in both limiting and reducing CO2 in the atmosphere, including low-carbon electrification, carbon capture and the use of hydrogen.

The report also highlights the important role businesses and industries play in achieving this. It says organisations should look to use materials more efficiently, reuse and recycle products and minimise waste. It warns: “Achieving net zero will be challenging and will require new production processes, low and zero emissions electricity, hydrogen, and, where necessary, carbon capture and storage.”

But the report also makes it clear that the cost of these solutions is much cheaper than the cost of doing nothing to tackle the climate crisis. So, to learn more about the steps you and your business can take towards a low carbon future, read the IPCC’s report, here.

New TCFD rules come into force

From April 2022, it has become mandatory for many UK companies to report on their Climate-related Financial Disclosures.

The Task Force on Climate-related Financial Disclosures (TCFD) was set up by the Financial Stability Board in 2015 and aims to make climate-related disclosures by businesses more consistent and therefore meaningful.

TCFD reporting falls into four key areas – governance, strategy, risk management and assessment targets, and is mandatory for UK companies who currently have to produce an annual non-financial statement. This includes listed companies, banks, or insurers with more than 500 employees7.

For more information on TCFD or to check if your business is required to report, visit here.

New public body launched to manage UK net zero energy transition

A new public body is to be set up to oversee Britain’s energy system, including the country’s net zero energy transition and longer-term planning of the nation’s gas system.

The Future System Operator (FSO) will be founded on the existing capabilities of the Electricity System Operator (ESO), and, where appropriate, National Grid Gas (NGG).

The new body will work with energy suppliers and networks to ensure energy resilience and security at a national level. It will take a whole-system approach to coordinating and planning the network, covering electricity, gas and offshore wind networks, as well as emerging markets such as carbon capture, energy usage and storage.

Businesses working towards net zero can find out more here.

More action on the horizon…
  • MPs on the Environmental Audit Committee are urging the Government to introduce a carbon tariff on imports to ensure that low-carbon British manufacturers are not undercut by low-cost, high-carbon imports. Click here to read more.

 

  • The Association for Renewable Energy and Clean Technology (REA) says nine in ten businesses have indicated improved regulations and policies would help them significantly boost the number of renewable energy and ‘clean technology projects’ they could deploy in the next two years. Read more here.
TALK TO OUR TEAM

We’re here to support your organisation and help you make sense of the current volatility in the energy market, as well as what new rules and regulations might mean for you and your transition to net zero. So, if you have any questions, speak to our team of experts on 0330 053 8620 or at heretohelp@brytenergy.co.uk.

Sources

1. https://www.gov.uk/government/publications/british-energy-security-strategy

 

2. https://www.gov.uk/government/news/major-acceleration-of-homegrown-power-in-britains-plan-for-greater-energy-independence

 

3. https://propertyindustryeye.com/governments-new-energy-strategy-comes-in-for-criticism/

 

4. https://news.sky.com/story/governments-energy-security-strategy-will-harm-environment-and-wont-ease-cost-of-living-crisis-critics-say-12584188

 

5. https://www.ipcc.ch/report/ar6/wg3/  

 

6. https://www.ipcc.ch/report/ar6/wg3/resources/press/press-release

 

7. https://www.edie.net/tcfd-mandate-everything-you-need-to-know-about-the-uks-new-climate-disclosure-requirements/

Energy
Technology
Sustainability
Good news for our green future

In the past month, the IPCC has released a stark warning about the urgency of global action to combat climate change – but there has also been progress made in areas such as exploring what our net zero electricity future could look like and in funding for vital new technologies. Here’s everything you need to know:

 

ENERGY

Many businesses will welcome the news that business rates relief on ‘green’ technologies, including solar panels and batteries, have come into effect from April 2022. In his Spring statement, Chancellor of the Exchequer Rishi Sunak moved the implementation of this measure forward by a year (from April 2023) to help businesses to mitigate against high energy prices by installing on-site generation and energy storage.

 

It’s estimated that the relief on these rates will collectively save businesses more than £35 million over the next year1 and contribute to the decarbonisation of commercial buildings. So if your business was planning to install green technologies on-site, such as solar panels or heat pumps, as part of its sustainability strategy, then you may find that this may be possible sooner. You can find out more about the business rates relief on green technologies here.

 

By installing these technologies now, you can equip your business to play its part in supporting a net zero electricity system in the future, as a new report has found that customer flexibility will be crucial. The report, from trade body Regen on behalf of National Grid ESO, has demonstrated how a fully decarbonised electricity system can be achieved by 2035, in line with Government targets. The ‘Day in the Life 2035’ study gives an hour-by-hour analysis of how a net zero power system could function on a cold, calm and cloudy winter day.

 

On the day presented, there is low renewable output and high demand. The report estimates that by 2035, consumption of electricity in Great Britain could double to 450-500TWh per year2, driven largely by the additional demand created by electric vehicles and low-carbon heating systems. This will be a challenge for a system that’s based on renewables, but Regen has found that by combining carbon capture, energy storage and demand-side flexibility, the grid should be capable of maintaining the balance between supply and demand. To read the full report, click here.

 

Our Sales and Marketing Director, David Taylor, had this to say about the Regen report: “Everything we do at Bryt Energy is about working towards a net zero electricity future – so we were encouraged to read Regen’s latest report, because it shows that a zero carbon electricity system is within our grasp. We all have a part to play in order to turn this scenario into a reality, and with the business rates relief on green technologies set to come into force shortly, investing in low carbon technology could be a great step for many businesses.”

 

TECHNOLOGY

Long-duration energy storage (LDES) technologies – those that can output stored energy at full capacity for longer than four hours, such as pumped hydro storage, played a key role in balancing the system in the Day in the Life 2035 report. A recent report from Aurora Energy Research also highlighted the need for LDES, with their study indicating that up to 24GW of LDES may be needed to support a net zero electricity system by 20353.

 

However, there are currently a number of challenges facing LDES projects, as development typically involves high upfront costs, and it can take a long time for projects to move from planning to operational stages. A lack of revenue certainty is also causing investors to hold off on funding LDES projects. Recent talks between energy storage representatives and Energy Minister Greg Hands have highlighted that if the government introduced a cap and floor mechanism for LDES projects, it could unlock ‘billions of pounds’ in investment in this area and create thousands of skilled jobs.

 

Within a cap and floor mechanism, customers that win contracts with LDES projects will top up prices that fall below the agreed ‘floor’ price, while any earnings the developer makes above the ‘cap’ are returned to the customer. A system like this could give developers and investors the revenue certainty they need to back LDES projects, whilst still being fair to bill payers. Interconnectors are currently developed through a cap and floor mechanism, so it’s encouraging to hear that a similar mechanism could be used to develop LDES, as with enhanced LDES we could significantly reduce the UK’s reliance on imported gas.

 

It’s also exciting to hear that Ofgem’s Strategic Innovation Fund (SIF) has awarded funding to 40 innovation projects across the gas and electricity networks. Up to £150,000 in funding has been allocated to each project, and it is to be used to explore how new technologies or approaches could solve some of the biggest challenges facing the energy sector as we move towards net zero. One of the chosen projects will investigate how satellite data could help to ‘keep the lights on’ and keep people safe during emergencies such as flooding, for example, while another will seek to develop a toolkit to help planners to understand how gas and electricity networks can decarbonise rail transport.

 

We’re hopeful that this funding, in addition to a potential future funding mechanism for LDES, will lead to some truly innovative technologies and solutions that will smooth the transition to net zero.

SUSTAINABILITY

In early March, the UN’s Intergovernmental Panel on Climate Change (IPCC) published the second part of its sixth assessment (AR6), discussing the impacts, adaptation and vulnerabilities associated with the climate crisis. The review emphasises that we have a “brief and rapidly closing window of opportunity to secure a liveable and sustainable future for all”.

 

The IPCC’s message is clear: we must rapidly increase our efforts to limit global warming to within 1.5°C above pre-industrial levels or the impacts of the climate crisis will become devastating and irreversible. The report highlighted that there are a number of adaptations we can make to reduce further impacts of global warming as much as possible. These range from nature-based solutions, such as planting trees upstream to slow excess river flows and shade homes during heatwaves, to ensuring universal access to clean water and clean energy solutions in order to make populations more resilient to climate impacts. Since then, the third and final section of the IPCC’s review has been released, focusing on the mitigation of climate change and developments in reducing emissions. You can access both reports from the IPCC here.

