Sustainable Energy Facts | January 2024 Everything you need to know right now about Sustainable Energy and Delivering Net Zero | Renewable Energy Trends in 2023 According to official Government data; renewable electricity generation was 30.1 TWh in Quarter 3 2023, 6.8% higher than 2022 and a record for the third quarter of a year. Most of the increase was in wind generation driven by higher wind speeds and new onshore and offshore capacity. Solar PV generation was down slightly on 2022 with new capacity being offset by shorter average sunlight hours. Over the last year, 2.9 GW of new renewable capacity has been added, a 5.4% increase. The largest contribution to new capacity was in solar PV, which at 1.1 GW, is the highest for almost six years and continues to be driven by small scale installations. New capacity in offshore and onshore wind accounted for most of the remaining new capacity at 0.9 GW and 0.8 GW respectively. Renewables’ share of electricity generation was 44.5% in Quarter 3 2023, up 8.2 percentage points on last year due to a combination of the increase in renewable generation and a fall in total generation. The share of renewables has now outstripped fossil fuels’ share for four consecutive quarters. Renewables’ share of electricity generation - Q3 2021 and Q3 2022 Bioenergy
Offshore wind
Onshore wind
Solar Hydro PV
Percentage of total electricity generation Source: Department for Business, Energy and Industrial Strategy Statistical Release 21 December 2023 Marr Wind Farm, Yorkshire - one of our recent successful projects
| Review of COP28 There was a lot of pressure on the conference to either ‘phase out’ or ‘phase down’ global fossil fuel usage as part of the energy transition. Countries agreed on the need to ‘transition away from fossil fuels in energy systems’, and the second draft of the Global Stocktake claimed: “The countries will contribute to transitioning away from fossil fuels in energy systems in a just, orderly and equitable manner.” This was clearly a positive step but does not call for a complete phase-out of fossil fuels which may mean global warming targets cannot be kept in reach. Read the full article on our website here
| Autumn Statement 2023 The Chancellor delivered the Autumn Statement on 22 November 2023. Some of the key announcements were: •
New investment exemption for the Electricity Generator Levy for new generation sites and for extending capacity on existing sites, where the ‘substantive decision to proceed’ was made on or after 22 November 2023
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Full expensing on all plant and machinery, including the 50% first-year allowance for special rate assets (which include solar panels), has been made permanent
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Confirmation of the expansion of zero-rated VAT for more Energy Saving Materials
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A response to the Winser Review and commitment to adopting its proposals to speed up grid connections, which includes compensating those living near new power lines with up to £1,000 off electricity bills
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A £960 million Green Industries Growth Accelerator to support investments in manufacturing capabilities for key clean energy sectors
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The small business multiplier, against which Ratable Values for business rates are calculated, is to be frozen for a fourth consecutive year at 49.9p
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A merger of R&D tax reliefs
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A publication of Government’s response to the National Policy Statements planning guidance consultation
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The Connections Action Plan, which aims to reduce the average delay a project faces to connect to the transmission network from 5 years to no more than six months beyond the date requested
| Recent successes from our Green Energy & Sustainability Team •
Improved EPC scores and reduced carbon emissions across a 300+ unit commercial asset portfolio from our Delivering Net Zero team (see photo)
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Planning approvals secured for 5MW+ of solar PV arrays at Churston Ferrers and Nightingale Park on behalf of Torbay Council
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Life extension deals agreed by our Green Energy team for clients on a pair of operational wind farms in Yorkshire and decommissioning and reinstatement funds reviewed on sites in the Midlands and East Anglia
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Lease entry on a substantial new solar park development in Nottinghamshire.
| Welcome to 2024 Global commitments to net zero and addressing climate change continue to gain momentum as nations recognise the urgent need for sustainable practices. Many countries are setting ambitious targets to achieve net-zero emissions by 2050 (or earlier), emphasising the importance of transitioning to cleaner energy sources and reducing global carbon emissions. In 2024, the role of net zero strategies will likely become even more crucial. Governments and businesses should prioritise investing in renewable energy, fostering innovation in sustainable technologies, and implementing policies that encourage environmentally friendly practices. Collaboration on an international scale (eg COP28) is essential to tackle climate change effectively, and continued efforts to raise awareness and mobilise resources will be pivotal to achieving meaningful success.
For more information visit fishergerman.co.uk or contact a member of the team
darren.edwards @fishergerman.co.uk
tom.beeley @fishergerman.co.uk
harry.edwards @fishergerman.co.uk
philip.chapman @fishergerman.co.uk