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.

BEIS launches new Industrial Decarbonisation Strategy
Increased tax allowance for energy efficiency improvements
MPs launch inquiry into renewable energy in Scotland
Tackling climate change & biodiversity loss is UK’s ‘number one international priority’

With the Chancellor’s Budget and the Government’s new Industrial Decarbonisation Strategy both revealed recently, there are a number of new funding opportunities that you need to know about. So we’ll get straight to it – here are the key changes you should be aware of this month:

BEIS LAUNCHES NEW INDUSTRIAL DECARBONISATION STRATEGY

The Department of Business, Energy and Industrial Strategy (BEIS) has revealed its plans to decarbonise ‘heavy industry’ across the UK in its new Industrial Decarbonisation Strategy. The strategy includes over £1bn in funding and a number of new measures designed to help businesses in the manufacturing, construction, industrial and public sectors to decarbonise. 

 

As part of the strategy, BEIS is working to introduce new policies that will help industrial businesses shift 20 terawatt hours of fossil-fueled energy to low-carbon sources by 2030. The government has also allocated £171 million to nine green technology projects across the UK, which will develop carbon capture and storage and hydrogen technologies. BEIS estimates that these measures will create and support around 80,000 UK jobs over the next 30 years and reduce emissions by two-thirds by 2035, compared to 2018 levels.  

 

The Industrial Decarbonisation Strategy is likely to present a number of opportunities for businesses within eligible sectors over the coming years. You can read the full strategy, here.  

INCREASED TAX ALLOWANCE FOR ENERGY EFFICIENCY IMPROVEMENTS

Within his Budget, the Chancellor announced a new super-deduction allowance that will enable companies to reduce their tax bill by up to 25p for every £1 they invest in new ‘plant and machinery’, which could help businesses to improve their energy efficiency at a lower cost to their organisation. 

 

While the tax allowance isn’t specifically targeted at energy efficiency improvements, ‘plant and machinery’ refers to any items that a business keeps to use within their business. There are some exceptions – such as mains water and gas systems – but savvy businesses could take advantage of the new super-deduction allowance to receive tax relief on installing electric vehicle charge points, for example, or solar panels. This means that organisations that are looking to improve their sustainability and reach net zero targets may be able to undertake carbon reduction projects at a much lower cost by claiming the allowance. 

 

Of course, it’s important to check whether the projects you’re interested in investing in are eligible for the super-deduction allowance before you make a decision – you can view more guidance from the government, here.

MPS LAUNCH INQUIRY INTO RENEWABLE ENERGY IN SCOTLAND

With Scotland aiming to achieve net zero emissions by 2045, five years earlier than the UK target, an inquiry has been launched to explore how Scotland’s net zero target can be met through the development of renewable energy.  

 

Glasgow is set to host the COP26 climate summit in November, which means the eyes of the world will be on Scotland’s sustainability efforts, and MPs are keen to set an example that the world can follow. The inquiry will therefore seek to identify the opportunities and challenges facing Scotland as it moves towards a low-carbon future, with a focus on which technologies would best serve the country and how challenges in their development can be overcome. It will also consider how oil and gas workers can transition to jobs in the low-carbon economy, plus how the UK and Scotland can work together to reach their net zero targets. 

 

The inquiry is now open for businesses and the public to submit their views, which can be done by visiting the Scottish Affairs Committee website, here. 

TACKLING CLIMATE CHANGE & BIODIVERSITY LOSS IS UK’S ‘NUMBER ONE INTERNATIONAL PRIORITY’

Boris Johnson has confirmed that climate change and biodiversity loss will be the top international priority for the UK going forward, in a new Integrated Review of UK Security, Defence, Development and Foreign Policy. 

 

The Review provides an outline of the UK’s national security and international policy out to 2025. In the foreword, the Prime Minister commits to applying what has been learnt from setting our net zero target into law to international relations. He also admits that despite moves such as ending financing for overseas fossil fuel projects, there’s much more to be done to ensure the UK is taking a joined-up approach to sustainability internationally. The Review includes plans to scale up on-site technology sectors within the UK and increase collaboration in this area, and commits to tackling climate change and biodiversity loss at the source of the issues, to prevent them from causing further problems.  