 

When our energy experts from Bryt Energy attended edie’s Sustainability Leaders Forum on 8th March, they heard more on the IPCC’s second report from Sir David King – one of the UK’s leading climate scientists and former Government’s Chief Scientific Advisor. He believes that we need to carry out a ‘three-pronged attack’ to create a manageable future for mankind, which includes reducing emissions (mainly by moving away from fossil fuels), removing emissions from the atmosphere, and repairing our ecosystems through measures like tree planting and carbon sequestration.

 

Sir David King argues that businesses should be pushing for policy change and international collaboration, because delivering the change required needs a concerted global effort. For King, the scale of change required represents a real opportunity for businesses to innovate and move into new markets, as a range of non-fossil fuel-based technologies will be needed to achieve decarbonisation.

GOOD NEWS FOR OUR GREEN FUTURE

While we cannot forget the urgency of the climate crisis, it’s good to know that there’s real progress being made towards a cleaner energy future – such as:

 

  • Three fossil fuel free turbines – including one developed by Statkraft – will go live this summer. These turbines will mimic the effect of a power station, providing inertia to stabilise the grid during times of stress and enabling an electricity grid powered by renewables.

 

  • The UK now has the largest offshore wind pipeline in the world. There is now 86GW of new capacity in the UK’s offshore wind pipeline, which has grown by 60% in the past year.

 

  • Stats show impressive growth in UK solar capacity. Data has shown that 730MW of solar capacity was developed in the UK in 2021, and we hope to see solar capacity increase further now that solar projects can once again participate in the Contracts for Difference
TALK TO OUR TEAM

If you have any questions about any of the updates we’ve discussed or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

Sources

https://www.gov.uk/government/publications/spring-statement-2022-business-support-factsheet/spring-statement-2022-business-support-factsheet

 

https://www.regen.co.uk/publications/day-in-the-life-2035/

 

https://auroraer.com/media/long-duration-electricity-storage-in-gb/

Energy
A welcome boost for renewables
Sustainability
Good news for our green future

It has been a concerning couple of weeks, with headlines being dominated by Russia’s invasion into Ukraine. This is deeply saddening and our thoughts are with all those affected.

 

The conflict is first and foremost a human tragedy and humanitarian crisis. With this, we are aware that the conflict will have a range of implications for all of Europe, including energy markets. So during this unsettling time, we want to continue to support our community and keep businesses informed on the impact external influences like this can have on energy prices.

ENERGY

Rising energy prices are a big topic in the energy industry right now, and we know that costs are a key concern for our customers. There are a number of global influences that have contributed to pushing up energy costs over recent months, from an unseasonably cold spring in 2021, to record low levels of gas storage in both the UK and the EU.

 

The conflict in Ukraine is currently the most significant factor, due to concerns about the EU’s reliance on Russian gas supplies and the impact of economic sanctions. On the day of the invasion by Russia into Ukraine, forward electricity prices for the coming year increased by nearly 30% compared to the previous day. Prices fell slightly the next day, but then spiked again on Wednesday 2nd March by over 35%. This level of day-on-day movements is unprecedented and, over the course of a week, prices have increased by around 70%.

 

In addition to this, Ofgem recently confirmed that the domestic energy price cap will rise by 54% from 1st April 20221. While this price cap does not affect business energy users, businesses should be aware that the current wholesale market volatility and record forward electricity prices could make it difficult to agree fixed prices for contracts, or lock in prices under Flex contracts, on particular days.

 

Customers who have fixed rate contracts are protected from current price volatility until their contract ends, as are Flex customers who have already locked in a price for their forward requirements. However, if you are approaching your contract renewal date during these uncertain times, now more than ever it’s important to understand your business energy needs, the risks faced and the options available. We strongly recommend seeking expert advice, whether from a supplier or an energy consultant, and reviewing the type of energy supply contract you’re on. For example, fixed rate energy contract give you more certainty but also locks in the wholesale prices at the date the contract is entered into, whereas Flex arrangements give scope for you to benefit from future market falls (but similarly also leaves you open to future price rises) and to manage your own hedging strategy.

 

There are a range of energy contract types out there, so be sure to seek expert guidance to find the most suitable solution for your business during these uncertain times.

A WELCOME BOOST FOR RENEWABLES

One of the regulatory mechanisms to support investment in new renewable generation is Contracts for Difference (CfD). Put simply, this scheme guarantees a minimum price per unit generated, which in turn provides a clear business case and reassurance for renewable developers.

Introduced in 2013 as part of the UK’s Electricity Market Reform, CfDs have successfully enabled 16GW of new renewable electricity to be brought onto the market, with auctions taking place every two years. On 9th February, the Department for Business, Energy and Industrial Strategy (BEIS) announced that from March 2023, the frequency of CfD auctions would change to taking place annually. The move is intended to accelerate UK renewable production to continue to attract investment and bolster energy security, and as such this announcement is an important step on the road to net zero.

Since its inception, the CfD auction has broadened its scope to include a larger number of technologies. Solar and onshore wind generation are now eligible to bid again, for example, where earlier auctions have seen an emphasis on offshore wind generation.

The announcement comes shortly after the launch of the BEIS’ consultation into the ways in which changes to the CfD mechanism’s supply chain could help to lower electricity generation costs. To learn more – or if you’re interested in submitting your views as part of the consultation – visit here.

SUSTAINABILITY

With energy prices top of the agenda for many businesses, it’s understandable that SMEs are struggling to make sustainability a priority. A new survey has revealed that while improving sustainability is a ‘high priority’ for the majority of large businesses over the next 12 months, only 41% of SMEs see sustainability as a high priority for 2022 (down from 44% in the previous year’s survey)2.

 

Challenges such as rising energy, material and fuel prices may have caused sustainability to slip down SMEs’ agendas, but the research also shows that many SMEs still make it a priority to purchase low carbon electricity and monitor the sustainability of their supply chain. In fact, another survey found that over 60% of SMEs would consider cutting ties with suppliers or partners that didn’t live up to their environmental pledges3.

 

SME business owners stated that they were largely motivated to continue to improve their environmental sustainability due to customer expectations and Government legislation, although they were also keen to benefit from the boost sustainability can provide to a company’s reputation and improved profitability.

 

No matter where sustainability currently sits on your organisation’s agenda, you might want to consider submitting your views to a new inquiry. The House of Lords Economic Affairs Committee is inviting businesses and other stakeholders to put forward their thoughts on a range of topics regarding the Government’s long-term energy strategy. This means you can have your say on the incentives the Government could provide to businesses to reduce their energy consumption and improve energy efficiency, which could help to shape future energy policies. If you’re interested in submitting your views, click here.

GOOD NEWS FOR OUR GREEN FUTURE

We’re pleased to share that…

 

  • The first reactive power contract has been awarded to offshore wind. Dogger Bank C will be the first UK offshore wind farm to support National Grid ESO in balancing the network. Reactive power services are important in helping to maintain suitable voltage levels on the electricity system. National Grid ESO instructs generators or asset owners to either absorb or generate reactive power, according to system requirements.

 

  • Renewable electricity can now provide extra grid stability as a recent change to industry code now means that National Grid ESO can call on renewable generators as well as other kinds of generation and end users, to help balance the electricity system. Enabling renewables to provide stability – a move which the operator has stated is a world first – will help to minimise the costs involved in the net zero transition by reducing the level of infrastructure change needed to support future energy demand.
TALK TO OUR TEAM

If you have any questions about any of the updates we’ve discussed or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

Sources

https://www.ofgem.gov.uk/publications/price-cap-increase-ps693-april

 

https://natwestbusinesshub.com/articles/sustainable-business-tracker-january-2022-smes-less-likely-to-prioritise-climate-action-in-2022

 

https://www.mercedes-benz.co.uk/vans/en/business-barometer/business-sustainability

Energy
Technology
Sustainability
Good news for our green future

We may only be a month into the new year, but there’s already been lots happening in the energy industry, which means we’ve got plenty to update you on. Let’s get straight into it – here’s what you need to know…

ENERGY

Now that final figures have been calculated, it’s been revealed that the equivalent of 98.6% of gross electricity consumption in Scotland was provided by renewables in 2020, which is a significant achievement. While this meant Scotland fell just 1.4% short of its target of sourcing 100% by 2020, the country has made impressive progress since the goal was set in 2011, when renewable energy provided just 37% of national demand1.

 

As the UK commits to decarbonising its electricity system by 2035, Scotland’s latest progress should provide inspiration for the rest of the UK2.

