Bryt Insight Archives

In the wake of the 29^th Conference of the Parties (COP29), December’s edition of Bryt Insight covers some of the climate talk’s key outcomes and the UK’s announcements, as well as news about the repurposing of the National Grid Energy System Operator’s (NESO) Demand Flexibility Service (DFS).

We also look at some exciting updates in the UK’s decarbonisation journey, such as the potential for electrification in industrial sectors, growth in the share of renewable energy on the UK’s electricity grid, and a milestone in innovative wind turbine recycling.

Here’s what you need to know this month:

BRYT ENERGY MARKET UPDATE

Looking back over the last quarter

Over the last quarter, there has been a number of peaks and troughs in wholesale electricity prices, but overall costs have increased. The conflicts between Russia and Ukraine, and in the Middle East, have been the main driver for this, but rising gas costs are also playing a significant role, especially in the last few weeks.

Short-term prices

UK wholesale electricity prices climbed as we entered November, with lower temperatures increasing demand for heat, whilst lower wind generation and multiple outages reduced availability of supply. Wind generation fell by 50% in the first two weeks of November, compared to the last two weeks of October. In addition, multiple outages on the European interconnectors restricted imports, meaning that gas had to be used to generate electricity. With gas generation being more expensive than other sources, this had a significant impact on overall prices.

Prices in the second half of the month were slightly more volatile, with wind generation increasing and Storm Bert helping to triple wind generation at the end of the month. As a result, the 24^th and 25^th November saw some very low prices during the day, and even negative day-ahead prices overnight, thanks to the increased wind output. However, the UK’s nuclear generation was reduced due to being offline for maintenance, with six out of ten reactors down, which meant that the increased wind hasn’t been able to fully temper the rising prices.

This use of gas for electricity generation, and the lack of Liquified Natural Gas (LNG) cargo imports, has led to the early use of gas from the storage facilities across all of Europe. The month started with gas storage at 95% across Europe. This has now fallen to 85%, which is 10% lower than this time last year. The UK’s limited storage looks more depleted, with sites less than half full. LNG imports into the UK are currently low due to competition with the Asian Markets, specifically Japan and Korea, for the cargoes. This competition is reducing the availability of gas, forcing gas prices up and, in turn, increasing electricity prices.

Long-term prices

The long-term prices for wholesale electricity in the UK have followed the short-term prices up through November, with sharp rises at the start of the month and more volatility towards the end. This is being driven by higher gas prices, the lack of LNG cargoes reaching Europe, and the cold weather across Europe, which led to more energy demand for heating and, as a result, higher prices.

Looking forward

Wholesale electricity prices are looking as if they will continue to rise in the short term, with any long-term electricity price reductions appearing unlikely. This is due to:

gas supply issues, such as competing demand for LNG cargoes, the early use of stored gas, and the reduction of gas coming into Europe by means of the pipeline through Ukraine
a colder, earlier winter, caused by La Niña – the wetter half of the major ocean cycle in the world’s climate system located in the Pacific
strikes from French nuclear power workers, reducing electricity available for importing into the UK
the number of outages from nuclear power plants and European interconnectors

Political instability and escalating conflicts have been having an effect on prices throughout the year and, with these ongoing, future reverberations are hard to predict.

REGO prices

For the current 2024/2025 compliance year, REGO prices have finished in November at almost the same price as they started this month. However, future years have all continued the reduction that we have seen in the last few months, albeit at a slower pace than seen previously.

KEY TAKEAWAYS FROM COP29

This year’s climate talks – the 29^th Conference of the Parties (COP29) – concluded in Baku, Azerbaijan, with many feeling there was a mix of progress and disappointment¹.

The agreement on a ‘new collective quantified goal’ on climate finance is a key outcome of this year’s COP. Developed countries committed to ‘taking the lead’ on mobilising at least $300 billion per year by 2035 to support developing countries in their climate mitigation and adaptation efforts. Although this total represents a tripling of the climate finance agreement from 2009 (not adjusted for inflation however), developing countries had previously suggested a total of $1.3 trillion would be needed to decarbonise. Without an agreement to raise the necessary funds, developing countries left Baku disappointed.

COP29 also delivered progress on Article 6 of the Paris Agreement, which establishes the rules for international carbon markets. Specifically, this included talks on the environmental integrity of carbon credits – a way to measure and trade carbon removals or avoidance – to make sure that carbon is stored permanently and ensuring transparency around disclosing the traded emissions. Whilst this is a step forward in enabling another form of climate mitigation finance, many argue that not enough time was given to adequately discuss the details, weakening the overall outcome.

Finally, many have deemed that one of the major failings of COP29 was the lack of clear consensus on how to achieve the phasing out of fossil fuels that was agreed last year at COP28. Instead, this decision was pushed back to appear on the agenda at next year’s COP30, which will be held in Brazil.

UK announcements

Despite the general sense of disappointment around the outcomes of COP29 at an international level, the UK had multiple positive announcements at COP29 and the G20 summit:

The UK announced its updated Nationally Determined Contribution (NDC), which follows the guidance from Government advisors; the Climate Change Committee. NDC’s are climate targets and mitigation actions each country submits every five years as part of the Paris Agreement. The UK’s updated NDC now aims to cut its emissions to 81% below 1990 levels by 2035.
The UK became new members of a new coalition alongside 16 member countries, which aims to phase out fossil fuel subsidies².
Launched at the G20 summit, the Global Clean Power Alliance was set up by the UK, and aims to ensure countries meet the commitments to triple renewable energy capacity and double the global rate of energy efficiency improvements. Twelve countries have joined the UK on this initiative³.

Despite the challenges seen at COP29, the UK is pushing forward with its decarbonisation targets and inviting others to follow suit. At Bryt Energy, we believe climate change has no border, and therefore, it will be crucial to continue collaborating at all levels to increase the scale of action, with COP30 being another opportunity to build on progress and address the challenges yet to be agreed.

You can find out more about the outcomes of COP29, here.

THE NATIONAL GRID ENERGY SYSTEM OPERATOR (NESO) LAUNCHES NEW DEMAND FLEXIBILITY SERVICE (DFS)

A new, year-round Demand Flexibility Service (DFS)* has been launched by the National Grid Energy System Operator (NESO). The service has been repurposed from its original establishment as a winter contingency service during the energy crisis, which functioned to balance the grid during times of high demand. Through the DFS, suppliers can incentivise customers to reduce demand on the grid by shifting their electricity usage to off-peak times, when electricity costs are generally lower and the grid is less carbon-intensive. This helps to reduce prices for customers whilst balancing the electricity grid.

The DFS has previously been successful during its winter operational periods – in winter 2022/2023, 1.6 million households and businesses saved more than 3,300MWh, and last winter, this grew to 2.6 million participants, saving more than 3,700MWh. The changes NESO will make to the DFS will mean that it will be interacting with other markets, such as the Capacity Market and regional services offered by Distribution Network Operators, working together to increase customer flexibility. These changes mean that it will be able to compete with power generators, such as wind farms and gas power stations.

NESO have now announced that the DFS will be available throughout the year. Greater demand flexibility will be crucial in supporting the integration of more renewable electricity into the UK’s grid mix, and it’s encouraging to see services like DFS continue to support businesses in contributing towards a net zero system.

The new DFS went live on November 27^th. To find out more about the changes to the service, visit here⁴.

NEWS IN BRIEF

UK Government identifies opportunities for electrification in UK industry

The Department for Energy Security and Net Zero’s (DESNZ) new study, titled Future Opportunities for Electrification to Decarbonise UK Industry⁵, focuses on identifying how the Government can help hard-to-abate, emission-heavy sectors in UK industry decarbonise through electrification. This includes recognising the barriers to electrification, exploring solutions, and explaining opportunities for electrification in industries such as cement, glass, paper, food and drinks.

After concluding that the emissions in these sectors were primarily produced for heat generation purposes, the study explores the electrification potential of seven major industrial heating processes, including electric boilers, high temperature heat pumps, and microwave technology. However, the report highlights that a lack of knowledge, the cost of electricity, upfront costs and the existing grid infrastructure were all barriers to electrification, which must be addressed if the electrification of UK industry is to unlock its potential.

The potential of recycling critical minerals

The International Energy Agency (IEA) has released a report on the potential of recycling to significantly reduce the mining of critical minerals, such as copper, lithium, nickel, cobalt and rare earths. The report, titled Recycling of Critical Minerals: strategies to scale up recycling and urban mining⁶, is targeted towards policymakers across the globe, as well as investors and recyclers.

Its findings highlight that developing new policies and facilities to support critical mineral recycling would help reduce strains on supply and ensure sustainability, through maintaining a secondary supply source that would limit reliance on new mines. Increased recycling of minerals would, by 2050, reduce the need for new mines by 40% for copper and cobalt, and by 25% for lithium and nickel. Notably, the report finds that if all existing and announced policies regarding recycling were put into effect, critical mineral recycling’s market value would climb to $200 billion globally by 2050.

As the net zero energy transition requires these materials, such as for batteries and energy storage, better recycling is critical to ensuring we can use these minerals in a more ethical, potentially profitable and secure way. Recycling critical minerals can have a plethora of positive effects – from reducing reliance on foreign imports, thereby increasing energy security by lessening our vulnerability to fluctuations in prices, to limiting the social and environmental impacts of mining.

NESO confirms that a decarbonised grid is achievable by 2030

In the National Energy System Operator’s (NESO) Clean Power 2030 report⁷, NESO affirms to the UK Government that it is feasible to reach a completely decarbonised energy system by 2030, and outlines a framework for achieving this.

In order to support the Government’s 2030 decarbonisation targets the report highlights that renewable energy capacity must expand. Offshore and onshore wind capacity must increase from the current capacity of 15 gigawatts (GW) to between 28-35GW and 13GW to 27GW, respectively. Additionally, solar power capacity must triple from 15GW to 47GW. The report also stressed the importance of technologies like carbon capture and storage (CCS) and low-carbon hydrogen generation, in decarbonising hard-to-abate industries. In order to maintain system stability and ensure cost efficiency during this process, new network infrastructure must be upgraded and constructed at a rate that is four times as quick as the past decade.

It’s motivating to see the details of how the UK can indeed achieve a decarbonised energy system by 2030 – and the pathway to get there.

SPOTLIGHT ON RENEWABLES

UK renewable energy industry’s share in electricity mix rises to 47%

The annual ‘REview’ report has been published by the Association for Renewable Energy and Clean Technology (REA), focusing on the current position of the UK’s renewable energy and low-carbon technology sectors. The report reveals that:

Renewable energy’s share in the UK’s electricity mix has dramatically increased from 15% ten years ago, to 47% now.
Across the UK, renewable energy now meets ~10% of demand for UK’s heating and cooling, and 6% for transport demands, which is a sign of progression towards the electrification of the UK’s heat and transport industries.
The renewable energy sector now provides employment for 143,000 people, with solar photovoltaic making up 25% of these jobs.

In its findings, the report also declares that, in 2022/2023, the sector grew 6% in just one year, to result in a value of £24.38 billion. If the industry’s growth follows as projected, this should lead to a sector worth more than £41 billion by 2035.

To read more from the report, visit here⁸.

Myth-busting renewable energy guide for MPs

Regen – a non-profit organisation which promotes renewable energy and energy efficiency across the UK – has developed and released a myth-busting guide. The guide aims to assist MPs in responding to the public’s concerns and questions about renewable energy, reducing misinformation and helping to push forward the energy transition.

The publication of Onshore renewable energy: common myths⁹ follows the findings of last month’s poll from YouGov, which highlighted that UK MPs were supportive about net zero, but also misinformed about some kinds of low-carbon technologies. The guide addresses these concerns, tackling myths such as:

the idea that solar energy only works in the summer – the guide highlights that solar produces power year-round.
the belief that the public are opposed to onshore wind, while the reality is that 77% of the UK public supports onshore wind.
the idea that hydrogen can replace gas heating, which the guide points out that hydrogen is not the best option for home heating.

The information the guide presents aims to demystify renewable energy for policymakers, ensuring that they can communicate the benefits of renewable energy to the public in a way that best resonates.

Wind turbine blade is given new life through recycling

A 44-metre long damaged turbine blade from Kentish Flats Offshore Wind Farm has been recycled by Plaswire, enabling it to be further used in manufacturing and construction¹⁰. While 90% of a wind turbine is recyclable, turbine blades are made up of glass-fibre reinforced composite materials, meaning that recycling them can be more difficult. The innovative technology used in the recycling of this turbine blade represents a milestone in improving end-of-life recycling for wind turbines, and having the process here in the UK also reduces the transport-related emissions of relying on recycling infrastructure elsewhere.

To find out more about the recycling of wind turbine blades, along with the benefits and considerations of wind power, you can read our Fuel Mix blog, here.

SPOTLIGHT ON STATKRAFT

As part of the Statkraft Group, this month we are sharing some of their recent updates:

Statkraft win ‘Best Engagement’ award at the Scottish Green Energy Awards

Following on from last month’s edition of Bryt Insight about their nomination, Statkraft have announced that they have been awarded the ‘Best Engagement’ award at the Scottish Green Energy Awards, for their involvement with the Loch na Cathrach Pumped Storage Hydro project! This is the result of their hard work in funding a local Community Action Plan, commissioning a Supply Chain Research report to highlight opportunities for local businesses to work with the project, and their future plans to deliver community benefit funds.

To read more about Statkraft’s nomination, you can visit Statkraft’s website, here¹¹.

Statkraft hosted their annual Energy Transition and Trading Conference

With over 200 attendees from across the industry, last month, Statkraft hosted their annual Energy Transition and Trading Conference in London, to discuss the issues and opportunities the energy transition presents.

Chaired by Statkraft team experts alongside contributions from key industry players, the conference saw debate about various topics, such as:

the opportunities and challenges facing green hydrogen
the future progression of energy storage and flexibility
the role of Corporate Power Purchase Agreements (CPPAs) in the British market
the major obstacles facing the energy industry

Communication and collaboration are vital in tackling these key issues in the UK’s journey to net zero, and it is conferences like these that allow for important voices in the industry to come together.

To read more about the Energy Transition and Trading Conference, visit Statkraft’s website, here¹².

Major milestone hit in Statkraft’s largest battery scheme

Statkraft’s Thornton Greener Grid Park has seen the arrival of the first of 620 battery units to be installed on site, marking a major milestone in Statkraft’s 200MW two-hour Battery Energy Storage System (BESS) scheme. Thornton’s Greener Grid Park, located in East Yorkshire, is one part of the wider scheme, which also includes Soay Solar Farm. The scheme will substantially contribute towards the UK’s renewable infrastructure and has received £150 million investment.

Greener Grid Parks (GGPs) are essential to the creation of a stable electricity grid powered by renewables. Once operational, Thornton Greener Grid Park will enable energy from renewable sources to be stored during times of low demand and dispatched at times of peak electricity demand. GGPs like Thornton Greener Grid Park will thereby help us create a grid which is powered by renewables.

Thornton Greener Grid Park will be operational in autumn of 2025. To find out more, visit here¹³.

TALK TO OUR TEAM

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

Sources

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

BRYT ENERGY MARKET UPDATE

Short-term prices

Long-term prices

REGO Prices

INTERNATIONAL ENERGY AGENCY’S (IEA) GLOBAL ENERGY REPORTS ARE PUBLISHED

CLIMATE CHANGE AGREEMENTS (CCA) SCHEME EXTENDED BY SIX YEARS

NEW GOVERNMENT SCHEME LAUNCHED TO SUPPORT INVESTMENT IN RENEWABLE ENERGY STORAGE

NEWS IN BRIEF

SPOTLIGHT ON RENEWABLES

SPOTLIGHT ON STATKRAFT

The Head of the United Nations Environment Programme (UNEP) recently warned that it’s ‘crunch time’ for tackling climate change – we have no more time for delays¹. In November’s Bryt Insight, we explore some ways in which this crucial period for climate action is being progressed by policymakers. These include the UK Government’s extension of the Climate Change Agreements (CCA) scheme, as well as promising developments in the UK’s floating wind and renewable energy storage sectors.

In the lead up to COP29, we also discuss the International Energy Agency’s outlook on upcoming energy trends and implications for the future of renewables.

Here’s what you need to know this month:

BRYT ENERGY MARKET UPDATE

Short-term prices

As mentioned in last month’s Bryt Insight, there was a reduced availability of supply as we moved into October. The planned outages at Heysham and Hartlepool nuclear power stations were accompanied by unplanned outages from other nuclear fleets across the UK and France, resulting in reduced capacity through the interconnectors. This was coupled with increased demand in the UK, with shorter days leading to higher energy usage. This caused the short-term wholesale electricity prices to be elevated at the start of the month and the first ‘system warning’ of a lack of capacity from the National Energy System Operator (NESO) in two years, although this was cancelled a few hours later.

As we moved through to the middle of the month, prices were tempered by higher wind generation and increased flows through the interconnectors from Belgium and the Netherlands, both contributing to a better availability of supply.

The second half of the month saw wind and nuclear generation in the UK and across Europe drop due to unplanned outages, as did the interconnector imports into the UK. This meant that gas-fired power stations had to generate energy for the grid. With gas generation more expensive than other sources, this therefore increased prices once more.

Long-term prices

Long-term wholesale electricity prices have been volatile in October, with a number of peaks and troughs caused by the tensions in the Middle East, as well as increases in carbon, coal and gas prices. Energy prices can be impacted by the unpredictability of geopolitical conflict, which can cause disruptions to oil production and transport. This ripples outwards to gas and energy prices due to the possibility of supply reductions or restrictions.

However, the last week of October saw electricity prices fall, as the market removed some of the risk premium in the prices as energy supplies weren’t impacted as anticipated.

The overall price for the month of October is higher compared to what was seen in September. Delays announced to the start-up of Dogger Bank Offshore wind farm (delayed from the first half of 2025 to the second half of 2025) will also have affected longer-term prices, due to deferred energy generation from the wind farm.

Looking forwards

Moving into November, a drier and less windy start to the month in the UK is giving rise to the possibility of short-term volatility, but it is unlikely that this will impact the stability of longer-term prices.

Looking forward into the rest of the winter, gas storage levels across Europe are above the 90% capacity target that specific countries agreed for the 1st November, and the UK has over 80% in its storage facilities, with two more cargos of liquefied natural gas (LNG) arriving in early November. Also, the UK is thought to have a 5.2GW power supply buffer this winter – the highest margin in five years – according to NESO. This forecast assumes peak demand during a cold spell averaging nearly 60GW.

The recent US election campaign is also having a dampening effect on the world economy and oil prices in particular, with uncertainty around the elected party’s future policies creating delayed decisions regarding investments in certain countries, due to hesitancy over future relations. Wider issues in the Middle East will also continue to contribute to market volatility in the long term.

REGO Prices

Renewable Energy Guarantees of Origin (REGO) certificate prices continued to fall this month. Following on from last month’s reductions, they are now down to the lowest level seen since April 2022, due to the healthy availability of these certificates.

INTERNATIONAL ENERGY AGENCY’S (IEA) GLOBAL ENERGY REPORTS ARE PUBLISHED

The International Energy Agency (IEA) has published the newest editions of two of their annual energy reports, the World Energy Outlook and Renewables reports.

The World Energy Outlook 2024

The World Energy Outlook 2024 report identifies and analyses trends in energy demand and supply and explores the implications for carbon emissions and global economies². This year’s report predicts that solar power electricity generation will quadruple globally by 2030, overtaking all other sources of electricity by 2033 and causing coal-power to plummet. In terms of demand, incredibly, due to increasing electrification and the growth of AI, global energy demand will increase annually by the equivalent of Japan’s total electricity demand.

The report also warns that, by 2030, the world is only on track to decrease emissions to 4% less than in 2023, which will lead to warming that is 2.4^◦C above pre-industrial levels. This exceeds the 1.5^◦C threshold that experts believe would limit the more extreme impacts of climate change.

Renewables 2024

The IEA’s Renewables 2024 report focuses specifically on the deployment of renewable energy in electricity, heat and transport, and outlines the barriers and challenges they face³. Here are some of the report’s key findings and forecasts:

Global energy-related carbon emissions are predicted to peak by 2030 before beginning to decrease, and, by the same year, renewable capacity will grow 2.7-fold from 2022. However, this is just short of the COP28 goal to triple renewables.
Between 2024-2030, more than 5,500GW of renewable power capacity is predicted to be added globally.
China will be adding the greatest share of renewables globally, providing almost 60% of global capacity between 2024-2030.
Impressively, solar energy will account for 80% of the growth in renewable energy capacity, whilst the rate of expansion of wind energy capacity will also double between 2024-2030.
By 2030, the report predicts that 70 countries will reach or surpass their renewable energy goals.

As the Renewables 2024 report asserts, for almost every country, wind and solar are already the cheapest choices for new electricity generation. The statistics about the future growth of renewables is promising, but it’s clear we also have a lot of work to do to meet the trebling target for renewables set at COP28.

You can read the IEA’s World Energy Outlook 2024 report, here, and the Renewables 2024 report, here.

CLIMATE CHANGE AGREEMENTS (CCA) SCHEME EXTENDED BY SIX YEARS

It has been confirmed that the Climate Change Agreements (CCA) scheme will be extended by six years, according to the Department for Energy Security and Net Zero (DESNZ)⁴. Launched in 2001, the CCA scheme reduces the rate of Climate Change Levy (CCL) paid by businesses in energy-intensive sectors if they meet customised decarbonisation and energy efficiency targets. More than 2,600 companies in over 50 industries currently participate in the scheme, and the expected savings for these participating businesses is approximately £310 million annually. In addition to saving money through reduced CCLs, the businesses also have lower bills from becoming more energy efficient.

This extension was announced following a consultation, with the aim of incentivising longer-term decarbonisation measures, rather than quick solutions. It’s encouraging to see that energy-intensive industries will continue to be supported financially as they work to minimise their carbon emissions.

To read more about the updates to the CCA scheme, visit here.

NEW GOVERNMENT SCHEME LAUNCHED TO SUPPORT INVESTMENT IN RENEWABLE ENERGY STORAGE

A new scheme has been announced by the UK Government’s Department for Net Zero and Energy Security (DESNZ), with the aim of encouraging investment in technologies for renewable energy storage. Through the new Long Duration Energy Storage (LDES) investment support scheme, the Government has committed to remove long-established barriers that have previously hindered the construction of new storage capacity. It is hoped that the increased investment will lead to more jobs, greater UK energy independence, and create billions of pounds in savings⁵.

LDES technologies are energy storage mechanisms which are designed to store and release renewable electricity over a time of at least six hours. These include technologies such as pumped hydro storage, which generates renewable electricity by releasing stored water through a hydro turbine, and solar battery storage, which stores and releases electricity produced from solar panels.