 

To find out more about the Integrated Review, 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.

Wales legally commits to achieve net zero by 2050
Scottish Budget announces £1.9bn of investment in green recovery
Businesses granted £40m to reduce their emissions and their energy bills
National Grid ESO looks to flexibility to deal with low summer demand

In the past month, we have seen some encouraging decarbonisation commitments from governments across the UK, from the Welsh Government’s new target to reach net zero by 2050 (which was previously thought to be impossible by experts) to the Scottish Government’s significant green recovery fund. 

 

Here are all of the key changes you need to know about: 

WALES LEGALLY COMMITS TO ACHIEVE NET ZERO BY 2050

Wales is now legally committed to reaching net zero carbon emissions by 2050, although the Welsh government has expressed hopes that it will ‘get there sooner’. This new commitment follows a report from the Climate Change Committee (CCC), which outlined how full decarbonisation by 2050 was within reach for Wales.

 

However, achieving this target will require the Welsh government to put ambitious policies in place, and for communities and business to work together to implement societal and behavioural changes. The industrial sector will have a key role to play, as a large proportion of Welsh emissions come from a small number of large emitters, such as the Port Talbot steelworks. There will also need to be a ‘decisive shift’ away from fossil fuel extraction and a greater focus placed on cleaner energy.   

 

To find out more about the new Welsh net zero target, click here. 

SCOTTISH BUDGET ANNOUNCES £1.9BN OF INVESTMENT IN GREEN RECOVERY

Scotland has also committed to a greener future, with the Scottish Budget containing a host of new funding intended to accelerate Scotland’s journey to net zero by 2045.  

 

The Government will invest a record £1.9 billion in tackling climate change and creating green jobs, and a further £1.6 billion to transform the heat and energy efficiency of buildings, a programme which is expected to support up to 5,000 jobs. Other key areas for funding include forestry, zero-emission buses, waste and recycling infrastructure improvements, and a peatland restoration programme. It is hoped that this funding will enable the country to build a ‘fairer, stronger and greener Scotland’ post-Covid-19. 

 

To find out more about Scotland’s green recovery funding, click here.  

BUSINESSES GRANTED £40M TO REDUCE THEIR EMISSIONS AND THEIR ENERGY BILLS

Carbon-intensive businesses can now access a new £40 million government fund that is designed to help them to cut their emissions and reduce their energy bills. This is the second competition window for the government’s Industrial Energy Transformation fund, which will provide businesses with £289 million in funding up until 2024. 

 

The new funding is available to businesses in some of the most energy intensive industries, such as the steel, paper and pharmaceutical industries, to help them find innovative ways to decarbonise their organisations. The minimum grant threshold has been lowered to £100,000 to enable smaller businesses to also get involved in the scheme and receive funding. They can use their funding to invest in technologies such as heat pumps and electric motors to replace steam turbines and natural-gas boilers, or heat recovery technology to recycle waste heat and generate renewable electricity. 

 

If you think your business could benefit from this funding, you can find out more about it here. 

 

NATIONAL GRID ESO LOOKS TO FLEXIBILITY TO DEAL WITH LOW SUMMER DEMAND

National Grid ESO has confirmed that its Optional Downward Flexibility Management (ODFM) service will be reinstated this summer. They are currently consulting on how the service could be improved. 

 

The scheme was successfully introduced in 2020, in response to the substantial drop in demand created by the Covid-19 pandemic. Small-scale renewable generators that secure agreements under the ODFM are paid to reduce their output whenever they are called upon by the Grid, in order to avoid supply significantly outstripping demand when demand is very low. Last year, generators were called upon five times under the ODFM. This year, the Grid believes that there may be no need for ODFM, but they will still be putting the service in place between 30th April 2021 and 31st October 2021 to cover any worst-case scenarios.  

