Energy Bill Relief Scheme update
New green hydrogen hub could provide UK environmental and business boost
Renewables reducing UK’s reliance on gas imports
Business can support the public behaviour change needed to achieve net zero
News in brief

As the UK continues its journey towards net zero, our latest Bryt Insight looks at some promising news for low carbon fuels and renewable electricity. We’ll also break down some of the latest reports and analysis for the energy industry and find out what it means for you.

Energy Bill Relief Scheme update

Before getting into this month’s updates, we know the Energy Bill Relief Scheme (EBRS) and the coming winter is still at the forefront of businesses’ minds. The EBRS legislation came into force on 1st November and you can find the rules, guidance and scheme documents on the Government’s website, here. You can also find the full regulations of the scheme, here.

We’ve also put together a number of resources to help you understand how the scheme works and what help is available. You can find out more information about EBRS, including eligibility requirements, in our full statement, here. We have also put together a comprehensive list of frequently asked questions around the scheme that you may find helpful, here.

New green hydrogen hub could provide UK environmental and business boost

Plans for a new green hydrogen plant have been announced by Statkraft1. Traditionally produced using fossil fuels, hydrogen at the Trecwn Green Energy Hub will be extracted from water in a process powered by fully-renewable electricity.

It’s hoped the plant will lead the way in making low carbon fuel for businesses in Wales, enabling buses, HGVs, trains, and industrial firms to reduce their greenhouse gas emissions. Statkraft, our parent company, hopes the plant will generate around three tonnes of green hydrogen a day, powered by electricity from three wind turbines and ground-mounted solar panels that will be part of the Trecwn site. This would be enough to run a single bus for more than 40,000 miles every day, or the equivalent of making 350 journeys from Fishguard to Cardiff – without producing the emissions associated with traditional fuels.

On a wider environmental scale, the project would help support the Welsh government’s net zero target, which includes producing the equivalent of 70% of electricity consumption in Wales through renewable sources by 2030.

As well as the environment, the proposed hub would give a significant boost to local businesses. Hydrogen generated at Trecwn is intended to be used to power trains running on railway lines west of Swansea, delivering many of the benefits of electrification, such as using a zero carbon fuel, but at much lower cost and with fewer requirements for new infrastructure.

Statkraft hopes to submit the plans by the end of 2023, which could mean the site becoming operational by the end of 2026.

For more information on this exciting new project, click here.

Renewables reducing UK’s reliance on gas imports

Analysis by Carbon Brief has shown the UK’s gas imports could have been 13% lower over the past decade if the Government had not cut support for energy efficiency and renewables2. The report shows if the UK Government had not cut the “green cap” starting in 2013, a total of 65 TWh of imported gas could have been avoided which would have saved around £5 billion.

The figures do however emphasise the positive impact renewables have had in the UK. They show that without the growth in renewables the UK would have needed to double the 254 TWh of gas used to generate electricity last year. This demonstrates that with the right support, renewables can effectively reduce the UK’s reliance on gas imports, which is good news for sustainability and system resilience.

To see the full analysis, click here.

Business can support the public behaviour change needed to achieve net zero

Changes in individual behaviour will be required in order to achieve the UK’s net zero goals, according to the House of Lord’s Environment and Climate Change Committee3. The report says nearly a third of the emissions reductions required up to 2035 will have to come from the public making more environmentally friendly choices – such as adopting low carbon technologies, products and services, and reducing carbon-intensive consumption. It calls on the Government to do more to bring about the change in mindsets. The report recommends leaders follow examples of where it has enabled the necessary behaviour changes before in areas such as travel, diet, consumption and energy usage. Other recommendations to the Government included launching a public engagement campaign to help people be more energy efficient.

When asked last month to outline its approach to encouraging behaviour change, the Government pointed to its October 2021 net zero strategy, which outlined six principles that applied to businesses, including SMEs, as well as the public. Those principles were:

  • sending clear regulatory signals,
  • making the environmentally friendly choice the “easiest” and most affordable,
  • empowering businesses to make their own decisions,
  • explaining why major changes are necessary,
  • presenting a clear vision of how we will get to net zero and
  • explaining what the role of businesses and people will be.

At Bryt Energy, behaviour change and the idea of ‘good grid citizenship’ is something we strongly believe in. Chris Curry, Head of Energy Transition at Bryt Energy, commented: “Achieving a net zero system is about mindsets as well as technology. In a net zero system, we’ll all need to be more responsible in our energy usage and see ourselves as engaged ‘citizens’, rather than simply energy consumers. ‘Good grid citizenship’ is about only taking what’s needed and thinking of the grid as something that is shared, with users contributing to its reliable and affordable operation so that it works for everyone.”

News in brief
  • For the first time in its history, Greece ran its electricity system entirely on renewables for five hours last month5. It used solar, wind and hydroelectric power to cover 100% of its demand for that period of time on Friday, October 7th. In good renewables news closer to home, UK wind generation hit a new record on October 26th, with 19.94GW being produced on that day. Additionally, experts believe this record could be broken repeatedly over the next few years as more wind farms come online6.
  • Meanwhile, the Environmental Audit Committee (EAC) has called on ministers to harness the full potential of geothermal energy. It says the source, which is the energy stored beneath the surface of the Earth, has the potential to fulfil much of the UK’s heating demand7.

Bryt Energy’s Sustainability Manager, Jos Mister, said: “We’re delighted to be able to report on stories so frequently that show renewable electricity going from strength to strength in the UK and around the world. Whether it’s increased availability of wind or solar power or new investments in renewables, these are all encouraging signs that we hope continue.”

  • Wildlife campaigners are hoping stark figures outlined in the WWF’s latest Living Planet Report will act as a wake up call for leaders. The report reveals nature degradation is happening more rapidly and more intensely than previously thought, with the population sizes of animals (excluding insects) having decreased by an average of 68% between 1970 and 20208. It’s hoped the report will encourage policy-makers to take further action as they meet at the UN Biodiversity Conference in December.
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.statkraft.co.uk/newsroom/news-and-stories/archive/2022/statkraft-announces-first-uk-green-hydrogen-project-pembrokeshire/ 

2. https://www.carbonbrief.org/analysis-uk-gas-imports-would-be-13-lower-if-it-had-not-cut-the-green-crap/

3. https://committees.parliament.uk/committee/515/environment-and-climate-change-committee/news/173479/government-must-support-behaviour-change-to-meet-climate-targets/

4. https://lordslibrary.parliament.uk/net-zero-and-behaviour-change/

5. https://news.sky.com/story/for-five-hours-last-week-greece-ran-entirely-on-electricity-from-solar-wind-and-water-12720353

6. https://www.current-news.co.uk/news/wind-generation-hits-highest-ever-availability-with-a-peak-of-17-6gw

7. https://committees.parliament.uk/committee/62/environmental-audit-committee/news/173703/geothermal-energy-has-potential-to-fulfil-much-of-uks-current-heating-need/

8. https://www.edie.net/living-planet-report-nature-loss-reaching-catastrophic-levels-globally/

Energy Bill Relief Scheme
£50m available for Industrial Fuel Switching
Widespread support for UK wind and solar
News in Brief
Energy Bill Relief Scheme

Over the past few months, the UK has never before seen such high and volatile wholesale energy prices. With Russia’s invasion into Ukraine, gas prices have soared, and when coupled with a post-Covid increase in demand, as well as electricity shortages in Europe, electricity prices in the UK have been driven up to extreme levels. This has created unprecedented challenges for many businesses and their employees. 

We therefore welcome the Government’s recent announcement of their ‘Energy Bill Relief Scheme’ to support businesses during the current energy crisis.

The scheme will provide a discount on wholesale electricity and gas prices for all non-domestic customers, calculated by reference to a supported price set by the government. 

The Government Supported Price has been set at £211/MWh for electricity, though the level of discount will vary for each business depending on their contract type and circumstances.   

The scheme’s discount will be applied to energy usage initially between 1st October 2022 – 31st March 2023. It will apply to fixed contracts agreed on or after 1st December 2021, as well as to deemed, variable and flexible tariffs and contracts.  

 

Eligibility 

The eligibility for the scheme has been defined by The Department of Business, Energy & Industrial Strategy (BEIS) as follows:     

Everyone on a non-domestic contract including:   

  • businesses  
  • voluntary sector organisations, such as charities  
  • public sector organisations such as schools, hospitals and care homes  

who are:   

  • on existing fixed price contracts that were agreed on or after 1st December 2021
  • signing new fixed price contracts  
  • on Deemed/Out of Contract or variable tariffs  
  • on flexible purchase or similar contracts  

If you are on a fixed contract, your discount will be determined by the date you signed your contract. We recommend that you check the date you signed your contract to get an indication of whether you will be eligible for a discount on the electricity you consume between 1st October 2022– 31st March 2023.  

You can view the dates and discounts you may receive on the Government’s website, here. 

If you are eligible, you will not have to take action or apply to the scheme to receive support. Suppliers will automatically apply the associated discounts to all eligible customers’ bills for their electricity consumption from 1st October 2022.

The Government will review the scheme in 3 months’ time to inform decisions on future support after March 2023, focusing primarily on assisting the most vulnerable non-domestic customers.  

 

Learn more 

We have a range of FAQs on the ‘Energy Bill Relief Scheme’ and the energy market more generally that we continue to update, which you may find helpful during this time: https://www.brytenergy.co.uk/faqs/

You can also read more about the new support for businesses on the Government’s website, here.

£50m available for Industrial Fuel Switching

The Government has unveiled nearly £50 million of new funding to help firms in heavy-industry sectors decarbonise and accelerate their journey to net zero1.

Those applying for funding will need to put in proposals for pre-commercial solutions to replace fossil fuel use with: 

  • Hydrogen 
  • Electrification 
  • Biomass, waste-derived fuels, and other net zero compatible fuels.  

The competition is open to all industrial sectors and fuel switching technology developers. Applicants must register by November 11th and complete their applications by November 25th. Successful participants will then receive a funding share of between £1 million – £6 million. To find out more, click here. 

Widespread support for UK wind and solar

Polling from across Britain has shown strong support for renewable solutions to help tackle rising electricity prices2. The analysis, commissioned by RenewableUK, shows 77% of people in the UK think the Government should use new wind and solar farms to reduce electricity bills, with 76% of respondents supporting new projects in their local area.

Meanwhile, the UK Warehousing Association (UKWA) says warehouse roofs could provide 15GW of solar energy a year if properly utilised3. That space currently totals around 18,500 acres of land – it says this could help British industry play a vital role in scaling renewable technologies and generation. UKWA’s report also highlighted that if a third of all warehouses utilised solar generation, they could double the UK’s solar PV capacity and also deliver the entire requirement for the UK’s 2030 target.

News in Brief
  • The new Chancellor Kwasi Kwarteng’s ‘mini budget’ featured plans to “unlock the potential of onshore wind”. It means planning rules for turbines in England will be relaxed to bring consent in line with other infrastructure, making them easier to deploy. The Government hopes the move will help accelerate infrastructure and energy projects in the UK4.

 

  • The ‘clean energy transition’ could generate global savings of up to £10.2 trillion, according to an Oxford University study5. The report looks at historic price data for renewables and fossil fuels and models how they are likely to change in the future. Researchers say the findings should help dispel concerns that the net zero energy transition will be costly.

 

  • Ofgem and the UK Government have released the Electricity Networks Strategic Framework, which spells out the “unprecedented scale and pace” the electricity network will need to transform at in order to support Britain’s decarbonisation6. The two bodies will ensure an independent “Future System Operator” will advise key decision makers and ensure the transition is properly planned. Learn more about the actions set out to achieve a net zero energy system, 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.gov.uk/government/publications/industrial-fuel-switching-competition-phase-2-demonstration-projects 

2. https://www.survation.com/polling-in-every-constituency-in-britain-shows-strong-support-for-building-wind-farms-to-drive-down-consumer-bills/

3. https://www.ukwa.org.uk/market-intel/time-to-act-on-extortionate-and-obstructive-electricity-grid-if-we-are-to-tackle-the-energy-crisis-say-uk-warehouse-owners/ 

4. https://renewablesnow.com/news/uk-to-ease-onshore-wind-permitting-with-new-infrastructure-reforms-799083/

5. https://www.cell.com/joule/fulltext/S2542-4351(22)00410-X

6. https://www.gov.uk/government/publications/electricity-networks-strategic-framework

Electricity market reforms
Attitudes towards energy and renewables
Good news for renewables
Net zero and sustainability
News in Brief

July saw the Met Office’s first ever Red weather warning and temperatures in the UK rise above 40°C for the first time, with scientists “absolutely clear” climate change was the driver1. On the back of such a warning so close to home of the need to tackle climate change, August’s Bryt Insight looks at how proposed reforms to the UK’s energy market and wider system could help us reach net zero by 2050, to prevent global temperatures rising further.

Electricity market reforms

The UK government has launched a consultation on plans for what it called the “biggest electricity market reform in a generation”. The Department for Business, Energy and Industrial Strategy (BEIS) is looking for energy industry views on changes to the wholesale electricity market, which are designed to address volatile gas prices.

The transformational Review of Electricity Market Arrangements (REMA) covers a wide range of options to address the combined challenges of responding to higher global energy costs, the need to further boost energy security and the UK’s transition to a net zero energy system. With electricity demand set to double over the next 13 years, its aim is to identify and implement UK electricity market reforms that work for businesses, industry and households.

Some of the proposed changes being consulted on include:

  • Introducing incentives for consumers to draw energy from the grid at cheaper rates
  • Reforming the capacity market to increase participation of low-carbon flexibility technologies
  • Decoupling costly global fossil fuel prices from electricity produced by cheaper renewables

The consultation lasts until October this year, so if you’d like to get involved and have your say, click here.