Previously, the production of LDES technology has suffered due to heavy upfront costs and a lack of revenue guarantees to encourage long-term investments. The new scheme, starting in 2025, will use cap-and-floor mechanisms to tackle this issue. This will guarantee revenues above a minimum price (i.e. the ‘floor), creating a level of security for investors, while also limiting costs from rising above a certain amount (the ‘cap’), which will also protect consumers.

Renewable energy storage is necessary to provide stability to a grid powered by renewables, so it’s promising to see measures like these that will attract investment into this sector.

To learn more about the Government’s new scheme, visit here.

NEWS IN BRIEF

UK businesses invited to have their say on the Government’s new industrial strategy

In October, the UK Government revealed a first look at plans for a ten-year industrial strategy to help shape the future of the UK’s business landscape, focusing on renewable energy industries amongst other ‘growth-driving’ sectors⁶. The industrial strategy will outline a plan to deliver certainty and security for businesses, tackle barriers to growth, and in turn drive investment in high growth sectors.

The Government are now asking for businesses to lend their experience and evidence by providing feedback, helping to shape an industrial strategy that creates an environment that prioritises businesses and workers. Businesses can have their say ahead of the final strategy publication in early 2025 and are being encouraged to respond to the drafted plans by November 25th, 2024.

You can provide your feedback on the Government’s plans, here.

New report suggests UK MPs are supportive of net zero measures, but misinformation persists

MP enthusiasm has grown in regard to the importance of reaching the target of net zero by 2050, according to recent polling by YouGov in collaboration with Climate Barometer⁷. The research shows that 94% of MPs support the UK Government’s target, compared to 76% of those who supported it in April of this year, just before the last general election. Additionally, the last poll saw only 43% of MPs answer that renewable energy was the best opportunity for growth, but this has now extended hugely to 78%.

This shift in attitude is positive, but YouGov’s polling also shows that many MPs hold inaccurate views about low-carbon technologies. For example, 16% of MPs thought that electric vehicles (EVs) were more likely to set fire than petrol cars, when the opposite is in fact true⁸. Nevertheless, the good news is that there are resources to combat this misinformation – the recent Parliamentarians’ Guide to Climate Change, published by Peers for the Planet and the University of Exeter, provides explanations and knowledge for MPs around climate change and nature emergencies⁹.

Just as MPs are generally supportive of net zero measures, according to UK100’s report Local Net Zero 2.0: The Moment to Deliver, the UK’s local authorities are also enthusiastic to tackle climate change¹⁰. 88% of participants said that they would welcome obligatory duties to prioritise climate action, as long as it came with the necessary funding and power to accomplish their goals.

SPOTLIGHT ON RENEWABLES

UK’s floating wind is ranked second globally

A recent report from RenewableUK reveals that the UK ranks second for floating wind energy capacity across the globe¹¹. Norway was ranked first, with 94MW of installed floating offshore wind capacity, and the UK was not far behind, at 78MW from two offshore projects.

The report relays that as many as 97,000 people could be employed in the UK’s floating wind industry by 2050, and that floating wind could provide up to a third of the UK’s offshore wind capacity by this year, providing £47 billion to the UK economy. In addition, the cost of creating floating wind farms could decrease to under £100 per MWh by 2030.

With the report highlighting that floating wind could be the UK’s ‘industrial opportunity of the century’, we’re glad to see the UK embracing the full potential of floating wind energy.

UK Contracts for Difference (CfD) auction is to be revised to support ‘repowering’ projects

It has been announced that ‘repowering’ projects will now be now eligible to be included in the UK Government’s Contracts for Difference (CfD) auction, a scheme which provides funding to renewable energy generator projects¹². ‘Repowering’ projects refers to projects that aim to modernise and renovate wind farms that are reaching the end of their initial working life.

The Department for Energy Security and Net Zero (DESNZ) has detailed that the change will come into effect in the next round of CfD funding, allowing the opportunity for funding to support the replacement of older turbines in order to keep the wind farms operational. Assets applying for ‘repowering’ funding must be at the end of their initial operational life and will not be required to retain their current capacity.

The first space-based solar power plant to deliver energy to Iceland by 2030

UK firm Space Solar, alongside Transition Labs, have announced plans to provide Icelandic energy and utility company Reykjavik Energy with solar energy from space by 2030¹³. This first ever solar plant based in space is set to be operational by 2030 and will provide 30MW of power, orbiting Earth and transmitting energy wirelessly to the ground. With 24/7 energy unaffected by weather or time of day and costs similar to ground-based renewable electricity, innovation in space energy could overcome barriers seen on the ground.

SPOTLIGHT ON STATKRAFT

As part of the Statkraft Group, this month we are sharing a few of their key updates:

Statkraft to prioritise investments to sharpen strategy

Statkraft have recently announced plans to focus their investments on Norway, wider Europe, and South America, in order to strengthen the scale of projects in these regions, build competitiveness and prioritise creating new renewable projects¹⁴. This includes prioritising:

Norwegian hydropower.
Solar, wind and battery storage growth in the Nordic region, Europe and South America (increasing the delivery rate to 2-2.5GW annually from 2026).
Building and developing offshore wind farms in Northern Europe.
Pursuing a leading position as a developer of green hydrogen.

Alongside this, Statkraft have announced an updated organisation and corporate management, which will be effective from 1st January 2025. This includes a new business area, Technology and Project Delivery, which will develop best-practice safety, support operations and maintenance standards, and will be responsible for delivering cost-effective services and products.

Statkraft’s wind farm community fund supports local projects

Statkraft’s Alltwalis Wind Farm community benefit fund provided £107,000 of community funding in 2023, supporting local projects such as social enterprises, schools, sports clubs and voluntary organisations¹⁵. The wind farm, situated in Carmarthenshire, South Wales, became operational in 2009 and provides renewable energy to the equivalent of 16,500 homes. The fund is managed by representatives from the local community, who assess applications quarterly from organisations and groups in the Llanfihangel-ar-Arth area.

Statkraft nominated for ‘Best Engagement’ at Scottish Green Energy Awards

Statkraft’s work on the Loch na Cathrach Pumped Storage Hydro project, which is located near Loch Ness, has been recognised through a short-listed nomination for ‘Best Engagement’ at the Scottish Green Energy Awards¹⁶. Statkraft acquired the 450MW project in late 2023. Since then, Statkraft have worked to fund a local Community Action Plan and commission a Supply Chain Research report to highlight opportunities for local businesses to work with the Loch na Cathrach project. They also have plans to deliver community benefit funds in the future. The nomination for ‘Best Engagement’ is recognition of this hard work and care.

Winners of the Scottish Green Energy Awards will be announced on 5th December 2024.

TALK TO OUR TEAM

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

Sources

Bryt Energy Market Update

REGO prices

THE UK’S LAST COAL POWER PLANT HAS BEEN SHUT DOWN

UK NET ZERO BUSINESS CENSUS PUBLISHED FINDINGS ON THE ATTITUDES OF BUSINESSES TOWARDS NET ZERO

National Grid’s Electricity System Operator TRANSFERRED TO PUBLIC OWNERSHIP

SPOTLIGHT ON RENEWABLES

SPOTLIGHT ON STATKRAFT

This past month has seen some key milestones in the net zero energy transition, as the UK’s final coal power plant was shut down and the UK Government acquired the National Grid’s Electricity System Operator (ESO), transferring it to public ownership. We also saw some encouraging indicators for the future, with survey results emphasising a keenness from many businesses to decarbonise and reach their sustainability goals, but also highlighting their most significant challenges.

From key energy market updates to recent renewable innovations, here’s what you need to know this month:

Bryt Energy Market Update

Wholesale electricity prices were on a downward trend over the last month and, despite some volatility in the second half of the month, fell compared to August.

Initial concerns over availability of gas in Europe, caused by a Norwegian gas field going offline for maintenance and Ukraine’s counter invasion of Russia, disappeared when neither events disrupted the availability of supply. Lower demand for gas across Europe and increased French nuclear output also helped increase availability of supply and reduce wholesale electricity prices.

In the UK, low wind generation meant that gas-fired generation had to be used to meet demand at the start of the month. Due to the typically higher costs of gas, this would normally cause an increase in wholesale electricity prices (which are still largely affected by gas prices). However, because of the reduction in gas prices, electricity prices continued to fall.

Following the steady reduction in wholesale electricity prices at the start of the September, there has been much more volatility in the second half of the month. There were several sharp spikes in prices, especially on the day-ahead markets, when gas generation supplied most of the grid’s electricity at times of high demand, due to low renewable energy output. However, once wind generation increased in the last few days of September, pricing levels returned to more stable levels.

Looking ahead, prices may climb at the start of October due to reduced availability of supply, with Heysham and Hartlepool nuclear power stations being shut for maintenance until the 7^th and 13^th October respectively.

REGO prices

Prices of Renewable Energy Guarantees of Origin (REGO) certificates have declined over September, with certificates from the current compliance year of 2024-2025 falling in price by the most, due to a healthy availability of REGO certificates currently.

THE UK’S LAST COAL POWER PLANT HAS BEEN SHUT DOWN

A crucial milestone has been hit, with the UK’s final coal-fired power plant having closed on the 30^th September. The 2GW power station, located in Ratcliffe-on-Soar, Nottinghamshire, was opened in 1967¹, and at its peak supplied electricity to two million houses.

After being the first country in the world to introduce coal power 142 years ago, the UK is now the first G7 country to end coal’s use in electricity generation. As recently as 2012, coal still provided 39% of the UK’s electricity, which is testament to just how quickly our nation has committed to decarbonisation². This is largely thanks to the incredible growth of renewable energy in recent years – in 2012, renewables supplied only 11.3% of the country’s electricity, but this has grown to 50% in the first half of 2024³!

This is a significant milestone in decarbonising the electricity grid, and a step towards the Labour Government’s aim to deliver a zero carbon electricity system by 2030. It’s also encouraging to see that careful consideration has been made for those whose jobs will be affected by the shutdown. Plans have been put in place to ensure that, despite the possibility of job losses, the 170 workers affected will be supported, with many staying at the site to oversee the two-year decommissioning process⁴. A process has been coordinated with unions to provide new jobs for workers to move into, including reskilling and retraining.

In fact, there are also early-stage plans for the site to be redeveloped as a zero carbon technology and energy hub, potentially supporting the development of low carbon hydrogen and creating 7,000 highly-skilled jobs⁵. This low carbon hydrogen will be used to decarbonise other areas of industry, ensuring the site’s continued economic contribution to the area while also supporting wider decarbonisation.

To learn more about the closure of Ratcliffe-on-Soar’s coal-fired power station, you can visit Uniper’s website, here.

UK NET ZERO BUSINESS CENSUS PUBLISHED FINDINGS ON THE ATTITUDES OF BUSINESSES TOWARDS NET ZERO

The UK Net Zero Business Census, led by UK Business Climate Hub and Planet Mark, have released their findings, with insight into businesses’ attitudes, actions and progress towards decarbonisation⁶.

The census revealed that 73% of businesses saw net zero as a priority in their business strategy for the next year, to differing degrees, with 43% seeing it as a high or very high priority. The participants named many benefits for reducing their carbon emissions, with the four most common answers being:

contributing to tackling climate change (46%)
increasing their business’ brand reputation (45%)
displaying industry leadership through early action (42%)
being able to comply with regulations that aim to limit carbon emissions (41%)

However, the census found that the biggest challenge in enacting the changes necessary to reach net zero targets was the high cost of starting their carbon reduction projects, with 59% of respondents naming it as a barrier. The report recommended that increased financial support mechanisms could help alleviate this challenge. Despite existing Government grants and funding, only 25% of respondents had accessed financial support, and only 31% engaged with educational resources, highlighting the need for increased awareness around available and free resources.

Positively, the census showed that 57% of businesses have a plan to reduce their carbon emissions, with 39% already reaching notable reductions, while most organisations (87%) are confident that they understand the importance of reaching net zero. It’s clear that many businesses are eager to prioritise decarbonisation – it’s important now that we work towards minimising any challenges they have in doing this.

You can access the full report, here⁷.

National Grid’s Electricity System Operator TRANSFERRED TO PUBLIC OWNERSHIP

The UK Government has acquired the National Grid’s Electricity System Operator (ESO) and have transferred it into public ownership as of October 1^{st 8}. The newly named National Energy System Operator’s (NESO) three primary objectives are:

assisting the Government in delivering its net zero targets
advancing efficient, coordinated and economical systems for the electricity and gas networks
ensuring that the supply of electricity and gas is secure for all customers⁹

NESO will be crucial in helping to connect renewable generation projects to the national electricity grid, working alongside Great British Energy to provide renewable electricity to consumers¹⁰. This is especially important, given a recent poll which highlighted that a lack of timely grid connections is the biggest challenge to 75% of energy experts¹¹.

NESO differs from previous approaches, taking a more unified, interconnected approach to the energy system and providing an integrated strategy through a singular body¹². Being independent from the Government and industry, the new National Energy System Operator’s public ownership is hoped to provide impartial expertise, which will assist in developing the most efficient energy system for the future.

To find out about NESO, you can read more here.

SPOTLIGHT ON RENEWABLES

Renewables supplied over half of the UK’s energy mix for three consecutive quarters

A new record has been set, with over half of the UK’s energy supply being powered by renewable energy for the third consecutive quarter, including Q4 of 2023, as well as Q1 and Q2 of 2024, according to data from the Department of Energy Security and Net Zero’s (DESNZ)’s Energy Trends report¹³. Renewables supplied 51.6% of the total energy generation between April and June this year, and renewable generation increased by 19% compared to the second quarter of 2023.

Europe’s solar farms threatened by the impact of climate change

Solar farms, which are an important part of the net zero energy transition and provide zero carbon electricity at the point of generation, may be feeling the effects of climate change. A report has highlighted that increasingly extreme and erratic weather events, including hailstorms, present a significant threat to solar panels, damaging their protective glass and causing heavy repair costs¹⁴.

Over the last five years, Europe has seen a startling 267% increase in hailstorms. This presents a deterrent for prospective solar farms in hailstorm-prone areas. However, new and innovative technology, such as weather-monitoring systems and crack-resistant films for panels, are in development and will hopefully become cost-effective solutions, reducing this risk.

The rising interest in floating solar

Interest in the untapped potential of floating solar has been rising in recent years, as covered in a recent report by Solar Power Portal¹⁵. Floating solar photovoltaics (FPV) are installed on platforms anchored in bodies of water, which widens the potential of renewable energy from solar panels to areas where land is less available. Research also suggests that floating solar panels could help minimise water loss from reservoirs and lakes during times of extreme heat, shielding and keeping the water cool, while also helping to decrease the amount of harmful algal blooms that could grow.

Few floating solar projects have yet been implemented in the UK, but increased development and investment into this renewable energy source could provide a significant contribution to the UK’s energy supply. In fact, research has demonstrated that floating solar could be used in conjunction with hydropower reservoirs – covering only 2.3% of Europe’s hydro reservoirs with floating solar panels could provide 42.3TWh of power annually, and could prevent water loss, thereby keeping the hydro dams running more efficiently. Our parent company, Statkraft, has invested €2 million into a floating solar plant at a hydro power reservoir in Albania, a pilot project which was completed in 2023¹⁶.

The UK’s pipeline for onshore wind power has grown by over 4GW in the last year

In the last year, the UK’s onshore wind pipeline has progressed twice as fast as last year, according to a new report¹⁷. Across all stages of development combined, there has been an increase of 4.2GW since September 2023, growing the UK’s onshore wind pipelines from 38.5GW to 42.7GW, which is thought to be a reflection of the new Government’s lifting of the previous effective ban on onshore wind farms.

As wind is naturally abundant in the UK, it’s great to see the nation taking steps towards the stated ambition of being a global leader in this sector¹⁸. Wind energy makes up a large part of our own fuel mix, and so we are thrilled to see such significant developments in wind energy!

SPOTLIGHT ON STATKRAFT

As part of the Statkraft Group, this month we are sharing some of their recent updates:

Statkraft release Green Transition Scenarios 2024

This month, Statkraft has released its annual energy report, Green Transition Scenarios 2024, with their findings emphasising that the path to a future powered by renewable energy may be difficult, but it is nonetheless achievable through collective and purposeful action. In this report, Statkraft explore the rate at which the energy transition is progressing, the vital drivers and challenges in the transition, and how renewable energy and low carbon technology is expected to progress in the future.

To read Statkraft’s summary of their key findings, or to access the full report, visit here.

Two Statkraft solar projects receive UK Government contracts through CfD auction

Statkraft has been doubly successful in being awarded two contracts in Allocation Round 6 (AR6) of the UK Government’s Contracts for Difference (CfD)¹⁹. These contracts are supporting the development of Stargoose Solar Farm in Cambridgeshire and Sheepwash Solar Farm in Kent, and will generate enough renewable electricity to power the equivalent of nearly 30,000 homes.

CfDs are one of the UK Government’s regulatory methods of supporting investment in new renewable energy generation. They are 15-year-long agreements with the Government, which secure a fixed price for the power the renewable energy generator produces. This means that if prices are low, the Government will supply the difference, and if prices are high, the generator will pay the excess. This provides financial certainty for investors and developers, and is designed to control costs for consumers²⁰.

This year’s CfD auction was the most successful yet, with 131 renewable generator projects achieving contracts, especially for wind, solar and tidal assets, including 9 offshore wind contracts²¹. After last year’s auction resulted in no offshore wind agreements, these results are a great step towards a grid powered by renewables.

You can learn more about Statkraft’s new projects, here.

TALK TO OUR TEAM

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

Sources

Bryt Energy Market Update

Long-term wholesale electricity prices

Short-term wholesale electricity prices

REGO Prices

IMPROVING THE GRID CONNECTION PROCESS TO ACCELERATE THE ENERGY TRANSITION

UK GOVERNMENT SEEKS CLIMATE TARGET ADVICE FOR 2035

SMART METERS INSTALLATIONS INCREASED BY 17% IN JULY

SPOTLIGHT ON RENEWABLES

NEWS IN BRIEF

SPOTLIGHT ON STATKRAFT

This month’s Bryt Insight explores some exciting recent developments in the UK’s energy transition, including increased smart meter installations as well as crucial improvements in grid connections and renewable energy infrastructure. We also look at the new Government’s request for expert advice on the UK’s 2035 carbon reduction target. Here’s what you need to know this month:

Bryt Energy Market Update

Long-term wholesale electricity prices

This past month has seen longer-term wholesale electricity prices (both monthly & seasonal) rising due to conflict between Russia and Ukraine. This conflict has pushed longer-term gas prices up and, in turn, had a major influence over electricity prices, which reached levels not seen since the spike in May earlier this year. There was a temporary reduction in prices mid-August, but as the incursion in Kursk continued, prices began to rise again. The Kursk region in Russia holds key gas pipeline infrastructure that, if compromised, could reduce the gas supplied into Europe by up to 7% of the annual demand. With the conflict threatening risk of disruption to this pipeline, gas, and therefore electricity, prices increased.

The heatwave across Europe, which has been forecast to continue into late September, has also influenced the increase in prices, with power generators warning of reduced outputs. For example, the French nuclear fleet has been disrupted as soaring temperatures in the rivers that are used to cool the reactors caused generation output to be reduced.

Short-term wholesale electricity prices

On the other hand, we have seen short-term prices (within day, day-ahead, within month) fall on the wholesale electricity market in August. This is due to increased availability of supply in the UK, including three nuclear reactors being back up and running following maintenance, as well as surging wind generation across the month, both helping to reduce prices by on average 20%, compared to the final two weeks of July. The extra wind generation has also meant that the UK is not importing through the interconnectors from Europe, where prices have been high due to the recent heatwave. However, wind generation has been forecast to drop as we enter September, so it is expected that the short-term prices may increase.

REGO Prices

The market has seen prices for Renewable Energy Guarantees of Origin (REGO) certificates fall over the last month, and the variance between the cost of biomass REGO’s and Solar, Wind and Hydro REGOs is 65p.

IMPROVING THE GRID CONNECTION PROCESS TO ACCELERATE THE ENERGY TRANSITION

The UK’s ongoing transition to a net zero energy system has received a significant boost, with recent developments aimed at improving the speed and efficiency of connecting renewable energy projects to the grid going ahead. A grid connection allows energy to be added to or taken from the electricity transmission network – so delays in renewable connections are seen as one of the biggest obstacles to the UK’s decarbonisation efforts.

Here are three key initiatives set to make a substantial impact:

Approval of “superhighway” fast-tracked

Ofgem has fast-tracked the approval of a £3.4 billion electricity “superhighway” to accelerate the transmission of renewable offshore wind energy between Scotland and England¹. The subsea and underground cable network will be 500km long, connecting Aberdeenshire to Yorkshire, helping maximise the potential of the wind generated in Scotland for the rest of the UK to use. Named the Eastern Green Link 2 (EGL2), the project delivers a 2GW high-voltage electricity link and aims to power an equivalent of up to 2 million homes with renewable electricity from offshore wind. It is the first under Ofgem’s Accelerated Strategic Transmission Investment (ASTI) – a framework introduced to accelerate the delivery of grid upgrades.

Connecting floating offshore wind energy in the Celtic Sea

In another major move to enhance the UK’s renewable energy capacity, National Grid ESO (Electricity System Operator) has announced plans to connect up to 4.5GW of floating offshore wind energy in the Celtic Sea². This will involve three new wind farms, each with its own connection to the mainland electricity network. The innovative network design will connect offshore farms with locations in South Wales and South-West England. National Grid ESO says the final design has been chosen to minimise environmental and community impact, while optimising cost and operability.

Plans for significant changes to the SIF programme

It’s not just major transmission infrastructure projects in the pipeline – Ofgem also plans to introduce significant changes to the Strategic Innovation Fund (SIF), which was set up to fund and support new technologies that could accelerate the decarbonisation of gas and electricity networks³. The changes will include more frequent funding rounds and a more streamlined process, enabling successful projects to progress through the programme faster.

Together, these initiatives are encouraging news for improving the UK’s transmission network, speeding up connection queues and getting more renewables onto the grid. All of which will be crucial in meeting the UK’s net zero targets.

UK GOVERNMENT SEEKS CLIMATE TARGET ADVICE FOR 2035

The UK Government has formally requested the Climate Change Committee (CCC), the Government’s independent advisor on climate change, to recommend a carbon reduction target for 2035⁴. In a letter to the CCC, the Secretary of State for Energy Security and Net Zero (DESNZ), Ed Miliband, asked for guidance to help shape the UK’s updated Nationally Determined Contribution (NDC). An NDC is a set of climate targets and mitigation actions that each country that is signed up to the Paris Agreement (including the UK) must submit to the United Nations (UN) every five years⁵. The next updates must be submitted by February 2025, but many countries are expected to publish their NDCs in time for the next Conference of the Parties climate summit (COP29) in November.

This move underscores the UK’s ongoing commitment to its legally binding net zero target by 2050 and its broader international obligations under the Paris Agreement. The CCC’s recommendations will play a crucial role in defining the UK’s climate strategy for the coming decade.

