Giles Dickson

Cost of Energy report published by Energy Security & Net Zero Committee MPs call on Ofgem to tap network companies’ £4bn windfall for an ambitious new energy debt relief scheme     The call for action on consumer energy debt forms part of a series of recommendations in the first part of the Energy Security and Net Zero select committee’s report into the Cost of Energy.     In the second part of the inquiry, the committee will be looking at how costs like upgrading the grid and building new sources of energy generation are making up an increasing amount of the household bill. The Committee will be focusing on how bills might be reduced in the next phase of its Cost of Energy inquiry.     Committee chair, Bill Esterson said, “British energy consumers are £4 billion in debt, while network companies have made over £4 billion in excess profits.     “These profits have come simply from outperforming price controls, even as millions of families ration energy or go without heat.     “We’re calling on the Government to use these windfall profits to fund a lasting energy debt relief scheme, recognising the deep and enduring impact of the energy price crisis.     “But this must only be the start. Non-commodity costs like upgrading the grid and building new sources of energy generation are making up an increasing amount of the household bill. The Committee will be focusing on how bills might be reduced in the next phase of our Cost of Energy inquiry.” Full report and recommendations published here - https://lnkd.in/eAJUwfbx

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£900m for offshore wind (non-floating) is considerably less than the sector was expecting, and only with very tight bid prices can it deliver enough generation to meet CP2030. Ed Miliband retains the right to increase the budget, meaning bidding behaviour will focus on second-guessing his thinking above everything else. Nonetheless, this is a strong signal to the market to hold down costs, and at this juncture this is almost certainly the right move. https://lnkd.in/gWgyYQ5A

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This evening the Department for Energy Security and Net Zero (DESNZ) published the parameters of the next auction for new clean energy projects - Contracts for Difference Allocation Round 7. Commenting on this, our Executive Director of Policy and Engagement Ana Musat said: "We're pleased to see that the parameters set out by the Government for this year's auction are more reflective of market realities than in previous years. This creates an opportunity to attract record levels of investment into this allocation round: up to £53 billion in private investment could be secured this year to deliver vital new offshore wind projects, which will strengthen the UK's energy security significantly. Over 20 gigawatts of offshore wind is eligible to bid into this year’s auction – more than our entire current operational offshore capacity and enough to power 22 million UK homes. "Whilst wind energy projects haven't been immune to the inflation and supply chain pressures facing all major infrastructure projects, they remain cheaper than other forms of electricity generation such as new nuclear and new gas plants, so they offer the best value for money for billpayers. It is also worth noting that, due to competition in auctions, strike prices are likely to end up being lower than these maximum Administrative Strike Price set out by the Government, which act as a consumer backstop. "Clean power is generated at a fixed and stable price for billpayers. To produce the equivalent amount of electricity that these new offshore wind farms can provide, the UK would have to continue burning over 13 billion cubic meters of gas every year, the equivalent of around a quarter of our annual gas imports. Unlike homegrown renewables, the price of gas fluctuates wildly on international markets, even if it's produced domestically, leaving billpayers vulnerable to the actions of other governments and global events beyond our control". 📰 https://lnkd.in/eWK5akdE

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We’ve announced the updated timeline for overhauling Great Britain's electricity grid connections process. This plan will fast-track shovel-ready clean energy projects, prioritising those projects that are essential for the 2030 Clean Power target, and will provide certainty to investors, unlocking an estimated annual £40 billion in economic growth and thousands of high-skilled jobs. Developed in close collaboration with Government, Ofgem, and network companies, this roadmap provides delivery dates for developers, reducing project risk and enabling customers and investors to plan with confidence for a reliable, low-carbon grid. View here: http://bit.ly/48LNzlj

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Over 47GW of renewable energy and nuclear power generation capacity is under construction across 15 countries across the Middle East & North Africa region. A further 199GW is under study, prequalification and bid. The total equates to about half of the global renewable capacity additions in 2023. The energy transition of the electricity systems will significantly increase demand for battery energy storage systems (BESS), with Riyadh having successfully deployed substantial capacity through a 1.3GWh BESS plant catering to The Red Sea development and another 2.6GWh catering to the grid. China's Huawei Digital Power and BYD supplied the batteries for these plants, respectively. Riyadh has also recently awarded the EPC contract for the deployment of five, 500MW BESS plants, while the procurement process for its first batch of independent storage provider (ISP) scheme is under way. In the UAE, mobilisation is under way for a round-the-clock 5GW solar PV supported by a 19GWh of BESS capacity, to supply 1GW of "baseload" renewable power, with Contemporary Amperex Technology Co., Limited selected to supply batteries.

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The UK Ministry of Defence has dropped its objections to RWE’s 3GW Dogger Bank South offshore wind projects, having previously claimed that the turbines would have “unacceptable” impacts on its ability to defend British airspace. #renewables #windpower #offshorewind #radar #nationalsecurity RenewableUK https://lnkd.in/ea9d5BTB

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Good news alert In 2024, renewables supplied more than half of the UK's electricity for the first time over a year, reaching a record share of 50.4% Renewables and nuclear combined hit a new high of 64.7% https://lnkd.in/dx2yRwbz

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Really pleased to see the government rule out zonal pricing for the GB electricity system. This is the best news for billpayers, the transition and for the UK's renewable energy industry and supply chain. A stable market with reforms is the best route to delivering the Government's goals for Clean Power 2030, while protecting consumers from market instability and any unfair postcode pricing which proved unpopular. There's still a lot of work to be done across industry and government to move faster with buildout and passing the savings from renewables onto billpayers (primarily a hefty amount of grid buildout) but it's good for everyone that we can move on from the zonal debate and get on with building a renewable-based electricity system across the UK. The transition can only happen while there's a healthy and investable renewable energy sector to transition into, and the announcement today helps secure jobs across the UK for the future. RenewableUK https://lnkd.in/eyM6tXYZ

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