 

Meanwhile, in its discussion paper Net Zero Britain, Ofgem has put forward a range of potential reforms to reduce Britain’s reliance on expensive fossil fuels, and transition to a home-grown energy future. Last October, the Government pledged to decarbonise all of the UK’s electricity generation by 2035 – a key milestone on the path to hit net zero emissions by 2050. Ofgem’s discussion paper responds to this and identifies two key areas of reform, which would help deliver the energy system needed to put the UK on the path to achieving net zero by 2050:

  • To introduce an independent Future System Operator to lead strategic planning of the energy system at not just national level – as previously proposed – but also to oversee the net zero energy transition at a local level.
  • To reform the electricity wholesale market, including limiting the price setting potential of natural gas and using pricing signals to run the system more efficiently.

To find out more, click here.

Attitudes towards energy and renewables

Unsurprisingly, the cost of electricity is worrying British consumers, according to new research into attitudes and concerns around energy conducted on behalf of our parent company, Statkraft3.

The survey captured opinions from more than 2,000 members of the public and found:

  • 76% were worried about rising electricity prices
  • 59% were concerned their savings won’t cover their bills this winter
  • 83% believed the UK should be energy independent

Respondents also had their say on renewables:

  • 55% are concerned climate change targets will be forgotten due to the current energy crisis
  • 88% were unable to name any specific activities the UK has in place to achieve net zero goals
  • 75% said the UK should have started investing in renewable and “green” energy a long time ago

The survey results come after BEIS found more than 80% of Brits would be happy to have ground-mount solar panels in their local area4.

And another survey of 300 hospitality and leisure business owners5 found most were exploring enhanced energy efficiency measures and 50% were considering installing on-site solar panels to help slash their electricity bills.

Despite the immediate focus on rising electricity prices and energy security, it’s encouraging to see the results of these three separate surveys show that businesses and the general public still support and prioritise renewables and low-carbon technologies.

You can read more about the Statkraft survey by clicking here.

Good news for renewables

In a major boost for UK renewables, the country added one-fifth of global offshore wind capacity in 2021, according to the latest Crown Estate Offshore Wind Report6. The analysis found global offshore wind capacity reached more than 48.2GW, of which more than 20% came from the UK. In Britain, enough offshore wind was generated to power one-third of UK homes, up from 4% 10 years ago.

This figure looks set to continue to grow after the Government has revealed the results of the fourth and “most successful ever” Contracts for Difference (CfD) auction round, securing contracts for a total of 93 renewable electricity projects totalling 11GW in capacity. Once all the projects are operational, this will increase the UK’s overall offshore wind capacity by a third, boosting the Government’s aim of installing 50GW by 2030. The BEIS report also noted that prices for contracts of offshore wind are 70% lower than those secured in the first CfD allocation back in 2015.

This is potentially good news for businesses looking at their long-term energy costs, with analysis from the Energy and Climate Intelligence Unit (ECIU) showing the projects could save about £7 billion on electricity costs under current wholesale prices7.

It’s more good news on the sustainability front, after Europe’s most powerful electric vehicle (EV) charging hub opened in Oxford8. The station, part of the Energy Superhub Oxford project, provides 42 fast and ultra-rapid chargers, capable of charging 400 vehicles. Encouragingly, not only is the technology itself low-carbon but it’s also being powered entirely by renewable electricity, with 10 MW of installed capacity on-site.

Net zero and sustainability

The High Court has ruled the Government’s net zero strategy as unlawful9, following a successful legal challenge brought by the Good Law Project, Client Earth, Friends of the Earth and others. The strategy was first published last October – but the High Court ruled plans were “too vague”, meaning there were no detailed measures that assured targets to decarbonise the UK economy by 2050 could be met.

Businesses and others had hoped the original strategy would contain time-bound, sector-specific reductions goals. The Government now has eight months to flesh out and amend the net zero strategy. This means we can expect a more detailed plan to be produced, which should include specific industry emissions reductions targets that could be relevant to your sector and business.

Bryt Energy’s Sustainability Manager, Jos Mister, added: “At Bryt Energy, we aim to support businesses throughout their decarbonisation journeys. Key to those journeys is planning and, in this High Court ruling, there are key learnings we can take at a microlevel. If your business is setting its own carbon reduction goals, you should aim to set time-bound targets, as well as being prepared to share details of how targets will be met, to back up your plan.”

Meanwhile, a major new report on The emerging sustainability information ecosystem, from professional services giant EY, has put forward a number of recommendations for businesses reporting Environmental, Social and Governance (ESG) targets and data10. EY found that many businesses are using different definitions of ESG and different methodologies to measure performance. As a result, the report calls for ESG data and ratings agencies to be more transparent about how they source their data and calculate their scores. It says that more standardisation and regulation in ESG-related disclosures is necessary to help stamp out greenwashing.

News in Brief
  • The UK’s first Electricity Networks Commissioner has been appointed11 as part of the country’s Energy Security Strategy – Nick Winser CBE. His role will be to reduce timelines for delivering onshore transmission infrastructure and making sure the right infrastructure to boost electricity flow is in place. It should ensure businesses will be able to benefit from a more affordable, renewable supply of electricity sooner than previously planned.
  • As the race to be the UK’s next Prime Minister continues, both remaining candidates, Rishi Sunak and Liz Truss, have pledged to maintain the Government’s goal of reaching net zero carbon emissions by 205012.
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://news.sky.com/story/uk-weather-its-no-longer-denial-its-here-why-climate-change-will-make-this-weeks-uk-heatwave-more-dangerous-12653155
  2. https://www.ofgem.gov.uk/publications/ofgem-proposes-reforms-power-uk-forward-net-zero-home-grown-energy-system
  3. https://www.statkraft.co.uk/newsroom/news-and-stories/archive/2022/majority-british-consumers-call-for-energy-independence/
  4. https://www.solarpowerportal.co.uk/news/over-80-of-public-happy-with-solar-in-their-local-areas-in-ringing-endorsem
  5. https://www.edie.net/uk-hospitality-and-leisure-firms-eyeing-on-site-solar-and-energy-efficiency-amid-price-crisis-survey-finds/
  6. https://www.thecrownestate.co.uk/media/4095/2021-offshore-wind-report.pdf
  7. https://www.current-news.co.uk/news/cfd-projects-to-save-britain-7bn-under-current-prices
  8. https://energysuperhuboxford.org/europes-most-powerful-ev-charging-hub-energy-superhub-oxford/
  9. https://friendsoftheearth.uk/climate/govts-climate-strategy-deemed-unlawful-historic-ruling
  10. https://www.ey.com/en_vn/public-policy/five-priorities-to-build-trust-in-esg
  11. https://www.gov.uk/government/news/new-electricity-networks-commissioner-appointed-to-help-ensure-home-grown-energy-for-britain
  12. https://www.gov.uk/government/news/uk-strengthens-protections-for-taxpayers-in-energy-treaty-negotiations
  13. https://www.channel4.com/news/tory-leadership-race-will-new-leader-pledge-to-2050-net-zero-goal
Renewables
Sustainability
Energy
News in brief

In this month’s Bryt Insight we look at the measures put in place to mitigate the effects of the energy price crisis on business, and whether the path to net zero stays on track, given the shift in focus from sustainability to price and energy security.

Renewables

With the rising cost of energy continuing to affect businesses of every size, a lot of weight has been put on the importance of the government’s Energy Security Strategy – which was announced in April and aims to increase the UKs energy independence while the nation paves its way to net zero.

Included in the strategy is an aim for offshore wind generation to achieve 50GW by 2040, up from today’s total of 10GW. The recent announcement by The Crown Estate that it will be doubling its original investment of £25 million in its Offshore Wind Evidence and Change Programme to £50 million will support this target. The Programme aims to accelerate the UK’s offshore wind energy ambitions whilst protecting and maintaining clean, healthy, productive, and biologically diverse seas.

The additional funding will support research into the impact of offshore wind development on biodiversity, including the potential impacts on birds, marine mammals, and the seabed habitat. These results will hopefully define best practice for protecting and enhancing biodiversity, and so speed up the deployment of future offshore wind energy projects. This resonates with the sustainability strategy of our parent company, Statkraft, which is committed to mitigating its impact on biodiversity in a responsible way.

 

In other news, RenewableUK has unveiled a manifesto for decarbonising the UK electricity system by 2035. This would be achieved by targeting investment in the UK’s most affordable sources of renewable power – wind and solar – and reducing the UK’s vulnerability to volatile gas prices. Building up a new green hydrogen industry would also be a priority.

The organisation also called for an ‘evolution’ of the Contracts for Difference (CfD) auction mechanism, to incentivise long-term capital investment in major projects, develop supply chains and ensure consumers can count on ‘clean’ energy at low and stable prices.

Its report outlines areas in which the industry is making good progress towards the 2035 goal and where policy gaps remain. As well as reform of CfDs, it suggests that innovative new policies should be introduced to attract inward investment in supply chains — for example, creating new enterprise zones for offshore wind and applying tax relief or tax credits to businesses investing there, as happens in the US.

In addition, the report recommends streamlining the process of developing new offshore wind sites, consolidating skills, experience, and capacity into a centralised regulatory authority for consenting and licensing; as well as highlighting the need for a “fundamental redesign of the way we plan and deliver network infrastructure to connect offshore wind farms to the grid, to minimise the impact on local communities.”

Sustainability

A major new report from the International Energy Agency (IEA) has found that one third of the reduction in global annual carbon emissions needed to reach net zero by 2050 could be achieved by 2030, merely by accelerating existing energy efficiency improvements.

The IEA found that doubling the current global rate of improvement in energy intensity (a measure of how energy efficient an economy is in relation to GDP) to 4% a year had the potential to avoid over 26,000 TWh a year in energy consumption by the end of the 2020s.

This would be enough to:

  • reduce global CO2 emissions by an additional 5 billion tonnes a year by 2030
  • significantly move the world onto a pathway to net zero by 2050 with 1/3 of the total required emissions already achieved
  • cut global spending on energy, which could see businesses save hundreds of billions of dollars a year on energy bills
  • help create 10 million additional jobs in fields ranging from building retrofits to manufacturing and transport infrastructure.

One of the most effective ways for businesses to begin to improve their energy efficiency is by getting to know their energy consumption via a data visualisation platform, such as Bryt Envision. After understanding their usage, businesses are able to start to make behavioural changes based on these insights, to optimise their usage and reduce costs over time.

Energy efficiency can play a significant role in the environmental sustainability of a business, but research by Treedom has revealed that two thirds of employees are unaware of the sustainability policies of the companies they work for.

The study found even though 64% of European businesses have sustainability targets in place, the majority were not explaining to staff what they mean. Of the 7,000 workers surveyed, one in five said they were not sure whether their company even had a policy.

Here’s Jos Mister, Sustainability Manager at Bryt Energy, on how we connect employees with our sustainability work:

“We believe employers need to see sustainability as more than a tick-box exercise when it comes to communicating with their employees about company policies. Done right, it can encourage staff to make a real difference in the business — and in their homes and communities. At Bryt Energy, we found that talking to our team members about our commitment to sustainability from their initial induction helps them to feel connected to our goals, and we continue to keep everyone updated with our progress in company-wide updates and meetings. Some of our best carbon reduction initiatives have been suggested by our employees, so be sure to ask your team for their ideas!”

Energy

The parliamentary bill introducing a controversial ‘windfall tax’ on large oil and gas companies – first announced by Rishi Sunak back in May – has now been passed by lawmakers under new Chancellor Nadhim Zahawi. The new “Energy Profits Levy” is expected to raise £5 billion in its first year and was introduced as one of a number of measures designed to help consumers deal with rising energy prices. The bill went through parliament on Monday 11th July and at the time of writing is still to be approved by the House of Lords but is unlikely to see any more major changes. It sets an additional 25% windfall tax on oil and gas producers in the British North Sea and, after amendments, includes a definitive end date for the new taxation in December 2025. Cash raised through the levy until then will then help fund initiatives to support households with their rising energy bill.

But now the dust has settled on the announcement, analysts mulling over its ramifications are wondering whether the package, designed to help bill-payers, may have the opposite effect on the climate; Alongside the windfall tax, the Government announced that energy companies will be able to claim an investment allowance that will effectively give them 91% in tax relief on new investments. Eyebrows were raised when the Treasury released details which stated tax relief would only apply to new fossil fuel extraction, and not to investments in projects related to the net zero energy transition.

Despite being at odds with UK climate goals, this investment allowance was not changed by the new Chancellor. However, the bill does allow firms to mitigate the effects of the windfall tax by spending on decommissioning old oil fields and investing in the electrification of existing oil fields.

The Energy Profits Levy only applies to oil and gas companies; Renewable electricity generation and supply companies will not be subject to any additional tax, which should come as a relief to companies promoting the electrification of transport and heating as part of the move to Net Zero.

News in brief

The UK Government has confirmed it will start consulting on imposing a carbon tariff on imports. Proponents say it will tackle “carbon-leakage” and ensure low-carbon British businesses are not undercut by low-cost higher-emission imports. The proposed carbon border adjustment mechanism (CBAM) is similar to moves by the US and EU. Read more here.

_________________

The latest Climate Change Committee (CCC) Progress Report to Parliament warns that current policies will fail to achieve Net Zero unless focus shifts firmly to delivery. The private sector needs clear direction from the Government, credible delivery mechanisms and suitable incentives, yet in no sector of the economy is that yet complete.