 

There was also positive news from the gas industry this month, as the Energy Networks Association (ENA) announced that gas networks will be ready for hydrogen blending throughout the UK from 2023. As we transition to a net zero future, some businesses’ processes and equipment will continue to rely on gas, so it’s vital that the gas industry begins to decarbonise. By blending up to 20% hydrogen into the current network, the ENA aims to reduce the carbon emissions associated with gas supply without impacting customers. The ENA have also stated that this will not require customers to change their heating systems, so when trials expand to include more areas across the UK, consumers shouldn’t notice any difference in supply.

 

Elsewhere, Ofgem is implementing changes in order to protect the interests of domestic and business customers and strengthen the resilience of the energy market. Following the collapse of 29 energy suppliers in the last year3, all energy suppliers must now undergo financial stress testing to ensure that they are resilient enough to support customers for the long term.

 

Ian Brothwell, our Managing Director, said of the decision, “We understand the challenges that both customers and suppliers are currently facing and welcome this move to help the industry become more resilient. Businesses need a financially stable energy supplier that they can rely on to support them now and into the future, and we hope these measures will help achieve this.”

TECHNOLOGY

In recent weeks, Ofgem has granted network operator Electricity North West (ENW) £6.8 million in funding for an energy flexibility trading project called Bi-Trader. While ENW already calls on certain businesses to adjust their consumption to help ENW and National Grid to keep the system balanced, this new scheme will enable customers to trade flexibility between themselves. It’s estimated that Bi-Trader will deliver savings of around £35.5 million and, if the trial is extended to the rest of the UK, economic benefits could reach up to £581 million.

 

This will be the first time that real-time flexibility trading is carried out on a live distribution network, and it could open up new opportunities for businesses looking to benefit from flexibility in their energy usage. While Bi-Trader is only open to certain businesses in the north west, DNOs like SSEN are running similar flexibility trading trials, which means opportunities are arising for businesses across the UK. Any business that can adjust its consumption can provide the grid with much-needed flexibility – find out more in our demand flexibility blog.

 

Chris Curry, our Head of Flexibility, said of the project, “It’s great to see new schemes being trialled to enable businesses to unlock their flexibility and practice good grid citizenship – after all, flexible demand is crucial to decarbonising our energy system. According to the Carbon Trust, commercial users will need to provide 11GW of flexible demand in order to operate an efficient net zero electricity system by 20504. Existing demand flexibility schemes are limited in terms of the businesses that can participate and the benefits they can bring to those businesses, so it’s crucial that new schemes are developed to empower more businesses to get involved.”

SUSTAINABILITY

In December, the government reopened the Climate Change Agreement (CCA) scheme to new entrants. This means that eligible businesses can benefit from a reduction in their Climate Change Levy (CCL), in exchange for making an agreement to reduce their energy usage and CO2 emissions. A business must carry out an ‘eligible process’ and operate within particular sectors (such as the aerospace, glass or plastics industries) to qualify for a CCA. Those that do can claim significant CCL relief of up to 92% for electricity and 83% for gas until the end of March 2025. If you think your business might be eligible for a CCA, you’ll need to act quickly, as the scheme will close again on 31st March 2022. Go to the government website to check your eligibility.

 

The Carbon Disclosure Project (CDP) and the Climate Group’s annual report, which tracks the progress of businesses in the RE100 initiative, found that 45% of their members’ collective electricity demand is currently met by renewables. As the RE100 has the same annual electricity demand as the UK’s, this represents a significant volume of electricity now being provided by renewables.

 

However, more work is needed to ensure companies can reach their renewable energy targets, as the report also revealed that just one-fifth of RE100 members are using 100% renewable electricity to power their operations5. The report also showed that in many countries, businesses are still struggling to access renewable electricity, despite growing corporate demand for it. Businesses from across the globe claimed that while they were striving to use renewable electricity, they faced barriers including limited access to renewable generation in their local area, limited procurement options when local generation is available, and a lack of national policy support.

 

Here’s what our Director of Sales and Marketing, David Taylor, thinks about this news, “At Bryt Energy, we’re passionate about providing as many British businesses as possible with zero carbon, 100% renewable electricity*. We know that it’s not as easy for businesses in some other countries to access renewable electricity, and we hope to see renewable generation grow globally to address this issue. Our parent company, Statkraft, is making a significant contribution to the growth of renewables internationally, currently developing renewable energy projects in countries including Chile, India and Spain.”

GOOD NEWS FOR OUR GREEN FUTURE

With so many governments, businesses and individuals taking action on climate change, we saw some significant milestones reached in 2021 – including:

 

  • A record year for smart meters. Over 2.4 million smart meters were installed in homes and businesses across the UK in 2021, an increase of 21% from 2020 (when 1.9 million smart meters were installed)5. If your business doesn’t yet have a smart meter installed, you can find out more about them, here.

 

  • A surge in electric vehicle sales. Almost 191,000 electric vehicles (EVs) were sold across the country in 2021, increasing the number on UK roads by 76%. EVs now account for 11.6% of the total new car market7, which shows that we’re moving in the right direction when it comes to choosing low-carbon transport.

 

  • The UK’s greenest Christmas. Power from fossil fuels on Britain’s electricity grid fell to record lows over the Christmas period, for example providing just 6% of supply at 23.45pm on 29th December 20218, with renewables generating 65% of the country’s electricity needs at that time. Grid carbon intensity remained low throughout the Christmas period – a great gift for the holidays!
TALK TO OUR TEAM

If you have any questions about any of the updates we’ve discussed or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

*Please visit https://www.brytenergy.co.uk/100-renewable-electricity/ for more information on our products and services.

Sources

https://www.gov.scot/binaries/content/documents/govscot/publications/statistics/2018/10/quarterly-energy-statistics-bulletins/documents/energy-statistics-summary—december-2021/energy-statistics-summary—december-2021/govscot%3Adocument/Scotland%2BEnergy%2BStats%2BQ3%2B2021.pdf

 

https://www.gov.uk/government/news/plans-unveiled-to-decarbonise-uk-power-system-by-2035

https://www.ofgem.gov.uk/publications/price-cap-increase-ps693-april

https://publications.carbontrust.com/flex-gb/analysis

https://www.there100.org/our-work/press/re100-companies-need-better-renewable-electricity-options-national-governments-shows

https://www.gov.uk/government/collections/smart-meters-statistics

https://www.smmt.co.uk/2022/01/covid-stalls-2021-uk-new-car-market-but-record-ev-sales-show-future-direction/

https://www.current-news.co.uk/news/christmas-2021-uks-greenest-on-record

Key outcomes from COP26
Bryt Energy’s view on COP26
Sustainability
Energy
Technology

Over the last month, we’ve seen a series of important energy policies published (such as the Net Zero Strategy and the Heat and Buildings Strategy), and now that COP26 has taken place, there’s plenty for us to update you on! So let’s get straight into it – here’s what you need to know…

KEY OUTCOMES FROM COP26

As COP26 came to a close, the New Glasgow Climate Pact was agreed, which looks set to guide nations towards key efforts to decarbonise and is the first climate deal to explicitly plan to reduce coal and inefficient fossil fuel subsidies. The aim of the pact is for countries to replace their 2030 national climate action targets with more ambitious emission reductions by the end of next year. While the pact is not legally binding, it sets a global agenda for the next decade.

 

With COP26 prompting leaders from across the globe to consider how they can do more to tackle climate change, there have been a significant number of encouraging pledges made and goals set which – if achieved – could really help to ensure that we can limit further global warming.

 

Some of the key commitments include…

  • The Global Methane Pledge, in which over 100 world leaders have pledged to cut methane emission levels by 30% by 2030
  • A new deal between more than 40 countries and over 100 financial institutions to ‘consign coal to history’, pledging to phase out coal in the 2030s, or by the 2040s for smaller economies
  • A declaration to accelerate the transition to 100% zero emission vehicles by 2040 globally.
  • A number of new net zero pledges including pledges from countries such as India (which is aiming for net zero by 2070) and Nigeria (which is aiming to reach net zero by 2060)
  • The Glasgow Deforestation Pledge, in which more than 100 countries pledged to halt and reverse deforestation by 2030
BRYT ENERGY’S VIEW ON COP26

“At Bryt Energy, we’re delighted to see that for the first time, ‘fossil fuels’ have been directly mentioned within a COP agreement – because coal is the single biggest contributor to climate change, and there’s no time to waste when it comes to transitioning to renewable energy.

 

“We were also encouraged to hear that developed countries have taken a step to increase their funding to help developing countries cut their emissions and adapt to the impacts of climate change. Some of the world’s poorest countries are the worst affected by the climate crisis, so it’s vital that we come together to support them.