 

As we move towards a low carbon future, and become more reliant on renewable energy, it’s likely that flexibility will play an increasingly important role in our energy system. If you’d like to learn more about flexibility, our introductory blog could be a good place to start, and you can find out more information on the ODFM, 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. If you’d like to receive our policy updates straight into your inbox, you can sign up here. 

US to rejoin the Paris Agreement
Energy White Paper published
New Energy Minister reveals policy priorities
Sixth Carbon Budget sets out route to net zero
EU ETS replaced with UK Emissions Trading Scheme
Ofgem calls for independent body to run the electricity system
UK to develop world’s first net zero industrial cluster

We may only be a few weeks into the new year, but with so many energy policies expected to be announced before COP26 in November, there’s still plenty to update you on. From the transition to a far more climate-conscious President in the US, to new policies in the UK that will inform your energy strategy for the year ahead, it’s important to ensure your business is prepared.  

 

These are the key changes you need to know about:

US TO REJOIN THE PARIS AGREEMENT

New US President Joe Biden signed an order to return the US to the Paris Agreement within hours of his inauguration, during which he spoke about the need for America to respond to a ‘climate in crisis’. 

 

The Paris Agreement is a legally binding international treaty on climate change, and countries that sign up to it agree to address their carbon emissions and work towards carbon neutrality in order to limit the global temperature increase to 1.5°C above the pre-industrial era. As America is the world’s second largest emitter of greenhouse gases, their participation in the Paris Agreement should make a significant difference to global greenhouse gas emissions.  

 

Pre-election, President Biden also committed to setting a net zero target for the US – and if he fulfils this commitment, over 60% of global CO2 emissions will be under net zero targets. In his first phone call with Boris Johnson, it’s reported that the two leaders agreed to deepen ties between the UK and the US and work together to drive a green and sustainable recovery from Covid-19. To find out more about the US’s re-entry to the Paris agreement, click here. 

ENERGY WHITE PAPER PUBLISHED

The long-awaited Energy White Paper was published on 14th December 2020, giving businesses much-needed insight into the Government’s plan for reaching net zero by 2050. 

 

Energy efficiency schemes were a key focus within the report, which outlined plans to consult on strengthening the Energy Savings Opportunity Scheme (ESOS) and establishing a new energy efficiency scheme for small businesses in early 2021. Many businesses can therefore expect their energy reporting obligations to increase. The report also committed to supporting industries with the costs of improving energy efficiency, through measures such as exemptions from some non-commodity costs and more funding to support investment in emerging technologies. 

 

Modelling included in the white paper also indicates that wind and solar generation could more than quadruple by 2050. The Government has created a range of scenarios for reaching net zero by 2050, and all of their low-cost solutions included significant levels of renewables.  At Bryt, we’re delighted to see such an emphasis on wind and solar in the future as they are natural, 100% renewable sources of energy. However, the report mentions that the transition to these technologies will need to be supported by other technologies, such as nuclear power and clean hydrogen. 

 

To read the full Energy White Paper, click here.

NEW ENERGY MINISTER REVEALS POLICY PRIORITIES

The UK’s new Minister for Business, Energy and Clean Growth, Anne-Marie Trevelyan, has revealed her key policy priorities, giving businesses a hint as to what could come over the next two years. Trevelyan stepped into the role in November, when her predecessor Kwasi Kwarteng was appointed Secretary of State for Business, Energy and Industrial Strategy, following Alok Sharma’s appointment as President of the UN COP26. 

 

At the top of her list is introducing new legislation around offshore wind and other renewable technologies, specifically regulations that will enable competitive bidding in the building, ownership and operation of the UK’s onshore electricity network. She also confirmed that she will publish the Heat and Buildings Strategy, which will set out plans for the decarbonisation of heat across the UK, within the next few months.  

 

The Minister also committed to working with Ofgem to ensure that energy customers are paying fair prices for their energy and aren’t penalised for staying with their supplier. Depending on the outcome of the Government’s consultation around opt-in or opt-out switching, a new scheme could be introduced to automatically switch customers to a new tariff when their current tariff ends, to help more customers avoid costly standard or default tariffs. 