Positives include:

  • Emissions from electricity generation have fallen by nearly 70% since 2010, thanks to the growth in renewables.
  • EVs are being adopted at pace and ahead of CCC and government projections.

Could do better:

  • The Government must get to grips with the gaps in policy to better insulate homes, to cut emissions and bills.
  • The report calls for a renewed focus on agriculture and land use, which has some of the weakest policy areas, despite being vital to Net Zero, food security and biodiversity.

Learn more about the report, here.

 

________________________
At their recent Berlin summit, G7 leaders made scant progress on accelerating the energy transition. However, they did agree to create a ‘Climate Club’, which aims to ‘advance ambitious and transparent climate change mitigation policies towards climate neutrality’.

You can learn more about the Climate Club 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

 

 

 

 

 

 

 

 

 

 

 

 

 

UK Government announces New Energy Bill
Consultation launched on climate transition plans
New strategic innovation fund available
Post-transition UK energy oversupply could create opportunities for flexible demand
In other news…
UK GOVERNMENT ANNOUNCES NEW ENERGY BILL

For the first time in more than a decade, the UK Government will introduce a new Energy Bill. Announced in the Queen’s Speech1last month, the Bill aims to help the UK build a more secure, homegrown energy system that is both ‘cleaner’ and more affordable. The ultimate aim is to end fossil-fuelled electricity generation by 2035, as announced by the Government last month as part of its Energy Security Strategy.

For businesses, some core elements of the Bill should help make their electricity costs lower in the long term. The government says the key part of the bill will include:

  • Providing a more organised overview of electricity and gas networks with a new Future System Operator to drive the transition to net zero – which will ultimately help businesses better control energy costs.
  • Help reduce the risk of fuel supply disruption by giving the Government the power to provide financial assistance to or require information from core fuel sector businesses.
  • Bring in new business models for carbon capture usage and storage (CCUS).
  • Britain’s first large-scale trial of heating with low-carbon hydrogen.
  • Setting up a new market standard and a trading scheme for heat pumps, and appointing Ofgem as regulator for heat networks.
  • Competition in onshore electricity networks to try and encourage investment and innovation by businesses.
  • Creation of a new pro-innovation regulatory environment for fusion energy and a safe clean up of legacy nuclear sites.
  • For residential consumers, an extension of the energy price cap.

While business leaders have largely welcomed the announcements, there’s a feeling the Government could go further to protect them from market volatility now and in the future2. There was also disappointment that ministers did not commit to funding for a retrofit strategy, to insulate buildings, which would lower emissions and energy bills.

Reacting to the announcement, Commercial Director of Bryt Energy, Sally Masters said: “We know businesses will be looking very closely at the Energy Bill this and other Government announcements to try and see how ministers are planning to provide help, throughout the current energy price crisis and beyond.

It’s important that a balance is found between increasing the UK’s energy independence and reducing costs, without losing sight of the UK’s net zero goal.

At Bryt Energy, we’re here to support businesses and help them understand what these policies mean for you; our team are on hand at heretohelp@brytenergy.co.uk if you have any questions.”

CONSULTATION LAUNCHED ON CLIMATE TRANSITION PLANS

UK businesses have a unique chance to shape the future of net zero, with the launch of a consultation on the development of a “gold-standard” for climate transition plans.

Launched by HM Treasury, the recently unveiled Transition Plan Taskforce (TPT) is now asking businesses what key principles should be accounted for and included in the framework, which will be used to support corporate climate transition strategies.

The Taskforce’s ultimate aim is to set up a framework for corporate transition plans for companies across all sectors. As part of the consultation it hopes to discover whether firms believe plans should be aligned with the UK’s wider 2050 net zero target, feature shorter-term decarbonisation action plans, and enable periodic reporting.

The TPT’s Call for Evidence3 runs until July 13th, following which, the taskforce will develop the framework and aim to publish a draft for consultation by the end of year, ready for finalisation in early 2023.

If you’d like to respond on behalf of your business, use the feedback form at transitiontaskforce.net.

NEW STRATEGIC INNOVATION FUND AVAILABLE

With the UK’s net zero transition picking up pace, more initiatives are being launched that will enable businesses to further play their part.

One opportunity launched earlier last month is the second round of funding under Ofgem and Innovate UK’s Strategic Innovation Fund (SIF)4. It aims to support innovative projects that can help accelerate energy networks’ transition to net zero. The SIF opens for applications in early September and applicants must meet one of the four challenge areas, which are:

 

  • Supporting a just energy transition – ideas that present new ways to identity and support vulnerable customers and help those who are disadvantaged.
  • Preparing for a net zero power system – to help discover new ways to support older energy systems and use new energy sources.
  • Improving energy system resilience and robustness – including ways to develop multi-energy systems and strengthen system robustness.
  • Accelerating decarbonisation of major energy demands – innovators could help manage large-scale demands from heat or transport or improve the energy efficiency of demanding systems.

 

An initial discovery phase will enable innovators to apply for £150,000 to develop their ideas, then projects deemed to have the greatest potential will be awarded up to £500,000 for further development. More funding will then be available for successful projects.

You can learn more about the SIF here.

POST-TRANSITION UK ENERGY OVERSUPPLY COULD CREATE OPPORTUNITIES FOR FLEXIBLE DEMAND

Achieving new energy targets set out in the UK Government’s recently released Energy Strategy could create 72TWh of excess renewable and nuclear energy by 2030 – creating valuable opportunities for flexible demand which can utilise this excess power.

According to research from LCP5, this expected excess demand is equivalent to almost 25% of current demand. Using all of this excess would require 50GW of demand-side flexibility from energy storage, such as batteries, electrolysers and interconnectors to enable exporting. Accelerating the growth in demand-side flexibility would have benefits such as reducing the costs of balancing the grid and helping to mitigate some of the decreasing revenues available for renewable generators to reduce subsidies.

To learn more, click here.

IN OTHER NEWS…
  • The International Energy Association (IEA) is predicting another bumper year for renewables. It comes after the world added a record 295 gigawatts of new renewable power capacity in 2021, a figure which is set to grow further in 2022. But the body warned that stronger policies would be required from world governments to keep the momentum up beyond this year6.
  • With the Government aiming to make the UK “the world’s leading green economy”, the first meeting of the Green Jobs Delivery Group took place last month. The group will support the delivery of up to 480,000 skilled ‘green’ jobs by 2030. According to Government data, more than 68,000 green jobs have already been created or are in the pipeline since the Prime Minister’s Ten Point Plan in November 2020. These include EV manufacturing in Sunderland, new hydrogen facilities in Teesside, and offshore wind in Yorkshire and Humber7.
  • The government has appointed the UK’s first Offshore Wind Champion, Tim Pick, who will spearhead work to accelerate new offshore wind projects around the UK8. New initiatives include the Floating Offshore Wind Manufacturing Scheme, which will provide £160 million in government funding to boost capacity around the UK. The emerging sector already has two operational projects, including the Kincardine site in Scotland – the world’s largest floating wind farm – the electricity from which is supplied to our parent company, Statkraft, under a long term Power Purchase Agreement (PPA).
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/beis-in-the-2022-queens-speech

2. https://theenergyst.com/paying-the-bill-energy-figures-react-to-queens-speech/

3. https://www.e3g.org/wp-content/uploads/TPT_Call-for-Evidence_Embargoed.pdf

4. https://www.ofgem.gov.uk/publications/ofgem-strategic-innovation-fund-announces-challenge-areas-second-round-funding-help-accelerate-transition-net-zero-0

5. https://www.lcp.uk.com/media-centre/2022/05/government-energy-strategy-seeds-complex-task-of-balancing-future-electricity-supply-and-demand/

6. https://www.iea.org/news/renewable-power-is-set-to-break-another-global-record-in-2022-despite-headwinds-from-higher-costs-and-supply-chain-bottlenecks

7. https://www.gov.uk/government/news/green-jobs-delivery-steps-up-a-gear

8. https://www.gov.uk/government/news/offshore-wind-champion-appointed-as-160m-floating-offshore-wind-fund-opens-for-expressions-of-interest

The UK’s new Energy Security Strategy
Continued help for energy intensive industries to negotiate the energy crisis
IPCC report outlines emission reduction measures
New TCFD rules come into force
New public body launched to manage UK net zero energy transition
More action on the horizon…

April saw some major announcements for the energy world, from the UK government’s new Energy Security Strategy to the latest part of the IPCC’s major climate change report. There’s a lot to take in, but what does it all mean for businesses? Read on to find out.

The UK’s new Energy Security Strategy

The rising cost of energy continues to be a concern, affecting businesses of every size, as well as households. Because of this, there was added focus on the release of the government’s Energy Security Strategy1 aimed at increasing the UK’s energy independence.

So what is in the Energy Security Strategy and how does the government plan to make the UK more energy independent?

 

  • On renewables, the aim is for 95% of the UK’s electricity to come from low-carbon sources by 2030. This includes increasing offshore wind capacity from today’s total of 10.4GW, to up to 50GW.

 

  • In addition, solar power capacity is planned to increase five-fold from its current 14GW by 2035. In part, this would be achieved by relaxing planning rules for solar panels on commercial buildings.

 

  • Targets for low carbon hydrogen production capacity are being doubled to up to 10GW by 2030, to help organisations in heavy industry and transport to reduce emissions.

 

Other announcements include the building of eight new nuclear reactors around the UK. New licences are also planned for oil and gas production in the North Sea which, the government says, would carry a lower carbon footprint than importing gas from abroad.

The government says the strategy will result in greater energy self-sufficiency with cheaper bills for businesses and homes in the long term2. However, some critics say it lacks plans for more immediate energy saving projects, such as insulating buildings3, and will increase carbon emissions from oil and gas production4.

Continued help for energy intensive industries to negotiate the energy crisis

High energy use businesses are set to receive extra Government support to help mitigate the cost of energy.

As part of the Energy Security Strategy, the Energy Intensive Industries Compensation Scheme is being extended by three years to 2025 and the level of support is increasing. Additionally, the current budget to support energy intensive industries is doubling to help businesses cover the costs of the UK Emissions Trading Scheme and Carbon Price Support mechanism in electricity bills. The scheme will now also provide support for companies that manufacture batteries for electric vehicles.

The government says the move will help ensure the UK remains “a desirable location for energy intensive industries”. If you already receive funding through the scheme, you will receive your payments as usual on a quarterly basis. For more information, click here.

IPCC report outlines emission reduction measures

In the third part of its Sixth Assessment Report, Climate Change 2022: Mitigation of Climate Change5, the UN’s Intergovernmental Panel on Climate Change (IPCC) says it’s “now or never”6 to limit global warming to 1.5°c. In its pathway to reduce emissions to levels that avoid the worst of the climate crisis, the report pushes for: investment in renewable energy, more wind and solar power generation, ending fossil fuel subsidies, low-carbon transport and buildings, energy storage, nature restoration and the decarbonisation of heavy industries.

It also looks at the role of technology in both limiting and reducing CO2 in the atmosphere, including low-carbon electrification, carbon capture and the use of hydrogen.

The report also highlights the important role businesses and industries play in achieving this. It says organisations should look to use materials more efficiently, reuse and recycle products and minimise waste. It warns: “Achieving net zero will be challenging and will require new production processes, low and zero emissions electricity, hydrogen, and, where necessary, carbon capture and storage.”

But the report also makes it clear that the cost of these solutions is much cheaper than the cost of doing nothing to tackle the climate crisis. So, to learn more about the steps you and your business can take towards a low carbon future, read the IPCC’s report, here.

New TCFD rules come into force

From April 2022, it has become mandatory for many UK companies to report on their Climate-related Financial Disclosures.

The Task Force on Climate-related Financial Disclosures (TCFD) was set up by the Financial Stability Board in 2015 and aims to make climate-related disclosures by businesses more consistent and therefore meaningful.

TCFD reporting falls into four key areas – governance, strategy, risk management and assessment targets, and is mandatory for UK companies who currently have to produce an annual non-financial statement. This includes listed companies, banks, or insurers with more than 500 employees7.

For more information on TCFD or to check if your business is required to report, visit here.

New public body launched to manage UK net zero energy transition

A new public body is to be set up to oversee Britain’s energy system, including the country’s net zero energy transition and longer-term planning of the nation’s gas system.

The Future System Operator (FSO) will be founded on the existing capabilities of the Electricity System Operator (ESO), and, where appropriate, National Grid Gas (NGG).

The new body will work with energy suppliers and networks to ensure energy resilience and security at a national level. It will take a whole-system approach to coordinating and planning the network, covering electricity, gas and offshore wind networks, as well as emerging markets such as carbon capture, energy usage and storage.

Businesses working towards net zero can find out more here.

More action on the horizon…
  • MPs on the Environmental Audit Committee are urging the Government to introduce a carbon tariff on imports to ensure that low-carbon British manufacturers are not undercut by low-cost, high-carbon imports. Click here to read more.

 

  • The Association for Renewable Energy and Clean Technology (REA) says nine in ten businesses have indicated improved regulations and policies would help them significantly boost the number of renewable energy and ‘clean technology projects’ they could deploy in the next two years. Read more here.
TALK TO OUR TEAM

We’re here to support your organisation and help you make sense of the current volatility in the energy market, as well as what new rules and regulations might mean for you and your transition to net zero. So, if you have any questions, speak to our team of experts on 0330 053 8620 or at heretohelp@brytenergy.co.uk.