In the letter, Mr Miliband has also specifically requested the CCC’s views on whether international aviation and shipping emissions should be included in the 2035 target. These sectors are currently significant sources of carbon emissions and hard to decarbonise, and their inclusion could affect the overall target, and the strategies needed to achieve it.

It is encouraging to see the Government take a proactive approach in seeking expert advice on the UK’s decarbonisation strategy. The move highlights the importance of setting ambitious, yet achievable, climate targets. To read more, and to download a copy of the Government’s letter, click here.

SMART METERS INSTALLATIONS INCREASED BY 17% IN JULY

Data released by ElectraLink has revealed that smart meter installations saw a surprising jump in July, with 30,000 (17%) more meters installed than in June⁶. Even though installations in July 2024 were lower than July 2023, total installations for the first half of 2024 are higher than the same period in 2023 – 1.39 million compared to 2023’s 1.36 million.

This news is important because smart meters are essential for a smarter, more efficient grid and for reaching the UK’s net zero target. When paired with data visualisation tools, they make billing and energy usage forecasts more accurate, helping reduce energy wastage as well as costs. Smart meters are also key in supporting the creation of a ‘smart grid’, with better analysis and monitoring of energy usage playing a key role in balancing a net zero energy system.

There’s still a lot of work to be done, as new data has highlighted that the UK is behind many EU countries on their smart meter installations⁷. Nevertheless, this news demonstrates an increase that we hope will continue.

To find out more about the importance of smart meters, you can read our blog here. You can also read our myth-busting Q&A, answering some of the most common questions and myths surrounding smart meters, here.

SPOTLIGHT ON RENEWABLES

UK wind capacity milestone reached

The UK’s total installed onshore and offshore wind capacity has surpassed the significant milestone of 30GW⁸. To reach this total number, the UK’s wind capacity has doubled in only seven years – demonstrating the rapid scalability of renewables and a positive indicator for meeting the UK’s new target of 50GW by 2030.

UK public shows support for accelerating renewable energy projects

New research from RenewableUK reveals that 61% of the UK public feel frustrated when local renewable energy projects supported by the majority are blocked by a small number of objectors⁹. The poll, which surveyed more than 10,000 people, also shows strong support for the construction of new grid infrastructure to speed up the deployment of renewable energy, with 59% in favour, showing firm support for renewables.

Infrastructure funding package to boost renewable innovations

The UK and Welsh Governments are supporting a £60 million project to improve infrastructure at a Welsh port through the Swansea Bay City Deal, which has proven to attract the attention of renewable energy generators and investors around the world¹⁰. Part of the Pembroke Dock Marine development funds will go towards enhancing the Pembrokeshire Demonstration Zone – an initiative set up to drive local innovation and key focus areas including scaling renewable energy generation and decarbonising both port operations and shipping.

NEWS IN BRIEF

UK heat pump installations reach new milestone

A significant milestone of 250,000 heat pumps have been installed and certified in the UK, as reported by the Microgeneration Certification Scheme (MCS)¹¹. In the period between January-July 2024, over 30,000 heat pumps were installed – a 45% increase compared to the same period in 2023, putting the UK on track to have a record-breaking amount of heat pump installations this year. Much of the increased demand of heat pumps can be accredited to Government incentives, such as the Boiler Upgrade Scheme (BUS), which provides up to £7,500 to prospective businesses and households looking to install heat pumps¹².

To learn more about how heat pumps can fit into your business’s sustainability strategy and enable the decarbonisation of heat, read Part 3 to our guide on ‘Navigating the Net Zero energy transition’, here.

New ‘Energy Crisis Commission’ is launched

With the objective of analysing the UK’s response to increasing gas prices that come from international conflicts, a new ‘Energy Crisis Commission’ has been launched, compiled of experts from CBI, Energy UK, Citizens Advice and National Energy Action¹³. The commission will assess the UK’s response to the global energy crisis, which was a result of Russia’s invasion of the Ukraine and the UK’s reliance on the import of foreign fossil fuels, and advise how Britain could be better prepared for future price increases amidst geopolitical conflict.

The Energy Crisis Commission intends to gather their findings over the summer and in Autumn, publish their recommendations to the UK Government regarding ways the country can become more resilient against future crises.

Weather damage insurance claims in the UK rise

We are continuing to see the devastating impacts of climate change through adverse weather events such as storms and floods, with a record £1.4 billion of weather damage insurance claimed in the UK in Q2 of this year¹⁴. According to the Association of British Insurers (ABI), these claims were the result of frozen pipes, storms and heavy rain damaging homes and businesses, with £81 million paid specifically to businesses by insurers in Q2 of this year.

The CCC (Climate Change Committee) has warned that climate change will continue to increase the instances of extreme weather, and more needs to be done to prevent further warming damages¹⁵.

You can read the report here.

Guidance on electrifying commercial fleets published by Energy Savings Trust and REA

A whitepaper titled ‘Electrifying the Fleet: A Practical Resource for Fleet Managers’ has been published by Energy Savings Trust and the Association for Renewable Energy and Clean Technology (REA)¹⁶. The paper provides guidance and insight into the pathways and financial benefits of electrifying commercial vehicle fleets, as well as ways to overcome the potential obstacles. It estimates that each light commercial vehicle (LCV), such as a small-to-medium sized van, driving 15,000 miles a year could save fleet managers £1,500 annually if electrified, while certain electrified HGVs could save £3,500 driving the same distance annually.

Decarbonising transport is essential for a net zero future, and it’s great to know that adapting to the energy transition will also reap significant financial rewards. To find out more about the role of electric vehicles in the energy transition and the potential business benefits for adopting them, read Part 3 of our guide, ‘Navigating the Net Zero energy transition’, here.

SPOTLIGHT ON STATKRAFT

As part of the Statkraft Group, this month we are sharing a few of their key updates:

Mossy Hill wind farm redesign

Statkraft have recently redesigned plans for their Mossy Hill wind farm in Shetland, Scotland, to improve access to the public and provide more amenities for Statkraft’s own employees¹⁷. The redesign includes eight wind turbines instead of the previous 12, although the turbines will be 10 metres taller than previously, and will provide space for employee facilities. This decreases the capacity from 48MW to 36MW, but allows them to take on board community feedback.

The importance of grid stability in the energy transition

Statkraft have released two new articles, which explore the importance of grid stability, and how the obstacle of inertia can be overcome in the energy transition¹⁸.

‘Inertia’ is the energy stored in the rotating parts of fossil fuel power plant turbines that keeps them spinning even if the power plant temporarily loses power. It prevents disruption to the energy flows and is key for grid stability. Fossil fuels inherently provide the grid with stability through inertia, but renewable generation from solar and wind power doesn’t have the same rotating parts. This means that, even when the UK has enough renewable energy to power the grid, fossil fuels are currently still required to provide grid stability.

However, Statkraft are combatting this problem through the creation of Greener Grid Parks (GGPs). GGPs are a collection of small buildings containing flywheels and synchronous compensators, which are rotating stabilisers, and can create inertia to stabilise the grid, without the use of fossil fuels.

You can find Statkraft’s latest articles here and here.

TALK TO OUR TEAM

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

Sources

Bryt Energy Market Update

REGO Prices

National Grid ESO launches 2024 Future Energy Scenarios

New Government moves on energy and climate pledges

Public Sector receives decarbonisation funding

Spotlight on renewables

News in brief

Spotlight on Statkraft

With the new UK Government in office for the past month, August’s edition of Bryt Insight takes a look at actions already being taken on major business energy, net zero and climate-related pledges. We also run through the National Grid Electricity System Operator (ESO)’s Future Energy Scenarios report, which explores different pathways for the UK to reach net zero by 2050. Here’s what you need to know this month:

Bryt Energy Market Update

July has been a month of two halves. Wholesale electricity prices fell sharply at the start of July before continuing to fall at a more gradual rate. But despite this movement, by the end of July, prices were again similar to those at the start of the month. Here’s a more detailed look at what you need to know:

Early July: increased renewable energy generation and lower electricity prices

Wind generation in the first half of the month was quite erratic, with production exceeding 13GW at one point and dropping below 2GW a couple of times. However, on average, wind generation was 30% higher than the latter half of June.

European renewable generation also increased at the start of the month, removing the need for more expensive thermal generation on the grid (such as coal and gas). Along with the French Nuclear fleet starting to return from maintenance, this all helped drive down European prices and, because of the interconnectivity of the European grids, the UK’s electricity prices down too.

Late July: reduced renewable energy generation, increased demand, and higher electricity prices

In the second half of the month, renewable generation fell, the Heysham nuclear reactor in Lancashire went offline for maintenance, and the high temperatures in the UK and across Europe increased demand.

Wind generation was almost 40% lower in the second half of the month compared to the start of the month. This, along with the maintenance on the UK nuclear fleet, meant that gas generation had to fill the gaps, increasing electricity prices.

Alongside this, across Europe, high temperatures led to increased electricity demand, with equipment such as air conditioning, fans, and ventilation being more in use. This, combined with warnings in France of potentially having to reduce nuclear generation, due to the increased water temperatures in the rivers used to cool the reactor, caused electricity prices to rise.

After all this movement, the month has ended with wholesale electricity prices back at the same level as they were at the start of the month.

REGO Prices

Like last month, there was very little market activity regarding Renewable Energy Guarantees of Origin (REGO) certificates, with most suppliers wrapping up activity relating to last year’s Fuel Mix reporting compliance period.

National Grid ESO launches 2024 Future Energy Scenarios

National Grid ESO has unveiled its annual Future Energy Scenarios (FES)¹ report for this year, which outlines several strategic pathways towards achieving the UK’s net zero target by 2050.

The FES 2024 introduces three potential pathways to reach net zero, emphasising the urgent need for action within the next two years to establish a fair, affordable, sustainable and secure energy system by 2050. Alongside these pathways, the report outlines a “Counterfactual” scenario that illustrates the consequences of delayed action. The pathways are:

Holistic transition: Achieving net zero through a balanced approach combining electrification and low carbon hydrogen. This pathway relies on a strong level of consumer engagement, with both smart homes and EVs providing flexibility to the grid during periods of high demand, as well as high renewable energy capacity and reduced unabated gas – i.e. generated without carbon capture, utilisation and storage (CCUS) – use after 2036.
Electric engagement: Focused primarily on electrification – meaning electricity would supply the majority of energy demand for industry, residential and transport. This pathway relies on consumer engagement with the adoption of smart technologies such as heat pumps and EVs. The UK’s supply would require substantial renewable energy and nuclear capacity.
Hydrogen evolution: Focusing on rapid development of low carbon hydrogen – a sustainable alternative to fossil fuel gas, which can help decarbonise sectors that cannot be electrified and meet net zero targets. Hydrogen power plants would be required to drive supply.
A counterfactual pathway highlights the risks of missing net zero due to insufficient progress and reliance on fossil fuels.

The FES 2024 outlines eight critical actions to achieve net zero, which underpin all three pathways above, including:

Accelerating the delivery of electricity grid infrastructure to achieve a net zero power system.
Reform electricity, gas, hydrogen and carbon markets to ensure they provide for and work with a reliable energy system.
Prioritising low carbon hydrogen for hard-to-electrify applications.
Promoting low carbon heating technologies, such as through a faster roll out of heat pumps.
Driving innovation and consumer trust in smart technologies, such as smart EV chargers, to enable users to realise cost savings while helping manage the electricity system.
Enhancing energy efficiency in all sectors.
Reforming the grid connection processes (and connecting long-duration energy storage) to combat delays facing renewable energy projects getting on to the network.
Investing in developing supply chains and skills needed to reach net zero.

The report also sets out key milestones to achieving decarbonisation targets, such as reinstating the ban on petrol and diesel vehicles by 2035, ramping up heat pump installations by 2030, and reducing gas consumption by up to 40% by 2040. These milestones vary slightly based on each pathway. You can download the full-length FES 2024 report here.

Electricity demand set to grow and quicker net zero action needed, says International Energy Agency Meanwhile, the International Energy Agency (IEA) confirms the need to speed up action on net zero in its Mid-Year Update². The report says global electricity demand is expected to grow 4% in 2024. This marks the highest increase in five years and is driven by factors such as global economic growth and adoption of tech such as EVs.

Along with an increase in electricity demand, this year, for the first time, renewable energy sources are expected to surpass coal in electricity generation, with renewables increasing their global share to 35% of total output by 2025. Solar PV and wind energy will meet a significant portion of this demand growth, with solar alone accounting for nearly half of the increase.

Echoing the urgency expressed in the National Grid ESO’s FES report, the IEA’s Director of Energy Markets and Security, Keisuke Sadamori, said “clean energy’s rising share of the electricity mix” needed to happen “at a much faster rate” to meet international climate goals³. You can read the IEA’s mid-year update here.

New Government moves on energy and climate pledges

It’s been a busy first month as the UK’s new Government begins to turn pledges into actions. In last month’s edition of Bryt Insight, we highlighted some of Labour’s major energy-related manifesto commitments. A month later, here is a summary of what’s happened so far:

King’s Speech confirms climate commitments: The King’s Speech on 17th July confirmed the Government’s commitment to a ‘clean energy’ transition⁴. This includes over 35 bills focusing on the economic benefits from climate policies. The King’s Speech promised legislation would be introduced to promote energy independence and attract investment in the UK’s energy infrastructure. A bill supporting sustainable aviation fuel production was also announced⁵.

Great British Energy: A key component is the establishment of Great British Energy, a publicly owned renewable energy company⁶. It aims to accelerate renewable energy investment, focusing on technologies such as wind turbines. Great British Energy says it will invest in small and medium-sized renewable projects and work with local communities to develop them as part of a Local Power Plan⁷. Additionally, the company has announced its first major partnership with The Crown Estate, which aims to attract up to £60 billion in private investment for offshore wind developments, potentially reaching 20–30GW of capacity by 2030⁸.

Onshore wind development: The Government lifted the effective ban on onshore wind farms, removing restrictive footnotes from the National Planning Policy Framework⁹. This allows onshore wind projects to be developed on equal footing with other infrastructure projects.

Other key actions and initiatives include:

National Wealth Fund: The Government has allocated £7.3 billion to the National Wealth Fund to support British businesses and jobs in renewable energy-related industries¹⁰. This fund includes £1 billion for CCS (carbon capture and storage) deployment and £500 million for green hydrogen manufacturing.

Solar energy development: Development consent orders have been granted for three major solar farms, totalling over 1.3GW of capacity¹¹. A Solar Taskforce has been reactivated to achieve 50GW solar capacity by 2030. Additionally, the new Secretary of State for Energy Security and Net Zero (DESNZ), Ed Miliband, has addressed misconceptions about solar farms affecting food security, confirming that solar, for example, took up just 0.1% of UK land in 2022¹².

Climate Change Committee’s Progress Report to Parliament

And with the election period now over, the Climate Change Committee (CCC) has released its delayed annual report for 2024¹³. The report highlights the urgent need for the UK to realign its strategy to meet the 2030 emissions reduction target, focusing on decarbonising buildings, transport and agriculture.

The CCC acknowledges the UK’s previous success to date in cutting emissions, but warns that progress has slowed. To achieve the 2030 target of a 68% reduction compared to 1990 levels, the CCC has outlined 13 priority actions. These include reversing policy rollbacks by the previous Government on initiatives such as phasing out gas boilers. Similar to National Grid ESO’s above suggestions, the report also advises streamlining planning to speed up the roll out of technologies such as heat pumps, onshore wind and EV charging points. Additionally, it recommends decarbonising public buildings and publishing a strategy for developing the net zero skills required for jobs related to the energy transition. The CCC also warns that rates of offshore wind installations, homes adopting heat pumps and the market share of new EVs need to “significantly ramp up”. You can read the progress report here.

Public Sector receives decarbonisation funding

The Department for Energy Security and Net Zero (DESNZ) has announced the latest successful grant recipients from Phase 2 of the Public Sector Decarbonisation Scheme¹⁴. A number of initiatives in the North East and Yorkshire and the Humber have received funding aimed at reducing carbon emissions and enhancing energy efficiency. This includes grants to replace gas boilers with heat pumps in university buildings and primary schools across the two areas, to help cut carbon footprints.

If you’re an eligible organisation interested in applying for the next round of funding, details for Phase 4 of the scheme will be available in the summer. To learn more about the Public Sector Decarbonisation Scheme and future funding opportunities, please visit the Government’s website.

Spotlight on renewables

This month we’re sharing some encouraging news for UK renewables that show the country’s electricity mix is heading in the right direction to support the transition to net zero.

Renewables power nearly half of the UK’s electricity mix in Q2 2024

Renewables provided 47% of the UK’s total power generation in the second quarter of 2024, according to a report from energy data analyst Montel Analytics¹⁵. This growth was primarily driven by wind (17.2 terawatt-hours), with solar power reaching its highest level for any recent quarter at 5.1TWh. You can download the report here.

UK surpasses 16GW of installed solar capacity

New DESNZ statistics reveal the UK surpassed 16GW of installed solar capacity in 2023¹⁶. Figures also show that 647MW of capacity was added in the first half of 2024. In May alone, there were 16,333 new installations, accounting for 69MW of capacity, which is the highest figure so far this year. While these figures are subject to future revision, they remain significantly higher than the average figures observed between 2016 and 2021.

Record £1.5 billion confirmed for renewables auction round

The UK Government has announced a £1.5 billion budget for the upcoming Contracts for Difference (CfD) auction round (known as allocation round 6 (AR6))¹⁷. Contracts for Difference auctions support investment into renewable electricity by guaranteeing a price per unit of electricity generated and this latest auction provided a record budget, representing a significant and encouraging increase in investments into renewable projects.

News in brief

A new report suggests that accelerating net zero policies could boost the UK economy by £765 billion by 2050¹⁸. This transition could create up to 309,000 jobs annually and generate an additional 1.3% of economic growth each year. You can read the report here.

Meanwhile the “green economy” is also thriving at a global level. A London Stock Exchange Group report shows the global green economy is now valued at $7.2 trillion and has been the second-best performing industry over the last decade¹⁹. Read the report here.

Spotlight on Statkraft

As part of the Statkraft Group, we’re sharing a few of their key updates this month, this time highlighting new Power Purchase Agreements (PPAs) signed by the company.

PPAs are long-term energy purchasing agreements between an electricity consumer or supplier and a renewable energy generator. They can provide longer-term prices and budget certainty for a customer, whilst supporting renewable projects by guaranteeing revenue for the generator and project.

The latest agreements include:

A fixed-price Power Purchase Agreement (PPA) with Boralex for the 106MW Limekiln Wind Farm in the Scottish Highlands²⁰. The wind farm, set to be commissioned by the end of 2024, will generate enough renewable energy to power the equivalent of approximately 100,000 homes. Learn more about the project, here.

A 10-year PPA and Optimisation Agreement with international investor FP Lux Group for the Scurf Dyke Solar Farm and an 8 MW Battery Energy Storage System in Yorkshire²¹. Find out more here.

A seven-year PPA with Luminous Energy for the 5MW Bracon Ash Solar Farm in Norfolk²². See more about this innovative PPA approach here.

TALK TO OUR TEAM

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

Sources

Bryt Energy Market Updates

A review of Q2 2024 wholesale electricity prices

REGO Prices

How will the newly elected Government deliver on net zero?

Key takeaways from the Bonn Climate Change Conference

Spotlight on renewables

Spotlight on Statkraft

July’s Bryt Insight arrives at the same time as a newly elected Labour government so, in this edition, we explore what the party’s manifesto could mean for the UK’s net zero strategy. Whilst nationally fewer announcements or decisions were made in the run up to the election during the ‘period of sensitivity’, internationally, preparations for COP29 – the annual global climate summit – are well underway.

Our experts have also taken a look back at the electricity market over the second quarter of 2024 to provide you with a roundup of the key trends and highlights that your business needs to know:

Bryt Energy Market Updates

June began with the highest forward-looking electricity prices (i.e. prices for October-24 and April-25) of the year so far, before then lowering, due to reduced electricity demand, increased amounts of renewable generation, and falling gas prices through to the middle of the month.

Here’s what you need to know:

Reduced electricity demand and increased renewables

Demand on the transmission network dropped by 10% in June, partially due to longer daylight hours and increased temperatures. Wind generation accounted for 30% of the UK’s electricity supply during the month and solar generation also helped to meet demand but, as solar is connected to the distribution network rather than the transmission network, it isn’t recorded as part of the UK’s generation figures.

Falling gas prices

The falling gas price (which still has a large effect on UK electricity prices) was driven by Norwegian North Sea oil and gas maintenance work completing earlier than expected, high gas storage levels, and lower electricity demand thanks to the warmer weather.

Reduced volatility towards the end of the month

The second half of the month saw less volatility than the start of June, with lower electricity demand tempering price rises. Factors that did impact prices included:

Falling amounts of renewable generation compared to the start of the month
Increased competition for LNG (liquefied natural gas), with only one cargo of LNG arriving in the UK in the latter half of June
Political change, with several elections happening across Europe causing uncertainty in future energy policies.

Day-ahead prices

In the near-term, day-ahead wholesale electricity prices have been very volatile across June, driven by changing weather conditions and fluctuating renewable generation. The UK has even seen a number of afternoons, when it has been both sunny and windy, where power prices at the time have turned negative.

A review of Q2 2024 wholesale electricity prices

Looking back overall at the second quarter of 2024, wholesale electricity prices increased by just over 20% from the start of April to the beginning of June, before reducing by approximately 6%, resulting in an overall increase of 14% in the last quarter. Geopolitical tensions, delays in French nuclear generation being back up and running following maintenance, and low wind generation at the start of the quarter all impacted certainty of supply and drove the increase. However, lower electricity demand across the UK, increased renewable generation at the end of the quarter, and Norwegian gas field maintenance completed earlier than expected have all helped steady some of the price rises.

REGO Prices

June’s eREGo auction sold very few Renewable Energy Guarantees of Origin (REGO) certificates and at a significantly lower cost than in May’s auction. This is typical of this time of year, as by this auction most suppliers already have the REGOs they need for their Fuel Mix reporting compliance period (in this instance for 2023-2024). The auction is expected to return to normal next month, with REGOs for the new compliance year then available to buy.

How will the newly elected Government deliver on net zero?

With the Labour Party recently announced as the winner of the UK’s general election, we look at what the party’s manifesto might mean for the UK’s climate strategy and businesses going forwards.