 

To find out more about the Energy Minister’s policy priorities, click here. 

SIXTH CARBON BUDGET SETS OUT ROUTE TO NET ZERO

The Climate Change Committee (CCC), the independent, statutory body that was established to advise the UK Government on emissions targets and report on progress, published its Sixth Carbon Budget in December 2020.

 

Within the Budget, the CCC sets out goals the UK must reach in order to hit its net zero target in 2050. In the latest Budget, they have set a target for the UK to cut its emissions by 78% by 2035 compared to 1990 levels, a significantly shorter timeline than they set in the last carbon budget, when they called for an 80% emissions reduction by 2050. They outlined that in order to achieve these targets, the UK must increase the adoption of technological solutions, increase electricity generation by 50%, reduce carbon-intensive activities through energy efficiency, and transform agricultural processes.

 

To read the Sixth Carbon Budget in full, click here.   

EU ETS REPLACED WITH UK EMISSIONS TRADING SCHEME

Now that the UK has left the EU, it has also left the EU Emissions Trading Scheme (EU ETS). This is the EU carbon market that requires eligible businesses to cap the amount of emissions they produce and enables them to trade emission allowances with other eligible businesses if necessary. Since 1st January 2021, the EU ETS has been replaced by the UK Emissions Trading System (UK ETS) for all eligible UK businesses.

 

On an administrative level, this new scheme will operate in a very similar way to the EU ETS. However, the allowed emissions cap has been set 5% lower than the current EU ETS cap, and the Government is set to consult on how they can gradually reduce the cap in order to meet the UK’s net zero target. The UK ETS will apply to energy intensive industries, the power generation sector, and aviation.  

 

To find out more about the UK ETS and how it might affect your business, read the full Government guidance here.

OFGEM CALLS FOR INDEPENDENT BODY TO RUN THE ELECTRICITY SYSTEM

Ofgem has called for the government to establish a new Independent System Operator (ISO) to run the UK’s electricity system and lead the transition to a ‘low-cost, low-emission grid’. National Grid is currently undertaking this role, and will continue to own the networks, but Ofgem believes that an independent body would be better placed to run the electricity system in order to deliver net zero at the lowest cost to customers.  

 

Electricity demand will increase as we transition to a number of on-site solutions, such as electric vehicles and heating, as part of the pathway to net zero. So it’s vital that the electricity system is run effectively and efficiently. Ofgem states that an ISO would be able to take a more active role in planning and designing a new grid infrastructure than National Grid could, and this could save customers at least £400 million between 2022 and 2050. 

 

To find out more about why Ofgem believes the UK needs an ISO, click here. 

UK TO DEVELOP WORLD’S FIRST NET ZERO INDUSTRIAL CLUSTER

The Government will provide £8m in funding to six projects across the UK as they strive to create the ‘world’s first’ net zero industrial zone by 2040. 

 

The six clusters are based in South Wales, the West Midlands, Tees Valley, the North West, Humber region and Scotland. These industrial areas will each be given a share of the £8m funding by UK Research and Innovation (UKRI) to develop detailed decarbonisation roadmaps, including how to use on-site technologies and renewable energy sources to reduce their emissions to as close to zero as possible. The Humber Industrial Cluster Plan, for example, will explore how the region could scale up its hydrogen infrastructure and use carbon capture and storage technology to achieve net zero by 2040.

 

To find out more about this funding, 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. If you’d like to receive our policy updates straight into your inbox, you can sign up here. 

TEN POINT PLAN TO LAUNCH A ‘GREEN INDUSTRIAL REVOLUTION’
PETROL & DIESEL VEHICLE BAN BROUGHT FORWARD TO 2030
£1BN FUNDING PLEDGED TO IMPROVE BUILDING EFFICIENCY
SADIQ KHAN ANNOUNCES £10M GREEN NEW DEAL FUNDING FOR LONDON
NEW NATIONAL INFRASTRUCTURE STRATEGY TIED TO NET ZERO
TEN POINT PLAN TO LAUNCH A ‘GREEN INDUSTRIAL REVOLUTION’

Boris Johnson has revealed the UK Government’s Ten Point Plan to ensure that we can meet our net zero target by 2050. With £12bn in funding announced to support the Plan, and the Government aiming to secure three times as much funding from the private sector, it is hoped that it will support up to 250,000 ‘green’ jobs.