Sources

1. https://www.gov.uk/government/publications/british-energy-security-strategy

 

2. https://www.gov.uk/government/news/major-acceleration-of-homegrown-power-in-britains-plan-for-greater-energy-independence

 

3. https://propertyindustryeye.com/governments-new-energy-strategy-comes-in-for-criticism/

 

4. https://news.sky.com/story/governments-energy-security-strategy-will-harm-environment-and-wont-ease-cost-of-living-crisis-critics-say-12584188

 

5. https://www.ipcc.ch/report/ar6/wg3/  

 

6. https://www.ipcc.ch/report/ar6/wg3/resources/press/press-release

 

7. https://www.edie.net/tcfd-mandate-everything-you-need-to-know-about-the-uks-new-climate-disclosure-requirements/

Energy
Technology
Sustainability
Good news for our green future

In the past month, the IPCC has released a stark warning about the urgency of global action to combat climate change – but there has also been progress made in areas such as exploring what our net zero electricity future could look like and in funding for vital new technologies. Here’s everything you need to know:

 

ENERGY

Many businesses will welcome the news that business rates relief on ‘green’ technologies, including solar panels and batteries, have come into effect from April 2022. In his Spring statement, Chancellor of the Exchequer Rishi Sunak moved the implementation of this measure forward by a year (from April 2023) to help businesses to mitigate against high energy prices by installing on-site generation and energy storage.

 

It’s estimated that the relief on these rates will collectively save businesses more than £35 million over the next year1 and contribute to the decarbonisation of commercial buildings. So if your business was planning to install green technologies on-site, such as solar panels or heat pumps, as part of its sustainability strategy, then you may find that this may be possible sooner. You can find out more about the business rates relief on green technologies here.

 

By installing these technologies now, you can equip your business to play its part in supporting a net zero electricity system in the future, as a new report has found that customer flexibility will be crucial. The report, from trade body Regen on behalf of National Grid ESO, has demonstrated how a fully decarbonised electricity system can be achieved by 2035, in line with Government targets. The ‘Day in the Life 2035’ study gives an hour-by-hour analysis of how a net zero power system could function on a cold, calm and cloudy winter day.

 

On the day presented, there is low renewable output and high demand. The report estimates that by 2035, consumption of electricity in Great Britain could double to 450-500TWh per year2, driven largely by the additional demand created by electric vehicles and low-carbon heating systems. This will be a challenge for a system that’s based on renewables, but Regen has found that by combining carbon capture, energy storage and demand-side flexibility, the grid should be capable of maintaining the balance between supply and demand. To read the full report, click here.

 

Our Sales and Marketing Director, David Taylor, had this to say about the Regen report: “Everything we do at Bryt Energy is about working towards a net zero electricity future – so we were encouraged to read Regen’s latest report, because it shows that a zero carbon electricity system is within our grasp. We all have a part to play in order to turn this scenario into a reality, and with the business rates relief on green technologies set to come into force shortly, investing in low carbon technology could be a great step for many businesses.”

 

TECHNOLOGY

Long-duration energy storage (LDES) technologies – those that can output stored energy at full capacity for longer than four hours, such as pumped hydro storage, played a key role in balancing the system in the Day in the Life 2035 report. A recent report from Aurora Energy Research also highlighted the need for LDES, with their study indicating that up to 24GW of LDES may be needed to support a net zero electricity system by 20353.

 

However, there are currently a number of challenges facing LDES projects, as development typically involves high upfront costs, and it can take a long time for projects to move from planning to operational stages. A lack of revenue certainty is also causing investors to hold off on funding LDES projects. Recent talks between energy storage representatives and Energy Minister Greg Hands have highlighted that if the government introduced a cap and floor mechanism for LDES projects, it could unlock ‘billions of pounds’ in investment in this area and create thousands of skilled jobs.

 

Within a cap and floor mechanism, customers that win contracts with LDES projects will top up prices that fall below the agreed ‘floor’ price, while any earnings the developer makes above the ‘cap’ are returned to the customer. A system like this could give developers and investors the revenue certainty they need to back LDES projects, whilst still being fair to bill payers. Interconnectors are currently developed through a cap and floor mechanism, so it’s encouraging to hear that a similar mechanism could be used to develop LDES, as with enhanced LDES we could significantly reduce the UK’s reliance on imported gas.

 

It’s also exciting to hear that Ofgem’s Strategic Innovation Fund (SIF) has awarded funding to 40 innovation projects across the gas and electricity networks. Up to £150,000 in funding has been allocated to each project, and it is to be used to explore how new technologies or approaches could solve some of the biggest challenges facing the energy sector as we move towards net zero. One of the chosen projects will investigate how satellite data could help to ‘keep the lights on’ and keep people safe during emergencies such as flooding, for example, while another will seek to develop a toolkit to help planners to understand how gas and electricity networks can decarbonise rail transport.

 

We’re hopeful that this funding, in addition to a potential future funding mechanism for LDES, will lead to some truly innovative technologies and solutions that will smooth the transition to net zero.

SUSTAINABILITY

In early March, the UN’s Intergovernmental Panel on Climate Change (IPCC) published the second part of its sixth assessment (AR6), discussing the impacts, adaptation and vulnerabilities associated with the climate crisis. The review emphasises that we have a “brief and rapidly closing window of opportunity to secure a liveable and sustainable future for all”.

 

The IPCC’s message is clear: we must rapidly increase our efforts to limit global warming to within 1.5°C above pre-industrial levels or the impacts of the climate crisis will become devastating and irreversible. The report highlighted that there are a number of adaptations we can make to reduce further impacts of global warming as much as possible. These range from nature-based solutions, such as planting trees upstream to slow excess river flows and shade homes during heatwaves, to ensuring universal access to clean water and clean energy solutions in order to make populations more resilient to climate impacts. Since then, the third and final section of the IPCC’s review has been released, focusing on the mitigation of climate change and developments in reducing emissions. You can access both reports from the IPCC here.

 

When our energy experts from Bryt Energy attended edie’s Sustainability Leaders Forum on 8th March, they heard more on the IPCC’s second report from Sir David King – one of the UK’s leading climate scientists and former Government’s Chief Scientific Advisor. He believes that we need to carry out a ‘three-pronged attack’ to create a manageable future for mankind, which includes reducing emissions (mainly by moving away from fossil fuels), removing emissions from the atmosphere, and repairing our ecosystems through measures like tree planting and carbon sequestration.

 

Sir David King argues that businesses should be pushing for policy change and international collaboration, because delivering the change required needs a concerted global effort. For King, the scale of change required represents a real opportunity for businesses to innovate and move into new markets, as a range of non-fossil fuel-based technologies will be needed to achieve decarbonisation.

GOOD NEWS FOR OUR GREEN FUTURE

While we cannot forget the urgency of the climate crisis, it’s good to know that there’s real progress being made towards a cleaner energy future – such as:

 

  • Three fossil fuel free turbines – including one developed by Statkraft – will go live this summer. These turbines will mimic the effect of a power station, providing inertia to stabilise the grid during times of stress and enabling an electricity grid powered by renewables.

 

  • The UK now has the largest offshore wind pipeline in the world. There is now 86GW of new capacity in the UK’s offshore wind pipeline, which has grown by 60% in the past year.

 

  • Stats show impressive growth in UK solar capacity. Data has shown that 730MW of solar capacity was developed in the UK in 2021, and we hope to see solar capacity increase further now that solar projects can once again participate in the Contracts for Difference
TALK TO OUR TEAM

If you have any questions about any of the updates we’ve discussed or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

Sources

https://www.gov.uk/government/publications/spring-statement-2022-business-support-factsheet/spring-statement-2022-business-support-factsheet

 

https://www.regen.co.uk/publications/day-in-the-life-2035/

 

https://auroraer.com/media/long-duration-electricity-storage-in-gb/

Energy
A welcome boost for renewables
Sustainability
Good news for our green future

It has been a concerning couple of weeks, with headlines being dominated by Russia’s invasion into Ukraine. This is deeply saddening and our thoughts are with all those affected.

 

The conflict is first and foremost a human tragedy and humanitarian crisis. With this, we are aware that the conflict will have a range of implications for all of Europe, including energy markets. So during this unsettling time, we want to continue to support our community and keep businesses informed on the impact external influences like this can have on energy prices.

ENERGY

Rising energy prices are a big topic in the energy industry right now, and we know that costs are a key concern for our customers. There are a number of global influences that have contributed to pushing up energy costs over recent months, from an unseasonably cold spring in 2021, to record low levels of gas storage in both the UK and the EU.

 

The conflict in Ukraine is currently the most significant factor, due to concerns about the EU’s reliance on Russian gas supplies and the impact of economic sanctions. On the day of the invasion by Russia into Ukraine, forward electricity prices for the coming year increased by nearly 30% compared to the previous day. Prices fell slightly the next day, but then spiked again on Wednesday 2nd March by over 35%. This level of day-on-day movements is unprecedented and, over the course of a week, prices have increased by around 70%.

 

In addition to this, Ofgem recently confirmed that the domestic energy price cap will rise by 54% from 1st April 20221. While this price cap does not affect business energy users, businesses should be aware that the current wholesale market volatility and record forward electricity prices could make it difficult to agree fixed prices for contracts, or lock in prices under Flex contracts, on particular days.

 

Customers who have fixed rate contracts are protected from current price volatility until their contract ends, as are Flex customers who have already locked in a price for their forward requirements. However, if you are approaching your contract renewal date during these uncertain times, now more than ever it’s important to understand your business energy needs, the risks faced and the options available. We strongly recommend seeking expert advice, whether from a supplier or an energy consultant, and reviewing the type of energy supply contract you’re on. For example, fixed rate energy contract give you more certainty but also locks in the wholesale prices at the date the contract is entered into, whereas Flex arrangements give scope for you to benefit from future market falls (but similarly also leaves you open to future price rises) and to manage your own hedging strategy.

 

There are a range of energy contract types out there, so be sure to seek expert guidance to find the most suitable solution for your business during these uncertain times.

A WELCOME BOOST FOR RENEWABLES

One of the regulatory mechanisms to support investment in new renewable generation is Contracts for Difference (CfD). Put simply, this scheme guarantees a minimum price per unit generated, which in turn provides a clear business case and reassurance for renewable developers.

Introduced in 2013 as part of the UK’s Electricity Market Reform, CfDs have successfully enabled 16GW of new renewable electricity to be brought onto the market, with auctions taking place every two years. On 9th February, the Department for Business, Energy and Industrial Strategy (BEIS) announced that from March 2023, the frequency of CfD auctions would change to taking place annually. The move is intended to accelerate UK renewable production to continue to attract investment and bolster energy security, and as such this announcement is an important step on the road to net zero.

Since its inception, the CfD auction has broadened its scope to include a larger number of technologies. Solar and onshore wind generation are now eligible to bid again, for example, where earlier auctions have seen an emphasis on offshore wind generation.

The announcement comes shortly after the launch of the BEIS’ consultation into the ways in which changes to the CfD mechanism’s supply chain could help to lower electricity generation costs. To learn more – or if you’re interested in submitting your views as part of the consultation – visit here.

SUSTAINABILITY

With energy prices top of the agenda for many businesses, it’s understandable that SMEs are struggling to make sustainability a priority. A new survey has revealed that while improving sustainability is a ‘high priority’ for the majority of large businesses over the next 12 months, only 41% of SMEs see sustainability as a high priority for 2022 (down from 44% in the previous year’s survey)2.

 

Challenges such as rising energy, material and fuel prices may have caused sustainability to slip down SMEs’ agendas, but the research also shows that many SMEs still make it a priority to purchase low carbon electricity and monitor the sustainability of their supply chain. In fact, another survey found that over 60% of SMEs would consider cutting ties with suppliers or partners that didn’t live up to their environmental pledges3.

 

SME business owners stated that they were largely motivated to continue to improve their environmental sustainability due to customer expectations and Government legislation, although they were also keen to benefit from the boost sustainability can provide to a company’s reputation and improved profitability.

 

No matter where sustainability currently sits on your organisation’s agenda, you might want to consider submitting your views to a new inquiry. The House of Lords Economic Affairs Committee is inviting businesses and other stakeholders to put forward their thoughts on a range of topics regarding the Government’s long-term energy strategy. This means you can have your say on the incentives the Government could provide to businesses to reduce their energy consumption and improve energy efficiency, which could help to shape future energy policies. If you’re interested in submitting your views, click here.

GOOD NEWS FOR OUR GREEN FUTURE

We’re pleased to share that…

 

  • The first reactive power contract has been awarded to offshore wind. Dogger Bank C will be the first UK offshore wind farm to support National Grid ESO in balancing the network. Reactive power services are important in helping to maintain suitable voltage levels on the electricity system. National Grid ESO instructs generators or asset owners to either absorb or generate reactive power, according to system requirements.

 

  • Renewable electricity can now provide extra grid stability as a recent change to industry code now means that National Grid ESO can call on renewable generators as well as other kinds of generation and end users, to help balance the electricity system. Enabling renewables to provide stability – a move which the operator has stated is a world first – will help to minimise the costs involved in the net zero transition by reducing the level of infrastructure change needed to support future energy demand.
TALK TO OUR TEAM

If you have any questions about any of the updates we’ve discussed or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

Sources

https://www.ofgem.gov.uk/publications/price-cap-increase-ps693-april

 

https://natwestbusinesshub.com/articles/sustainable-business-tracker-january-2022-smes-less-likely-to-prioritise-climate-action-in-2022

 

https://www.mercedes-benz.co.uk/vans/en/business-barometer/business-sustainability

Energy
Technology
Sustainability
Good news for our green future

We may only be a month into the new year, but there’s already been lots happening in the energy industry, which means we’ve got plenty to update you on. Let’s get straight into it – here’s what you need to know…

ENERGY

Now that final figures have been calculated, it’s been revealed that the equivalent of 98.6% of gross electricity consumption in Scotland was provided by renewables in 2020, which is a significant achievement. While this meant Scotland fell just 1.4% short of its target of sourcing 100% by 2020, the country has made impressive progress since the goal was set in 2011, when renewable energy provided just 37% of national demand1.