Here are some of Labour’s key manifesto plans regarding net zero, sustainability and business energy¹:

Labour will set up Great British Energy, headquartered in Scotland, which will receive £8.3 billion over the next parliament. A publicly owned company, it will partner with industry and trade unions to invest in technologies such as floating offshore wind and tidal, and accelerate the rollout of renewable generation, including wind and solar.
Over the course of the next Parliament, Labour plans to focus on local power generation. This is through its Local Power Plan, which will deploy more distributed renewable energy capacity. Great British Energy will partner with energy companies, local authorities and co-operatives to develop 8GW of community energy projects, with some of the profits from projects redirected to local communities.
Plans to save businesses £53bn in energy bills up to 2030, by delivering a cheaper, zero carbon electricity system by 2030.
Put £7.3 billion into the National Wealth Fund, which aims to support British business and jobs in “green” industries. It also aims to support the most energy-intensive sectors to decarbonise. The Fund is a core element of the party’s Green Prosperity Plan, and over the course of the next Parliament will allocate:
- £1 billion to accelerate the deployment of carbon capture.
- £500 million to support the manufacturing of green hydrogen – a sustainable alternative to fossil fuel gas that can be produced using renewable electricity.
Their Green Prosperity Plan aims to:
- Create 650,000 jobs across the country by 2030.
- Double onshore wind by removing the effective ban in place, triple solar power and quadruple offshore wind by 2030.
- Upgrade Britain’s electricity transmission infrastructure.
Reward energy developers in the UK’s industrial heartlands, coastal areas and existing energy communities with a British Jobs Bonus. This will allocate up to £500 million per year from 2026 to incentivise firms who offer good employment conditions and build their manufacturing supply chains in these areas.
Make the UK the green finance capital of the world, mandating UK-regulated financial institutions – including banks, asset managers, pension funds, and insurers – and FTSE 100 companies to develop and implement credible climate transition plans that align with the 1.5°C goal of the Paris Agreement.

In the lead up to the election, there was criticism towards the majority of political parties that manifestos didn’t go far enough in tackling climate change, lacking the ‘scale and urgency’ needed to meet the UK’s climate commitments². Over 400 scientists signed a letter asking party leaders to adopt key measures, including: transitioning away from fossil fuels, helping the UK to adapt and manage the worst impacts of climate change, and increasing climate funding to developing countries. It is hoped the new Government’s plans will addresses these keys measures and set the UK on a credible pathway to net zero.

To learn more about the Labour Party’s election manifesto, visit here.

Key takeaways from the Bonn Climate Change Conference

In preparation for COP29 – the 29^th annual Conference of the Parties global climate summit – representatives from nearly 200 nations gathered in Bonn, Germany. The two weeks of consultations focused on how to accelerate action on climate change to achieve the goals of the Paris Agreement, which aims to limit global warming to 1.5°C above pre-industrial levels³.

The mid-year discussions at Bonn will play a key role in informing decisions made at Azerbaijan’s COP in November, building momentum on the outcomes from previous COPs.

Key takeaways around sustainability and emission reduction initiatives include:

Climate finance: This theme was high on the agenda this year, with discussions focused on the need to improve how developing countries access climate-related financial support in order to meet their climate targets – and who should be contributing to this fund. Although there was no formal consensus on this, all parties are obligated to agree on a new global climate finance goal by the end of COP29.
Loss and damage fund: The loss and damage fund, launched at COP28, aims to provide financial support for developing countries affected by climate change and the resulting extreme weather events. At the Bonn conference, discussions mainly focused on ensuring there was a separate pot of funding specifically for loss and damage within the wider “climate finance” fund. Despite new figures suggesting the consequences of extreme weather caused £41bn of damage in the first half of 2024⁴, no formal agreements were made, with discussions being carried forward to COP29.
Emissions reduction targets: Countries signed-up to the Paris Agreement each have a set of ‘nationally determined contributions’ (NDCs) to reduce emissions and adapt to the impacts of climate change. However, many at the conference deemed the current goals as inadequate and highlighted the need for more ambition, particularly from developed countries. New and updated NDCs are expected by early 2025 and, ahead of this, progress will be measured in the first Biennial Transparency Report, which is due by 31st December 2024.
Taxation: The idea was brought forward that the five biggest private sector oil companies should provide financial help to developing countries tackling the consequences of climate change. The International Energy Agency has supported this idea, but a consensus wasn’t reached at Bonn and will be on the agenda for COP29.

For a more in-depth overview of the takeaways from the Bonn Climate Change Conference, you can read the official press release.

Spotlight on renewables

Global hydropower capacity reaches record figure

According to the 2024 World Hydropower Outlook, global hydropower reached a record 1,412GW capacity in 2023⁵. This is encouraging news, with hydropower currently the largest source of renewable energy globally, providing a stable source of generation during periods of fluctuating electricity demand, playing a pivotal part in the journey to net zero.

Nevertheless, the report estimates that double the current hydropower capacity will be needed to reach net zero by 2050, requiring an investment of approximately $3.7tn.

To learn more about why we’ve chosen hydropower to be part of our own fuel mix, take a read of our blog.

Wind and solar to account for three-quarters of electricity by 2050

A new report by DNV New Power Systems predicts wind and solar energy will generate half of the world’s electricity by 2040⁶. The figure will reach 70% by 2050 – with almost 90% of all electricity coming from renewable sources.

With solar and wind power making up part of our own fuel mix, it’s encouraging to see these renewable sources increase at a global level.

Renewables critical in bolstering energy security

New insights from the Energy and Climate Intelligence Unit (ECIU) reveal that renewables will play a larger role than domestic oil and gas in the UK’s energy security⁷. As domestic oil and gas production from the North Sea continues to decline, the UK is set to become more dependent on international energy imports over the next five years, and renewables and other low carbon technologies (such as heat pumps and electric vehicles) will make the biggest difference to bolstering energy security. To learn more, read the ECIU’s press release.

Spotlight on Statkraft

As part of the Statkraft Group, we’re sharing a few of their key updates this month:

Our parent company, Statkraft, recently celebrated the 60^th anniversary of its Rheidol Hydropower Scheme first opening. The scheme’s 49MW renewable energy capacity is the largest of its kind across Wales and England, and also has a key role in providing stability to the electricity grid⁸. To learn more about the history of the Rheidol Hydropower Scheme and the local people involved in the project over the years, visit here.
In its latest strategic review, Statkraft has sharpened its strategy to prioritise growth in its core business areas, to provide the ‘most value-creating opportunities’ in the energy transition⁹. This involves focusing on growth in solar, wind and batteries in Europe and specific international markets, prioritising investments in Norwegian hydropower, as well as developing offshore wind and green hydrogen solutions. The approach will also involve divesting from district heating and finding ‘investors in the biofuels company Silva Green Fuel and the EV charging company Mer’, to strengthen focus on being a ‘driving force in the energy transition in Norway, Europe and the world’. For more information on Statkraft’s strategy, visit here.

TALK TO OUR TEAM

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

Sources

Bryt Energy Market Updates

Electricity Prices Overview

REGO updates

National Grid ESO releases the Winter Outlook 2024/25: Early View

Millions allocated to decarbonisation efforts for public buildings

Streamlined sustainability reporting and policy clarity for businesses

Spotlight on renewables

News in brief

Spotlight on Statkraft

June’s Bryt Insight focuses on progress in energy and sustainability news, including significant funding allocated for energy-efficient upgrades to public buildings, as well as efforts to simplify sustainability reporting standards for businesses.

Additionally, we’ve rounded up some exciting advancements in low carbon technologies, from record levels of public EV chargers in the UK, to solar and battery manufacturing being poised to meet net zero demand. Here’s what you need to know this month:

Bryt Energy Market Updates

Electricity Prices Overview

Electricity prices in the wholesale market have been climbing throughout the past month, particularly towards the end of May, culminating in prices increasing by approximately 20%, reaching the highest seen in 2024 so far.

Lower electricity demand at the start of the month tempered the upward push in prices from geopolitical tensions, after the EU increased exports to Ukraine following damage to their generation and transmission systems. Increased prices were also a result of low renewable generation in the UK (with wind output down by 40% compared to average) and French nuclear constraints, with sites late coming back from maintenance.

The notable price rises towards the end of May have been driven by wholesale gas prices, which still have a large effect on UK electricity prices. These have raised significantly due to competition with Asia for LNG (liquefied natural gas) and uncertainty over Russian supply into Europe.

Moving into June, we have seen prices ease by 7% after a peak at the start of the month, mainly due to high wind generation, as well as gas storage across Europe being at its highest level since February.

REGO updates

There were 2 eREGO auctions in May; the first auction saw an increase in the cost of REGO certificates back to levels seen in February and March. REGO certificates generated by renewable energy sources that are ‘unfuelled’ – such as wind, solar and hydro – increased more than the REGO certificates generated by renewable energy sources that are ‘fuelled’ – such as biomass and anaerobic digestion – and reopened the gap between the prices of the two types of REGO certificates to £1/MWh, as seen in March.

The second auction saw a much larger increase on all REGO certificates, with them almost returning to the prices last seen in January, and the gap between ‘fuelled’ and ‘unfuelled’ certificates almost completely disappeared (at 10p/MWh), which hasn’t happened since the peak of the prices back in October 23.

National Grid ESO releases the Winter Outlook 2024/25: Early View

National Grid has released its ‘Winter Outlook 2024/25: Early View’ on the 6th June, to support the energy industry’s preparations for the next winter period. There were three key messages to be taken from this:

1) The capacity margin – the extra generation capacity above anticipated usage – going into the winter is higher than last year (and 2022/23) and is just under 10% of expected peak demand. This means it is very unlikely that there will be power cuts due to lack of generation this winter.

2) The stabilisation of global energy markets has reduced the risk of gas shortages for power generation in the UK and increased the resilience of interconnector imports; This is increasing the security of supply in the UK.

3) National Grid ESO is looking to evolve its Demand Flexibility Service (DFS). It aims to enable more businesses and households to provide flexibility to the grid, helping to reduce peak demand, ensure security of supply, and support a net zero, sustainable electricity system. More information on this will be coming in the next few days.

You can learn more by reading National Grid ESO’s Early View of Winter 2024/205, here.

Millions allocated to decarbonisation efforts for public buildings

The Department of Energy Security and Net Zero (DESNZ) has released details of grant recipients from the latest phase (Phase 3C) of its Public Sector Decarbonisation Scheme¹. The initiative supports the adoption of energy-efficient upgrades and renewable energy solutions across public sector entities – including schools, hospitals, leisure centres and council buildings. These upgrades include heat pumps, solar panels, improved insulation and energy-efficient lighting to help decarbonisation efforts across the public sector.

The Phase 3C grants cover 2024-2025 and allocate a pot of £530 million to 189 public sector organisations for 222 heat decarbonisation and energy efficiency projects. Notable recipients include the Royal United Hospitals Bath NHS Foundation Trust, which has been awarded over £21 million to decarbonise three of its buildings, and Loughborough University, which will replace the gas-fired boilers currently heating its Olympic-sized swimming pools with heat pumps.

Additionally, £27.5 million from the Industrial Energy Transformation Fund – which helps businesses with high energy use to cut their bills and emissions – have been allocated to 19 projects. These include plans to replace a paper mill’s steam boiler with one that can run on green hydrogen, a sustainable alternative to fossil fuel gas that can be produced using renewable electricity.

DESNZ projects that total investments from the Public Sector Decarbonisation Scheme will translate into a 75% reduction in emissions from public sector buildings in England by 2037 (compared to the baseline of 2017), with annual energy cost savings amounting to £650 million.

Additional funding will be allocated through Phase 3C in the coming weeks as final award offers are made. If you’re an eligible organisation looking to apply for the next round of funding, further details about Phase 4 of the scheme are due to be published in the summer. To learn more about the Public Sector Decarbonisation Scheme, visit the UK Government’s website, or for more information on the Industrial Energy Transformation Fund, click here.

Streamlined sustainability reporting and policy clarity for businesses

This past month has seen some clarity for businesses asking for simplified standards and clearer Government support for sustainability reporting and decarbonisation efforts.

The Government has appointed a taskforce of 15 sustainable business specialists to oversee the UK’s adoption of the International Sustainability Standards Board (ISSB) corporate reporting standards². The new standards were developed to provide a comprehensive global baseline of sustainability-related financial reporting criteria, to help make disclosing simpler and more streamlined. The new taskforce, named the ‘Sustainability Disclosure Technical Advisory Committee’, will consider options for endorsing the standards in the UK. It is hoped doing so will make UK businesses more attractive to investors, who will be able to rely on a globally consistent approach when considering a business’ sustainability practices into their decisions. No specific decisions (or timeline for them) have been made yet by the committee. You can find out more about the committee and its members here.

The timing of this announcement has coincided with the publication of survey results that have reinforced the need for streamlined reporting standards³. The research indicates that businesses feel the administrative resources needed to comply with different reporting regulations is having an impact on some company’s ability to spend time on delivering wider sustainability-related actions.

Simplifying reporting can free up valuable time and resources for sustainability initiatives, something that UK businesses seem very keen to do, according to a new survey by the British Standards Institute (BSI)⁴. Four-fifths (83%) of senior decision-makers surveyed expressed a desire to achieve the UK’s net zero emissions target, but called for greater Government support to achieve their sustainability targets. In fact, the survey found that cost (50%) and uncertainty surrounding Government policies (38%) are the main hurdles. We have seen an increase in our own customers wanting to better understand their renewable electricity supply as part of their reporting efforts – we hope the UK’s adoption of more streamlined reporting standards will help sustainability professionals to report on their progress in a more efficient and transparent manner. You can read more on BSI’s survey, here.

Spotlight on renewables

Solar and battery manufacturing poised to meet net zero demand

Global manufacturing capacity for solar PV is already on track to help meet the 2030 net zero emissions scenario set out by the International Energy Agency (IEA)⁵. In its ‘Advancing Clean Technology Manufacturing’ report, the IEA revealed that battery manufacturing capacity is also at 90% of the level needed to meet the world’s net zero demand by the end of the decade.

The report also shows spending on solar PV manufacturing more than doubled in the past year, while investment in battery manufacturing saw an increase of approximately 60%.

These promising developments highlight that the technology and solutions needed to support the net zero energy transition are already available, but that it will be critical to deploy these technologies at the necessary scale and speed. This reinforces what the Intergovernmental Panel on Climate Change (IPCC) already announced in a report from last year, where it warned that viable options to reduce emissions are available now, but need to be implemented rapidly.

Experts expect decline in global electricity emissions

Renewables accounted for a record 30% of global electricity generation last year, according to energy and climate think tank Ember’s Global Electricity Review⁶. Analysts believe this marks a significant milestone, meaning emissions from electricity generation will now begin to decline. Additionally, the report highlights a 23% year-on-year increase in solar electricity generation and a 10% increase in wind generation for 2023, highlighting the continued progress towards decarbonising electricity grids worldwide. You can read the report here.

Innovation in wind turbine technology

The world’s first wooden wind turbine blades have been installed in Germany⁷. Made from laminated veneer lumber, these blades offer enhanced recycling capabilities and reduced production costs compared to traditional materials, like fibreglass and epoxy resin. It is hoped that further innovations like this will continue to improve the sustainability of the wind energy sector.

News in brief

Businesses are being urged to participate in a new census aimed at gauging progress towards the UK’s net zero goals⁸. Led by the UK Business Climate Hub, the census seeks to identify barriers to net zero and is supported by major organisations like the CBI (Confederation of British Industry) and IoD (Institute of Directors). It is hoped that the results will help create a richer dataset for informed decision-making as we transition to a low carbon economy. The survey is open to all UK-based businesses, and you can take part here.

The UK has now surpassed a significant milestone with over 60,000 public electric vehicle (EV) charging points across the country, including charging points from Mer, who are also part of the Statkraft group⁹. These statistics, published by Zapmap, show the installation rate surged in the first four months of 2024, with an average of over 1,900 chargers installed monthly. The study also reveals nearly 5,000 “ultra-rapid” charging devices have been deployed across the UK. Zapmap says at the current installation rate, the UK could reach 100,000 public charging devices by August 2025. This record number of chargers marks a great step in making EV facilities more accessible to drivers, whilst supporting the electrification and decarbonisation of transport along the way.

Huge strides have been made in workplace volunteering post-pandemic, with over 50% of employers that were surveyed now facilitating volunteering opportunities for their staff, compared to just 10% pre-pandemic¹⁰. While this surge reflects a growing commitment to social responsibility, there’s an overwhelming appetite for even more support. Works4U’s latest report shows 90% of employees are eager for additional volunteering initiatives. At Bryt Energy, we also recognise this impact, which is why we offer our employees ‘helping hands’ days to allow them to give back to their communities. To learn more about how we empower our people to do so, take a read of the ‘Passionate by Nature’ section of our sustainable business report – Bryt by Nature – here.

DESNZ says the UK overachieved in meeting its third carbon budget, surpassing emission reduction targets by 15% between 2018-2022¹¹. The carbon budget is a cap on the amount of greenhouse gases that can be emitted in the UK over a five-year period. With emissions standing at 2,153MtCO₂e, notably below the allocated cap, DESNZ has said it will not carry over any surplus to future budgets.

Spotlight on Statkraft

As part of the Statkraft Group, we’re sharing a few of their key updates this month:

Our parent company, Statkraft, has recently completed the acquisition of Spanish renewables company, Enerfin. The completion adds 1.5GW of wind and solar power projects in operation and under construction to their portfolio, as well as a pipeline of projects under development, and welcomes an additional 170 employees to the team¹². Find out more on how Statkraft are accelerating the development of solar and wind in Europe, here.

Statkraft’s Mossy Hill project – a 12-turbine wind farm and substation in Shetland – has been granted an energy generation license by Ofgem. The wind farm has an installed capacity of approximately 48MW which, according to Statkraft, will generate enough renewable electricity to power the equivalent of over 34,000 homes and help Scotland to meet its Net Zero target by 2045¹³. To learn more about this project, visit here.

TALK TO OUR TEAM

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

Sources

Bryt Energy Market Updates

Commodity Updates

REGO Updates

New standards proposed to enhance energy flexibility

British Industry Supercharger launched to cut costs for energy-intensive industries

Report states UK’s Energy Security Strategy still has a long way to go

Spotlight on Renewables

News in Brief

Spotlight on Statkraft

This month’s edition of Bryt Insight sees some good news for the UK’s move to a net zero energy system, as plans are announced to support greater flexibility on the grid. The National Grid ESO (Electricity System Operator) has also stated that it feels confident in its ability to operate the grid without fossil fuels for short periods by 2025, following the share of electricity generated from coal and gas over a half-hour period reaching a record low of 2.4% in April.

Additionally, whilst reports note that project delivery delays and policy gaps may be slowing progress on the UK’s Energy Security Strategy, studies show that public support for net zero remains strong.

From the UK’s lead in corporate electric vehicles, to the launch of new initiatives aimed at reducing costs for energy intensive industries, here’s what you need to know this month:

Bryt Energy Market Updates

In last month’s edition of Bryt Insight, we took a look back at the electricity market movements over the first quarter of the year. Many of our readers found our analysis useful, so for this month’s edition, we went back to our market experts to understand a few more key trends and highlights:

Commodity UPDATES

Electricity prices overview

Tensions in the Middle East led to an increase in electricity prices in the first half of April. Although prices began to gradually decrease in the second half of the month, in part due to reduced demand forecasts and lower gas prices, there is still a risk of increased market volatility if tensions in the Middle East escalate.

In the UK, renewable generation was strong in the first half of April, with increased wind generation causing a number of negative prices for day-ahead periods. Prices were also reduced by lower-cost electricity imported from interconnectors from France and Belgium, but this was partly countered by lower wind generation towards the end of April, as well as outages at Norwegian gas fields.

Moving into May, wind generation in the UK was low, which contributed to prices increasing. However, with better weather in the UK leading to more solar generation, prices have started to decrease again. In the short term, if May’s good weather continues, electricity prices are expected to continue on a downwards trend.

National Grid Electricity System Operator (ESO) anticipates lower levels of market volatility this summer

National Grid ESO has released its 2024 Summer Outlook report, anticipating lower levels of volatility in the energy market for Summer 2024¹. Although ESO foresees electricity supply will meet demand in the UK throughout the summer months, its report also suggests that the UK is expecting to rely on imports from continental Europe, driven by higher forward-looking prices relative to those on the mainland. Interconnectors such as the Viking Link are anticipated to play a crucial role in facilitating these imports, while new battery storage projects have helped to provide the grid with the flexibility to navigate peak demand scenarios.

The Summer Outlook Report also anticipates that minimum electricity demand will be similar to last summer. Peak demand periods on the transmission network, however, are expected to be slightly lower than they were last summer, due to more solar generation being connected to distribution networks.

You can learn more by reading National Grid ESO’s Summer Outlook 2024 report, here.

REGO UPDATES

Renewable Energy Guarantees of Origin (REGO) prices continue to decrease

The latest eREGO auction, which was held in April and allows generators to sell REGO certificates for every MWh of renewable electricity they produce, saw a decrease in prices for REGO certificates generated by renewable energy sources that are ‘unfuelled’ – such as solar, wind and hydro. However, there was a slight increase in prices for REGO certificates generated by renewable energy sources that are ‘fuelled’, such as biomass and anaerobic digestion, closing the price gap between the two. This price gap, which was around £1/MWh in March’s eREGO auction, has now halved, with REGO prices returning to levels seen in November and December of last year, before prices increased in January.

New standards proposed to enhance energy flexibility

The UK Government’s Department for Energy Security and Net Zero (DESNZ) has proposed introducing new consumer protection requirements for providers of smart or flexible energy services, to support end-users contributing to grid balancing efforts².

By increasing the uptake of small-scale smart energy devices such as electric vehicle (EV) charging points and heat pumps – which are capable of adjusting electricity consumption in response to grid needs – DESNZ’s proposed measures aim to support businesses and households in reducing their consumption during high-demand periods.

Greater demand flexibility will be crucial in supporting the integration of more renewable electricity into the UK’s grid power mix, enabling the transition to a net zero energy system. By supporting businesses as they shift their electricity usage to off-peak times when electricity costs are generally lower, and the grid is less carbon-intensive, the new measures will help match electricity consumption with the availability of renewable generation, reducing the UK’s reliance on fossil fuels.

To do this, the ‘Smart Secure Electricity Systems Programme’ consultation seeks views on new consumer protection measures including:

Transparent pricing for easier customer comparison
Stricter marketing standards
Customer complaints and service processes
Universally compatible smart products that are easy to use – including standardised EV charging points

It’s encouraging to see that DESNZ are looking at how they can unlock more demand flexibility through these proposed changes, making it easier for businesses to support the UK’s electricity system on its journey to net zero by 2035.

If you’d like to respond to DESNZ’s consultation, you can do so here until it closes on June 11^th, 2024.

To learn more about how your business can navigate the net zero energy transition, you can also access our series of e-guides by clicking here.

British Industry Supercharger launched to cut costs for energy-intensive industries

The UK Government’s Department for Business and Trade (DBT) has launched the British Industry Supercharger, an initiative aimed at reducing electricity costs for energy-intensive industries³. First proposed last year to build on the Government’s Energy Security Strategy, the measures aim to enhance the competitiveness of Britain’s heavy industries by aligning electricity costs with those in other major economies – supporting UK businesses in sectors such as steel, chemicals, cement and glass.