 

“However, analysis by Climate Action Tracker (CAT) has shown that despite all of the new and increased commitments made at COP26, emissions are tracking to be twice as high in 2030 as they need to be to stay within our 1.5°C goal1. There’s also a significant gap between countries’ pledges and the plans they have in place – CAT found that if countries’ current policies and carbon reduction measures are taken into account, the global average temperature is likely to rise by 2.4°C.

 

“We’re proud that the UK hosted COP26 and helped shine a light on such important global issues, however we all have a part to play if we’re going to successfully limit global warming to 1.5°C. So although COP26 may be over, now is the time to act; time for businesses and governments alike to increase the ambition of their targets and take urgent action to become more sustainable.”

 

Ian Brothwell, Managing Director

SUSTAINABILITY

Looking more closely at these commitments, some positive steps have been made towards a more sustainable global future over the past two weeks:

 

One of the key announcements for UK businesses came from the Chancellor of the Exchequer, Rishi Sunak, who declared his goal for the UK to become the first net zero-aligned financial centre in the world. To achieve this goal, the Chancellor will require all UK listed companies, asset managers and regulated asset owners to publish net zero transition plans that detail how they will adapt and decarbonise as the UK moves towards a net zero economy by 20502. The government will be setting up a Transition Plan Taskforce to develop a reporting standard for these plans, and we’ll be sure to keep you in the loop on the implications to your business.

 

Meaningful targets were also a key concern for the UN Secretary General, Antonio Guterres, who announced a new expert group to create clear standards for net zero targets3. He claimed that there is currently a lack of clarity around net zero, with organisations using different definitions and metrics to measure their carbon reduction efforts. In establishing straightforward, consistent sustainability terminology and measurement metrics, Guterres is striving to reduce the confusion around net zero and ensure companies’ claims are clear and credible.

 

Here’s what our Sustainability Manager, Jos Mister, had to say about these developments:

 

“It was great to see a real emphasis throughout COP26 on encouraging businesses to take action. But ambitious targets need to be backed up by a robust strategy and transparent reporting – and we’re sure businesses are up for the challenge.”

 

“It’s also really encouraging to hear that 60% of the FTSE 100 are now signed up to the ‘Race to Zero’ campaign. This means that some of the UK’s leading businesses are now committed to halving their emissions by 2030, and reaching net zero by 2050, which should inspire organisations throughout their supply chains and beyond to follow suit.”

 

In addition to commitments to ‘consign coal to history’4, the UK was also among the 20 countries and financial institutions that agreed to halt all financing for fossil fuel development overseas and divert the funds to low carbon energy instead from 20225. It’s steps like these that will be crucial to ensuring that the UK can meet its target of achieving a fully decarbonised electricity system by 2035, a new goal outlined within the Net Zero Strategy6, which was published in the weeks before COP26.

 

The Strategy revealed that the Government is planning to reach this goal by introducing new measures designed to accelerate the deployment of low-cost renewable generation. These measures could include steps such as increasing the frequency of the Contracts for Difference (CfD) auctions, which help to support the development of new renewable generation by providing developers with an agreed ‘strike price’ for the energy their assets produce7.

 

Another key element of the Net Zero Strategy was the Heat and Buildings Strategy, which outlines how the government will decarbonise heating in domestic and commercial buildings across the UK. Within the strategy, ministers have proposed switching green levies from electricity to gas, in an effort to encourage homeowners and businesses to switch from gas heating to other low carbon sources of heat, such as heat pumps and hydrogen.

 

Today, around 23% of the cost of electricity is made up of environmental and social obligation costs, such as the Feed-in Tariff (FiT) and Contracts for Difference (CfD) levy, whereas green levies only account for less than 2% of the price of gas8. The Government is therefore planning to launch a call for Evidence on Energy Consumer Funding, Fairness and Affordability to determine how best to allocate these levies as we move towards a more sustainable future. We’ll let you know when this call for evidence opens so that you can have your say if you’d like to.

ENERGY

In addition to commitments to ‘consign coal to history’4, the UK was also among the 20 countries and financial institutions that agreed to halt all financing for fossil fuel development overseas and divert the funds to low carbon energy instead from 20225. It’s steps like these that will be crucial to ensuring that the UK can meet its target of achieving a fully decarbonised electricity system by 2035, a new goal outlined within the Net Zero Strategy6, which was published in the weeks before COP26.

 

The Strategy revealed that the Government is planning to reach this goal by introducing new measures designed to accelerate the deployment of low-cost renewable generation. These measures could include steps such as increasing the frequency of the Contracts for Difference (CfD) auctions, which help to support the development of new renewable generation by providing developers with an agreed ‘strike price’ for the energy their assets produce7.

 

Another key element of the Net Zero Strategy was the Heat and Buildings Strategy, which outlines how the government will decarbonise heating in domestic and commercial buildings across the UK. Within the strategy, ministers have proposed switching green levies from electricity to gas, in an effort to encourage homeowners and businesses to switch from gas heating to other low carbon sources of heat, such as heat pumps and hydrogen.

 

Today, around 23% of the cost of electricity is made up of environmental and social obligation costs, such as the Feed-in Tariff (FiT) and Contracts for Difference (CfD) levy, whereas green levies only account for less than 2% of the price of gas8. The Government is therefore planning to launch a call for Evidence on Energy Consumer Funding, Fairness and Affordability to determine how best to allocate these levies as we move towards a more sustainable future. We’ll let you know when this call for evidence opens so that you can have your say if you’d like to.

TECHNOLOGY

Both the world leaders at COP26 and the Net Zero Strategy acknowledged that some sectors will find it harder to reduce their emissions than others, and began to propose ways in which we can address this challenge through technology.

 

In the UK, there are several geographical areas (or ‘clusters’) that have a large concentration of heavy industry. These organisations – largely manufacturing and refining companies – use a lot of energy in their processes, so they’re likely to face more of a challenge than most when it comes to decarbonisation. The Net Zero Strategy outlines plans to develop four carbon capture and storage (CCS) trials in these clusters, as well as tests for hydrogen to replace fossil fuels for organisations operating in heavy industry. With goals to replace around 50TWh of fossil fuels per year with lower-carbon fuels by 2035 and meet the UK’s target of 5GW of hydrogen production capacity by 20309, the government is determined to establish the UK as ‘a leader in low carbon fuel production’.

 

Those that are looking to invest in new technologies to support their sustainability strategies should be aware of the new business rate exemption announced in the Chancellor’s Autumn Budget. Rishi Sunak declared that plant and machinery used for on-site renewable energy generation and storage will be exempt from business rates from 1st April 2023 to 31st March 2035. Technologies will include rooftop solar PV, battery storage (when used in conjunction with renewable generation) and electric vehicle charging points. For more information on the business rate exemption, read the Government guidance.

TALK TO OUR TEAM

If you have any questions about any of the updates we’ve discussed or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

Sources

https://climateactiontracker.org/publications/glasgows-2030-credibility-gap-net-zeros-lip-service-to-climate-action/

https://www.gov.uk/government/publications/fact-sheet-net-zero-aligned-financial-centre/fact-sheet-net-zero-aligned-financial-centre

https://news.un.org/en/story/2021/11/1104542

https://www.theguardian.com/environment/2021/nov/03/more-than-40-countries-agree-to-phase-out-coal-fired-power

https://www.theguardian.com/environment/2021/nov/03/twenty-countries-pledge-end-to-finance-for-overseas-fossil-fuel-projects

https://www.gov.uk/government/news/plans-unveiled-to-decarbonise-uk-power-system-by-2035

https://www.solarpowerportal.co.uk/news/government_mulls_more_frequent_cfds_in_net_zero_strategy

https://www.current-news.co.uk/news/utilities-call-for-gases-thumb-to-be-taken-off-the-scale-with-changes-to-levies

https://www.argusmedia.com/en/news/2161130-uk-targets-5gw-hydrogen-production-by-2030

Energy Market
Technology
Sustainability
Good news for our renewable future

As we move towards a net zero future, there are a range of different factors that will influence our journey – and the more you know about them the better informed your energy and sustainability strategy will be. We want to ensure that you’re aware of any new opportunities that emerging technologies could offer, the Government policies and industry developments that could impact your organisation, and the effect that transitioning to a net zero energy system could have on your energy prices.

Here’s what you need to know…

ENERGY MARKET

The UK lost 2GW of grid capacity on 15th September, after a fire at National Grid’s IFA1 interconnector, which provides an important power link between France and Britain.