 

As the UK commits to decarbonising its electricity system by 2035, Scotland’s latest progress should provide inspiration for the rest of the UK2.

 

There was also positive news from the gas industry this month, as the Energy Networks Association (ENA) announced that gas networks will be ready for hydrogen blending throughout the UK from 2023. As we transition to a net zero future, some businesses’ processes and equipment will continue to rely on gas, so it’s vital that the gas industry begins to decarbonise. By blending up to 20% hydrogen into the current network, the ENA aims to reduce the carbon emissions associated with gas supply without impacting customers. The ENA have also stated that this will not require customers to change their heating systems, so when trials expand to include more areas across the UK, consumers shouldn’t notice any difference in supply.

 

Elsewhere, Ofgem is implementing changes in order to protect the interests of domestic and business customers and strengthen the resilience of the energy market. Following the collapse of 29 energy suppliers in the last year3, all energy suppliers must now undergo financial stress testing to ensure that they are resilient enough to support customers for the long term.

 

Ian Brothwell, our Managing Director, said of the decision, “We understand the challenges that both customers and suppliers are currently facing and welcome this move to help the industry become more resilient. Businesses need a financially stable energy supplier that they can rely on to support them now and into the future, and we hope these measures will help achieve this.”

TECHNOLOGY

In recent weeks, Ofgem has granted network operator Electricity North West (ENW) £6.8 million in funding for an energy flexibility trading project called Bi-Trader. While ENW already calls on certain businesses to adjust their consumption to help ENW and National Grid to keep the system balanced, this new scheme will enable customers to trade flexibility between themselves. It’s estimated that Bi-Trader will deliver savings of around £35.5 million and, if the trial is extended to the rest of the UK, economic benefits could reach up to £581 million.

 

This will be the first time that real-time flexibility trading is carried out on a live distribution network, and it could open up new opportunities for businesses looking to benefit from flexibility in their energy usage. While Bi-Trader is only open to certain businesses in the north west, DNOs like SSEN are running similar flexibility trading trials, which means opportunities are arising for businesses across the UK. Any business that can adjust its consumption can provide the grid with much-needed flexibility – find out more in our demand flexibility blog.

 

Chris Curry, our Head of Flexibility, said of the project, “It’s great to see new schemes being trialled to enable businesses to unlock their flexibility and practice good grid citizenship – after all, flexible demand is crucial to decarbonising our energy system. According to the Carbon Trust, commercial users will need to provide 11GW of flexible demand in order to operate an efficient net zero electricity system by 20504. Existing demand flexibility schemes are limited in terms of the businesses that can participate and the benefits they can bring to those businesses, so it’s crucial that new schemes are developed to empower more businesses to get involved.”

SUSTAINABILITY

In December, the government reopened the Climate Change Agreement (CCA) scheme to new entrants. This means that eligible businesses can benefit from a reduction in their Climate Change Levy (CCL), in exchange for making an agreement to reduce their energy usage and CO2 emissions. A business must carry out an ‘eligible process’ and operate within particular sectors (such as the aerospace, glass or plastics industries) to qualify for a CCA. Those that do can claim significant CCL relief of up to 92% for electricity and 83% for gas until the end of March 2025. If you think your business might be eligible for a CCA, you’ll need to act quickly, as the scheme will close again on 31st March 2022. Go to the government website to check your eligibility.

 

The Carbon Disclosure Project (CDP) and the Climate Group’s annual report, which tracks the progress of businesses in the RE100 initiative, found that 45% of their members’ collective electricity demand is currently met by renewables. As the RE100 has the same annual electricity demand as the UK’s, this represents a significant volume of electricity now being provided by renewables.

 

However, more work is needed to ensure companies can reach their renewable energy targets, as the report also revealed that just one-fifth of RE100 members are using 100% renewable electricity to power their operations5. The report also showed that in many countries, businesses are still struggling to access renewable electricity, despite growing corporate demand for it. Businesses from across the globe claimed that while they were striving to use renewable electricity, they faced barriers including limited access to renewable generation in their local area, limited procurement options when local generation is available, and a lack of national policy support.

 

Here’s what our Director of Sales and Marketing, David Taylor, thinks about this news, “At Bryt Energy, we’re passionate about providing as many British businesses as possible with zero carbon, 100% renewable electricity. We know that it’s not as easy for businesses in some other countries to access renewable electricity, and we hope to see renewable generation grow globally to address this issue. Our parent company, Statkraft, is making a significant contribution to the growth of renewables internationally, currently developing renewable energy projects in countries including Chile, India and Spain.”

GOOD NEWS FOR OUR GREEN FUTURE

With so many governments, businesses and individuals taking action on climate change, we saw some significant milestones reached in 2021 – including:

 

  • A record year for smart meters. Over 2.4 million smart meters were installed in homes and businesses across the UK in 2021, an increase of 21% from 2020 (when 1.9 million smart meters were installed)5. If your business doesn’t yet have a smart meter installed, you can find out more about them, here.

 

  • A surge in electric vehicle sales. Almost 191,000 electric vehicles (EVs) were sold across the country in 2021, increasing the number on UK roads by 76%. EVs now account for 11.6% of the total new car market7, which shows that we’re moving in the right direction when it comes to choosing low-carbon transport.

 

  • The UK’s greenest Christmas. Power from fossil fuels on Britain’s electricity grid fell to record lows over the Christmas period, for example providing just 6% of supply at 23.45pm on 29th December 20218, with renewables generating 65% of the country’s electricity needs at that time. Grid carbon intensity remained low throughout the Christmas period – a great gift for the holidays!
TALK TO OUR TEAM

If you have any questions about any of the updates we’ve discussed or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

Sources

https://www.gov.scot/binaries/content/documents/govscot/publications/statistics/2018/10/quarterly-energy-statistics-bulletins/documents/energy-statistics-summary—december-2021/energy-statistics-summary—december-2021/govscot%3Adocument/Scotland%2BEnergy%2BStats%2BQ3%2B2021.pdf

 

https://www.gov.uk/government/news/plans-unveiled-to-decarbonise-uk-power-system-by-2035

https://www.ofgem.gov.uk/publications/price-cap-increase-ps693-april

https://publications.carbontrust.com/flex-gb/analysis

https://www.there100.org/our-work/press/re100-companies-need-better-renewable-electricity-options-national-governments-shows

https://www.gov.uk/government/collections/smart-meters-statistics

https://www.smmt.co.uk/2022/01/covid-stalls-2021-uk-new-car-market-but-record-ev-sales-show-future-direction/

https://www.current-news.co.uk/news/christmas-2021-uks-greenest-on-record

Key outcomes from COP26
Bryt Energy’s view on COP26
Sustainability
Energy
Technology

Over the last month, we’ve seen a series of important energy policies published (such as the Net Zero Strategy and the Heat and Buildings Strategy), and now that COP26 has taken place, there’s plenty for us to update you on! So let’s get straight into it – here’s what you need to know…

KEY OUTCOMES FROM COP26

As COP26 came to a close, the New Glasgow Climate Pact was agreed, which looks set to guide nations towards key efforts to decarbonise and is the first climate deal to explicitly plan to reduce coal and inefficient fossil fuel subsidies. The aim of the pact is for countries to replace their 2030 national climate action targets with more ambitious emission reductions by the end of next year. While the pact is not legally binding, it sets a global agenda for the next decade.

 

With COP26 prompting leaders from across the globe to consider how they can do more to tackle climate change, there have been a significant number of encouraging pledges made and goals set which – if achieved – could really help to ensure that we can limit further global warming.

 

Some of the key commitments include…

  • The Global Methane Pledge, in which over 100 world leaders have pledged to cut methane emission levels by 30% by 2030
  • A new deal between more than 40 countries and over 100 financial institutions to ‘consign coal to history’, pledging to phase out coal in the 2030s, or by the 2040s for smaller economies
  • A declaration to accelerate the transition to 100% zero emission vehicles by 2040 globally.
  • A number of new net zero pledges including pledges from countries such as India (which is aiming for net zero by 2070) and Nigeria (which is aiming to reach net zero by 2060)
  • The Glasgow Deforestation Pledge, in which more than 100 countries pledged to halt and reverse deforestation by 2030
BRYT ENERGY’S VIEW ON COP26

“At Bryt Energy, we’re delighted to see that for the first time, ‘fossil fuels’ have been directly mentioned within a COP agreement – because coal is the single biggest contributor to climate change, and there’s no time to waste when it comes to transitioning to renewable energy.

 

“We were also encouraged to hear that developed countries have taken a step to increase their funding to help developing countries cut their emissions and adapt to the impacts of climate change. Some of the world’s poorest countries are the worst affected by the climate crisis, so it’s vital that we come together to support them.

 

“However, analysis by Climate Action Tracker (CAT) has shown that despite all of the new and increased commitments made at COP26, emissions are tracking to be twice as high in 2030 as they need to be to stay within our 1.5°C goal1. There’s also a significant gap between countries’ pledges and the plans they have in place – CAT found that if countries’ current policies and carbon reduction measures are taken into account, the global average temperature is likely to rise by 2.4°C.

 

“We’re proud that the UK hosted COP26 and helped shine a light on such important global issues, however we all have a part to play if we’re going to successfully limit global warming to 1.5°C. So although COP26 may be over, now is the time to act; time for businesses and governments alike to increase the ambition of their targets and take urgent action to become more sustainable.”

 

Ian Brothwell, Managing Director

SUSTAINABILITY

Looking more closely at these commitments, some positive steps have been made towards a more sustainable global future over the past two weeks:

 

One of the key announcements for UK businesses came from the Chancellor of the Exchequer, Rishi Sunak, who declared his goal for the UK to become the first net zero-aligned financial centre in the world. To achieve this goal, the Chancellor will require all UK listed companies, asset managers and regulated asset owners to publish net zero transition plans that detail how they will adapt and decarbonise as the UK moves towards a net zero economy by 20502. The government will be setting up a Transition Plan Taskforce to develop a reporting standard for these plans, and we’ll be sure to keep you in the loop on the implications to your business.

 

Meaningful targets were also a key concern for the UN Secretary General, Antonio Guterres, who announced a new expert group to create clear standards for net zero targets3. He claimed that there is currently a lack of clarity around net zero, with organisations using different definitions and metrics to measure their carbon reduction efforts. In establishing straightforward, consistent sustainability terminology and measurement metrics, Guterres is striving to reduce the confusion around net zero and ensure companies’ claims are clear and credible.

 

Here’s what our Sustainability Manager, Jos Mister, had to say about these developments:

 

“It was great to see a real emphasis throughout COP26 on encouraging businesses to take action. But ambitious targets need to be backed up by a robust strategy and transparent reporting – and we’re sure businesses are up for the challenge.”

 

“It’s also really encouraging to hear that 60% of the FTSE 100 are now signed up to the ‘Race to Zero’ campaign. This means that some of the UK’s leading businesses are now committed to halving their emissions by 2030, and reaching net zero by 2050, which should inspire organisations throughout their supply chains and beyond to follow suit.”

 

In addition to commitments to ‘consign coal to history’4, the UK was also among the 20 countries and financial institutions that agreed to halt all financing for fossil fuel development overseas and divert the funds to low carbon energy instead from 20225. It’s steps like these that will be crucial to ensuring that the UK can meet its target of achieving a fully decarbonised electricity system by 2035, a new goal outlined within the Net Zero Strategy6, which was published in the weeks before COP26.

 

The Strategy revealed that the Government is planning to reach this goal by introducing new measures designed to accelerate the deployment of low-cost renewable generation. These measures could include steps such as increasing the frequency of the Contracts for Difference (CfD) auctions, which help to support the development of new renewable generation by providing developers with an agreed ‘strike price’ for the energy their assets produce7.

 

Another key element of the Net Zero Strategy was the Heat and Buildings Strategy, which outlines how the government will decarbonise heating in domestic and commercial buildings across the UK. Within the strategy, ministers have proposed switching green levies from electricity to gas, in an effort to encourage homeowners and businesses to switch from gas heating to other low carbon sources of heat, such as heat pumps and hydrogen.

 

Today, around 23% of the cost of electricity is made up of environmental and social obligation costs, such as the Feed-in Tariff (FiT) and Contracts for Difference (CfD) levy, whereas green levies only account for less than 2% of the price of gas8. The Government is therefore planning to launch a call for Evidence on Energy Consumer Funding, Fairness and Affordability to determine how best to allocate these levies as we move towards a more sustainable future. We’ll let you know when this call for evidence opens so that you can have your say if you’d like to.

ENERGY

In addition to commitments to ‘consign coal to history’4, the UK was also among the 20 countries and financial institutions that agreed to halt all financing for fossil fuel development overseas and divert the funds to low carbon energy instead from 20225. It’s steps like these that will be crucial to ensuring that the UK can meet its target of achieving a fully decarbonised electricity system by 2035, a new goal outlined within the Net Zero Strategy6, which was published in the weeks before COP26.

 

The Strategy revealed that the Government is planning to reach this goal by introducing new measures designed to accelerate the deployment of low-cost renewable generation. These measures could include steps such as increasing the frequency of the Contracts for Difference (CfD) auctions, which help to support the development of new renewable generation by providing developers with an agreed ‘strike price’ for the energy their assets produce7.