 

The Plan focuses on key areas such as decarbonising our transportation system, improving the efficiency of homes and public buildings, as well as protecting and restoring our natural environment. Funding will also be distributed across a number of technologies, including offshore wind, nuclear, carbon capture and storage, and hydrogen deployment. You can read the full Ten Point Plan here.

 

The Government claims the plan will reduce emissions by 180 million tonnes between 2023 and 2032, the equivalent to taking all of today’s cars off the road for around two years. However, this is only around 50% of the emissions cuts required to meet the Fourth and Fifth carbon budgets and therefore the upcoming Energy White Paper1 is likely to contain further support and sectoral plans for reaching net zero.

PETROL & DIESEL VEHICLE BAN BROUGHT FORWARD TO 2030

Within the Ten Point Plan, the Government has brought the ban on the sale of petrol and diesel vehicles forward to 2030, from the previous deadline of 2035.

 

In order to smooth the transition, they have committed £1.3 billion to accelerate the rollout of EV charge points and £582 million in grants to encourage the adoption of zero or ultra-low emission vehicles. A further £500 million will go towards developing and scaling up the production of batteries by 2025, and there will be a consultation on the optimum path for phasing out new diesel HGVs. To find out more about the transition to EVs, click here.

£1BN FUNDING PLEDGED TO IMPROVE BUILDING EFFICIENCY

The Government has also pledged to invest £1 billion in the next year to make homes and public buildings more efficient, which they claim will support around 50,000 ‘green’ jobs by 2030.

 

Schools, hospitals, and public buildings will receive support to become more efficient in the form of extra funding for the Public Sector Decarbonisation Scheme, while the Green Homes Grant will be extended for another year to help homeowners to improve the efficiency of their homes. The Government has also set an ambitious target of installing 600,000 heat pump installations per year by 2028. In putting these measures in place, they believe that they can reduce the UK’s emissions by 16% (based on 2018 levels)1.

 

To find out more about the new investment in building efficiency, click here.

SADIQ KHAN ANNOUNCES £10M GREEN NEW DEAL FUNDING FOR LONDON

The Mayor of London, Sadiq Khan, has pledged £10 million towards a Green New Deal, which is intended to create new jobs in the capital in sectors including clean energy.

 

The Green New Deal includes investment in three key areas, including decarbonising London homes, supporting the use of green transport and walking/cycling, and establishing two new ‘green foundations’ groups to support the growth of new and existing businesses in the green economy. Funding will go to green, London-based businesses, with a focus on SMEs, BAME-led and female-led enterprises. To find out more about London’s Green New Deal, click here.

NEW NATIONAL INFRASTRUCTURE STRATEGY TIED TO NET ZERO

The Government reaffirmed its commitment to the Ten Point Plan and released a new National Infrastructure Strategy (NIS) in the Chancellor’s Spending Review last week. The NIS includes the creation of a new National Infrastructure Bank, which will fund projects that are designed to help the UK reach its net zero emissions target by 2050.

 

Funding for green infrastructure initiatives were announced in the Ten Point Plan earlier this month but we look forward to the publication of the Energy White Paper, which we believe will provide greater clarity on the Government’s plans for how we will achieve net zero.

 

You can read the full National Infrastructure Strategy document 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.