Eligible firms will benefit from exemptions from certain costs linked to renewable electricity policies, and additionally, these businesses will receive a 60% reduction in network charges, lowering their overall electricity expenses⁴.

The initiative is projected to save around £24-£31 per MWh for around 370 businesses across the UK, with the most electricity-intensive industries, such as steel, benefiting the most. In total, the DBT expects the support to offer savings of up to £410 million a year for energy-intensive industries.

To learn more about the British Industry Supercharger or to find out if you are eligible for support, you can read the UK Government’s press release, here.

Report states UK’s Energy Security Strategy still has a long way to go

A new report from the Energy and Climate Intelligence Unit (ECIU) has suggested that the UK Government has ‘gone backwards’ on energy security in the past two years, highlighting policy gaps and project delivery delays⁵. According to the ECIU, despite the initial positive reaction to the Government’s Energy Security Strategy in April 2022, only three of the ten policy aims included in the Strategy were ranked as being partly delivered.

The report acknowledges that the Government has delivered notable successes – including establishing the National Energy System Operator (NESO), as well as introducing the low-carbon hydrogen standard, which will aid the decarbonisation of hard-to-abate sectors such as the UK’s steel industry – where it is particularly difficult to reduce emissions. However, the report highlights that many of the Government’s targets to improve energy efficiency have been missed, and renewable energy projects are not being deployed fast enough – for example, delivered no new offshore wind projects.

Despite these delays, public support for net zero efforts remains strong; a recent Britain Talks Climate survey found that the British public overwhelmingly supports stronger climate leadership from politicians, and over two thirds of respondents believe there’s still time for the Government to implement policies to tackle climate change⁶.

A report from Exeter University’s Environmental Intelligence Centre and Friends of the Earth illustrates that not only is stronger climate action wanted, but it’s also possible, with the UK having significant opportunities to transition to renewable energy sources. Its analysis identified vast areas of land suitable for onshore wind and solar farms, showing that England could see a 13-fold surge in renewable energy production with the right policy support⁷. In fact, using only 3% of the UK’s land, the areas identified in the report could support over 130,000 GWh of solar power and 95,000 GWh of onshore wind energy per year – all whilst avoiding national parks and higher-grade agricultural land.

If you’d like to learn more, you can read the ECIU’s analysis here, and Exeter University’s Environmental Intelligence Centre and Friends of the Earth’s report here. You can also learn more about Climate Outreach’s ‘Britain Talks Climate’ report by clicking here.

Spotlight on Renewables

UK Government selects two ports to help advance floating offshore wind projects

The UK Government has announced that Port Talbot in Wales and the Port of Cromarty Firth in Scotland will receive investments into critical port infrastructure to help support the UK’s floating offshore wind targets⁸.

The Government’s Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS) includes £160 million of funding to support both ports in becoming manufacturing hubs for components of floating offshore wind projects. These new developments are encouraging, paving a faster route for the UK to reach its target of 5GW of floating offshore wind capacity by 2030.

To learn more about the UK Government’s FLOWMIS scheme, click here.

New tool unveiled to facilitate wind and solar projects mapping

UK Power Networks (UKPN) has unveiled a new tool that will assist 133 local authorities across London, the East, and South-East England in identifying optimal locations for community-owned wind and solar farms⁹. This comes after DESNZ launched an initiative to encourage local communities to embrace onshore wind projects, providing detailed case studies highlighting community benefit,s so that communities can participate in decision-making around new onshore wind developments.

You can learn more about solar and wind mapping by visiting UKPN’s website here.

Britain achieves new record-low for fossil fuel generation

This month, the National Grid ESO (Electricity System Operator) has stated it feels confident in its ability to, for the first time ever, run the country’s electricity network without fossil fuels for short periods by 2025¹⁰. April saw the share of electricity generated from coal and gas over a half-hour period reaching a record low of 2.4%, and so far this year, we’ve seen a record of 75 half-hour periods where fossil fuels generated less than 5% of Great Britain’s electricity demand.

To learn more about this milestone, you can read Carbon Brief’s analysis here.

News in Brief

UK leads corporate EV deployment globally

A new report has revealed that the UK has the highest total deployment of corporate EVs globally – with 23,136 cars across the nation, including 7,459 new adoptions in the last 12 months¹¹. These numbers are encouraging, showing a willingness among British businesses to take action towards net zero by electrifying their fleets.

You can learn more about EV adoption by reading The Climate Group’s ‘Charging the EV Transition’ report, here.

Transition Plan Taskforce launches sector-specific guidance for businesses

The UK Government’s Transition Plan Taskforce (TPT) has unveiled new sector-specific guidance to support businesses in developing robust transition plans for their operations and existing assets, to support achieving net zero by 2050¹². The new guidance follows the launch of the TPT’s ‘gold standard’ climate disclosure framework for businesses last year, and is tailored to support specific sectors – including banking, asset management, power generation and electric utilities – to build comprehensive transition plans that align with wider reporting regulations.

You can find the TPT’s latest transition plan resources by clicking here.

‘Clean’ energy propelled global economy in 2023

New research has revealed that ‘clean’ energy initiatives contributed $320 billion to the global economy in 2023 alone – equating to 10% of the overall global GDP growth¹³. The report, published by the International Energy Agency (IEA), focused on the manufacturing and deployment of ‘clean’ energy technologies, such as solar panels and battery storage systems, as well as sales of technologies like electric vehicles (EVs) and heat pumps. These numbers demonstrate not only increasing demand for a move to a more sustainable electricity system, but also how renewables can have a positive impact on the global economy – aligning with the IEA’s previous declaration that the energy transition is “unstoppable”.

You can learn more by reading the IEA’s report, here.

Weather-related insurance claims exceeded £1 billion in UK

Last year, weather-related insurance claims from UK homes and businesses together exceeded £1 billion for the first time, emphasising a clear need for urgent and robust climate action¹⁴. This rise in insurance claims was driven by various storms in Autumn 2023, including Babet, Ciaran and Debi – which are becoming more frequent as a result of climate change – and echoes a previous report from the IMF that suggested that the economic benefits of the net zero transition would outweigh the costs of doing nothing.

You can learn more about weather-related insurance claims from Climate Action’s website, here.

Spotlight on Statkraft

Statkraft announces new initiative to improve wind energy supply chains

Our parent company, Statkraft, have announced the launch of the Wind Energy Initiative in collaboration with four other wind energy industry leaders and EcoVadis. The initiative aims to support the industry in identifying and adopting practices that support Environmental, Social and Governance (ESG) goals, encouraging collaboration between trading partners to have positive impacts on their supply chains¹⁵. This includes efforts to:

Maintain biodiversity on wind farms
Ensure the well-being of individuals involved in the wind energy supply chains
Prioritise carbon emissions by emphasising the integration of renewable energy and embracing circular practices.

As Europe’s largest generator of renewable energy, it’s exciting to see Statkraft collaborating with other leaders within the wind energy industry to ensure sustainable production practices.

You can learn more about the Wind Energy Initiative from WindEurope’s website, here.

You can also read about Statkraft’s onshore wind power development in the UK, here.

Latest progress for Statkraft’s solar farm and battery storage project in Yorkshire

Statkraft’s Soay Solar Farm and Greener Grid Park in East Yorkshire has entered the second phase of its development, which includes the installation of an energy storage system¹⁶. Battery storage will play a key role in supporting the UK’s net zero energy transition and the Greener Grid Park will ensure renewable generation can be fully utilised by the UK’s electricity system.

The third and final phase of Statkraft’s project will develop the solar farm on the same site, which will provide almost 50MW of new renewable electricity capacity¹⁷. The project, which aims to be fully operational by 2026, will also enhance the biodiversity value of the site by 134%, as well as bring opportunities for community benefits with new funding to support the local area.

You can learn more about Statkraft’s Soay Solar Farm and Greener Grid Park, here.

TALK TO OUR TEAM

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

Sources

Bryt Energy Market Updates

New investments into renewable technologies announced in Spring Budget

£10 billion pledged for new battery storage projects in the UK

National Grid ESO proposes £58bn investment to improve the UK’s electricity network

New opportunities for wave and tidal power in the UK

Spotlight on Renewables

News in Brief

Spotlight on Statkraft

This month, we’ve seen more progress on the UK’s journey to net zero – including new funding for solar and offshore wind as part of the Government’s Spring Budget. From plans for a record £10 billion investment into battery storage projects to new recommendations for upgrading the electricity grid, it’s encouraging to see action being taken to support the UK’s energy transition. Here’s what you need to know this month:

Bryt Energy Market Updates

In this month’s edition of Bryt Insight, we’re taking a look back at the electricity market over the first quarter of 2024, speaking to our market experts for a roundup of the key trends and highlights that your business needs to know:

Wholesale prices decreased:

In December 2023, wholesale energy prices declined steadily, though there was a slight increase in day-ahead prices in January, which was influenced by lower wind generation early in the month. Despite this, overall forward-looking prices have continued to decrease this quarter. This reflects the decline in gas prices, with UK gas storage levels remaining high, and the increased supply certainty for Winter 2024, as a result of overall strong French nuclear generation (despite some uncertainty regarding facility cracks) and improved interconnector flows from Europe.

Increased market volatility:

March 2024 saw some increased volatility in the energy market. Despite strong gas storage levels for Winter 2024, the discovery of more cracks within French nuclear reactor facilities has led to some concerns within the market over impacts on supply availability. Additionally, the ongoing conflict between Russia and Ukraine, heightened after the recent Moscow attack, has added to price uncertainties as traders become more concerned over supply. Meanwhile, liquified natural gas (LNG) ships have also continued to avoid the Red Sea due to the conflict in the area, resulting in delays in deliveries, which has further impacted market volatility.

Alongside these trends, our team noted a couple of other key updates within the energy market that may impact businesses:

Renewable Energy Guarantees of Origin (REGO) certificate prices decrease:

Overall, REGO market prices for the upcoming year (April 24-March 25) have decreased. The latest monthly e-REGO auction (held in March) was its busiest yet, and REGO prices did increase throughout March slightly, however overall these prices were still lower than the February auction.

To find out more about REGOs, read out FAQs here.

Some energy costs become more certain, as others increase or remain volatile

The beginning of the year marked a busy period for Non-Commodity Costs (NCC) – the non-energy costs found within businesses’ energy bills. Final tariffs for many of these have now been published, providing businesses with more certainty of their cost structures. These include:

Distribution Use of System (DUoS) charges, effective from April 2025 onwards, announced by Distribution Network Operators (DNOs)
Transmission Network Use of System (TNUoS) charges, from April 2024
Balancing Services Use of System (BSUoS) Winter 2024 charges, announced by National Grid ESO
Renewables Obligation (RO) scheme charges for April 2024 onwards, announced by Ofgem.

However, Contract for Difference (CfD) rates have continued to be volatile, influenced by ongoing movements in the wholesale market, while costs for the Capacity Market (CM) – which ensures the security of electricity supply by providing payments for reliable sources of capacity – have increased following recent auction results.

Important reviews of the electricity market are ongoing

In other news, the UK Government has launched a second consultation on the Review of Electricity Market Arrangements (REMA)¹. REMA seeks to address long-standing inefficiencies in the design of the energy market, focusing on aspects like the Balancing Mechanism, ancillary services, Capacity Market (CM) and the CfD scheme. This newly announced consultation provides stakeholders with an opportunity to contribute their insights and feedback. If you’d like to have your say on REMA, you can do so here until May 7^th, 2024.

New investments into renewable technologies announced in Spring Budget

While the UK Government’s Spring Budget includes a wide array of fiscal policies for the year ahead, in this edition we’re focusing on new announcements on renewable energy and sustainability – including new investments into renewable technologies to help the UK reach its net zero goals.

The budget includes the allocation of over £1 billion for the Government’s 2024 Contracts for Difference (CfD) auction – which supports investment for new renewable energy generation by guaranteeing a minimum price per unit of electricity generated². In doing so, the scheme provides the financial certainty needed for developers and investors to commit to renewable projects.

£800 million of this funding has been allocated to offshore wind projects – four times the budget available in previous rounds – a decision which follows an increase in the maximum price for offshore and floating wind in November 2023³. With this record-breaking allocation for the CfD Auction Round 6 (AR6), which is scheduled to open later this year, the funding will support the UK Government’s target of 50GW of offshore wind capacity by 2030. The remaining CfD funding, totalling £225 million, will be made available to other renewable technology groups, including onshore wind and solar.

The UK Government has also announced an additional £120 million of funding for its ‘Green Industries Growth Accelerator’, which aims to support the development and expansion of low carbon manufacturing supply chains. You can learn more about the ‘Green Industries Growth Accelerator’ in last December’s edition of Bryt Insight, here.

The Budget also confirmed that the UK Government would regulate ESG (Environmental, Social and Governance) ratings, which act as a metric for investors to assess a company’s performance under these three areas⁴. The Government aims to incentivise more investment into sustainable products and services by requiring ESG rating providers to be transparent with their methodologies, and that they are clear on the implications of their rating for businesses and investors.

Beyond this, the Spring Budget confirmed the extension of the Government’s Energy Profit Levy (EPL) until 2029⁵. Initially introduced in May 2022, the EPL imposed a 25% windfall tax on oil and gas companies – a rate later increased to 35% effective from January 2023 – with funds raised going to supporting households with their rising energy bills. The Government has not specified how new funds raised by the extended tax will be spent, but critics have been quick to point out the missed opportunity of not spending these funds to help deliver the UK’s plan for net zero⁶. Additionally, the Budget includes provisions to abolish the tax earlier than the 2029 date if market prices return to normal for an extended period.

However, despite the extension of the EPL, the Government continues to support new oil and gas licensing opportunities in the North Sea. This has been criticised by many as undermining investments into the net zero energy transition⁷.

Despite the continued focus on fossil fuels, the Spring Budget still contains some encouraging steps in the right direction. Investment into the energy transition continues with new funding for renewable technologies and supply chains, but more Government support is needed to achieve a fully decarbonised energy system, faster.

You can learn more about the Spring Budget from the UK Government’s website, here.

£10 billion pledged for new battery storage projects in the UK

New plans have been unveiled for a £10 billion investment into what could become the largest battery storage project portfolio in the UK, and play a major role in decarbonising the UK’s power grid⁸.

The investment from NatPower, a UK-based renewable energy developer, is anticipated to deliver 60GWh of battery storage capacity by 2040 – representing over 13 times the UK’s current battery storage capacity, which reached 4.6GWh in January this year⁹.

Battery storage technology is key in facilitating the net zero energy transition: by storing electricity generated from renewable sources such as wind and solar, battery storage technologies can ensure a stable supply of electricity during periods of low wind or sunlight, providing energy security as the grid transitions to a low carbon system.

Through this substantial investment, the project hopes to address grid bottlenecks and maximise the use of renewable energy resources. The company intends to submit planning applications for three ‘gigaparks’ which will be strategically located across the UK, with an additional ten in line for development in the coming year.

This announcement comes as recent research forecasts a surge in large-scale battery energy storage system (BESS) capacity across Europe, with the UK emerging as a frontrunner in investment and development¹⁰. In fact, projections from Aurora Energy Research’s latest ‘Battery Markets Attractiveness Report,’ suggest that, by 2030, the UK will increase its energy storage capacity by up to five times.

As part of this, the UK aims to further enhance its energy storage portfolio by embracing long-duration energy storage (LDES) solutions – which are designed to store and release renewable electricity over a period of at least six hours. A recent Government consultation outlined proposals for increasing investment in LDES, including the introduction of a cap-and-floor mechanism¹¹– which will guarantee investors a minimum level of revenue – to help address the financial challenge of deploying LDES at scale. You can read more about LDES from February’s edition of Bryt Insight, here.

To learn more about the role of battery storage in a net zero future, read Part 3 of our e-guide series ‘Navigating the Net Zero energy transition’, here.

You can read more about Natpower’s plans, here.

National Grid ESO proposes £58bn investment to improve the UK’s electricity network

National Grid Electricity Systems Operator (ESO) has released its ‘Beyond 2030’ report, which recommends a comprehensive set of network upgrades – totalling £58 billion in direct investment – to prepare the UK’s electricity grid for a net zero future¹².

The plan focuses on expanding grid transmission capabilities, recommending a stronger North-to-South electricity transmission route that would facilitate efficient energy distribution from North East Scotland to North West England. With this increased connectivity, National Grid ESO is aiming to improve energy security by making renewable electricity accessible across the country, regardless of where it is generated.

As well as new onshore routes, the report also proposes the construction of over three times the amount of undersea cabling currently available in order to connect the planned 21GW of additional offshore wind capacity to the grid. If this recommended transmission and offshore wind infrastructure can be delivered under the timeframes set out in the UK Government’s Transmission Acceleration Action Plan (TAAP), National Grid ESO predicts that the UK could achieve its target of a fully decarbonised electricity system by 2035.

Having released their report, National Grid ESO’s recommendations will be reviewed by Ofgem and key industry stakeholders, before they can be developed through a Detailed Network Design Phase. If approved by Ofgem, these grid improvements will play a major role in shaping a more efficient, low carbon energy system, paving a faster route to net zero in the UK.

To read National Grid ESO’s full list of recommendations, you can find its Beyond 2030 report here.

New opportunities for wave and tidal power in the UK

A recent report has suggested that integrating 27GW of wave energy capacity into the UK’s energy system by 2050 could offer the most cost-effective path to achieving net zero¹³. The study, conducted by Finland’s LUT University, highlighted the potential of combining wave energy with other renewables like solar and wind to aid the net zero energy transition.

The report emphasises the need for a supportive framework to unlock the benefits of wave energy, highlighting the importance of establishing clear routes to market for wave energy projects. Alongside this, the Marine Energy Council – a trade group that represents the UK’s tidal and wave energy industries – has called for ambitious deployment targets by 2035¹⁴.

Both wave and tidal power offer a predictable form of renewable electricity generation, which can be used alongside more intermittent renewable sources to support grid stability during the UK’s energy transition.

The UK is seeing promising new developments in tidal power, including the beginning of a formal planning process for The Liverpool City Region Combined Authority’s (LCRCA) Mersey Tidal Power project¹⁵. The project, which plans to leverage tidal flows at the mouth of the river Mersey to generate reliable renewable electricity, could, according to the LCRCA, become the world’s largest tidal scheme. The current preferred option for the project is a barrage between the Wirral and Liverpool, an approach which will also address future flooding risks exacerbated by climate change, as well as bringing Liverpool closer to its 2040 net zero target.

It’s encouraging to see such developments in tidal and wave energy, which could offer opportunities to bring more renewables onto the grid and support the UK in its net zero energy transition.

To learn more about the Mersey Tidal Power project, you can read the LCRCA’s press release here.

You can learn more about LTU University’s report on wave energy, here.

Spotlight on Renewables

UK surpasses 15GW milestone in onshore wind capacity

The UK has achieved a new milestone, surpassing 15GW of fully operational onshore wind capacity, spanning over 2,600 projects nationwide¹⁶. The accomplishment was reached as the West Benhar onshore wind farm, which has a capacity of 30.1MW spread across seven turbines, became fully operational.

With onshore wind now accounting for over 10% of the UK’s annual electricity generation, the Climate Change Committee (CCC) has emphasised the need for continued expansion, recommending a target of 35GW of installed onshore wind capacity by 2035 to align with the UK’s net zero targets. Following the lifting of the effective ban on new onshore wind developments in England, we hope to see the development of more onshore wind projects in the future.

To learn more about this milestone, you can visit RenewableUK’s website here.

Welsh Government greenlights first floating offshore windfarm

The Welsh Government has granted planning consent for Wales’s first floating windfarm, Project Erebus, which will be situated 40km off the coast of Pembrokeshire¹⁷.

Comprising of seven turbines, each with a capacity of 14MW, Project Erebus represents the first phase of a larger renewable energy initiative in the Celtic Sea. Further phases of the development, the Welsh Government suggests, could unlock an additional 20GW of renewable energy potential – helping to support the wider UK as it transitions to a net zero electricity system.

You can learn more by visiting the Welsh Government’s website, here.

Scotland opens world’s first floating offshore wind innovation centre

Scotland has opened its new National Floating Wind Innovation Centre (FLOWIC), representing the world’s first facility dedicated to developing floating offshore wind technology¹⁸.

FLOWIC aims to accelerate the development of floating offshore wind technology in the UK by offering state-of-the-art facilities for research and development. By hosting a space for collaboration and innovation, the new centre will help support the UK to achieve its wider goal of 50GW of offshore wind – including 5GW of floating technology – by 2030.

To learn more about FLOWIC, visit its website here.

News in Brief

UK net zero economy continues to grow

A recent report has revealed that the UK’s ‘net zero economy’ experienced a 9% growth in 2023¹⁹. This increase is encouraging considering the slower growth of the wider UK economy, which only grew by 0.1% in 2023 – suggesting growing demand among British businesses looking for renewable electricity and low carbon technology.

Alongside this, new figures show that net zero industries are creating more than enough new jobs to counteract the shrinking of the oil and gas sector. Although there were around 8,500 fewer jobs in the fossil fuel industry in 2023, over 40,000 roles were generated in low carbon and renewable energy sectors – showing that there is an opportunity for reskilling to ensure that the net zero energy transition is fair for everyone²⁰. CBI Economics has, however, warned that sustained growth relies on continued investment into renewable energy sources, as well as policy support from the UK Government.

You can learn more about CBI Economics’ report by clicking here.

UK carbon intensity falls to lowest level in a year

The UK has achieved another milestone in its renewable energy journey; in February, the carbon intensity of the UK’s electricity generation fell to 133g CO₂/kWh on average, marking the lowest recorded level in the past year²¹. This represents a significant decrease from 2010 levels, where the carbon intensity of the UK’s electricity generation averaged 457gCO₂/kWh²².

Renewable sources also generated over half of the UK’s electricity mix in February, with most of its electricity generated by wind – which accounted for almost 35%. It’s encouraging to see steps in the right direction on the UK’s journey to reducing its emissions by 78% by 2035²³.

You can read more about this on National Grid ESO’s website, here.

Spotlight on Statkraft

Statkraft release their 2023 annual report

Our parent company, Statkraft, have released their 2023 annual report, highlighting the company’s significant achievements across the energy sector this year²⁴. In a year marked by success, Statkraft generated almost 60TWh of renewable power worldwide, installed an estimated 556MW of new renewable capacity, and signed a record number of PPAs (Power Purchase Agreements) to purchase power from independent renewable generators.

Notably in the UK, Statkraft have also successfully developed and brought online a second Greener Grid Park, which will provide stability to help maximise the amount of renewable electricity that can be distributed through the grid²⁵. They’ve also expanded Europe’s renewable energy generating infrastructure, completing the construction of six solar farms in Spain, the Netherlands and Ireland.