 

Another key element of the Net Zero Strategy was the Heat and Buildings Strategy, which outlines how the government will decarbonise heating in domestic and commercial buildings across the UK. Within the strategy, ministers have proposed switching green levies from electricity to gas, in an effort to encourage homeowners and businesses to switch from gas heating to other low carbon sources of heat, such as heat pumps and hydrogen.

 

Today, around 23% of the cost of electricity is made up of environmental and social obligation costs, such as the Feed-in Tariff (FiT) and Contracts for Difference (CfD) levy, whereas green levies only account for less than 2% of the price of gas8. The Government is therefore planning to launch a call for Evidence on Energy Consumer Funding, Fairness and Affordability to determine how best to allocate these levies as we move towards a more sustainable future. We’ll let you know when this call for evidence opens so that you can have your say if you’d like to.

TECHNOLOGY

Both the world leaders at COP26 and the Net Zero Strategy acknowledged that some sectors will find it harder to reduce their emissions than others, and began to propose ways in which we can address this challenge through technology.

 

In the UK, there are several geographical areas (or ‘clusters’) that have a large concentration of heavy industry. These organisations – largely manufacturing and refining companies – use a lot of energy in their processes, so they’re likely to face more of a challenge than most when it comes to decarbonisation. The Net Zero Strategy outlines plans to develop four carbon capture and storage (CCS) trials in these clusters, as well as tests for hydrogen to replace fossil fuels for organisations operating in heavy industry. With goals to replace around 50TWh of fossil fuels per year with lower-carbon fuels by 2035 and meet the UK’s target of 5GW of hydrogen production capacity by 20309, the government is determined to establish the UK as ‘a leader in low carbon fuel production’.

 

Those that are looking to invest in new technologies to support their sustainability strategies should be aware of the new business rate exemption announced in the Chancellor’s Autumn Budget. Rishi Sunak declared that plant and machinery used for on-site renewable energy generation and storage will be exempt from business rates from 1st April 2023 to 31st March 2035. Technologies will include rooftop solar PV, battery storage (when used in conjunction with renewable generation) and electric vehicle charging points. For more information on the business rate exemption, read the Government guidance.

TALK TO OUR TEAM

If you have any questions about any of the updates we’ve discussed or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

Sources

https://climateactiontracker.org/publications/glasgows-2030-credibility-gap-net-zeros-lip-service-to-climate-action/

https://www.gov.uk/government/publications/fact-sheet-net-zero-aligned-financial-centre/fact-sheet-net-zero-aligned-financial-centre

https://news.un.org/en/story/2021/11/1104542

https://www.theguardian.com/environment/2021/nov/03/more-than-40-countries-agree-to-phase-out-coal-fired-power

https://www.theguardian.com/environment/2021/nov/03/twenty-countries-pledge-end-to-finance-for-overseas-fossil-fuel-projects

https://www.gov.uk/government/news/plans-unveiled-to-decarbonise-uk-power-system-by-2035

https://www.solarpowerportal.co.uk/news/government_mulls_more_frequent_cfds_in_net_zero_strategy

https://www.current-news.co.uk/news/utilities-call-for-gases-thumb-to-be-taken-off-the-scale-with-changes-to-levies

https://www.argusmedia.com/en/news/2161130-uk-targets-5gw-hydrogen-production-by-2030

Energy Market
Technology
Sustainability
Good news for our renewable future

As we move towards a net zero future, there are a range of different factors that will influence our journey – and the more you know about them the better informed your energy and sustainability strategy will be. We want to ensure that you’re aware of any new opportunities that emerging technologies could offer, the Government policies and industry developments that could impact your organisation, and the effect that transitioning to a net zero energy system could have on your energy prices.

Here’s what you need to know…

ENERGY MARKET

The UK lost 2GW of grid capacity on 15th September, after a fire at National Grid’s IFA1 interconnector, which provides an important power link between France and Britain.

 

The outage came at a particularly difficult time, as the margin between electricity supply and demand was already tight due to a number of factors. This summer has been one of the least windy UK summers on record, which has reduced wind power generation. As it’s not been particularly sunny either, solar generation has also lowered, so we’ve had much less renewable generation than we would normally expect at this time of year. In addition, some power stations that usually provide capacity are currently offline, due to planned maintenance and servicing.

 

As a result, the UK has had to rely more heavily on gas and coal-fired power stations to make up the shortfall. However, a global shortage of Liquid Natural Gas (LNG) and historically low levels of gas in storage ahead of winter has caused gas prices to soar and the UK to rely on expensive imports. This pushed day-ahead electricity prices to record highs of £2,500 per MWh, compared to averages of £50 per MWh this time last year.

 

We know that many businesses will be concerned about rising prices as we move into the winter months, but there can still be real rewards available to businesses with demand flexibility; consumers can be paid for supporting the system in times of need, by shifting their usage away from the expensive periods. For example, we recently sold some of our customers’ energy back to the grid at peak auction price – which meant they generated revenue while also directly supporting the system. To find out more about the opportunities for businesses, read our blog.

TECHNOLOGY

Looking more broadly at the industry, there have been some innovative developments to help reduce the likelihood of power cuts, as UK Power Networks (UKPN) began a trial of the UK’s first ‘early warning system’ this month. They are trialling Smart Cable Guards – devices that fit onto underground power cables and can detect the tiniest of electrical disturbances – at 20 sites across the South-East. When they detect a disturbance, these devices alert engineers to where a potential problem could occur to within a few metres of cable, so engineers can resolve the issue before a power cut occurs.

We can expect to see more pioneering solutions like this in future as Ofgem recently announced a £450 million fund to help unlock innovation in energy networks. The Strategic Innovation Fund will target four key strategic challenges in our transition to a cleaner energy future: whole system integration, data and digitalisation, heat, and transport. Funding could therefore be awarded to a wide range of projects, from holistic solutions for the gas and electricity networks to flexible solutions, like battery storage. If your business has a project that you think may qualify for funding, you can find out more here.

At Bryt Energy, we’re pioneering by nature, so we’re really excited to see funding for new innovations that could accelerate the UK’s transition to net zero.

SUSTAINABILITY

The Government has recently extended the eligibility criteria for the Workplace Charging Scheme, which means smaller businesses will be able to access additional support for installing electric vehicle (EV) charge points. Eligible organisations can access grant funding of up to 75% of the cost of installing EV charge points, up to a maximum of £350 for each socket, through the Workplace Charging Scheme. So if you’re considering investing in EV charge points, be sure to check the scheme’s eligibility criteria, as you may be able to get a grant.

The Government is also set to provide further funding for new renewable capacity, as they have confirmed that the budget for the next Contracts for Difference (CfD) auction will be set at £265 million.

The CfD auctions support the growth of renewable generation in the UK, as projects that win CfD contracts receive a guaranteed ‘strike price’ for the energy they provide to the grid. These contracts last for 15 years, which provides developers with the confidence they need to invest in new renewable generation projects. The next auction will be the first time that floating offshore wind has been included in the CfD, and the first time since 2015 that onshore wind and solar have been allowed to bid for CfD contracts. However, almost £200m of the £265m CfD budget is set to be invested in offshore wind projects, in order to ensure the Government can meet its target of 40GW of offshore wind capacity by 2030.

It’s encouraging to see increased support for new renewable energy capacity and that more projects are receiving the financial certainty they need to get off the ground.

GOOD NEWS FOR OUR RENEWABLE FUTURE

Sometimes, it can feel as though we’re inundated with bad news about the climate crisis. And while it’s important for us to be aware of the urgent need for climate action, it’s also vital to remember that with so many countries, businesses and individuals focused on taking action, there’s plenty of good news out there too!

This month, we were delighted to discover that according to new figures from RenewableUK, the UK is now the world leader in floating wind energy. There are now more floating wind projects in plan or operational in the UK than anywhere else in the world, with 8.8GW of floating wind capacity in various stages of development. The UK owns over 16% of the total global pipeline of floating wind projects and the government has pledged to build at least 1GW of floating wind by 2030.

This innovative technology will play a key role in the UK’s transition to net zero. In fact, our own parent company, Statkraft, have helped the world’s largest floating wind farm in Scotland find its customers! You can find out more about this exciting development, here.

TALK TO OUR TEAM

If you have any questions about any of the updates we’ve discussed or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

IPCC report makes clear case for immediate, strong climate action
Government publishes ‘world-leading’ Hydrogen Strategy
Records show a renewable grid is in our grasp
Survey shows just one in ten UK SMEs is measuring their carbon emissions

With the publication of the IPCC report last month, we’ve been presented with the stark reality of the climate crisis and the consequences we could face if we don’t take action. It doesn’t make for comfortable reading – but at Bryt Energy, we see it as a real call to action for all of us to do more to reduce our impact on the environment.

 

Moving in the right direction, the UK has smashed records for renewable energy generation and grid flexibility and encouragingly, the government has released an ambitious Hydrogen Strategy.

 

Here’s what you need to know…

IPCC REPORT MAKES CLEAR CASE FOR IMMEDIATE, STRONG CLIMATE ACTION

The Intergovernmental Panel on Climate Change (IPCC) has released its Sixth Assessment Report, the latest in a series of reports which provide insight into scientists’ current understanding of the climate system and climate change. The report makes it clear that if we don’t take rapid action to halve our emissions and reverse nature loss by 2030, we are at risk of extreme heatwaves, droughts and flooding as a result of uncontrolled climate change. For example, agricultural and ecological droughts are likely to occur twice in every ten years if we can limit global warming to 1.5°C, but if the global temperature rises by 4°C then we’re likely to see around four droughts in every 10-year period. Concerningly, many of the impacts of the climate crisis we’re experiencing today cannot be reversed.

 

However, there is still plenty we can do to limit the impact of climate change. According to the IPCC, if we achieve strong and sustained reductions in greenhouse gas emissions, we could improve our air quality relatively quickly, and global temperatures could stabilise within 20-30 years. It is still within our reach to limit global warming to below 1.5-2°C, but we will all need to take action to achieve this. As the IPCC’s Co-Chair of Working Group 1, Valerie Masson-Delmotte, states, “This report is a reality check. We now have a much clearer picture of the past, present and future climate, which is essential for understanding where we are headed, what can be done and how we can prepare.”

 

Crucially, the report emphasises that we will need to keep fossil fuels in the ground and increase our use of renewable energy swiftly. We will also need to reduce greenhouse gas emissions as much as possible using clean technologies and remove any unavoidable emissions using carbon capture and storage.

 

If you’re a customer of ours, you’re already supporting one of the report’s key recommendations – to rapidly move to using renewable energy to power the global economy. But if the IPCC’s report has motivated you to take further action to improve your organisation’s sustainability efforts, then you may wish to explore how you can become more flexible in your electricity usage. By providing flexibility to the grid, you can help to support the transition to renewable energy. To find out how we can help you to embrace your flexibility, click here.

GOVERNMENT PUBLISHES ‘WORLD-LEADING’ HYDROGEN STRATEGY

The government recently released its Hydrogen Strategy, which Business & Energy Secretary Kwasi Kwarteng claims ‘marks the start of the UK’s hydrogen revolution’. The strategy outlines how it will meet its ambitious target of 5GW of low carbon hydrogen production capacity by 2030. As the UK’s hydrogen capacity is currently very low, this strategy will be crucial to ensuring that we can reach this goal.

 

Hydrogen will play a key role in decarbonising the way we heat our homes and businesses, particularly within ‘hard-to-abate’ sectors, such as heavy industry. The strategy highlights that hydrogen could help energy-intensive industries like chemicals and oil refineries, as well as heavy transport like HGV lorries, boats and trains, by helping these sectors to move away from fossil fuels.

 

At Bryt Energy, we’ve been aware of the potential for hydrogen to transform these areas for some time. Our parent company, Statkraft, is working to become the leading hydrogen producer in Norway and Sweden and has recently been awarded a contract for the delivery of green hydrogen to the world’s first hydrogen-powered cargo ship.

 

By 2050, the government believes that 20-35% of the UK’s energy consumption could be hydrogen-based. One of the ways that they intend to reach this level of capacity and consumption is by establishing a hydrogen business model built on a similar premise to the offshore wind Contracts for Difference (CfD) scheme. The proposed scheme, which is currently under consultation, would incentivise investment in hydrogen capacity by providing developers a pre-agreed ‘strike price’ for the gas they provide. The government is also consulting on the design of a £240 million Net Zero Hydrogen Fund, which will support the deployment of low carbon hydrogen production plants across the UK.

 

If these measures are successful, the government believes that we could create a UK hydrogen economy worth £900 million and over 9,000 skilled green jobs by 2030. Crucially, we could also achieve emissions reductions equivalent to the carbon captured by 700 million trees by 2032.

 

It’s therefore likely that hydrogen will play an increasingly important role in powering businesses’ operations over the next decade and beyond. Click here to find out more about the Hydrogen Strategy and have your say in the government consultations.

RECORDS SHOW A RENEWABLE GRID IS IN OUR GRASP

Two recent record-breaking events have shown that the UK is moving in the right direction when it comes to decarbonising the grid.

 

The Department for Business, Energy and Industrial Strategy (BEIS) recently published its latest Digest of UK Energy Statistics (DUKES), which shows that renewables generated more electricity than fossil fuels for the first time. Renewables accounted for 43.1% of UK power generation in 2020, and all renewable technologies increased their share of generation last year. Wind provided the largest proportion of renewable power, at 24% of total power generation in 2020. Overall, renewable energy generation increased by 12.6% compared to 2019, which is an encouraging sign that we are switching to renewable energy at a growing pace.