Sources

https://www.current-news.co.uk/news/ice-ban-brought-forward-to-2030-in-landmark-moment-as-johnson-releases-ten-point-plan

GOVERNMENT PLANS TO MAKE UK THE WORLD LEADER IN WIND ENERGY
NET ZERO STRATEGY TO BE RELEASED AHEAD OF COP26
1BN IN FUNDING ANNOUNCED FOR DECARBONISATION OF THE PUBLIC SECTOR
NATIONAL GRID LAUNCHES NEW DEMAND SIDE RESPONSE SERVICE
GOVERNMENT PLANS TO MAKE UK THE WORLD LEADER IN WIND ENERGY

Boris Johnson has announced plans to invest in clean wind energy in the first stage of the Government’s ten–point plan for a green industrial revolution, which will be released in full later this year. 

 

The Government will invest £160 million in increasing our offshore wind capacity, which is already the largest in the world. Offshore wind energy currently provides for around 10% of the UK’s total energy demand, but these new plans include a new target for offshore wind to provide 40GW of energy per year by 2030 (which is more than enough energy to power every home in the country). The Government has also put new targets in place for floating offshore wind, which will provide 1GW by 2030, and to double the capacity of offshore wind in the next Contracts for Difference auction in late 2021. 

 

To find out more about the Government’s wind energy investment plans, click here. 

NET ZERO STRATEGY TO BE RELEASED AHEAD OF COP26

The Government has responded to the Committee on Climate Change’s (CCC’s) Progress Report – which called on the Government to seize the ‘once-in-a-lifetime’ opportunity to make a green recovery from Covid-19 – with a commitment to publish a Net Zero strategy report for the UK before COP26. 

 

The report, which will set out the government’s vision for transitioning to a net zero economy by 2050, will therefore be published before November 2021. It will sit alongside the Transport Decarbonisation Plan, Heat and Buildings Strategy, and the Energy White Paper, which is set to be released imminently. As well as announcing the Net Zero strategy report, the Government also reaffirmed its commitment to the next carbon budget and to ensuring that climate change action is at the heart of its Covid-19 recovery strategy.  

 

It’s encouraging to hear that the Government is still focusing on recovering sustainably from Covid-19 – to read the Government’s full response to the CCC report, click here.  

£1BN IN FUNDING ANNOUNCED FOR DECARBONISATION OF THE PUBLIC SECTOR

The Department for Business, Energy and Industrial Strategy (BEIS) has launched a £1 billion Public Sector Decarbonisation Scheme (PSDS), with the aim of supporting green investment initiatives in public sector organisations in England. 

 

The scheme will provide funding for heat decarbonisation and energy efficiency improvements in non-domestic buildings across the public sector, and is expected to make a reduction in emissions equivalent to taking almost 45,000 cars off the road! It forms part of the Government’s ‘Plan for Jobs 2020’ and has been designed to support skilled jobs in the low-carbon and energy efficiency sectors. 

 

Eligible bodies are now able to apply for funding – if you think your organisation could be eligible, you can find out more about the scheme here.  

NATIONAL GRID LAUNCHES NEW DEMAND SIDE RESPONSE SERVICE

National Grid ESO has launched a new Dynamic Containment service to help balance the grid, as although it’s incredibly positive to see renewables making up a growing proportion of our generation, the intermittency of renewables is making it increasingly challenging for ESO to maintain system frequency at 50Hz.  

 

Dynamic Containment is therefore designed to meet ESO’s need for faster-acting frequency response services, and it represents an additional opportunity for businesses with on-site generation assets to get involved in demand-side response. Auctions are already open to businesses with assets that can respond very quickly – such as batteries. So if your organisation has an on-site generation asset that could quickly respond to alerts from ESO – and you have the ability to turn it up / down without affecting your operations – then you could access a new revenue stream through Dynamic Containment.  

 

If you’re interested in getting involved in the Dynamic Containment scheme or you just want to find out more, click here.  

 

f 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.  