 

The outage came at a particularly difficult time, as the margin between electricity supply and demand was already tight due to a number of factors. This summer has been one of the least windy UK summers on record, which has reduced wind power generation. As it’s not been particularly sunny either, solar generation has also lowered, so we’ve had much less renewable generation than we would normally expect at this time of year. In addition, some power stations that usually provide capacity are currently offline, due to planned maintenance and servicing.

 

As a result, the UK has had to rely more heavily on gas and coal-fired power stations to make up the shortfall. However, a global shortage of Liquid Natural Gas (LNG) and historically low levels of gas in storage ahead of winter has caused gas prices to soar and the UK to rely on expensive imports. This pushed day-ahead electricity prices to record highs of £2,500 per MWh, compared to averages of £50 per MWh this time last year.

 

We know that many businesses will be concerned about rising prices as we move into the winter months, but there can still be real rewards available to businesses with demand flexibility; consumers can be paid for supporting the system in times of need, by shifting their usage away from the expensive periods. For example, we recently sold some of our customers’ energy back to the grid at peak auction price – which meant they generated revenue while also directly supporting the system. To find out more about the opportunities for businesses, read our blog.

TECHNOLOGY

Looking more broadly at the industry, there have been some innovative developments to help reduce the likelihood of power cuts, as UK Power Networks (UKPN) began a trial of the UK’s first ‘early warning system’ this month. They are trialling Smart Cable Guards – devices that fit onto underground power cables and can detect the tiniest of electrical disturbances – at 20 sites across the South-East. When they detect a disturbance, these devices alert engineers to where a potential problem could occur to within a few metres of cable, so engineers can resolve the issue before a power cut occurs.

We can expect to see more pioneering solutions like this in future as Ofgem recently announced a £450 million fund to help unlock innovation in energy networks. The Strategic Innovation Fund will target four key strategic challenges in our transition to a cleaner energy future: whole system integration, data and digitalisation, heat, and transport. Funding could therefore be awarded to a wide range of projects, from holistic solutions for the gas and electricity networks to flexible solutions, like battery storage. If your business has a project that you think may qualify for funding, you can find out more here.

At Bryt Energy, we’re pioneering by nature, so we’re really excited to see funding for new innovations that could accelerate the UK’s transition to net zero.

SUSTAINABILITY

The Government has recently extended the eligibility criteria for the Workplace Charging Scheme, which means smaller businesses will be able to access additional support for installing electric vehicle (EV) charge points. Eligible organisations can access grant funding of up to 75% of the cost of installing EV charge points, up to a maximum of £350 for each socket, through the Workplace Charging Scheme. So if you’re considering investing in EV charge points, be sure to check the scheme’s eligibility criteria, as you may be able to get a grant.

The Government is also set to provide further funding for new renewable capacity, as they have confirmed that the budget for the next Contracts for Difference (CfD) auction will be set at £265 million.

The CfD auctions support the growth of renewable generation in the UK, as projects that win CfD contracts receive a guaranteed ‘strike price’ for the energy they provide to the grid. These contracts last for 15 years, which provides developers with the confidence they need to invest in new renewable generation projects. The next auction will be the first time that floating offshore wind has been included in the CfD, and the first time since 2015 that onshore wind and solar have been allowed to bid for CfD contracts. However, almost £200m of the £265m CfD budget is set to be invested in offshore wind projects, in order to ensure the Government can meet its target of 40GW of offshore wind capacity by 2030.

It’s encouraging to see increased support for new renewable energy capacity and that more projects are receiving the financial certainty they need to get off the ground.

GOOD NEWS FOR OUR RENEWABLE FUTURE

Sometimes, it can feel as though we’re inundated with bad news about the climate crisis. And while it’s important for us to be aware of the urgent need for climate action, it’s also vital to remember that with so many countries, businesses and individuals focused on taking action, there’s plenty of good news out there too!

This month, we were delighted to discover that according to new figures from RenewableUK, the UK is now the world leader in floating wind energy. There are now more floating wind projects in plan or operational in the UK than anywhere else in the world, with 8.8GW of floating wind capacity in various stages of development. The UK owns over 16% of the total global pipeline of floating wind projects and the government has pledged to build at least 1GW of floating wind by 2030.

This innovative technology will play a key role in the UK’s transition to net zero. In fact, our own parent company, Statkraft, have helped the world’s largest floating wind farm in Scotland find its customers! You can find out more about this exciting development, here.

TALK TO OUR TEAM

If you have any questions about any of the updates we’ve discussed or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

IPCC report makes clear case for immediate, strong climate action
Government publishes ‘world-leading’ Hydrogen Strategy
Records show a renewable grid is in our grasp
Survey shows just one in ten UK SMEs is measuring their carbon emissions

With the publication of the IPCC report last month, we’ve been presented with the stark reality of the climate crisis and the consequences we could face if we don’t take action. It doesn’t make for comfortable reading – but at Bryt Energy, we see it as a real call to action for all of us to do more to reduce our impact on the environment.

 

Moving in the right direction, the UK has smashed records for renewable energy generation and grid flexibility and encouragingly, the government has released an ambitious Hydrogen Strategy.

 

Here’s what you need to know…

IPCC REPORT MAKES CLEAR CASE FOR IMMEDIATE, STRONG CLIMATE ACTION

The Intergovernmental Panel on Climate Change (IPCC) has released its Sixth Assessment Report, the latest in a series of reports which provide insight into scientists’ current understanding of the climate system and climate change. The report makes it clear that if we don’t take rapid action to halve our emissions and reverse nature loss by 2030, we are at risk of extreme heatwaves, droughts and flooding as a result of uncontrolled climate change. For example, agricultural and ecological droughts are likely to occur twice in every ten years if we can limit global warming to 1.5°C, but if the global temperature rises by 4°C then we’re likely to see around four droughts in every 10-year period. Concerningly, many of the impacts of the climate crisis we’re experiencing today cannot be reversed.

 

However, there is still plenty we can do to limit the impact of climate change. According to the IPCC, if we achieve strong and sustained reductions in greenhouse gas emissions, we could improve our air quality relatively quickly, and global temperatures could stabilise within 20-30 years. It is still within our reach to limit global warming to below 1.5-2°C, but we will all need to take action to achieve this. As the IPCC’s Co-Chair of Working Group 1, Valerie Masson-Delmotte, states, “This report is a reality check. We now have a much clearer picture of the past, present and future climate, which is essential for understanding where we are headed, what can be done and how we can prepare.”

 

Crucially, the report emphasises that we will need to keep fossil fuels in the ground and increase our use of renewable energy swiftly. We will also need to reduce greenhouse gas emissions as much as possible using clean technologies and remove any unavoidable emissions using carbon capture and storage.

 

If you’re a customer of ours, you’re already supporting one of the report’s key recommendations – to rapidly move to using renewable energy to power the global economy. But if the IPCC’s report has motivated you to take further action to improve your organisation’s sustainability efforts, then you may wish to explore how you can become more flexible in your electricity usage. By providing flexibility to the grid, you can help to support the transition to renewable energy. To find out how we can help you to embrace your flexibility, click here.

GOVERNMENT PUBLISHES ‘WORLD-LEADING’ HYDROGEN STRATEGY

The government recently released its Hydrogen Strategy, which Business & Energy Secretary Kwasi Kwarteng claims ‘marks the start of the UK’s hydrogen revolution’. The strategy outlines how it will meet its ambitious target of 5GW of low carbon hydrogen production capacity by 2030. As the UK’s hydrogen capacity is currently very low, this strategy will be crucial to ensuring that we can reach this goal.

 

Hydrogen will play a key role in decarbonising the way we heat our homes and businesses, particularly within ‘hard-to-abate’ sectors, such as heavy industry. The strategy highlights that hydrogen could help energy-intensive industries like chemicals and oil refineries, as well as heavy transport like HGV lorries, boats and trains, by helping these sectors to move away from fossil fuels.

 

At Bryt Energy, we’ve been aware of the potential for hydrogen to transform these areas for some time. Our parent company, Statkraft, is working to become the leading hydrogen producer in Norway and Sweden and has recently been awarded a contract for the delivery of green hydrogen to the world’s first hydrogen-powered cargo ship.

 

By 2050, the government believes that 20-35% of the UK’s energy consumption could be hydrogen-based. One of the ways that they intend to reach this level of capacity and consumption is by establishing a hydrogen business model built on a similar premise to the offshore wind Contracts for Difference (CfD) scheme. The proposed scheme, which is currently under consultation, would incentivise investment in hydrogen capacity by providing developers a pre-agreed ‘strike price’ for the gas they provide. The government is also consulting on the design of a £240 million Net Zero Hydrogen Fund, which will support the deployment of low carbon hydrogen production plants across the UK.