 

This year, Britain has already broken the annual grid flexibility record, another major milestone as we move towards a low carbon grid. Data from the Energy Networks Association (ENA) has shown that since the start of 2021, the grid has secured 1.6GW of additional grid flexibility capacity – a 45% increase on the 1.1.GW secured through the whole of 2020. This capacity is the equivalent of connecting 32,000 rapid electric vehicle (EV) chargers to the grid. It’s excellent news, as we will need extensive flexible capacity in order to support our transition to a renewable energy future.

SURVEY SHOWS JUST ONE IN TEN UK SMES IS MEASURING THEIR CARBON EMISSIONS

A recent survey of over 1,000 UK SMEs has revealed that the vast majority (almost 90%) of small and medium-sized businesses are not measuring their organisation’s carbon footprint. Just 11% of SMEs said that their company is measuring its greenhouse gas (GHG) emissions annually or more regularly, compared to around 26% of businesses with 50 or more employees.

 

The most common reason SMEs gave for not measuring their emissions was the cost associated with doing so, but the survey also revealed a lack of in-house expertise around carbon reduction. Almost a quarter (22%) of SMEs said that none of their team members fully understand the meaning of ‘net zero’, for example. Despite the difficulties they are having in measuring their emissions, many SMEs are taking action to reduce them. Over half of those surveyed said that they are planning to improve resource efficiency over the next year, while 47% said they are planning to reduce travel and 40% are planning to reduce their energy consumption across their sites.

 

It’s vital for SMEs to reduce their emissions, because they account for around 99% of the UK’s businesses, so their actions will be crucial to ensuring that the UK can meet its net zero emissions by 2050 goal. So it’s great to see that many are putting carbon reduction plans in place – but it’s also important for SMEs to be able to measure their carbon footprints, so that they can see how the decarbonisation steps they’re implementing are impacting their overall emissions.

 

If your small or medium-sized business is one of the many that is struggling to measure its carbon emissions, you can access Government guidance on how to get started here.

TALK TO OUR TEAM

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

National Grid ESO releases Future Energy Scenarios
Government publishes Transport Decarbonisation Plan
Smart Systems and Flexibility plan updated for 2021
Government puts forward plans to replace National Grid as system operator

In recent weeks, we’ve seen a great deal of activity within the energy industry and the government. BEIS and Ofgem have been working together on the Smart Systems and Flexibility Plan and their plans to replace National Grid ESO as the electricity system operator. Meanwhile, National Grid ESO has released its annual Future Energy Scenarios report (which looks promising) and the government has published its Transportation Decarbonisation Plan. 

 

There’s a lot to cover, so here’s what you need to know… 

NATIONAL GRID ESO RELEASES FUTURE ENERGY SCENARIOS

Every year, National Grid’s Electricity System Operator (ESO) releases its Future Energy Scenarios (FES) report. It gives insights into how the energy market might evolve between now and 2050, and looks at the role that technology, consumers and policies will play in the journey to net zero. Encouragingly, three out of the four future scenarios they published in this year’s report see the UK reaching its net zero target by 2050 or earlier.

 

One of the key aims of this report was to determine which steps could be taken to enable the UK to meet the Sixth Carbon Budget, which requires an emissions reduction of 78% by 2035. The FES report highlights that we will only meet this goal – which has been enshrined into law – in the two most ambitious decarbonisation scenarios: ‘Leading the Way’ and ‘Consumer Transformation’. In both of these scenarios, there has been a huge shift in societal norms and energy infrastructure. For example, in ‘Leading the Way’ hydrogen is used to decarbonise some of the most challenging industrial processes, while the average home is heated by an electric heat pump in ‘Consumer Transformation’.

 

One thing that the report makes clear is that consumer engagement will make or break the UK’s net zero target. Within the two scenarios in which the UK meets its net zero and Carbon Budget targets, consumers have the support to change their behaviour by switching to electric vehicles, improving the energy efficiency of their buildings and participating in demand side response. Clearly, every business will need to play its part in helping the UK to reach net zero, and they need to take action today if we’re going to meet the Sixth Carbon Budget’s 2035 deadline.

 

If your business could use some support in becoming more sustainable, whether that’s by switching to zero carbon, 100% renewable electricity, or optimising your energy usage, our team is here to help – click here to find out more. You can also read the full FES report here.

GOVERNMENT PUBLISHES TRANSPORT DECARBONISATION PLAN

If the UK is going to meet its net zero target, reducing transport-related emissions will be key. Now that the Government has published its Transport Decarbonisation Plan, we can see how it plans to decarbonise this sector and uncover what this means for businesses.

 

Within the plan, the Government has outlined several strategic priorities for reducing transportation emissions, such as accelerating the shift to public transport. It has pledged £12bn investment for local transport systems to help prioritise low carbon forms of transportation and reiterated its goal for half of all journeys in towns and cities to be walked or cycled by 2030.

 

One of the key elements of the plan – the 2030 ban on the sale of new petrol and diesel vehicles and the 2035 ban on new hybrid vehicles – had already been announced prior to its publication. However, the Department for Transport will also be consulting on proposals to phase out polluting vehicles weighing 3.5-26 tonnes from 2035, and those over 26 tonnes from 2040. Although currently in the consultation stage, it’s important for businesses with HGV fleets (or HGVs in use in their supply chain) to be aware of these dates and begin to consider how they could plan ahead in this area. Those that offer company car schemes will also need to put a plan in place for switching to electric vehicles in light of the 2030 deadline for new petrol and diesel vehicles.

 

The plan also contains key insight into the Government’s strategies for air, rail and shipping decarbonisation that you may be interested in – you can read the full plan here.

SMART SYSTEMS AND FLEXIBILITY PLAN UPDATED FOR 2021

BEIS and Ofgem have been working together on an updated Smart Systems and Flexibility Plan, which was launched last month. Within the plan, they set out how we will transition to a smart, flexible and decarbonised energy system.

 

The plan states that a ‘flexibility first’ approach could reduce the annual costs of managing our energy networks by £10bn by 2050 and create up to 24,000 jobs in fields including engineering, system installation and data science. They believe that we will need around 30GW of low carbon flexible energy capacity by 2030 and 60GW by 2050, in order to maintain our energy security and integrate high levels of renewable generation cost-effectively.

 

Their vision is for electricity consumers of all sizes to be able to provide flexibility to the system by the mid-2020s, although the plan emphasises that this will need to be supported by the right infrastructure and regulatory framework. At this point, it’s also envisioned that business customers will have a greater choice of innovative flexibility products, as even the smallest businesses will have smart meters. By 2030, they believe that consumers will be providing significant flexibility to the system and that energy consumers will be in charge of and able to choose how dynamic their participation in the flexible energy market will be.

 

If your business is interested in optimising its energy usage, you don’t have to wait years for smarter solutions to come along. With Bryt Energy’s optimisation solutions, you can find flexibility while staying in total control of your consumption – to find out more, click here.

GOVERNMENT PUTS FORWARD PLANS TO REPLACE NATIONAL GRID AS SYSTEM OPERATOR

The government has proposed a plan for replacing National Grid, which has been the electricity system operator for England, Scotland and Wales for over 30 years, with an independent ‘future system operator’.

 

National Grid’s Electricity System Operator (ESO) became a legally separate business within the National Grid Group in 2019. However, in January 2021 Ofgem raised concerns that the Group could face a ‘conflict of interest’ when advising on our future electricity system because it also owns energy networks and transmission assets that may benefit financially from future investment plans. This could make it more difficult for National Grid ESO to impartially choose between building a bigger and higher capacity network or creating a smarter, more efficient system that is overall cheaper for customers. Therefore, Ofgem claimed that an independent body would be better placed to deliver net zero at the lowest cost to customers.

 

It appears the government agrees, as on 20th July 2021, Ofgem and the Department for Business, Energy and Industrial Strategy (BEIS) launched a consultation on the management of energy systems operations in England, Scotland and Wales. Ofgem and BEIS have proposed that in addition to managing our electricity system, the independent operator should also take responsibility for strategic network planning, long-term forecasting and market strategy for the gas system. They also refer to ‘new or enhanced roles’ for the operator, which include overseeing the UK’s hydrogen and carbon capture and storage (CCS) sectors. To read the full consultation document and have your say on the proposal, click here.

TALK TO OUR TEAM

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

UK businesses at risk due to climate dangers
Prime Minister calls for SMEs to set net zero goals
Research reveals flexibility could cut net zero costs by £16.7bn a year
Businesses will need net zero targets to win government contracts

In recent weeks, the Government has announced a number of new initiatives designed to prompt more businesses to adopt net zero goals, including a new Business Climate Hub and changes to the way major public procurement contracts are awarded. We’ve also seen the publication of the Committee for Climate Change’s new climate risk assessment report, which emphasises the risk of climate change to businesses, and realised the true value of flexibility thanks to new research from the Carbon Trust.

 

If one thing’s for certain, a combined and united effort towards decarbonisation is a must. Here’s what you need to know…

UK BUSINESSES AT RISK DUE TO CLIMATE DANGERS

A new report from the Climate Change Committee (CCC) has highlighted the risks to UK businesses and individuals due to the climate crisis. The CCC has stated that the Government’s actions to improve the UK’s resilience to climate risks are not keeping pace with the impacts of climate change, which are already causing harm.

 

In their risk assessment report, the CCC considered 53 risks that could occur if the earth’s temperature rises by 2°C-4°C in the future, and found that the Government had only taken sufficient action to protect UK citizens and businesses against four of these risks. The UK is already experiencing climate change, as the average land temperature is now around 1.2°C higher than pre-industrial levels. The report also recognises that some of the climate risks we’re already seeing (such as higher sea levels) could be irreversible.

 

However, many of the risks considered in the report can be mitigated if we put a ‘detailed, effective action plan’ in place as a matter of urgency. When it comes to businesses, the CCC’s report emphasised that more action is needed in a number of areas, including reducing the risk of flooding to business sites and the risk of disruption to supply chains or distribution networks. They also outlined the negative impacts that higher temperatures could have on employees’ health and wellbeing, as well as their ability to commute to work, which could have a serious effect on business productivity.

 

While many of the risks the CCC considered will require serious and urgent action from the Government, we all have a part to play in reducing climate risk.

PRIME MINISTER CALLS FOR SMES TO SET NET ZERO GOALS

Boris Johnson has urged the millions of small and medium businesses across the UK to lead the way on climate action by pledging to cut their emissions by half by 2030 and to be net zero by 2050 or sooner. With SMEs accounting for around 99% of UK businesses, it’s vital that small and microbusinesses play their part in achieving the UK’s net zero goal.

 

However, recent research by Lloyds Banking Group has revealed that although nine in 10 SMEs see environmental sustainability as an important issue for their business and sector, one-quarter of smaller businesses are unaware of the UK’s net zero target. In fact, four in 10 SMEs don’t know what net zero would mean for their business, and many were unaware of the benefits of decarbonisation.

 

It’s clear that SMEs need more guidance around net zero, which is why BEIS launched the Together for our Planet ‘Business Climate Leaders’ campaign. SMEs will be able to use the new UK Business Climate Hub to find practical tools, resources and advice to help them to understand their carbon footprint and make a plan for reducing it. Some of the UK’s biggest businesses, including NatWest, Google and BT, will also be holding events and leading training programmes to support SMEs that make net zero pledges.

 

Net zero might sound like an ambitious target, but once your business has a goal in place it’s simply a case of taking small steps towards achieving it. To access support for your sustainability goals, visit the Business Climate Hub here.

RESEARCH REVEALS FLEXIBILITY COULD CUT NET ZERO COSTS BY £16.7BN A YEAR

New research led by the Carbon Trust – and supported by a cross-sector group that we were proud to be a part of – has shown that embedding greater flexibility across the UK’s energy system could significantly reduce the cost of achieving net zero for customers.

 

Balancing the grid is becoming increasingly complex. Electricity demand is set to treble from 2019 levels by 2050, due to the electrification of heating and transportation, and intermittent renewable generation is accounting for a growing proportion of our supply. Our existing electricity network will need to be substantially upgraded in order to ensure supply can meet demand – but the extent of the upgrades required could be reduced if businesses and individuals can have more flexibility in their energy use.

 

If consumers can synchronise their consumption with renewable generators, for example, then the easier it will be to support an energy system powered on renewables alone. And by shifting their consumption away from peak periods, consumers can also help to reduce the anticipated increase in stress on networks from electric heat and transportation. Ultimately, the Carbon Trust estimates that a fully flexible energy system could save consumers up to £16.7bn per year by 2050, and help to minimise the need for expensive network infrastructure upgrades.

 

They state that commercial users will need to provide around 11GW of flexible demand by 2050, which means businesses like yours will have a key role to play in securing an efficient, affordable and reliable renewable future. We’re therefore encouraging all businesses to explore how they can optimise their energy use and deploy flexibility – because in doing so, you can secure some real benefits for your business as well as our electricity system. Find out more about the benefits of flexibility in Carbon Trust’s recent blog.

BUSINESSES WILL NEED NET ZERO TARGETS TO WIN GOVERNMENT CONTRACTS

On World Environment Day, the Government announced a new requirement for businesses to commit to the UK’s 2050 net zero target before they can bid for major government contracts. They will also be required to publish ‘credible’ carbon reduction plans on their website, and specify each of their carbon reduction schemes in their tender.

 

These new rules will apply to all Government contracts worth more than £5m from September 2021, and any firms that fail to comply with these measures will be prohibited from bidding on these contracts. As the government spends over £290 billion a year on procurement, it’s expected that this announcement will encourage hundreds of businesses to publish a net zero target and put a plan in place for achieving it.