£100M GREEN JOBS FUND FOR SCOTTISH BUSINESSES
CONSULTATION LAUNCHED ON PROPOSED GREEN GAS LEVY
GOVERNMENT TO ANNOUNCE 2030 FOSSIL-FUELLED VEHICLE BAN
ENERGY WHITE PAPER PUBLICATION CONFIRMED
NEW BODY CREATED TO SUPPORT DECARBONISATION IN DEVELOPING COUNTRIES
£100M GREEN JOBS FUND FOR SCOTTISH BUSINESSES

Nicola Sturgeon has announced a £100 million Green Jobs Fund as part of Scotland’s Programme for 2020-21, which is set to build on the country’s Green New Deal. This funding was announced alongside a further £1.6 billion in investment for low-carbon projects under a new Low Carbon Fund, and £60 million to help industrial and manufacturing sectors to decarbonise, grow and diversify.

 

The Green Jobs Fund will be paid out over the next five years, with the aim of increasing opportunities for green job creation in Scotland. It will be supported by a £25 million National Transition Training Fund, to ensure the country can provide the large number of skilled workers required for its transition to net zero. This funding demonstrates how the transition to net zero can be beneficial not just for the environment, but also for a country’s economy, too.

 

For more information on Scotland’s green recovery plans, click here.

CONSULTATION LAUNCHED ON PROPOSED GREEN GAS LEVY

In its latest measure to make a green recovery from COVID-19, the Government has launched a consultation into how its proposed Green Gas Levy should be implemented. Funding from the levy will go into building more biomethane plants, which will lead to more biomethane being injected into the grid and play a key role in the decarbonisation of the gas industry.

 

It’s estimated that the levy will cause minimal cost increases for energy customers, starting at just 11 pence per month. Encouragingly, it should have a significant impact on the environment, as it has the potential to prevent up to 21.6 million tonnes of CO2 from entering the atmosphere (the equivalent to planting over 71 million trees).

 

For information on how you can respond to the consultation, click here.

GOVERNMENT TO ANNOUNCE 2030 FOSSIL-FUELLED VEHICLE BAN

There is growing speculation that the UK Government is set to bring forward its ban on new petrol and diesel vehicles from 2040 to 2030, according to The Guardian.

 

Earlier this year, the government held a consultation on plans to bring the deadline for sales of new fossil-fuelled vehicles forward, from 2040 to 2035, but it’s now expected to imminently announce a more ambitious 2030 deadline. This follows assurances from National Grid that the UK’s infrastructure will be able to cope with an earlier shift to electric vehicles, as they have predicted that electrifying all road transport will require less than a third more power than our current demand. This increase in demand is something that, “the grid could easily cope with”, according to National Grid’s Project Director for EVs, Graeme Cooper.

 

To find out more, click here.

ENERGY WHITE PAPER PUBLICATION CONFIRMED

Kwasi Kwarteng, the minister for Business, Energy and Clean Growth confirmed that the Energy White Paper will be published in the next few months. The energy industry has been eagerly awaiting this publication, as it will detail the Government’s plan for reaching its net zero emissions by 2050 target, and contain key information about the technologies and pathways it will be supporting.

 

On 17th September, Kwarteng stated, “The energy white paper is a priority and it will be published this autumn.” The Energy White Paper has now been delayed for over a year, as it was originally due to be published in summer 2019. It is now tentatively scheduled for November, and is expected to include support for clean hydrogen and for small, modular nuclear reactors among other measures related to the clean energy transition.

 

Click here to find out more.

NEW BODY CREATED TO SUPPORT DECARBONISATION IN DEVELOPING COUNTRIES

Political, financial and tech leaders from across the globe will unite under a newly-created COP26 Energy Transition Council to help accelerate the transition from coal to clean power. The council will work towards ensuring that clean power is the most attractive energy option in every country considering new power generation, and it will work with businesses to advance the development of clean energy solutions, such as energy storage and clean hydrogen production.

 

Council members will support businesses through a combination of development assistance, climate finance and sharing expertise. There will also be a new £50 million Clean Energy Innovation Facility to support developing countries to bring clean energy technologies to market quicker and help them to make a green recovery from COVID-19. It’s really important for developing countries to be able to access support for decarbonisation if they need it, as many are heavily dependent on fossil fuel, so it’s encouraging to see that the global community is coming together to provide this.

 

To find out more about the COP26 Energy Transition Council, click here.

 

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.