With 36 projects currently under development and construction in the UK – including solar, wind and another nine Greener Grid projects – Statkraft’s progress this year takes them closer to their global goal of developing at least 4GW of new renewable energy generation and grid services annually by 2030. More information about Statkraft’s UK projects can be found here.

You read Statkraft’s full 2023 annual report by visiting their website, here.

Statkraft appoints new CEO

In exciting news, Birgitte Ringstad Vartdal has recently been appointed as the new CEO of Statkraft! With an extensive background in the company – including leading their largest business area, the Nordics, as well as overseeing the development of wind and solar power across Europe – Vartdal brings a wealth of experience in renewable energy to her new role²⁶.

Birgitte Ringstad Vartdal will succeed Christian Rynning-Tønnesen, who decided to step down after dedicating 14 years of service in driving Statkraft’s vision of renewing the way the world is powered.

To learn more, you can read Statkraft’s press release here.

TALK TO OUR TEAM

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

Sources

Global warming breaches 1.5°C limit

New legislation implemented to improve biodiversity

New record achieved in solar efficiency

NEWS IN BRIEF

SPOTLIGHT ON RENEWABLES

In Bryt Insight, we usually like to begin each edition with the positive news in sustainability and renewable energy. This month, unfortunately, we need to start by letting you know that global temperatures across the last year have reached 1.52°C above pre-industrial levels – exceeding the temperature limit set by world leaders under the Paris Agreement. The Agreement intends to prevent and reduce the worst impacts of climate change, and exceeding this temperature limit is a clear signal that more urgent and ambitious action is needed.

Whilst this stark warning is a cause for concern, this month’s other news stories show that many businesses are firmly committed to change. From the halving of the UK’s carbon emissions since 1990, to Wales achieving record-breaking growth in heat pumps and solar panels, we are still seeing progress towards a more sustainable energy future.

Here’s what you need to know this month:

Global warming breaches 1.5°C limit

Global temperatures were on average 1.52°C warmer than pre-industrial levels from February 2023 to January 2024, representing the first year-long period that the 1.5°C limit – set by world leaders in 2015 under the Paris Agreement – has been exceeded¹.

In this year-long period, we continued to witness frequent extreme weather events, including floods, droughts, heatwaves, and wildfires across the globe. An additional 0.5°C increase would significantly amplify the chances of crossing critical tipping points, leading to potentially irreversible changes in the climate system.

Although this record-breaking year doesn’t breach the Paris Agreement, which looks at average temperatures over a longer period of time, it’s a clear signal that more urgent effort is needed to ensure further warming is limited. Scientists emphasise that by taking immediate action to cut carbon emissions, we can still reduce the effects of climate change.

“Crossing the 1.5°C global warming limit shows that even more wide-scale, immediate action is required to combat the effects of climate change. Here at Bryt Energy, we believe that businesses have a responsibility to ensure that they have a positive impact on the world they’re operating in. Many low carbon technologies required to reduce emissions in energy are not only currently available, but are becoming increasingly affordable and more widely accessible – allowing many businesses to get started on a path to net zero, now.” – Ian Brothwell, Managing Director at Bryt Energy.

What’s next?

Encouragingly, widespread awareness and support for climate action is growing across the world; a recent survey found that around two-thirds of the global population would contribute 1% of their income to help combat climate change, while almost 90% demand more climate action from their Government².

What’s more, we are increasingly seeing action towards net zero goals. This month, for instance, the UK Government officially withdrew from the international Energy Charter Treaty – which allowed fossil fuel firms to legally challenge Governments over policies to reduce carbon emissions³. Concerns over the treaty’s alignment with modern net zero goals have led several nations, including the UK, to seek a more progressive approach.

Official statistics also show that annual carbon emissions generated in the UK have halved from 1990 to 2022⁴. The increased uptake of renewable energy sources and the phasing out of coal, as well as the offshoring of carbon emissions from manufacturing processes, can be credited for this shift. In fact, in the early 2010s, only 7% of the electricity generated by the UK came from renewable sources like wind and solar – now, renewables make up over a third of electricity on the grid.

Meaningful progress continues towards a net zero, renewable energy future, but it’s clear that more must be done to prevent further increases in global temperatures. To learn more about the world’s first year-long breach of the key warming limit, you can click here.

New legislation implemented to improve biodiversity

The UK Government has launched its new Biodiversity Net Gain (BNG) policy, which mandates that all new major development sites in England, such as solar farms, must achieve a 10% net gain in biodiversity⁵.

The BNG policy marks the first time that biodiversity enhancement has been a planning condition, with land developers required to counteract the direct losses caused by construction activities, and ensure that their biodiversity gains are maintained for a minimum of 30 years.

The new legislation is positioned to enhance the environmental benefits tied to renewable infrastructure projects like onshore wind and solar farms, which can co-exist with wildlife under good management. In a new report looking at the environmental impact of renewable energy developments, the think tank REN21 demonstrates that healthy biodiversity can co-exist with the rapid scale-up and deployment of renewable energy sources, and concludes that the benefits of renewables significantly outweigh their potential negative impacts⁶.

There is also evidence that well-managed renewable infrastructure projects can even result in more or better natural habitats than before; a separate survey found that well-managed solar farms can support biodiversity and bird species that are in decline⁷. In fact, Statkraft, our parent company, are currently developing a new solar site that will utilise 10 hectares of new meadow grassland and over 3.5 hectares of woodland, alongside integrating other measures such as hedgehog homes and birdboxes, to enhance biodiversity at the site by 141%⁸.

To learn more about renewable energy and its relationship with biodiversity, you can read our fuel mix blog, here. If you’re interested in finding out more about how to comply with the new BNG legislation, a step-by-step guide is available on the UK Government’s website here.

To read REN21’s full report on the benefits of renewable projects, you can also click here.

New record achieved in solar efficiency

This month has seen a significant milestone in renewable technology, with a new global record set for the world’s most efficient solar panel⁹.

Surpassing the capabilities of traditional panels, British-based solar technology firm Oxford PV have developed a new solar panel with a 25% conversion efficiency; better efficiency ensures increased power generation from the same surface area, lowering the cost of electricity output and making solar energy more accessible.

The breakthrough also makes solar technology more appealing to investors and developers, helping to accelerate the COP28 goal of tripling global renewable capacity by 2030 and aiding the transition away from fossil fuels.

Solar panels have become nearly 60% more efficient since 2010¹⁰, and Oxford PV envisions even greater advancements in the future – anticipating a potential maximum efficiency exceeding 43%.

With continued improvements, it’s clear that solar panels – which are becoming both more efficient and affordable over time – are playing a vital role in the ongoing global shift towards more cost-effective renewable energy.

To learn more about why solar panel technologies are important in driving the UK’s journey to net zero, you can read part three of our series of guides on ‘Navigating the Net Zero energy transition and what it means for your business’, by clicking here.

To learn more about this milestone in solar efficiency, visit here.

NEWS IN BRIEF

Premier League football clubs embrace sustainability

Premier League football clubs in England have committed to taking action on environmental issues, pledging to develop robust environmental sustainability policies by the end of the 2025/26 season¹¹. Under new rules, clubs will need to establish comprehensive reporting of their direct and indirect carbon emissions, and collaborate in creating a standardised approach to tackling pressing sustainability issues in football, such as carbon emissions from short-haul flights.

It’s encouraging to see sustainability reporting becoming prominent across a range of sectors, with more awareness helping to drive the UK closer to its net zero ambitions.

To learn more, you can visit the Premier League’s website by clicking here.

West Midlands allocates £1.2 billion to propel net zero transition

The West Midlands Combined Authority (WMCA), representing 18 local councils across the West Midlands, have approved £1.2 billion of funding to help fast-track progress towards achieving net zero in the region by 2041¹². The budget includes funding to improve sustainable transportation systems, including a £111 million investment in tram extensions and £41 million dedicated to ‘Clean Bus’ services, as well as £200 million to upskill the local workforce. With our office located in the heart of Birmingham, it’s encouraging to see investments in more sustainable transport options across the region, helping to propel the wider transition to net zero.

For more information, visit the West Midlands Combined Authority website.

Financial benefits of circular economy practices for businesses

A new study has revealed that large office-based businesses in the UK can achieve substantial financial benefits by embracing simple circular economy approaches such as recycling, reducing their waste disposal costs by up to 70%¹³. The research found that by implementing stricter segregation practices to prevent contamination across dry mixed recyclable waste (including paper, cardboard, plastic bottles, and aluminium drinks), businesses could cut their costs significantly.

In fact, the report focused on a 32-storey office in London, where identifying these interventions led to average savings of £24,000 annually. These findings reinforce not just the environmental benefits of sustainable business operations, but also the financial benefits.

If you’d like to read Bywaters’ full Circular Economy report, you can click here.

SPOTLIGHT ON RENEWABLES

Wales achieves record-breaking growth in renewable installations

MCS (The Microgeneration Certification Scheme) has reported 20,000 certified renewable installations across Welsh businesses and homes in 2023, more than doubling the installations of the previous year¹⁴. Solar panels accounted for 14,730 installations, while heat pumps saw a remarkable 147% increase from the previous year with 5,853 new installations. This record-breaking level of renewable installation is encouraging, showing a wider adoption of the low carbon technologies that will help drive the UK to a net zero future.

To learn more, you can read more in the MCS press release by clicking here.

Statkraft receives green light for new 50MW battery energy storage system

Statkraft, our parent company, has recently secured planning permission for its Coylton Greener Grid Park in East Ayrshire, which will work to enhance grid stability in the region¹⁵. Greener Grid Parks directly support the transition to a net zero energy system by helping to increase the amount of renewable electricity transmitted through the grid. Statkraft’s Coylton Greener Grid Park will use a 50MW Battery Energy Storage System (BESS) to help maintain a stable voltage and frequency in the electricity grid, and support a consistent and reliable supply of renewable electricity.

You can learn more about Greener Grid Parks from Statkraft’s website, here.

UK Government launches initiative to boost community understanding of onshore wind projects

The UK Government’s Department for Energy Security and Net Zero (DESNZ) has published the outcome of a consultation which considered improvements to the current system of community engagement and benefits of onshore wind projects in England – with an aim to reduce misconceptions and prevent delays in the development of new onshore wind projects¹⁶.

DESNZ concluded that by providing local communities with detailed case studies that showcase the community benefits of onshore wind, as well as embedding more local engagement into official planning guidance, they can encourage communities to embrace new onshore wind projects. By more actively involving communities in decision-making processes, we hope that DENSZ’s findings will support further development of onshore wind, helping the UK on its transition to net zero.

For more information on the outcome of its consultation, you can visit the Government’s website here.

TALK TO OUR TEAM

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

Sources

More funds made available from UK Government for industrial decarbonisation

New consultation launched to enhance long duration energy storage investment

Report highlights benefits of diverting wasted wind energy to green hydrogen production

Spotlight on Renewables

News in Brief

This month has seen a range of developments in industrial decarbonisation, including funds available to support businesses in reducing their carbon emissions, as well as innovative ways to harness existing renewable power to help sectors that may be more challenging to decarbonise.

We’ve also seen increased Government ambition to implement long duration energy storage technologies across the UK, which could help provide the grid with much needed flexibility and support the UK’s transition to net zero.

Here’s what you need to know this month:

More funds made available from UK Government for industrial decarbonisation

The UK Government has launched the third phase of its Industrial Energy Transformation Fund (IETF), which will provide an additional £185 million between 2024 and 2028 to encourage energy-intensive businesses to invest in energy efficiency and low carbon technologies¹.

The IETF works as a competition, awarding funds to winning organisations across three categories:

Funding for feasibility and engineering studies, helping businesses to explore energy efficiency and decarbonisation projects before deciding to invest in them.
Funding to make industrial processes more energy efficient by implementing new technologies.
Funding to deploy technologies aimed at reducing emissions from industrial activities, for instance retrofitting equipment to use low carbon hydrogen in industrial processes.

As well as already being eligible to businesses such as manufacturers, during its third phase, the IETF will be accessible to a broader range of sectors, including industrial laundries and textile renting facilities. Businesses can submit proposals to one or more of the funding categories, with applications for the next round of funding open until April 24^th. For more information on applying to the IETF, you can find the Government’s website here.

The Government has also recently announced the twelve winners of its Local Industrial Decarbonisation Plan (LIDP) competition. Differing from the IETF, the Government’s LIDP fund is specifically designed to assist the decarbonisation efforts of industrial manufacturers who are not located in existing industrial clusters, with winning organisations set to share up to £6 million to develop plans to reduce their carbon emissions. Winners will also benefit from the Government’s technical support, helping them to replace inefficient equipment, transition to renewable energy sources and adopt low-carbon technologies. To see the full list winners, you can click here.

For more information on both the LIPD and IETF, you can visit the Government’s website.

New consultation launched to enhance long duration energy storage investment

The UK Government’s Department for Energy Security and Net Zero (DESNZ) has estimated that deploying 20GW of new energy storage capacity between 2030 and 2050 could lead to savings of up to £24 billion for the UK’s energy system². To meet these ambitions, they have announced a new consultation aimed at promoting investment into long duration energy storage (LDES)³.

LDES refers to a type of energy storage technology designed to store and release renewable electricity over a period of at least six hours. The scope of proposed financial support includes ‘novel’ technologies such as Compressed Air Energy Storage (CAES), which stores energy by compressing and storing air, ready to be released to generate electricity when demand is high. It also includes established LDES technologies such as pumped hydro storage, which works in a similar way, releasing stored water through a hydro turbine to generate renewable electricity. LDES technologies such as these are likely to play a crucial role in the UK’s transition to net zero, providing the grid with flexibility to support the integration of more renewable energy into the power mix. Despite clear benefits, the UK currently hosts just 2.8GW of active LDES capacity across four pumped hydro plants, the most recent of which was commissioned in the 1980s. This is due to the financial challenge of deploying LDES at scale – with high upfront costs and no existing revenue guarantees – which has led to a lack of long-term investments into storage technologies.

Addressing this, DESNZ has proposed to implement a cap and floor mechanism which will guarantee investors a minimum level of revenue, open to all storage projects capable of supplying a minimum of six hours of electricity (excluding lithium-ion batteries). It is proposing two streams through which projects can apply – one for established technologies, and one for novel ones. To help design this mechanism, the consultation is seeking input from all interested stakeholders, including LDES project developers, investors and network operators.

DESNZ’s consultation will be open until March 5^th, 2024. If you’d like to have your say, you can learn more here.

Report highlights benefits of diverting wasted wind energy to green hydrogen production

A new report by the think tank Policy Exchange has highlighted the economic impact of wasted offshore wind power, costing the UK over £1 billion annually⁴.

Limitations imposed by grid capacity – primarily attributed to grid congestion and the slow deployment of storage technologies – mean that at times wind power must be curtailed or ‘turned off’, with potential renewable electricity going unused.

Despite upgrades underway to enhance grid capacity, Policy Exchange expects they could be outpaced by the development of new power sources. Instead, it suggests diverting curtailed wind power into the production of green hydrogen – a sustainable alternative to fossil fuel gas that can be produced using renewable electricity.

As a solution, Policy Exchange is recommending greater investment into electrolysers across heavily curtailed areas such as Scotland. Their research reveals that the volume of wasted wind generation in 2022 alone could have produced over 118,000 tonnes of green hydrogen. Looking ahead, that potential rises to 455,000 tonnes by 2029.

The solution has potential to aid the decarbonisation of hard to abate sectors, such as the UK’s steel manufacturing industry and, as the UK aims to expand its installed offshore wind capacity to 50GW by 2030, could help mitigate the impact of grid limitations – ensuring that wind generation does not have to be curtailed.

You can read Policy Exchange’s report here, or to learn more about new low-carbon technologies like green hydrogen that could be key to the net zero energy transition, you can read our latest e-guide by clicking here.

Spotlight on Renewables

UK sees record-breaking year for installation of rooftop solar panels

The demand for rooftop solar panels by businesses and households across the UK has reached a 12-year high⁵. Last year, over 180,000 installations took place, while the number of installed heat pumps increased by 25% compared to 2022, signalling growing awareness and commitment to the adoption of sustainable technologies as the UK transitions to net zero.

You can find more information here.

Growth in global renewable capacity increases by almost 50% in 2023

In its Renewables 2023 report, the IEA has revealed rapid expansion among solar, wind and other renewable energy sources over the past year. Last year, the world increased construction of renewable capacity by almost 50% to nearly 510GW, marking a new record for growth. This has prompted the IEA to increase its prediction for the growth of renewable capacity over the next five years – an encouraging sign of worldwide progress towards the COP28 goal of tripling global renewable energy capacity by 2030⁶.

To learn more, you can read the IEA’s Renewables 2023 report by clicking here.

New consultation launched on proposed expansions to CfD scheme

The UK Government has published a new consultation seeking views on changes to its Contracts for Difference (CfD) scheme, which supports investment into renewable electricity by guaranteeing a price per unit of electricity generated. Proposals for Allocation Round 7 (AR7) include expanding the scope of CfD to co-located generation projects, as well as repowering projects, which are aimed at recommissioning and upgrading onshore wind infrastructure⁷. The Government’s consultation is open to all interested stakeholders until March 7^th, 2024.

To learn more about proposed changes to CfD, or to respond to the Government’s consultation, click here.

News in Brief

National Grid celebrates new grid connections in 2023

National Grid is celebrating the milestone grid connections it delivered in 2023, with notable projects including our parent company, Statkraft’s, Greener Grid Park – which will provide essential stability to help maximise the amount of renewable electricity that can be distributed through the grid⁸. Other milestones include connecting Dogger Bank – which will be the world’s largest offshore wind farm – as well as upgrading key infrastructure to enable the electrification of trains in Wales. The connection of over 3GW of ‘clean’ electricity projects paves the way to integrate more renewables onto the grid, faster, and marks continued progress in helping the UK meet its net zero ambitions.

You can read about more of National Grid’s key connections on its website.

New report predicts that AI will play a greater role in corporate decarbonisation

A new report, based on a survey of 100 business sustainability leaders, predicts that developing technologies such as artificial intelligence (AI), alongside other measures including circular procurement strategies and increased fleet electrification, will be key to corporate decarbonisation efforts this year⁹. Mitie, the facilities management and professional services company, have emphasised the potential significance of AI in enabling businesses to gather more frequent and efficient data on carbon emissions, facilitating faster and more effective decisions to enhance energy efficiency.

To learn more, you can read Mitie’s Net Zero Navigator 2024 report by clicking here.

TALK TO OUR TEAM

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

Sources

UK Government launches new consultation on Future Homes and Buildings Standards

UK Government to extend its UK Emissions Trading Scheme to 2050

Government report reveals UK manufacturing sector faces energy efficiency challenges

Spotlight on Renewables

News in Brief

In our first edition of Bryt Insight this year, we look at how the UK is continuing its journey towards net zero. From expanding and improving the UK Government’s Emissions Trading Scheme, to new standards aimed at decarbonising buildings, here’s what you need to know this month:

UK Government launches new consultation on Future Homes and Buildings Standards

The UK Government’s Department for Levelling Up, Housing, and Communities has launched a new consultation setting out plans for achieving the Future Homes and Buildings Standards, which aim to improve the energy efficiency of new homes and non-domestic buildings¹. Its proposals include a mandate to install low-carbon heat pumps and use highly insulating fabrics in the construction of all new buildings, ensuring they are ‘net zero ready’ by 2025.

The UK’s buildings, from offices to homes, contribute to around 30% of the country’s greenhouse gas (GHG) emissions – making them the second largest carbon emitter behind transport². By improving the energy efficiency of buildings, the Government hopes to reduce this overall energy usage, supporting the UK’s ongoing net zero transition. Higher building standards should also help lower heating costs, as well as creating more comfortable spaces across the UK that are easier to keep warm or cool. The consultation proposes a transitional period, granting the industry 6-12 months to adapt before new building standards take effect in 2025.

The Future Homes and Buildings Standards is also set to offer economic benefits for UK supply chains, including investments in UK heat pump manufacturing and new heating engineer jobs, potentially making the UK Europe’s largest market for heat pumps by the end of this decade.

Reforming Energy Performance Certificates

Alongside this, a recent report by Energy Systems Catapult – an independent research and technology organisation – has called for reform of Energy Performance Certificates (EPCs), which are currently used to rate the energy efficiency of buildings³.

The report suggests that current rating metrics aren’t aligned with aims to accelerate the decarbonisation of buildings. The EPC rating currently focuses on energy usage and running costs, favouring properties using energy efficient but carbon-intensive options – such as gas boilers – which will soon need replacing as the UK transitions towards low-carbon heating. On the other hand, similar properties with lower carbon alternatives – such as air source heat pumps – can often have a worse EPC rating. Despite this, the Government requires all non-domestic buildings to achieve EPC B rating by 2030, meaning a potential misalignment of targets.

The report recommends a shift to new metrics, including a ‘climate impact metric’ that offers a clear view of energy-related carbon emissions. The report also suggests complementing the EPC with a Smart Building Rating (SBR), which rates a building’s capacity to offer flexibility to the grid, helping to support the transition to a net zero electricity system.

To read Energy Systems Catapult’s report on EPCs, click here.

The UK Government’s consultation on its Future Homes and Buildings Standard is open to all stakeholders, and if you’d like to contribute, you can do so here until March 6th, 2024.

UK Government to extend its UK Emissions Trading Scheme to 2050

The Department for Energy Security and Net Zero (DESNZ) has confirmed that the UK Emissions Trading Scheme (ETS) will be extended to 2050 and has released a set of proposals intending to optimise the scheme and support energy-intensive businesses to decarbonise⁴.

The Government’s ETS scheme acts as a cap-and-trade scheme that allocates carbon allowances to businesses, and caps the total level of greenhouse gas emissions a business can emit. This creates a market for businesses to trade and sell excess carbon allowances, which incentivises industries to limit their emissions and invest in decarbonisation initiatives. The Government has launched two consultations on proposed improvements to the scheme, which aim to promote market stability and ensure it is fit for purpose in supporting businesses in the net zero transition.

If you’d like to have your say on the Government’s ETS scheme, you can access their consultation here until March 11th, 2024.

For more updates about the Government’s ETS scheme, you can read our previous edition of Bryt Insight.

Government report reveals UK manufacturing sector faces energy efficiency challenges

A recently published report, first commissioned in 2021 by the UK Government, has suggested that costs and technical issues are key barriers hindering progress in energy efficiency across the UK’s manufacturing sector⁵.

Drawing insights from surveys conducted with over 1,000 UK firms, the report reveals that only 36% of manufacturing businesses monitor their energy usage, while just 11% of firms consistently monitor both their energy usage and energy efficiency. However, the report also found that 99% of large manufacturers monitor their energy usage, compared to 37% of micro manufacturers.

Financial constraints were indicated as the main barrier to enhancing site energy efficiency, with 51% of businesses surveyed citing costs hindering the implementation of necessary measures.