 

Some businesses were already required to report on their Scope 1 emissions – direct emissions from owned or controlled sources – and Scope 2 emissions – any indirect emissions from the generation of purchased electricity, steam or heating. However, all businesses bidding for major contracts will now need to outline their existing carbon footprint, including their Scope 3 emissions, which are the indirect emissions created throughout their value chain.

 

Whether your organisation supplies the Government or not, it’s wise to ensure you’re actively working to reduce your Scope 1, 2 and 3 emissions, as more businesses are seeking to lower emissions throughout their supply chain. Switching to Bryt Energy’s zero carbon, 100% renewable energy is a great way to minimise your Scope 2 emissions – to find out more, click here.

TALK TO OUR TEAM

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

UK Government outlines carbon capture plans
Queen’s speech highlights green policy
Britain’s biggest businesses set out green recommendations for G7
RenewableUK calls for clear renewables roadmap

As the UK begins to move towards greater normality, businesses and trade associations are striving to recover from the coronavirus crisis – and we’ve seen this month that many are keen to make a green recovery. We’re eager to see how the Government will respond to calls for greater support for businesses – will they publish the long-awaited Environment Bill soon, and will they provide the policies required to deliver their new carbon capture plans?  

 

Here’s what we know so far… 

UK GOVERNMENT OUTLINES CARBON CAPTURE PLANS

The government has published a new policy paper which sets out its plans for the UK’s carbon capture, usage and storage (CCUS) supply chains. The paper outlines a new target for the UK to capture and store 10 million tonnes of CO2 per year by 2030.   

 

This is an important target, as although many organisations and individuals are working to reduce their emissions as much as possible, the majority will be unable to stop creating emissions entirely. To get to net zero, the UK will need to have the capability to remove enough emissions from the atmosphere to counteract any residual emissions. The Committee on Climate Change has therefore stated that CCUS is a ‘non-optional’ element of the UK’s transition to net zero.  

 

Encouragingly, the policy paper states that the UK has one of the greatest CO2 storage potentials of any country in the world. In fact, it’s estimated that the UK Continental Shelf (the region of water surrounding the UK) could safely store 78 billion tonnes of CO2, which is the equivalent of 200 years of the UK’s annual CO2 emissions. By developing our capabilities to capture and store carbon, the Government estimates that we could support around 50,000 jobs by 2050. 

 

It’s good to see that the Government has put a target in place for CCUS, and we look forward to the release of a full roadmap for the CCUS sector later this year, so we can understand how the skills, infrastructure and technologies will be supported. This will be published alongside a ‘Fit for CCUS’ scheme for businesses, which will help high emitters to prepare to adopt CCUS technology. While we wait for more details, you can read the policy paper, here.

QUEEN’S SPEECH HIGHLIGHTS GREEN POLICY

The Queen opened a new session of Parliament with her customary speech, which reiterated the UK’s commitment to delivering a green economic recovery from the coronavirus pandemic.  

 

In her speech, the Queen referenced the Government’s Ten Point Plan for a green industrial revolution over the next ten years. She stated that the Government will, ‘invest in new green industries to create jobs, while protecting the environment. The United Kingdom is committed to achieving net zero greenhouse gas emissions by 2050 and will continue to lead the way internationally by hosting the COP26 climate summit in Glasgow.’ 

 

The Queen also alluded to the upcoming Net Zero Strategy and the Environment Bill, which returned to Parliament at the end of May. If passed, the Environment Bill will set binding environmental targets around air quality, biodiversity, water, resource efficiency and waste reduction. The industry will be looking to see this bill passed before the UK hosts COP26 – the Glasgow climate summit – in November. To read the Queen’s Speech in full, click here. 

BRITAIN’S BIGGEST BUSINESSES SET OUT GREEN RECOMMENDATIONS FOR G7

Britain’s largest business group, the Confederation of British Industry (CBI), has urged leaders of G7 – an organisation made up of the world’s most ‘advanced economies’ – to lead international action to address climate change and biodiversity loss at the G7 summit in June. 

 

The CBI has worked together with leading business groups from the G7 nations to put together a wealth of recommendations for G7 countries to drive a ‘sustainable and inclusive recovery’ from Covid-19. The recommendations were drafted and backed by their members (including some of the UK’s leading businesses, like M&S and PWC). Among these recommendations, they called for G7 leaders to set a target to phase out unabated coal (coal without any carbon capture) power generation by 2040 where feasible. They also highlighted the need for this target to be supported by policies and incentives to support industries and communities affected by the shift away from fossil fuel. Boris Johnson said that he was grateful for the CBI’s recommendations, and he backed their call for co-operation among G7 countries to address these issues. 

 

The UK will host the G7 Summit in Cornwall this month. As the host of this summit and COP26 – the Glasgow climate summit – in November, the UK has the chance to influence the global transition to a low carbon future this year. To read the CBI’s letter in full, click here.

RENEWABLEUK CALLS FOR CLEAR RENEWABLES ROADMAP

RenewableUK, one of the UK’s leading renewable energy trade associations, has published a new report outlining the need for specific renewable energy milestones if the UK is going to meet the Prime Minister’s new target to slash emissions by 78% by 2030. These milestones will also be crucial to ensure we can meet our 2050 net zero target. 

 

The association has called for clear development targets for onshore wind, floating wind, renewable hydrogen and marine energy. Wind energy is a particular focus within the report, as it is currently the cheapest form of renewable energy in the UK. RenewableUK has proposed a target of 30GW of onshore wind by the end of the decade, and called for the existing target of 1GW of floating wind by 2030 to be doubled. They claim that reaching these targets could reduce energy bills as well as support 31,000 UK jobs by 2035, and help to establish the UK as a global leader in floating wind technology. 

 

At Bryt Energy, we’re passionate about renewable energy, and so we’re delighted to see the growth of renewable energy in the UK and worldwide. If you’re interested in reading the full report from RenewableUK, you can find it here. 

TALK TO OUR TEAM

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

Boris Johnson to enshrine 78% emissions cut by 2035 into law
Ofgem gives green light to half-hourly settlement in retail electricity market
Report proves renewables can meet global demand

As COP26 – the Glasgow climate summit – draws closer, we hope to see a number of new sustainability targets and policies put in place by each of the participating countries – and this month, the UK government took a promising first step by enhancing its 2035 target. We’ve also seen Ofgem take action to encourage greater flexibility, and exciting research has shown that renewables can supply global demand – here’s what you need to know:  

BORIS JOHNSON TO ENSHRINE 78% EMISSIONS CUT BY 2035 INTO LAW

The Prime Minister has agreed to set a new legally-binding target to reduce the UK’s carbon emissions by 78% by 2035 (compared to 1990 levels). This move comes after the Climate Change Committee’s (CCC’s) Sixth Carbon Budget was published in December 2020, in which the CCC advised that the UK will need to achieve at least a 78% emissions reduction by 2035 if it is to reach its net zero target by 2050.

 

The new target is one of the most ambitious in the world, building on the UK’s Nationally Determined Contribution (NDC) to the Paris Agreement, which requires the UK to reduce emissions by 68% by 2030 (compared to 1990 levels). It will also include aviation and shipping emissions, which have never been included in any of the UK’s previous targets. The UK will therefore need to take urgent action to ensure we can achieve it. All new cars, vans and replacement boilers will need to be zero carbon in operation by the early 2030s, and our electricity production must also reach net zero by 2035. The CCC estimates that 40% of the emissions reductions needed can be achieved through investment in tech solutions, while the remainder will be met through behaviour change, including switching to EVs and reducing demand for flights.

 

At Bryt Energy, we know how urgent it is to tackle the climate crisis, and so we welcome this positive step towards a more sustainable future. As we move closer to COP26, we can expect the Government to increase the pressure on businesses to play their part in achieving the UK’s ambitious targets through campaigns like the Race to Zero. This is a global initiative, backed by science-based targets, to commit businesses, cities, investors and universities to achieve net zero emissions by 2050 at the latest. To find out more about the UK’s new 2035 target and what we will need to do to reach it, click here.

OFGEM GIVES GREEN LIGHT TO HALF-HOURLY SETTLEMENT IN RETAIL ELECTRICITY MARKET

Ofgem has agreed to roll out half-hourly settlement across Britain’s retail electricity market, which will help to support an increasingly flexible energy system as we move towards a low carbon future.

 

Currently, only larger businesses’ meter readings are settled half-hourly; their meters record their consumption every half an hour and send that information to their supplier. This means that the amount of electricity they’re using can be compared with the amount being generated and ‘settled’ every 30 minutes. When it comes to smaller businesses, Ofgem has historically estimated their consumption, with estimates only being updated when their meters are read. Moving to half-hourly settlement will provide suppliers and the grid with a much more accurate picture of how and when businesses are using electricity, so they can balance the entire electricity market every half an hour.

 

It’s hoped that having access to more detailed data on businesses’ energy consumption will encourage suppliers to develop innovative products and services, like time of use tariffs and vehicle-to-grid solutions. This should in turn encourage businesses to embrace flexibility, which will reduce the need for new and expensive infrastructure upgrades. In fact, Ofgem believes that moving all businesses to half-hourly settlement could save customers between £1.6 – £4.5 billion by 2045.

 

These changes are set to be rolled out over four and a half years, so it might be some time until your business sees the benefits – but you can rest assured that we’ll keep you updated. For more information, click here.

REPORT PROVES RENEWABLES CAN MEET GLOBAL DEMAND

New research from thinktank Carbon Tracker has found that as the cost of renewable generation continues to fall, renewable energy could remove fossil fuels from the electricity mix by 2035.

 

Carbon Tracker found that 60% of the world’s solar generation resource and 15% of its wind resource are already on par with local fossil fuel generation in regards to cost. They also discovered that current solar PV technology could provide almost 5.8 billion Gigawatt hours (GWh) of electricity annually, while onshore and offshore wind could account for 900 million GWh a year. In 2019, global energy consumption stood at 65 PWh. This means that when combined, existing wind and solar technologies could potentially meet global energy demand 100 times over.

 

With solar costs falling by an average of 18% per year since 2010 and wind prices falling by an average of 9% per year in the same time, this report provides encouraging evidence that renewable energy can meet global demand. To find out more, click here.

TALK TO OUR TEAM

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

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

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

BEIS LAUNCHES NEW INDUSTRIAL DECARBONISATION STRATEGY

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

 

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

 

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

INCREASED TAX ALLOWANCE FOR ENERGY EFFICIENCY IMPROVEMENTS

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

 

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

 

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

MPS LAUNCH INQUIRY INTO RENEWABLE ENERGY IN SCOTLAND

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

 

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

 

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

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

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

 

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

 

To find out more about the Integrated Review, click here. 

Talk to our team

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

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

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

 

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

WALES LEGALLY COMMITS TO ACHIEVE NET ZERO BY 2050

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

 

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

 

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

SCOTTISH BUDGET ANNOUNCES £1.9BN OF INVESTMENT IN GREEN RECOVERY

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

 

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

 

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

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

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

 

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

 

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

 

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

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

 

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

 

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

TALK TO OUR TEAM

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk. If you’d like to receive our policy updates straight into your inbox, you can sign up here. 

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

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

 

These are the key changes you need to know about:

US TO REJOIN THE PARIS AGREEMENT

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

 

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

 

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

ENERGY WHITE PAPER PUBLISHED

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

 

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

 

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

 

To read the full Energy White Paper, click here.

NEW ENERGY MINISTER REVEALS POLICY PRIORITIES

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

 

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

 

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

 

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

SIXTH CARBON BUDGET SETS OUT ROUTE TO NET ZERO

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

 

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

 

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

EU ETS REPLACED WITH UK EMISSIONS TRADING SCHEME

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

 

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

 

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

OFGEM CALLS FOR INDEPENDENT BODY TO RUN THE ELECTRICITY SYSTEM

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

 

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

 

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

UK TO DEVELOP WORLD’S FIRST NET ZERO INDUSTRIAL CLUSTER

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

 

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

 

To find out more about this funding, click here.  

TALK TO OUR TEAM

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk. If you’d like to receive our policy updates straight into your inbox, you can sign up here. 

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

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

 

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

 

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

PETROL & DIESEL VEHICLE BAN BROUGHT FORWARD TO 2030

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

 

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

£1BN FUNDING PLEDGED TO IMPROVE BUILDING EFFICIENCY

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

 

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

 

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

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

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

 

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

NEW NATIONAL INFRASTRUCTURE STRATEGY TIED TO NET ZERO

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

 

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

 

You can read the full National Infrastructure Strategy document here.

Talk to our team

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.

Sources

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

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

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

 

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

 

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

NET ZERO STRATEGY TO BE RELEASED AHEAD OF COP26

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

 

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

 

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

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

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

 

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

 

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

NATIONAL GRID LAUNCHES NEW DEMAND SIDE RESPONSE SERVICE

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

 

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

 

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

 

f you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.  

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

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

 

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

 

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

CONSULTATION LAUNCHED ON PROPOSED GREEN GAS LEVY

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

 

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

 

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

GOVERNMENT TO ANNOUNCE 2030 FOSSIL-FUELLED VEHICLE BAN

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

 

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

 

To find out more, click here.

ENERGY WHITE PAPER PUBLICATION CONFIRMED

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

 

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

 

Click here to find out more.

NEW BODY CREATED TO SUPPORT DECARBONISATION IN DEVELOPING COUNTRIES

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

 

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

 

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

 

If you have any questions about the changes discussed above or how they might affect your business, our team of experts is on hand to answer them. Simply call us on 0330 053 8620 or email us at heretohelp@brytenergy.co.uk.