 

If these measures are successful, the government believes that we could create a UK hydrogen economy worth £900 million and over 9,000 skilled green jobs by 2030. Crucially, we could also achieve emissions reductions equivalent to the carbon captured by 700 million trees by 2032.

 

It’s therefore likely that hydrogen will play an increasingly important role in powering businesses’ operations over the next decade and beyond. Click here to find out more about the Hydrogen Strategy and have your say in the government consultations.

RECORDS SHOW A RENEWABLE GRID IS IN OUR GRASP

Two recent record-breaking events have shown that the UK is moving in the right direction when it comes to decarbonising the grid.

 

The Department for Business, Energy and Industrial Strategy (BEIS) recently published its latest Digest of UK Energy Statistics (DUKES), which shows that renewables generated more electricity than fossil fuels for the first time. Renewables accounted for 43.1% of UK power generation in 2020, and all renewable technologies increased their share of generation last year. Wind provided the largest proportion of renewable power, at 24% of total power generation in 2020. Overall, renewable energy generation increased by 12.6% compared to 2019, which is an encouraging sign that we are switching to renewable energy at a growing pace.

 

This year, Britain has already broken the annual grid flexibility record, another major milestone as we move towards a low carbon grid. Data from the Energy Networks Association (ENA) has shown that since the start of 2021, the grid has secured 1.6GW of additional grid flexibility capacity – a 45% increase on the 1.1.GW secured through the whole of 2020. This capacity is the equivalent of connecting 32,000 rapid electric vehicle (EV) chargers to the grid. It’s excellent news, as we will need extensive flexible capacity in order to support our transition to a renewable energy future.

SURVEY SHOWS JUST ONE IN TEN UK SMES IS MEASURING THEIR CARBON EMISSIONS

A recent survey of over 1,000 UK SMEs has revealed that the vast majority (almost 90%) of small and medium-sized businesses are not measuring their organisation’s carbon footprint. Just 11% of SMEs said that their company is measuring its greenhouse gas (GHG) emissions annually or more regularly, compared to around 26% of businesses with 50 or more employees.

 

The most common reason SMEs gave for not measuring their emissions was the cost associated with doing so, but the survey also revealed a lack of in-house expertise around carbon reduction. Almost a quarter (22%) of SMEs said that none of their team members fully understand the meaning of ‘net zero’, for example. Despite the difficulties they are having in measuring their emissions, many SMEs are taking action to reduce them. Over half of those surveyed said that they are planning to improve resource efficiency over the next year, while 47% said they are planning to reduce travel and 40% are planning to reduce their energy consumption across their sites.

 

It’s vital for SMEs to reduce their emissions, because they account for around 99% of the UK’s businesses, so their actions will be crucial to ensuring that the UK can meet its net zero emissions by 2050 goal. So it’s great to see that many are putting carbon reduction plans in place – but it’s also important for SMEs to be able to measure their carbon footprints, so that they can see how the decarbonisation steps they’re implementing are impacting their overall emissions.

 

If your small or medium-sized business is one of the many that is struggling to measure its carbon emissions, you can access Government guidance on how to get started here.

TALK TO OUR TEAM

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

National Grid ESO releases Future Energy Scenarios
Government publishes Transport Decarbonisation Plan
Smart Systems and Flexibility plan updated for 2021
Government puts forward plans to replace National Grid as system operator

In recent weeks, we’ve seen a great deal of activity within the energy industry and the government. BEIS and Ofgem have been working together on the Smart Systems and Flexibility Plan and their plans to replace National Grid ESO as the electricity system operator. Meanwhile, National Grid ESO has released its annual Future Energy Scenarios report (which looks promising) and the government has published its Transportation Decarbonisation Plan. 

 

There’s a lot to cover, so here’s what you need to know… 

NATIONAL GRID ESO RELEASES FUTURE ENERGY SCENARIOS

Every year, National Grid’s Electricity System Operator (ESO) releases its Future Energy Scenarios (FES) report. It gives insights into how the energy market might evolve between now and 2050, and looks at the role that technology, consumers and policies will play in the journey to net zero. Encouragingly, three out of the four future scenarios they published in this year’s report see the UK reaching its net zero target by 2050 or earlier.

 

One of the key aims of this report was to determine which steps could be taken to enable the UK to meet the Sixth Carbon Budget, which requires an emissions reduction of 78% by 2035. The FES report highlights that we will only meet this goal – which has been enshrined into law – in the two most ambitious decarbonisation scenarios: ‘Leading the Way’ and ‘Consumer Transformation’. In both of these scenarios, there has been a huge shift in societal norms and energy infrastructure. For example, in ‘Leading the Way’ hydrogen is used to decarbonise some of the most challenging industrial processes, while the average home is heated by an electric heat pump in ‘Consumer Transformation’.

 

One thing that the report makes clear is that consumer engagement will make or break the UK’s net zero target. Within the two scenarios in which the UK meets its net zero and Carbon Budget targets, consumers have the support to change their behaviour by switching to electric vehicles, improving the energy efficiency of their buildings and participating in demand side response. Clearly, every business will need to play its part in helping the UK to reach net zero, and they need to take action today if we’re going to meet the Sixth Carbon Budget’s 2035 deadline.

 

If your business could use some support in becoming more sustainable, whether that’s by switching to zero carbon, 100% renewable electricity*, or optimising your energy usage, our team is here to help – click here to find out more. You can also read the full FES report here.

GOVERNMENT PUBLISHES TRANSPORT DECARBONISATION PLAN

If the UK is going to meet its net zero target, reducing transport-related emissions will be key. Now that the Government has published its Transport Decarbonisation Plan, we can see how it plans to decarbonise this sector and uncover what this means for businesses.

 

Within the plan, the Government has outlined several strategic priorities for reducing transportation emissions, such as accelerating the shift to public transport. It has pledged £12bn investment for local transport systems to help prioritise low carbon forms of transportation and reiterated its goal for half of all journeys in towns and cities to be walked or cycled by 2030.

 

One of the key elements of the plan – the 2030 ban on the sale of new petrol and diesel vehicles and the 2035 ban on new hybrid vehicles – had already been announced prior to its publication. However, the Department for Transport will also be consulting on proposals to phase out polluting vehicles weighing 3.5-26 tonnes from 2035, and those over 26 tonnes from 2040. Although currently in the consultation stage, it’s important for businesses with HGV fleets (or HGVs in use in their supply chain) to be aware of these dates and begin to consider how they could plan ahead in this area. Those that offer company car schemes will also need to put a plan in place for switching to electric vehicles in light of the 2030 deadline for new petrol and diesel vehicles.

 

The plan also contains key insight into the Government’s strategies for air, rail and shipping decarbonisation that you may be interested in – you can read the full plan here.

SMART SYSTEMS AND FLEXIBILITY PLAN UPDATED FOR 2021

BEIS and Ofgem have been working together on an updated Smart Systems and Flexibility Plan, which was launched last month. Within the plan, they set out how we will transition to a smart, flexible and decarbonised energy system.

 

The plan states that a ‘flexibility first’ approach could reduce the annual costs of managing our energy networks by £10bn by 2050 and create up to 24,000 jobs in fields including engineering, system installation and data science. They believe that we will need around 30GW of low carbon flexible energy capacity by 2030 and 60GW by 2050, in order to maintain our energy security and integrate high levels of renewable generation cost-effectively.

 

Their vision is for electricity consumers of all sizes to be able to provide flexibility to the system by the mid-2020s, although the plan emphasises that this will need to be supported by the right infrastructure and regulatory framework. At this point, it’s also envisioned that business customers will have a greater choice of innovative flexibility products, as even the smallest businesses will have smart meters. By 2030, they believe that consumers will be providing significant flexibility to the system and that energy consumers will be in charge of and able to choose how dynamic their participation in the flexible energy market will be.

 

If your business is interested in optimising its energy usage, you don’t have to wait years for smarter solutions to come along. With Bryt Energy’s optimisation solutions, you can find flexibility while staying in total control of your consumption – to find out more, click here.

GOVERNMENT PUTS FORWARD PLANS TO REPLACE NATIONAL GRID AS SYSTEM OPERATOR

The government has proposed a plan for replacing National Grid, which has been the electricity system operator for England, Scotland and Wales for over 30 years, with an independent ‘future system operator’.