The Government also published a report exploring how international policies aimed at improving industrial energy efficiency should inform UK policy. It suggested that prioritising the implementation of energy efficiency measures, rather than energy consumption targets, is a more effective way to aid broader decarbonisation objectives⁶.

By understanding their operational data and monitoring their usage, businesses can identify opportunities for efficiencies, helping them reduce their consumption and costs whilst supporting a net zero future.

To learn more, you can read the Government’s report on energy efficiency in the UK manufacturing sector, as well as its report detailing insights from international industrial energy policy.

Spotlight on Renewables

Statkraft, our parent company, has acquired the Loch Ness pumped storage hydro project, which has a renewable capacity of 450MW⁷. When built, the hydro project will function like a battery, capturing and storing surplus renewable energy until it is needed during times of high demand. This will help to ensure stability and supply security in the UK, supporting the electricity system as it transitions away from fossil fuels. You can read Statkraft’s press release to learn more.

In 2023, electricity from fossil fuels fell to its lowest level since 1957, contributing just 35% of Britain’s total electricity production⁸. While only 104TWh was generated from fossil fuels, renewable sources generated 135TWh – increasing almost six-fold from the 23TWh generated in 2008 – indicating continuous progress towards decarbonising the UK’s electricity system. If you’re interested in learning more, visit Carbon Brief’s website.

In other encouraging news for UK renewables, wind generated a new high of 21.8GW of electricity on 21st December, providing 56% of the UK’s fuel generation mix and breaking the previous record set in January 2023⁹.

News in Brief

A new forecast by the IMF has suggested that the economic benefits of the net zero transition would outweigh the costs of doing nothing¹⁰. Accelerating policies to mitigate climate change, and therefore avoiding the costs of extreme weather impacts, has been found to potentially increase gross domestic product (GDP) by 7%. To learn more, visit IMF’s blog.

The UK’s energy network operators have unveiled proposals to speed up the connection of renewable generation and storage projects to the grid, committing to deliver an additional 139GW of capacity in 2024¹¹. This is a significant target as, according to the Energy Networks Association (ENA), the UK must install a total of 225GW of new capacity to decarbonise its electricity grid by 2035¹². For more information, we dive deeper into ways to reduce grid connection delays in December’s edition of Bryt Insight.

The UK Government has unveiled plans for a new Carbon Border Adjustment Mechanism (CBAM), which will place a carbon price on emissions-intensive goods imported to the UK. This aims to support the domestic competitiveness of UK industry and incentivise global decarbonisation efforts, particularly in countries that are currently lacking carbon pricing standards¹³. By 2027, imported products from sectors such as iron, steel, aluminium and cement will carry a comparable carbon price to domestically produced goods, supporting UK business while addressing carbon emissions in international trade. To learn more, visit the UK Government’s website.

A recent report has revealed a substantial increase in the UK’s energy storage project pipeline – from 50.3GW in 2022 to 84.8GW in 2023¹⁴. Energy storage solutions play a vital role in the UK’s net zero energy transition, improving resilience and contributing to building a flexible grid system powered by renewables. We look at energy storage solutions, alongside other low-carbon technologies needed for a net zero future, in Part 3 of our e-guide series – ‘Navigating the Net Zero Energy Transition’ – which you can access here.

National Grid has begun to power the UK with electricity from its Viking Link, the world’s longest land and subsea electricity interconnector spanning 475 miles between the UK and Denmark¹⁵. The link will have 1.4GW of capacity by 2024, helping to hit the UK’s target for 18GW of interconnection capacity by 2030. Viking Link is set to offer significant benefits to UK consumers, including increased energy security and £500 million of cumulative savings over the next decade. Interconnectors like this will be key in the net zero energy transition, helping to balance supply and demand by enabling the efficient exchange of excess renewable energy among neighbouring countries. To learn more, visit National Grid’s website.

TALK TO OUR TEAM

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

Sources

Spotlight on COP28

DESNZ and Ofgem unveil new Grid Connections Action Plan to reduce grid connection delays

Government extends Climate Change Agreements (CCAs) for businesses and proposes new scheme for 2025

UK Government Increases Offshore Wind and Solar CfD Strike Prices

News in brief

As the year draws to a close, we’ve seen a number of energy announcements made by the UK Government, from new measures to reduce grid connection delays to an extension to the Climate Change Agreements, which reduces bills for energy-intensive industries. We’ve also been closely following developments at the 28th annual climate change summit – COP28 – which recently took place in Dubai.

Here’s what you need to know this month:

Spotlight on COP28

COP28 – the annual Conference of the Parties global climate summit – has come to a close. Following a tense fortnight of negotiations, nearly 200 nations have agreed to transition away from fossil fuels¹. The Global Stocktake, which was agreed to as part of the Paris Agreement, documents the progress of countries cutting emissions and adapting to climate change, and is scheduled to be released every five years going forward. The newly agreed text, which is the first time fossil fuels have been officially acknowledged and agreed to be transitioned away from, will act as a guide for countries as they update their own commitments towards limiting the effects of climate change.

The official text calls for nations to contribute to the transition “away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade, so as to achieve net zero by 2050 in keeping with the science”². Part of this agreement was a call for countries to triple renewable energy capacity globally and double the annual rate of energy efficiency improvements by 2030.

While considered a breakthrough and a victory for the “High Ambition Coalition of Nations”, some have expressed concerns regarding the agreement’s sole focus on “energy systems”, emphasising this as a potential loophole that could be exploited by fossil fuel developers³. Critiques also highlight the agreement’s shortcomings in delivering adequate finance to facilitate decarbonisation and adaptation in developing countries.

Before the start of COP28, the Global Stocktake found that national climate action plans that were agreed to as part of the Paris Agreement remained insufficient to limit global temperature rise to 1.5°C⁴. However, it’s hoped that the outcomes from the last few days will represent a positive step towards more urgent action and a commitment to move away from fossil fuels.

Here are some of the key outcomes from COP28:

Countries have agreed to contribute to the phasing out of inefficient fossil fuel subsidies and to take more action to address non-CO₂ emissions, including methane.
An agreement to accelerate the investment in transitional technologies, such as low-carbon hydrogen.
The tripling of renewable energy will see global installed capacity reach 11,000GW by 2030 and the doubling of the global average annual rate of energy efficiency will reach 4% every year until 2030.
UK announcements included an £11 billion investment into Dogger Bank wind farm (planned to be the largest offshore wind farm in the world) and a £1.6 billion commitment to international climate finance projects⁵.
A “loss and damage” fund has been established to support developing countries facing the worst impacts of climate change⁶. Currently over $700m has been pledged to the fund.
Over 60 nations have signed a new voluntary “Global Cooling Pledge”, which aims to enhance the efficiency of cooling appliances and increasing access to sustainable cooling.

You can learn more about COP28 from its official website.

DESNZ and Ofgem unveil new Grid Connections Action Plan to reduce grid connection delays

The Department for Energy Security and Net Zero (DESNZ) and Ofgem have unveiled their Grid Connections Action Plan, which includes plans to significantly reduce connection delays⁷.

As part of this plan, Ofgem have given National Grid’s Electricity System Operator (ESO) new powers to remove speculative projects lacking land rights or planning consent, unclogging the congested Transmission Entry Capacity (TEC) register.

They aim to speed up connection times for more viable renewable energy projects, which will help the UK to achieve its targets of installing 50GW of offshore wind capacity by 2030 and 70GW from solar by 2035.

The challenge of prolonged grid connection delays – some extending beyond a decade – affects both large and small renewable projects. By assessing 144 projects for potential delays, covering 29GW of capacity due for grid connection in the next two years, National Grid ESO are aiming to cut the average wait time from five years to only six months.

Alongside this, Ofgem have revealed a new strategy to introduce 13 Regional Energy Strategic Planners (RESPs) across the UK, aiming to accelerate the transition to net zero by improving local energy planning⁸. These RESPs will take a localised approach, collaborating with local Government bodies and energy networks to create roadmaps for regional energy systems that will help advance the energy transition on a local level.

To learn more about DESNZ and Ofgem’s Grid Connections Action Plan, you can read their joint press release here.

You can also click here if you’d like to learn more about Ofgem’s plan to introduce RESPs across the UK.

Government extends Climate Change Agreements (CCAs) for businesses and proposes new scheme for 2025

Following industry feedback that strongly favoured the continuation of Climate Change Agreements (CCAs), the UK Government has confirmed the extension of the CCA scheme for an additional two years⁹.

The scheme offers businesses in specific energy intensive sectors the opportunity to access reduced rates of Climate Change Levy (CCL), in exchange for commitments to reduce energy consumption and CO₂ emissions. Under the current CCA scheme, companies engaging in ‘eligible processes’ to invest in and implement energy efficiency measures can claim up to 92% relief for the CCL element of their electricity bills, as well as 83% for gas.

Following this year’s Autumn Statement, DESNZ has also launched a consultation seeking input on a proposed separate six-year Climate Change Agreement (CCA) scheme, which will build upon the existing one. You can respond to this consultation until February 14^th 2024, here.

To learn more about the UK Government’s CCAs, click here.

UK Government Increases Offshore Wind and Solar CfD Strike Prices

Following discussion with sector leaders across the renewable electricity industry, the UK Government has increased the maximum strike prices for offshore wind projects within its Contracts for Difference (CfD) auction scheme to £73 per MWh¹⁰.

CfD auctions are one of the Government’s main regulatory mechanisms to support investment in new renewable energy generation; they guarantee a minimum price per unit of electricity generated, providing the financial certainty needed by developers and investors.

The move aims to address concerns raised after the last CfD auction failed to attract any offshore wind bids, attributed mainly to rising supply chain costs. Following this, DESNZ conducted a review resulting in this increase for strike prices. Floating offshore wind projects will also see a rise to £176 per MWh, while the strike price for solar power has increased to £47/MWh, making solar the cheapest power source in the UK¹¹.

Under new Government proposals, developers could also be incentivised to provide wider socio-economic benefits beyond low-cost renewable energy generation, marking a shift toward ‘non-price factors’ in CfD considerations. These will be effective from 2025, and encompass investments in local job creation, supply chain development, and sustainable manufacturing processes.

Industry experts have cautiously welcomed the changes, acknowledging their potential to restore investor confidence in the UK’s offshore wind market¹².

To learn more, you can read the UK Government’s official press release here, or to respond to proposals on introducing non-price factors to the CfD scheme, click here.

News in Brief

UK Government announces £960 million investment to support ‘clean’ energy manufacturing

The UK Government has revealed a £4.5 billion financial injection aimed at empowering British manufacturers across eight sectors, including £960 million for a ‘Green Industries Growth Accelerator’¹³. This includes investment for businesses involved in producing components for renewable electricity networks, with funding set for availability starting in 2025. Its plans aim to support the development of sustainable energy supply chains, bolstering industries such as hydrogen and offshore wind across the UK.

To learn more, you can read the UK Government’s announcement here.

UK Government funds new initiative to keep buildings warm using waste heat from data centres

The UK Government has awarded funding under the latest round of the Green Heat Network Fund, an initiative which will provide £65 million of funding to develop 5 new ‘green heating’ projects across England¹⁴. One of these projects, backed by a £36 million investment, will recycle waste heat from data centres into low-cost heating for over 10,000 homes and 250,000 square meters of local commercial space in London’s Hammersmith and Fulham boroughs.

The first of its kind in the UK, this initiative is an encouraging step to tackle the significant sustainability challenge posed by energy-intensive data centres. It follows last month’s launch of a new Net Zero Innovation Hub for Data Centres – an initiative which is engaging a spectrum of stakeholders in a collaborative effort to address this challenge. To learn more about the Green Heat Network Fund and the other projects receiving funding, you can visit the UK Government’s website.

TALK TO OUR TEAM

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

Sources

Transition Plan Taskforce Unveils ‘Gold Standard’ Climate Disclosure Frameworks for Businesses

Views Sought on Reporting of Scope 3 Greenhouse Gas Emissions in the UK

The Global Clean Energy Transition is “Unstoppable”

Google and Microsoft Lead the Way in Data Centre Decarbonisation

Spotlight on renewables

News in brief

This month has marked another pivotal moment in the UK’s journey to net zero. We’ve seen the International Energy Agency (IEA) declare the global clean energy transition “unstoppable”, alongside significant milestones for the UK’s offshore wind industry. It’s increasingly clear that we are moving towards a low carbon energy future, but it’s equally clear that more work must be done to realise its full potential.

From changes in sustainability reporting standards to decarbonising data centres, continue reading for an update on how these recent developments might impact your business:

Transition Plan Taskforce Unveils ‘Gold Standard’ Climate Disclosure Frameworks for Businesses

The Transition Plan Taskforce (TPT) – a UK Government body designed to guide and develop private sector net zero transition plans – has unveiled its “gold standard” Disclosure Framework and Implementation Guidance¹. The TPT’s new disclosure framework is designed to align seamlessly with internationally recognised reporting frameworks and standards, and will provide clear guidance for organisations to support their long-term emission reduction objectives. It will encourage businesses to adopt holistic strategies for their transition plans, critically evaluating their climate-related impacts across their value chains.

The TPT is expected to release more information on when climate transition plans will become mandatory, with the expectation that organisations will be required to begin accounting in January 2025 for reporting to start in 2026.

This comes as The Taskforce on Nature-related Financial Disclosures (TNFD), an international initiative providing recommendations to governments, have recently finalised 14 new recommended disclosures, with a focus on mitigating the effect businesses have on biodiversity, climate change and human rights². These will encourage businesses to engage in comprehensive environmental reporting, and to integrate nature-related considerations, risks and dependencies into their corporate decisions.

Although currently voluntary, there’s a possibility that these TNFD recommendations could become mandatory – similar to the way that the Task Force on Climate-related Financial Disclosures (TCFD) requires large UK businesses to disclose their climate-related data. Because of that, it’s worth keeping your business up to date with the latest reporting requirements and how this will impact current and future environmental strategies. The TNFD’s new recommendations and the TPT’s “gold standard” Disclosure Framework will both present opportunities for UK businesses to enhance the quality of their sustainability reporting and better align with broader climate goals.

To learn more about The TPT’s “gold standard” Disclosure Framework and Implementation Guidance, you can visit their website. If you’d like to read the TNFD’s new recommended disclosures, you can click here.

Views Sought on Reporting of Scope 3 Greenhouse Gas Emissions in the UK

The Department for Energy Security and Net Zero (DESNZ) has announced an open call for evidence, inviting opinions from UK businesses of all sizes on the reporting of Scope 3 greenhouse gas emissions³. This follows the recent Government decision to adopt the newly released International Sustainability Standards Board (ISSB) framework, which includes requirements for business entities to report on their Scope 1, Scope 2, and Scope 3 emissions under the Greenhouse Gas (GHG) Protocol.

The UK’s Streamlined Energy and Carbon Reporting (SECR) guidance – which covers 12,000 of the country’s largest organisations – currently only mandates the disclosure of Scope 1 and Scope 2 emissions in their annual reports, with Scope 3 reporting being voluntary.

DESNZ is calling for insight from interested stakeholders into the costs, benefits and practicalities of requiring UK companies to report Scope 3 emissions, helping to inform the Government’s decision.

If you would like to provide your feedback on Scope 3 emissions reporting, you can do so here until the 14th of December.

The Global Clean Energy Transition is “Unstoppable”

The International Energy Agency (IEA) has declared the global renewable energy transition “unstoppable”, projecting an impressive 40% increase in annual renewable energy investments in 2023 compared to 2020⁴.

This comes alongside the IEA’s statement that carbon emissions from the global electricity sector are set to peak in the present year, with a plateau observed during the first half of 2023⁵. This milestone is predominantly attributed to the surge in wind and solar power generation, which combined now constitute 14.3% of global electricity. The IEA also forecasts the installation of more than 500GW of renewable capacity this year – emphasising the role of solar power, which sees over $1 billion invested daily.

Despite this progress, the IEA states that current global energy commitments from policymakers do not align with the climate goals of the Paris Agreement. To achieve the desired trajectory of limiting global warming to 1.5°C above pre-industrial levels, they’ve emphasised five critical priorities for policymakers worldwide:

Tripling global renewable energy capacity
Modernising electricity grids
Expanding energy storage solutions
Proposing large-scale financing mechanisms for clean energy investments in emerging economies
Implementing a goal to double the annual rate of energy efficiency improvements.

You can read IEA’s report here, or you can read our series of e-guides to learn more about how your business can navigate the net zero energy transition.

Google and Microsoft Lead the Way in Data Centre Decarbonisation

A new Net Zero Innovation Hub for Data Centres has been launched, with founding partners including Google and Microsoft. The initiative will engage a spectrum of stakeholders in a collaborative effort to address the sustainability challenge posed by energy-intensive data centres⁶.

With the growth of internet usage, the past few years have seen an exponential increase in demand for energy among data centres. The world’s data centres were using more than the UK’s annual electricity consumption as far back as 2016, and by some estimates, they could account for 3.2% of global annual emissions in 2025, increasing to 14% by 2040⁷.

The Net Zero Innovation Hub for Data Centres is aligning its goals with the EU’s targets for data centres to achieve net zero emissions by 2030, providing a space for collaboration between industry experts, from regulators and researchers to operators and network service providers. Some projects in its scope range from alternatives to diesel generation and harnessing excess heat for emission reduction, to exploring renewable electricity solutions to power data centres.

The development of this new initiative is encouraging. We’re seeing the commitment of major industry players to confront the challenges posed by energy-intensive data centres, reinforcing the significance of collaboration and innovation in charting a sustainable path towards the UK’s target of net zero emissions by 2050.

You can learn more by visiting the Net Zero Innovation Hub for Data Centres’ website.

Spotlight on renewables

In a significant milestone for the UK’s offshore wind industry, the world’s largest offshore wind farm, Dogger Bank, has commenced power generation with the commissioning of its first turbine. Located 70 miles off the coast of Yorkshire, Dogger Bank is set to have a total installed generation capacity of 3.6GW when it reaches full operational capacity in 2026⁸. To learn more, you can visit Dogger Bank’s website.

In more good news for UK offshore wind, Scotland’s largest offshore wind farm, Seagreen, has achieved full operational status. Situated in the North Sea’s Firth of Forth, the Seagreen Offshore Wind Farm has a capacity of 1.1GW and has been projected to displace over two million tonnes of CO₂ emissions annually⁹. While the UK already operates the second largest offshore wind capacity globally, this milestone goes towards meeting the UK Government’s aim to triple its offshore wind capacity to 50GW by 2030. For more information, you can visit Seagreen’s website.

According to a report released by RenewableUK, the global pipeline of floating offshore wind projects has experienced an impressive expansion of 32% over the past year¹⁰. The UK represents the second-largest global contributor, totalling 14% of the global capacity across two projects. It is projected that floating offshore wind will represent over 50% of offshore wind generation in the UK by 2050, generating an estimated £43.6 billion in economic value and creating more than 29,000 jobs. To learn more about floating offshore wind in the UK, you can visit RenewableUK’s website.

A recent report by the Offshore Wind Industry Council (OWIC) and the Offshore Wind Growth Partnership (OWGP) has outlined the economic potential of expanding the UK’s supply chain for offshore wind, suggesting it could contribute a remarkable £92 billion to the UK’s economy by 2040¹¹. To learn more, you can read the Offshore Wind Industry Council’s official press release.

Britain holds the potential to meet its entire electricity demand from wind and solar power, according to a recent policy brief from the University of Oxford¹². It’s estimated that offshore wind could generate over 2,100TWh annually – surpassing the highest electricity demand forecast for Britain in 2050, which is projected to be around 1,500TWh per year. When combined with solar power, these two renewable energy technologies could collectively produce nearly ten times the current UK electricity demand, which stands at 299TWh per year.

To achieve such a transition, the brief emphasised the need for significant grid upgrades and the scaling of battery storage solutions. It also highlighted the importance of Government and industry collaboration, emphasising the key role policymakers play. If you’d like to read the full policy brief, you can do so here.

News in Brief

In a new move towards achieving its 2050 net zero target, the UK Government is set to enact significant reductions in carbon allowances allocated to energy-intensive industries as part of the UK Emissions Trading Scheme (ETS)¹³. In 2024, it will reduce the number of carbon permits auctioned by 12.4% compared to 2023, with further reductions planned up to 2030.

The release of the 2024 UK ETS auction calendar will help drive industries to invest in decarbonisation initiatives, and is seen as a step in the right direction. To find out more about how this may impact your business, visit the UK Government’s website.

The UK Government has added £230 million of funding to the Public Sector Decarbonisation Scheme, an initiative designed to support the adoption of energy-efficient upgrades and renewable energy solutions across public sector entities – including schools, hospitals, leisure centres, and council buildings¹⁴. The Government projects that these investments will translate into a 75% reduction in emissions from public sector buildings in England by 2037 (compared to the baseline of 2017), with annual energy cost savings amounting to £650 million. If you’d like to learn more, you can visit the UK Government’s website.

The UK Government has announced a new Network Charging Compensation (NCC) scheme – an initiative designed to aid Energy Intensive Industries (EIIs) by offering them partial compensation for their electricity network charges¹⁵. A component of the Government’s British Industry Supercharger package, the NCC scheme is scheduled for implementation in 2025, and will provide EIIs with up to 60% compensation on eligible network charging costs. This funding will be sourced from the EII Support Levy (ESL) and will help reduce bills for energy intensive companies. You can read the UK Government’s official announcement for more information.

The UK is experiencing a surge in electric vehicle (EV) infrastructure, with the number of EV charging hubs doubling in the span of a year¹⁶. Recent data has revealed a 123% year-on-year increase, with the count rising from 88 in September 2022 to a substantial 196 charging hubs by September 2023. This trend is promising – the expansion of the EV charging network increases the accessibility of electric cars and can encourage more consumers to embrace EVs and reduce their travel emissions.

TALK TO OUR TEAM

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

Sources

New hope for wave and tidal power

National Grid Electricity Distribution unveils plans to accelerate grid connections

UK businesses keen to decarbonise, despite economic conditions

Spotlight on renewables

News in Brief

With UK Prime Minister Rishi Sunak announcing a major update to the Government’s net zero policies, businesses are assessing what the announcement might mean for them. From delaying the ban on new petrol and diesel cars to slowing down the phase out of gas boilers, these delays are disappointing and, as the Climate Change Committee (CCC) reports, likely to take the UK further away from its net zero targets¹. Whilst there has been plenty of criticism of these changes from across the political spectrum and business sectors, there was some positive news for the Renewable Energy sector, as Sunak also announced a new approach to grid connections, with a fast track to help eligible renewable energy projects to connect to the grid faster².

More details are likely to be announced by the Government in the coming months. For now, however, it’s important to not lose sight of the progress that has been made, and to acknowledge those organisations and individuals who are working to bring the UK one step closer to a net zero future.

