1st DECEMBER 2015
GREEN TUESDAY • Data Management • Legislation • Compliance
A Unique Perspective
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A Unique Perspective | Green Tuesday | 01.12.2015
UK: Government announces new energy policy: environmental aspects On 18 November 2015, in what will be remembered as the Government’s big push towards cheaper offshore wind, new nuclear, new gas and the phasing out of coal, Amber Rudd, Secretary of State for Energy and Climate, set out the long awaited “energy reset” in a speech and associated publications by Department of Energy & Climate Change (DECC). There are numerous key points from the speech but the most important implications for emerging technologies and the Government’s focus on ensuring that security of supply is “the number one priority”. Whilst noting that no power generation can now be built without subsidies the Secretary of State stated the Government’s commitment to moving to a competitive energy market using the tools developed through Electricity Market Reform by 2025.
Broad objectives for the Government
On 18 November 2015, Amber Rudd, Secretary of State for Energy and Climate, set out the long awaited “energy reset”
The government is committed to support offshore wind (at least for three more auctions and subject to cost reduction)
The speech set out the broad objectives for the Government in each area. Of note: • the government is committed to support offshore wind (at least for three more auctions and subject to cost reduction); • the era of unabated coal is coming to an end, with some speculating on whether we will see another dash for gas; • it is time to revitalise, reinvest and move to a smarter energy market for Great Britain; • the proposals are wide ranging but light on detail (e.g.: the extent of cost reductions expected in the offshore wind sector). New infrastructure: An integral part of the speech was about a competitive energy market and the need to build new energy infrastructure “fit for the 21st century”. This new infrastructure would be found in new interconnectors, gas-fired power stations, nuclear and a focus on low cost offshore wind.
An integral part of the speech was about a competitive energy market and the need to build new energy infrastructure “fit for the 21st century”
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A Unique Perspective | Green Tuesday | 01.12.2015
Smarter system: The Government announced a further push towards a smarter energy system including storage, interconnection and demand side response and how regulations needed to change in order to accommodate these technologies and the models that they operate within.
The Government announced a further push towards a smarter energy system
Promoting competition and efficiency: National Grid could be allowed greater independence in order to allow the company to make the changes needed to make the system as secure, productive and cost-effective as possible. It was noted, that the supply market has become more competitive with 26 independent suppliers with a market share over 13%, up from 1% in 2010. Research and Development: The Secretary of State recognised that recent advances in technology have been primarily realised in the renewables sector and highlighted the need for research and development to look towards other types of technology that could help meet the energy needs of the UK. These include refining technologies such as Nuclear but also building upon the foundations that we have in Carbon Capture and Storage, energy storage and small modular reactors.
The Secretary of State recognised that recent advances in technology have been primarily realised in the renewables sector
Decarbonising As the Climate Change negotiations in Paris opened on 30th November and the carbon targets of countries come under scrutiny across the globe it is perhaps no surprise that a headline announcement was the announcement of a consultation in the spring on when to close all unabated coal-fired power stations. The proposals will be to close coal by 2025.
Next steps On climate change, the Minister emphasised the importance of the UNFCCC climate change conference in Paris at the end of 2015. She also confirmed that, in 2016, the government will set out plans for meeting the UK’s fourth and fifth carbon budgets under the Climate Change Act 2008.
On climate change, the Minister emphasised the importance of the UNFCCC climate change conference in Paris at the end of 2015
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A Unique Perspective | Green Tuesday | 01.12.2015
EU: European Commission consults on preparation of new Renewable Energy Directive for 2020-30 The European Commission launched a consultation on preparation for a new Renewable Energy Directive for 2020-30 (RED 2), on 18 November 2015, which will replace the Renewable Energy Directive 2009. RED 2 will introduce the new EU-wide binding target for renewable energy of at least 27% by 2030, which is set out in the EU 2030 climate and energy framework. The consultation closes on 10 February 2016 and invites comments on the impacts and benefits of RED 2009. It also explores possible measures to be included in RED 2, including: • How EU-wide measures for meeting the new renewable energy target could be used, including sharing costs and ensuring participation by all member states.
The European Commission launched a consultation on preparation for a new Renewable Energy Directive for 2020-30 (RED 2)
The consultation closes on 10 February 2016 and invites comments on the impacts and benefits of RED 2009
• Developing a new approach to achieving the target, which would build on the Energy Union Governance and member states’ national energy and climate plans for the period up to 2030, which are expected to include national contributions towards the EU-level renewable energy target. • Possible incentives for renewables, including developing a new regional approach to renewable energy policy cooperation and incentives. • Developing complementary measures for achieving the target, including: - EU-level or regional auctioning of renewable energy capacity; - EU-level requirements on market players to include a certain share of renewables in production, supply or consumption; or - EU-level financial support (such as a guarantee fund in support of renewable projects).
Possible incentives for renewables, including developing a new regional approach to renewable energy policy cooperation and incentives
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A Unique Perspective | Green Tuesday | 01.12.2015
• Overcoming barriers to local renewable energy projects. • Decarbonising heat and cooling and overcoming barriers to renewable heating and cooling. • Adapting the design of the electricity market to renewables. • Increasing renewable energy use in the transport sector, including sustainable low-carbon biofuels and alternative renewable fuels, renewable electricity in battery electric vehicles and hydrogen in fuel cell vehicles.
Increasing renewable energy use in the transport sector, including sustainable low-carbon biofuels and alternative renewable fuels,
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