 

National Grid’s Electricity System Operator (ESO) became a legally separate business within the National Grid Group in 2019. However, in January 2021 Ofgem raised concerns that the Group could face a ‘conflict of interest’ when advising on our future electricity system because it also owns energy networks and transmission assets that may benefit financially from future investment plans. This could make it more difficult for National Grid ESO to impartially choose between building a bigger and higher capacity network or creating a smarter, more efficient system that is overall cheaper for customers. Therefore, Ofgem claimed that an independent body would be better placed to deliver net zero at the lowest cost to customers.

 

It appears the government agrees, as on 20th July 2021, Ofgem and the Department for Business, Energy and Industrial Strategy (BEIS) launched a consultation on the management of energy systems operations in England, Scotland and Wales. Ofgem and BEIS have proposed that in addition to managing our electricity system, the independent operator should also take responsibility for strategic network planning, long-term forecasting and market strategy for the gas system. They also refer to ‘new or enhanced roles’ for the operator, which include overseeing the UK’s hydrogen and carbon capture and storage (CCS) sectors. To read the full consultation document and have your say on the proposal, click here.

TALK TO OUR TEAM

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

*Please visit https://www.brytenergy.co.uk/100-renewable-electricity/ for more information on our products and services.

UK businesses at risk due to climate dangers
Prime Minister calls for SMEs to set net zero goals
Research reveals flexibility could cut net zero costs by £16.7bn a year
Businesses will need net zero targets to win government contracts

In recent weeks, the Government has announced a number of new initiatives designed to prompt more businesses to adopt net zero goals, including a new Business Climate Hub and changes to the way major public procurement contracts are awarded. We’ve also seen the publication of the Committee for Climate Change’s new climate risk assessment report, which emphasises the risk of climate change to businesses, and realised the true value of flexibility thanks to new research from the Carbon Trust.

 

If one thing’s for certain, a combined and united effort towards decarbonisation is a must. Here’s what you need to know…

UK BUSINESSES AT RISK DUE TO CLIMATE DANGERS

A new report from the Climate Change Committee (CCC) has highlighted the risks to UK businesses and individuals due to the climate crisis. The CCC has stated that the Government’s actions to improve the UK’s resilience to climate risks are not keeping pace with the impacts of climate change, which are already causing harm.

 

In their risk assessment report, the CCC considered 53 risks that could occur if the earth’s temperature rises by 2°C-4°C in the future, and found that the Government had only taken sufficient action to protect UK citizens and businesses against four of these risks. The UK is already experiencing climate change, as the average land temperature is now around 1.2°C higher than pre-industrial levels. The report also recognises that some of the climate risks we’re already seeing (such as higher sea levels) could be irreversible.

 

However, many of the risks considered in the report can be mitigated if we put a ‘detailed, effective action plan’ in place as a matter of urgency. When it comes to businesses, the CCC’s report emphasised that more action is needed in a number of areas, including reducing the risk of flooding to business sites and the risk of disruption to supply chains or distribution networks. They also outlined the negative impacts that higher temperatures could have on employees’ health and wellbeing, as well as their ability to commute to work, which could have a serious effect on business productivity.

 

While many of the risks the CCC considered will require serious and urgent action from the Government, we all have a part to play in reducing climate risk.

PRIME MINISTER CALLS FOR SMES TO SET NET ZERO GOALS

Boris Johnson has urged the millions of small and medium businesses across the UK to lead the way on climate action by pledging to cut their emissions by half by 2030 and to be net zero by 2050 or sooner. With SMEs accounting for around 99% of UK businesses, it’s vital that small and microbusinesses play their part in achieving the UK’s net zero goal.

 

However, recent research by Lloyds Banking Group has revealed that although nine in 10 SMEs see environmental sustainability as an important issue for their business and sector, one-quarter of smaller businesses are unaware of the UK’s net zero target. In fact, four in 10 SMEs don’t know what net zero would mean for their business, and many were unaware of the benefits of decarbonisation.

 

It’s clear that SMEs need more guidance around net zero, which is why BEIS launched the Together for our Planet ‘Business Climate Leaders’ campaign. SMEs will be able to use the new UK Business Climate Hub to find practical tools, resources and advice to help them to understand their carbon footprint and make a plan for reducing it. Some of the UK’s biggest businesses, including NatWest, Google and BT, will also be holding events and leading training programmes to support SMEs that make net zero pledges.

 

Net zero might sound like an ambitious target, but once your business has a goal in place it’s simply a case of taking small steps towards achieving it. To access support for your sustainability goals, visit the Business Climate Hub here.

RESEARCH REVEALS FLEXIBILITY COULD CUT NET ZERO COSTS BY £16.7BN A YEAR

New research led by the Carbon Trust – and supported by a cross-sector group that we were proud to be a part of – has shown that embedding greater flexibility across the UK’s energy system could significantly reduce the cost of achieving net zero for customers.

 

Balancing the grid is becoming increasingly complex. Electricity demand is set to treble from 2019 levels by 2050, due to the electrification of heating and transportation, and intermittent renewable generation is accounting for a growing proportion of our supply. Our existing electricity network will need to be substantially upgraded in order to ensure supply can meet demand – but the extent of the upgrades required could be reduced if businesses and individuals can have more flexibility in their energy use.

 

If consumers can synchronise their consumption with renewable generators, for example, then the easier it will be to support an energy system powered on renewables alone. And by shifting their consumption away from peak periods, consumers can also help to reduce the anticipated increase in stress on networks from electric heat and transportation. Ultimately, the Carbon Trust estimates that a fully flexible energy system could save consumers up to £16.7bn per year by 2050, and help to minimise the need for expensive network infrastructure upgrades.

 

They state that commercial users will need to provide around 11GW of flexible demand by 2050, which means businesses like yours will have a key role to play in securing an efficient, affordable and reliable renewable future. We’re therefore encouraging all businesses to explore how they can optimise their energy use and deploy flexibility – because in doing so, you can secure some real benefits for your business as well as our electricity system. Find out more about the benefits of flexibility in Carbon Trust’s recent blog.

BUSINESSES WILL NEED NET ZERO TARGETS TO WIN GOVERNMENT CONTRACTS

On World Environment Day, the Government announced a new requirement for businesses to commit to the UK’s 2050 net zero target before they can bid for major government contracts. They will also be required to publish ‘credible’ carbon reduction plans on their website, and specify each of their carbon reduction schemes in their tender.

 

These new rules will apply to all Government contracts worth more than £5m from September 2021, and any firms that fail to comply with these measures will be prohibited from bidding on these contracts. As the government spends over £290 billion a year on procurement, it’s expected that this announcement will encourage hundreds of businesses to publish a net zero target and put a plan in place for achieving it.

 

Some businesses were already required to report on their Scope 1 emissions – direct emissions from owned or controlled sources – and Scope 2 emissions – any indirect emissions from the generation of purchased electricity, steam or heating. However, all businesses bidding for major contracts will now need to outline their existing carbon footprint, including their Scope 3 emissions, which are the indirect emissions created throughout their value chain.

 

Whether your organisation supplies the Government or not, it’s wise to ensure you’re actively working to reduce your Scope 1, 2 and 3 emissions, as more businesses are seeking to lower emissions throughout their supply chain. Switching to Bryt Energy’s zero carbon, 100% renewable electricity* is a great way to report your Scope 2 emissions as zero, under the Greenhouse Gas (GHG) Protocol market-based method. To find out more, click here.

TALK TO OUR TEAM

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

*Please visit https://www.brytenergy.co.uk/100-renewable-electricity/ for more information on our products and services.

UK Government outlines carbon capture plans
Queen’s speech highlights green policy
Britain’s biggest businesses set out green recommendations for G7
RenewableUK calls for clear renewables roadmap

As the UK begins to move towards greater normality, businesses and trade associations are striving to recover from the coronavirus crisis – and we’ve seen this month that many are keen to make a green recovery. We’re eager to see how the Government will respond to calls for greater support for businesses – will they publish the long-awaited Environment Bill soon, and will they provide the policies required to deliver their new carbon capture plans?  

 

Here’s what we know so far… 

UK GOVERNMENT OUTLINES CARBON CAPTURE PLANS

The government has published a new policy paper which sets out its plans for the UK’s carbon capture, usage and storage (CCUS) supply chains. The paper outlines a new target for the UK to capture and store 10 million tonnes of CO2 per year by 2030.   

 

This is an important target, as although many organisations and individuals are working to reduce their emissions as much as possible, the majority will be unable to stop creating emissions entirely. To get to net zero, the UK will need to have the capability to remove enough emissions from the atmosphere to counteract any residual emissions. The Committee on Climate Change has therefore stated that CCUS is a ‘non-optional’ element of the UK’s transition to net zero.  