As this month’s Bryt Insight shows, there is plenty of encouraging news in the renewable energy and sustainability space. Here’s what your business needs to know:

New hope for wave and tidal power

This month, we’ve seen key developments in generating renewable electricity by utilising power from the sea, including wave and tidal technologies. An Edinburgh-based energy company secured £3 million in EU funding from the EuropeWave research and development programme. The financial support will be used to advance and deploy a 250kW wave machine in Orkney, which will be built in 2025. It is hoped the project could then pave the way for a small wave farm to deliver 1-2MW of low carbon electricity by 2030³.

We’ve also seen tidal energy firmly on the UK Government’s radar as a promising emerging technology that can support net zero plans. Auction Round 5 (AR5) of the UK Government’s Contracts for Difference (CfD) scheme introduced for the first time a ringfence of £10 million per annual auction round for tidal power. The Government scheme, which supports new renewable electricity generation, dedicated around 4% of the total available budget to the 11 winning tidal stream projects, totalling around 50MW of capacity⁴.

Despite the relatively small scale of projects to date, the funding for these projects will go towards further developing and increasing the viability of wave and tidal technologies, which harness the reliable and renewable energy from the sea.

For more information around wave and tidal power in the UK’s future energy mix, visit here.

National Grid Electricity Distribution unveils plans to accelerate grid connections

To accelerate grid connections for renewable energy projects and reduce the existing bottlenecks, National Grid ESO (Electricity System Operator) has reached an agreement with National Grid Electricity Distribution – a regional distribution network operator covering East and West Midlands, South West and Wales. Thanks to this agreement, National Grid Electricity Distribution is planning to release 10GW for new renewable energy projects – such as solar farms, onshore wind and battery storage⁵.

This follows the report published by Nick Winser, the UK’s Electricity Networks Commissioner, which shows how the UK could halve the time required to build grid infrastructure⁶. More details on the report can be found in our September edition of Bryt Insight.

In exchange for an earlier connection, the renewable projects might experience an increased risk of ‘curtailment’ – the planned powering down of renewable projects when there is excess generation, such as the windiest and sunniest days, and low demand. However, the risk of curtailment is expected to decrease as more permanent improvements to the network infrastructure are made.

You can find further information on the agreement here.

UK businesses keen to decarbonise, despite economic conditions

A survey of more than 1,200 large organisations on the impacts of the UK’s ongoing energy crisis has shown that, despite a majority believing it will delay their decarbonisation journeys, business leaders do remain committed to net zero⁷. The survey, conducted by Schneider Electric, highlights that business leaders are aware of the importance of sticking to their net zero commitments. This message has been reinforced by a separate study, which found that global corporations intend to invest 22% more year-on-year on achieving net zero – with UK firms planning the largest increase in spending (36%)⁸.

The different pace and budget allocated to net zero initiatives by UK businesses suggests that, while many may delay decarbonisation plans as a result of volatile energy costs, others still see the transition to net zero as a long-term priority and an opportunity to regain control of their energy spend.

“It’s good news that the will and desire to achieve net zero and decarbonise is high on the agenda of UK business leaders. At Bryt Energy, we believe that navigating the energy transition doesn’t require a significant investment or complete operations overhaul – in fact, businesses may already have all they need. That’s why we’ve produced a series of e-guides which cover key considerations for businesses navigating the net zero energy transition, including advice to gain control of their energy usage and how to choose and implement the best low-carbon technologies.” Stuart Taylor, Head of Energy Transition at Bryt Energy.

To download our series of e-guides, click here.

Spotlight on renewables

In September, leaders of the G20 countries met in New Delhi and signed a joint declaration agreeing to collaborate and encourage efforts to triple global renewable energy capacity. The declaration also includes a commitment to “facilitating access to low-cost financing for developing countries, for existing as well as new and emerging clean and sustainable energy technologies⁹.” The joint declaration also recognises the importance of phasing down unabated coal power – coal power generated without CCUS (carbon capture, utilisation and storage). To read the full G20 declaration click here.

Looking closer to home, Great Britain achieved a new renewable electricity milestone. Data from Imperial College London revealed that in June 2023, Great Britain’s installed wind capacity surpassed gas generation capacity for the first time. The installed wind capacity reached 27.9GW, as opposed to 27.7GW for gas – marking a major step towards a decarbonised electricity system¹⁰.

Another related success for the country’s net zero targets is that at 2pm on September 18th, the UK’s electricity grid achieved a new low-carbon intensity record of 27g/kWh, with wind generating the majority of Britain’s energy (48%), while gas only generated 14.5%¹¹.

News in Brief

A new study published by the academic journal Science Advances warns that six out of nine planetary boundaries have been exceeded. The planetary boundaries are the thresholds beyond which key global systems – such as climate, water and biodiversity – are damaged to the point that their ability to maintain a healthy planet declines. The study’s authors suggest that the Earth is now “well outside of the safe operating space for humanity^12”. The new planetary boundaries assessment provides a basis for more systematic efforts to try and rebuild Earth’s resilience; According to the latest IPCC report, scientists have made it clear that we have the solutions available to do this, but rapid implementation is needed. To read the full study, click here.

The UK’s decarbonisation efforts will be enhanced by a new agreement with Ireland. The ‘Cooperation in the Energy Transition, Offshore Renewables and Electricity Interconnection’ agreement aims to facilitate cooperation for developing offshore renewables and explore new opportunities for electricity interconnectors between the countries¹³.

Conservative MP Chris Skidmore – who led the UK’s Net Zero Review published earlier this year – has launched his Westminster Declaration at the New York Climate Week¹⁴. This 16-point announcement aims to unite politicians in a cross-party commitment to phase out fossil fuels, invest in renewable energy and have “every part of society” commit to tackling climate change. Coverage of Skidmore’s Westminster Declaration can be found here.

TALK TO OUR TEAM

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

Sources

Empowering business net zero plans

Record-breaking year for the flexibility market

UK adopts international climate disclosure standards

Call to halve UK grid connection delivery timeline

Spotlight on renewables

News in Brief

It’s been a summer of exceptional climate events – but this last month has seen encouraging steps and solutions that will help the UK and businesses towards net zero. From record-breaking flexibility market milestones and new international sustainability reporting standards, to key recommendations that could halve grid connection delivery time, there is lots to discuss. Keep reading to understand what these updates could mean for your business.

Empowering business net zero plans

The UK Government has launched its Business Climate Hub, a new website with actionable insights to help businesses with their net zero transition.

Offering valuable tools and advice on how companies can reduce energy costs and emissions, the website is backed by the Net Zero Council – made up of Ministers, business leaders and finance experts aimed at driving forward the UK industry’s transition to net zero. With business and industry accounting for around 25% of the UK’s emissions, the Business Climate Hub offers tangible support for companies across all sectors, with a particular emphasis on SMEs¹.

The support provided includes a carbon calculator and a variety of resources to help measure, track and report on emissions. Detailed advice covers a range of energy-related topics, such as switching to electric vehicles (EVs), installing solar panels and low-carbon heating, as well as efficient lighting solutions and training for more fuel-efficient driving.

You can explore the resources on the UK Business Climate Hub here.

As well as the Business Climate Hub, the Net Zero Council, together with the UK’s Department for Energy Security and Net Zero (DESNZ) published business sector roadmap guidelines for reducing emissions². The guidelines provide a framework for different sectors to tackle their specific challenges and will help businesses create tailored action plans.

The guidelines call for roadmaps to include:

A credible pathway to net zero
Robust delivery plan
Mechanisms for collaboration
Independent assessment of roadmaps

Being business-led, the Net Zero Council hope the guidelines can address the challenges that different businesses face and collectively contribute to the UK’s net zero aspirations.

To find out more about the criteria for developing a business roadmap for net zero, click here.

This comes after polling continues to show the UK public supports the country’s 2050 net zero target. A new survey shows 70% of respondents support the UK’s target of becoming net zero by 2050, compared to just 18% who oppose the goal³.

Record-breaking year for the flexibility market

Last year marked a turning point for the UK’s flexibility markets, as the Energy Networks Association (ENA) revealed that electricity network companies – responsible for distributing energy from where it is generated to consumers – tendered a record 4.6GW of flexible energy capacity⁴.

According to ENA, these figures suggest the UK is one of the biggest flexibility markets in the world. The ENA also highlighted that local flexibility services allow for energy usage to be synchronised with the needs of the system, which is crucial in supporting the net zero transition and ensuring the country maximises the use of renewable power generation.

In fact, research by Cornwall Insight shows that by embracing flexible electricity usage nationwide, the UK would avoid the need to construct four additional gas-fired power stations in 2030⁵. This would result in cost-savings of more than £2.5 billion while reducing the need for infrastructure upgrades, saving an additional £1 billion. And from reducing costs to accessing new revenue streams, there are financial benefits for businesses prepared to participate too.

For more information, our series of guides on “Navigating the net zero energy transition” covers key considerations for businesses navigating the energy transition, steps they can take to gain control of their energy usage, and the low-carbon technologies that can help in the process. Click here to download them.

Stuart Taylor, Head of Energy Transition, Bryt Energy, said: “This is an extremely encouraging sign that more organisations are adopting flexibility within their energy strategies, as the UK continues to be one of the biggest flexibility markets in the world. We believe flexibility through optimisation is something most businesses could achieve – some may not even know it. We encourage readers to take a look at our series of brand new e-guides to understand how they can reap the benefits of optimisation.”

UK adopts international climate disclosure standards

The UK’s Department for Business and Trade has announced business climate disclosures will be based on the newly released International Sustainability Standards Board (ISSB) guidelines⁶. These were originally announced at COP26 in 2021, with the goal of developing a comprehensive global baseline of sustainability reporting criteria.

The move, which will inform the creation of the UK Sustainability Disclosure Standards, will enable businesses and corporations to report on their climate-related activities with a simpler, more streamlined process. It is also hoped this framework will make the UK more attractive to investors, who will be able to rely on a globally consistent approach when factoring a business’ sustainability-related practices into their decisions.

The UK already requires its largest listed companies, as well as private businesses with more than 500 employees and a turnover of £500 million, to disclose information on climate-related financial risks and opportunities. Currently, this is done through the Task Force on Climate-related Financial Disclosures guidelines (TCFD), which the ISSB standards are built upon. The switch to ISSB comes as the European Union has also announced the new European Sustainability Reporting Standard, which will also see ISSB alignment.

The announcement follows results of Workiva’s 2023 Global ESG Practitioner Survey, showing a growing number of sustainability managers and other professionals believe reporting will play a prominent role in driving competitiveness for their organisation⁷. It found 90% of respondents believe having a strong ESG reporting programme will give their organisations a competitive advantage in the next two years.

You can find out more about the survey results at this link.

Call to halve UK grid connection delivery timeline

A new report by Nick Winser, the UK’s Electricity Networks Commissioner, shows how the UK could halve the time required to build grid infrastructure⁸. Based on his engagement with stakeholders across the electricity transmission network between July 2022 and 2023, the report investigates how the UK can accelerate the deployment of strategic electricity transmission infrastructure to allow new renewable energy projects to connect to the grid faster.

The amount of renewable energy being generated in the UK has increased in recent years, but grid infrastructure development has not kept up. As a result, renewable generation projects can struggle to connect to the grid. This has seen more than 230GW of renewable generation projects in the connection queue, compared to around 80GW currently connected to the grid and supplying electricity across the UK.

The recommendations centre around the speedy creation of the Future System Operator (FSO) to forecast energy supply and demand. Other recommendations include establishing clear guidelines on what the benefits that communities affected by new transmission lines should receive, as well as a major review of UK engineering and technician jobs and skills.

The report’s 18 recommendations aim at speeding up connection times by initially three years, and ultimately halve it to around seven years. The findings have been welcomed by those in the wind industry, as the current delays for grid connection negatively affect the construction and operation of new wind farms.

To see what else the report recommends, click here.

Spotlight on renewables

The UK Government’s 2023 Electricity Generation Costs report has forecast that producing electricity from renewables will be 61% cheaper than using gas in 2025⁹. This offers further evidence of the business case for renewable energy generation, highlighting the cost benefits compared to generating energy from fossil fuels.

The study forecasts that in 2025:

Gas prices will rise to £114 per MWh
Offshore and onshore wind prices will fall to £44 per MWh
Solar will fall to £41 per MWh.

What’s more, the parallel increase in gas prices and fall in renewable costs is set to continue over the next two decades, with solar expected to become 83% cheaper than gas by 2040.

The figures, which are the first estimates on the costs of generation published by the Government since 2020, have been welcomed by industry trade bodies, including Solar Energy UK. Its Chief Executive, Chris Hewett, said the findings were “further justification” for the Government’s target to reach 70GW of solar capacity by 2035¹⁰.

To read the Electricity Generation Costs report, click here.

News in Brief

The UK Space Agency has announced £15 million to enhance satellite Earth Observation (EO) technologies¹¹. These specifically target ecological services, such as meteorology, climate monitoring, and environmental management, which will look at better managing resources, responding to humanitarian disasters and protecting our environment.

A report from reinsurance group Swiss Re. revealed that natural disasters cost insurers £39 billion in losses during the first half of 2023¹², with a series of severe storms in the USA alone accounting for 68% of that global loss. Climate change is causing a higher frequency and intensity of severe weather events, and these figures further highlight the importance of action to reduce carbon emissions and the major cost benefits of climate adaptation.

TALK TO OUR TEAM

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

Sources

Businesses benefit from net zero Government funding

UK Government awarding new oil and gas licenses

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

Resource efficiency key to ‘clean energy’ transition

UK nature’s recovery campaign

Spotlight on renewables

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

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

Businesses benefit from net zero Government funding

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

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

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

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

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

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

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

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

To find out more about the projects, click here.

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

UK Government awarding new oil and gas licenses

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

For more commentary on this development, visit here.

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

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

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

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

Click here to read the full OBR report.

Resource efficiency key to ‘clean energy’ transition

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

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

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

Find out more by downloading the ETC report here.

UK nature’s recovery campaign

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

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

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

You can read the Nature 2030 report here.

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

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

Spotlight on renewables

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

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

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

TALK TO OUR TEAM

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

Sources

Rooftops can unlock UK’s solar potential

Climate Change Committee urges Government to accelerate net zero progress

Ofgem will be required to take net zero responsibility

Spotlight on renewables

News in brief

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

Rooftops can unlock UK’s solar potential

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

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

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

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

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

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

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

Climate Change Committee urges Government to accelerate net zero progress

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

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

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

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

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

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

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

Ofgem will be required to take net zero responsibility

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

Spotlight on renewables

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

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

an increase in the allocation for the Contracts for Difference (CfD) auction round to £205 million, with the inclusion of onshore wind for the first time
the target of hosting 10GW of green and blue hydrogen generation capacity by 2030, with at least half being green hydrogen (a sustainable alternative to fossil fuel gas, which is made using water and an electrolyser powered by renewable electricity)
the proposed creation of a globally-recognised green hydrogen certification scheme by early 2025.

News in brief

At the IEA’s Global Conference on Energy Efficiency, policy makers from around the world endorsed the goal of doubling the rate of energy efficiency improvements by 2030¹⁰. The IEA said achieving the goal would be key to both reaching net zero emissions and meeting the Paris Agreement’s goal to limit global warming to 1.5°C above pre-industrial levels. Doubling the rate of energy efficiency investments could see benefits such as reduced energy bills and lower levels of air pollution. Global leaders hope the public sector could be a role model for improving energy efficiency and thereby encourage other sectors such as industry, service, buildings, transport and agriculture to follow suit.
LinkedIn’s Global Green Skills Report 2023 shows 33% of postings in the past year on its UK site were “green jobs” – representing the highest proportion of postings globally¹¹. LinkedIn’s definition of “green jobs” includes roles in low-carbon sectors such as renewable energy and EV manufacturing, as well as corporate sustainability positions. Despite the positive demand, LinkedIn’s report also revealed just one in eight workers globally possess “green skills”, highlighting a need for rapid upskilling in this area. You can read the report here.
The Department of Energy Security and Net Zero (DESNZ) have released figures showing that almost half of electricity in quarter one of 2023 came from renewable sources. The record share of 47.8% of total electricity generation is 2.4% higher than the same period last year, and a momentous increase from the same period in 2010 when the proportion of electricity from renewables was just 5.8%¹².

TALK TO OUR TEAM

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

Sources

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

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

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

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

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

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

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

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

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

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

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

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

Still chance to apply for additional Energy Bills Discount Scheme discounts

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

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

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

Spotlight on renewables

News in brief

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

Still chance to apply for additional Energy Bills Discount Scheme discounts

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Spotlight on renewables

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

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

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

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

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

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

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

News in brief

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

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

TALK TO OUR TEAM

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

Sources

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

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

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

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

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

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

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

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

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

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

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

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

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

https://www.theccc.org.uk/2023/05/16/ministers-appoint-new-business-champion-to-the-ccc/

The latest on the Energy Bills Discount Scheme

One step closer to a net zero electricity system

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

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

Impact of climate change on UK businesses outlined in study

Renewables in brief

News in brief

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

The latest on the Energy Bills Discount Scheme

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

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

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

One step closer to a net zero electricity system

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

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

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

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

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

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

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

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

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

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

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

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

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

To read the report, click here.

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

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

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

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

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

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

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

You can read the Aldersgate Group report here.

Impact of climate change on UK businesses outlined in study

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

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

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

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

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

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

Renewables in brief

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

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

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

News in brief

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

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

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

TALK TO OUR TEAM

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

Sources

The latest on the Energy Bills Discount Scheme

Call for urgent action in latest IPCC report

UK Government announces “Powering Up Britain” and Budget plans

Spotlight on Renewables

News in brief

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

The latest on the Energy Bills Discount Scheme

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

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

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

Call for urgent action in latest IPCC report

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

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

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

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

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

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

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

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

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

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

UK Government announces “Powering Up Britain” and Budget plans

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

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

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

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

Spotlight on Renewables

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

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

News in brief

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

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

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

TALK TO OUR TEAM

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

Sources

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

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

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

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

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

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

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

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

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

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

Energy Market Update

Business priorities for newly-created energy department

Taskforce launched to accelerate energy efficiency in buildings and industry

Energy storage vital for renewable future

Guides launched to boost sustainability knowledge

Spotlight on renewables

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

News in brief

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

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

Energy Market Update

Energy Bills Discount Scheme

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

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

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

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

The Targeted Charging Review

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

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

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

Guarantees of Origin Certificates

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

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

Business priorities for newly-created energy department

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

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

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

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

Taskforce launched to accelerate energy efficiency in buildings and industry

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

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

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

Energy storage vital for renewable future

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

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

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

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

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

Guides launched to boost sustainability knowledge

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

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

Spotlight on renewables

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

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

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

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

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

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

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

News in brief

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

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

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

TALK TO OUR TEAM

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

Sources

Recommendations for a “pro-business” net zero transition

Have your say on energy supply security proposals

Potential of EV smart charging to be unlocked

First live Demand Flexibility Service event a success

Spotlight on renewables

News in brief

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

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

Recommendations for a “pro-business” net zero transition

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

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

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

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

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

Reviewing business incentives to invest in decarbonisation

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

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

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

Building the skills needed for the net zero transition

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

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

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

Recognising businesses’ sustainability efforts

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

Protecting industrial businesses from environmental undercutting

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

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

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

Have your say on energy supply security proposals

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

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

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

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

Potential of EV smart charging to be unlocked

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

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

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

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

First live Demand Flexibility Service event a success

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

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

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

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

Spotlight on renewables

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

Renewables have generated more electricity than gas in the UK this winter⁵. New analysis from the Energy and Climate Intelligence Unit (ECIU) shows between October 1st 2022 and February 10^th 2023, renewables generated a combined 42TWh of electricity – reducing the need for 85TWh of gas over the same period.
Leases for six new offshore wind projects, with a potential capacity of 8GW, have been agreed by The Crown Estate⁶. The projects could be up and running and producing electricity by 2030, with enough power to supply more than 7 million homes. The six sites, in the Irish Sea and off Yorkshire and Lincolnshire, would push UK offshore wind leases beyond 40GW – which would achieve the UK’s 2030 offshore wind generation target⁷.
The European Marine Energy Centre (EMEC) has provided an update on its proposed 100MW floating offshore wind test site. It now expects the project, in Orkney, Scotland, to generate £690 million for the UK economy and add 4,160 new jobs around the country, across its expected 25-year lifespan⁸.

News in brief

The Department for Business, Energy and Industrial Strategy (BEIS) has recently been disbanded and split into three new departments: the Department for Business and Trade, the Department for Energy Security and Net Zero, and the Department for Science, Innovation and Technology⁹. Grant Shapps, previously Secretary of State for BEIS, will head up the new Department for Energy Security and Net Zero.
The Government has announced proposals to increase minimum energy performance standards for lighting in buildings. The new standards could see businesses save £2,000–£3,000 over the lifetime of a bulb. The report is available alongside a consultation which runs until April 4th. Businesses involved in the lighting sector or working towards net zero targets are encouraged to have their say¹⁰.
The search continues to find a lower-carbon alternative to red diesel – a fossil fuel used in industrial off-road vehicles and machinery. Used in UK industries including construction, mining and quarrying, in vehicles such as bulldozers, forklifts and cranes, lower-carbon options will be vital for enabling users in hard-to-abate sectors to decarbonise. And with the announcement of the second phase of the Government’s Red Diesel Replacement Competition, that solution is a step closer¹¹. Learn more about the competition, here.
Environmental, social and governance (ESG) is the top trend that will drive investment this year, according to a survey of financial companies¹². As part of its 2023 Global Innovation Report, financial services technology firm FIS asked 2,000 industry executives what their key areas of investment in 2023 were, with 84% of respondents listing ESG – emphasising the importance of these standards to businesses’ strategies.

TALK TO OUR TEAM

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

Sources

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

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

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

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

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

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

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

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

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

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

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

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

Energy Bills Discount Scheme

Demand reduction and savings achieved across successful tests

Corporate climate disclosure requests jump year-on-year

A happy new year for wind generation

COP15 biodiversity conference round-up

News in brief

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

Energy Bills Discount Scheme

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

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

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

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

Demand reduction and savings achieved across successful tests

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

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

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

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

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

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

Corporate climate disclosure requests jump year-on-year

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

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

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

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

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

A happy new year for wind generation

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

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

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

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

COP15 biodiversity conference round-up

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

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

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

News in brief

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

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

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

TALK TO OUR TEAM

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

Sources

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

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

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

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

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

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

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

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

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

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

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

Key outcomes from COP27

Grid stability and decarbonisation

UK energy and renewables news

Have your say on net zero guidelines for businesses

News in brief

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

Key outcomes from COP27

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

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

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

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

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

Other key announcements included:

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

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

Grid stability and decarbonisation

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

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

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

UK energy and renewables news

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

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

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

Have your say on net zero guidelines for businesses

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

News in brief

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

TALK TO OUR TEAM

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

Sources

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Cookie	Duration	Description
cookielawinfo-checkbox-analytics	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional	11 months	The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance	11 months	This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy	11 months	The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.