 

Encouragingly, the policy paper states that the UK has one of the greatest CO2 storage potentials of any country in the world. In fact, it’s estimated that the UK Continental Shelf (the region of water surrounding the UK) could safely store 78 billion tonnes of CO2, which is the equivalent of 200 years of the UK’s annual CO2 emissions. By developing our capabilities to capture and store carbon, the Government estimates that we could support around 50,000 jobs by 2050. 

 

It’s good to see that the Government has put a target in place for CCUS, and we look forward to the release of a full roadmap for the CCUS sector later this year, so we can understand how the skills, infrastructure and technologies will be supported. This will be published alongside a ‘Fit for CCUS’ scheme for businesses, which will help high emitters to prepare to adopt CCUS technology. While we wait for more details, you can read the policy paper, here.

QUEEN’S SPEECH HIGHLIGHTS GREEN POLICY

The Queen opened a new session of Parliament with her customary speech, which reiterated the UK’s commitment to delivering a green economic recovery from the coronavirus pandemic.  

 

In her speech, the Queen referenced the Government’s Ten Point Plan for a green industrial revolution over the next ten years. She stated that the Government will, ‘invest in new green industries to create jobs, while protecting the environment. The United Kingdom is committed to achieving net zero greenhouse gas emissions by 2050 and will continue to lead the way internationally by hosting the COP26 climate summit in Glasgow.’ 

 

The Queen also alluded to the upcoming Net Zero Strategy and the Environment Bill, which returned to Parliament at the end of May. If passed, the Environment Bill will set binding environmental targets around air quality, biodiversity, water, resource efficiency and waste reduction. The industry will be looking to see this bill passed before the UK hosts COP26 – the Glasgow climate summit – in November. To read the Queen’s Speech in full, click here. 

BRITAIN’S BIGGEST BUSINESSES SET OUT GREEN RECOMMENDATIONS FOR G7

Britain’s largest business group, the Confederation of British Industry (CBI), has urged leaders of G7 – an organisation made up of the world’s most ‘advanced economies’ – to lead international action to address climate change and biodiversity loss at the G7 summit in June. 

 

The CBI has worked together with leading business groups from the G7 nations to put together a wealth of recommendations for G7 countries to drive a ‘sustainable and inclusive recovery’ from Covid-19. The recommendations were drafted and backed by their members (including some of the UK’s leading businesses, like M&S and PWC). Among these recommendations, they called for G7 leaders to set a target to phase out unabated coal (coal without any carbon capture) power generation by 2040 where feasible. They also highlighted the need for this target to be supported by policies and incentives to support industries and communities affected by the shift away from fossil fuel. Boris Johnson said that he was grateful for the CBI’s recommendations, and he backed their call for co-operation among G7 countries to address these issues. 

 

The UK will host the G7 Summit in Cornwall this month. As the host of this summit and COP26 – the Glasgow climate summit – in November, the UK has the chance to influence the global transition to a low carbon future this year. To read the CBI’s letter in full, click here.

RENEWABLEUK CALLS FOR CLEAR RENEWABLES ROADMAP

RenewableUK, one of the UK’s leading renewable energy trade associations, has published a new report outlining the need for specific renewable energy milestones if the UK is going to meet the Prime Minister’s new target to slash emissions by 78% by 2030. These milestones will also be crucial to ensure we can meet our 2050 net zero target. 

 

The association has called for clear development targets for onshore wind, floating wind, renewable hydrogen and marine energy. Wind energy is a particular focus within the report, as it is currently the cheapest form of renewable energy in the UK. RenewableUK has proposed a target of 30GW of onshore wind by the end of the decade, and called for the existing target of 1GW of floating wind by 2030 to be doubled. They claim that reaching these targets could reduce energy bills as well as support 31,000 UK jobs by 2035, and help to establish the UK as a global leader in floating wind technology. 

 

At Bryt Energy, we’re passionate about renewable energy, and so we’re delighted to see the growth of renewable energy in the UK and worldwide. If you’re interested in reading the full report from RenewableUK, you can find it here. 

TALK TO OUR TEAM

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

Boris Johnson to enshrine 78% emissions cut by 2035 into law
Ofgem gives green light to half-hourly settlement in retail electricity market
Report proves renewables can meet global demand

As COP26 – the Glasgow climate summit – draws closer, we hope to see a number of new sustainability targets and policies put in place by each of the participating countries – and this month, the UK government took a promising first step by enhancing its 2035 target. We’ve also seen Ofgem take action to encourage greater flexibility, and exciting research has shown that renewables can supply global demand – here’s what you need to know:  

BORIS JOHNSON TO ENSHRINE 78% EMISSIONS CUT BY 2035 INTO LAW

The Prime Minister has agreed to set a new legally-binding target to reduce the UK’s carbon emissions by 78% by 2035 (compared to 1990 levels). This move comes after the Climate Change Committee’s (CCC’s) Sixth Carbon Budget was published in December 2020, in which the CCC advised that the UK will need to achieve at least a 78% emissions reduction by 2035 if it is to reach its net zero target by 2050.

 

The new target is one of the most ambitious in the world, building on the UK’s Nationally Determined Contribution (NDC) to the Paris Agreement, which requires the UK to reduce emissions by 68% by 2030 (compared to 1990 levels). It will also include aviation and shipping emissions, which have never been included in any of the UK’s previous targets. The UK will therefore need to take urgent action to ensure we can achieve it. All new cars, vans and replacement boilers will need to be zero carbon in operation by the early 2030s, and our electricity production must also reach net zero by 2035. The CCC estimates that 40% of the emissions reductions needed can be achieved through investment in tech solutions, while the remainder will be met through behaviour change, including switching to EVs and reducing demand for flights.

 

At Bryt Energy, we know how urgent it is to tackle the climate crisis, and so we welcome this positive step towards a more sustainable future. As we move closer to COP26, we can expect the Government to increase the pressure on businesses to play their part in achieving the UK’s ambitious targets through campaigns like the Race to Zero. This is a global initiative, backed by science-based targets, to commit businesses, cities, investors and universities to achieve net zero emissions by 2050 at the latest. To find out more about the UK’s new 2035 target and what we will need to do to reach it, click here.

OFGEM GIVES GREEN LIGHT TO HALF-HOURLY SETTLEMENT IN RETAIL ELECTRICITY MARKET

Ofgem has agreed to roll out half-hourly settlement across Britain’s retail electricity market, which will help to support an increasingly flexible energy system as we move towards a low carbon future.

 

Currently, only larger businesses’ meter readings are settled half-hourly; their meters record their consumption every half an hour and send that information to their supplier. This means that the amount of electricity they’re using can be compared with the amount being generated and ‘settled’ every 30 minutes. When it comes to smaller businesses, Ofgem has historically estimated their consumption, with estimates only being updated when their meters are read. Moving to half-hourly settlement will provide suppliers and the grid with a much more accurate picture of how and when businesses are using electricity, so they can balance the entire electricity market every half an hour.

 

It’s hoped that having access to more detailed data on businesses’ energy consumption will encourage suppliers to develop innovative products and services, like time of use tariffs and vehicle-to-grid solutions. This should in turn encourage businesses to embrace flexibility, which will reduce the need for new and expensive infrastructure upgrades. In fact, Ofgem believes that moving all businesses to half-hourly settlement could save customers between £1.6 – £4.5 billion by 2045.

 

These changes are set to be rolled out over four and a half years, so it might be some time until your business sees the benefits – but you can rest assured that we’ll keep you updated. For more information, click here.

REPORT PROVES RENEWABLES CAN MEET GLOBAL DEMAND

New research from thinktank Carbon Tracker has found that as the cost of renewable generation continues to fall, renewable energy could remove fossil fuels from the electricity mix by 2035.

 

Carbon Tracker found that 60% of the world’s solar generation resource and 15% of its wind resource are already on par with local fossil fuel generation in regards to cost. They also discovered that current solar PV technology could provide almost 5.8 billion Gigawatt hours (GWh) of electricity annually, while onshore and offshore wind could account for 900 million GWh a year. In 2019, global energy consumption stood at 65 PWh. This means that when combined, existing wind and solar technologies could potentially meet global energy demand 100 times over.

 

With solar costs falling by an average of 18% per year since 2010 and wind prices falling by an average of 9% per year in the same time, this report provides encouraging evidence that renewable energy can meet global demand. To find out more, click here.

TALK TO OUR TEAM

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.