UK Energy Bill: Britain on ‘cusp on energy renaissance’

 

UK Energy Secretary Ed Davey today said “we are on the cusp of a renaissance in British energy” after unveiling the government’s long-awaited Energy Bill.

Speaking to journalists after he had addressed the House of Commons this morning, Davey said the Bill had “given industry and investors exactly what they need – consensus and political certainty.”

Earlier he had told Parliament that “the UK is open for energy investment”.

“The Energy Bill will attract investment to bring about a once-in-a-generation transformation of our electricity market, moving from predominantly a fossil-fuel to a diverse low-carbon generation mix.

“The Bill will support the construction of a diverse mix of renewables, new nuclear, gas and CCS, protecting our economy from energy shortfalls and significantly decarbonising our electricity supply by the 2030s as part of global efforts to tackle climate change.”

He said the UK energy challenge was “an economic opportunity there for the taking. It will stimulate supply chains and support jobs in every part of the country, capitalising on our engineering prowess and our natural resources, cementing the UK’s place at the forefront of clean energy development.”

Some headline aspects of the Bill were released last week, the most notable being that it would not include a decarbonisation target for 2030 – this has been deferred until 2016 – and a levy would allow utilities to raise £7.6bn by 2020 via customer tariffs to go towards low carbon investment.

This low carbon investment is intended to cover renewables and nuclear, however given that no new nuclear plants are expected to be online before 2020, Davey was today asked if most – if not all – of this money will go to renewables, especially wind. “Wind will get a lot of it,” was his reply.

A key plank of the Bill is contracts for difference, a long term contract between a government-launched counter-party firm and power companies which guarantees a sum – or strike price – for electricity generated. Davey said the strike price for nuclear would be calculated on a project-to-project basis, with the first project to be decided that of the EDF/Centrica consortium which proposes to build at Hinkley Point in England.

He also said that a decision on the way forward for shale gas in the UK would be revealed in Chancellor George Osborne’s Autumn statement next week.

Davey was speaking alongside his ministers Greg Barker and John Hayes, who was appointed recently to replace Charles Hendry. Conservative MP Hayes sparked fury among green groups and stories of a rift with Liberal Democrat Davey when he was quoted as saying “enough is enough” for onshore wind in the UK.

This afternoon, Davey said the men had “had disagreements” yet had “found a way to put together our views”. This he said “gave certainty to investors” and added: “I am delighted to have John on the team.”

When Hayes was pressed by a journalist to “name one onshore wind farm you approve of”, he instead reiterated Davey’s assurance that they were working well together.

As well as the contracts for difference and the formation of the counter-party, the key reforms to the electricity market in the Bill are:

● A capacity market to allow for capacity auctions from 2014 for delivery of capacity in the winter of 2018/19;

● UK transmission and distribution company National Grid is to be appointed to deliver the Electricity Market Reforms, including CfDs, administer the Capacity Market and provide analysis and evidence to Government;

● A Final Investment Decision Enabling (FID) Enabling process will enable investment in low-carbon projects to come forward for early projects, guarding against delays to investment in our energy infrastructure – Davey indicated today that there was already much interest in this, with the only company revealed to be Drax for a biomass project;

● Transitional measures will allow renewable investors to choose between the new system and the existing Renewables Obligation, which will remain stable up to 2017.

● An Emissions Performance Standard (EPS) will curb the most polluting fossil fuel power stations, ensuring that any new coal fired power stations will have to have CCS fitted to be able to operate within limit.

● The government has already legislated to establish a Carbon Price Floor from April 2013.

The Energy Bill is expected to receive Royal Assent in 2013.

To read the Bill in full click here 

 

 

 

 

 

Follow Power Engineering International on Twitter




Editor's Picks

China tops renewables investment poll but UK slips down

China is now the top destination for renewables investment in the world according to an influential poll published today.
PEi

Power Engineering International Magazine – latest issue

The latest issue of Power Engineering International Magazine is now online with some outstanding news and analysis of the ...

Gas-fired power dominated UK energy sector in Q2

A combination of coal-fired power plant outages and falling gas prices saw a surge in gas-fired power in the UK in the sec...
Mike Winkel of E.ON

E.ON calls for assistance in renewables investment drive

Germany’s largest utility says it can no longer afford to push large renewable projects on its own and is looking for part...
Wilhelmshaven

Molluscs force German coal-fired power plant to shut down

The 757 MW Wilhelmshaven hard coal-fired power plant has had to be temporarily shut down after North Sea mussels clogged t...

PEI Magazine Issues



>> Current Issue           >> Past Issues

Latest Wire News

Decisiv to Showcase TMT Fleet Maintenance Integration

Decisiv to Showcase TMT Fleet Maintenance Integration

2014 Interim Financial Statements: Sales and Industrial Growth Ingredients Are in Place

2014 Interim Financial Statements: Sales and Industrial Growth Ingredients Are in Place

Cellceutix to President Obama: We Have the Tools and Will Rise Up to the Challenge to Prevent Antibiotic Resistant Bacteria Becoming a Serious Threat to Public Health

Cellceutix to President Obama: We Have the Tools and Will Rise Up to the Challenge to Preven...

Wind in Ontario's Sails as Renewables Fuel $2 Billion in Project Spending for Fourth-Quarter 2014, an Industrial Info News Alert

Wind in Ontario's Sails as Renewables Fuel $2 Billion in Project Spending for Fourth-Quarter...

Top Industrial Market News Stories for the Third Week of September 2014, an Industrial Info News Alert

Top Industrial Market News Stories for the Third Week of September 2014, an Industrial Info ...


Editorial Guides

How to cut your OPEX

How to cut your OPEX In a constantly evolving electricity market, factors such as over capacity and low coal costs can pu...

Alstom Editorial Guide: Thailand to showcase latest upgrade of Alstom's GT26 in combined-cycle

Read all about Alstom's new advanced GT26 gas turbine in the North Bangkok CCPP expansion project online with the Power En...

PLEXOS® Integrated Energy Model – Leading the Field in Energy Market Modelling

PLEXOS® Integrated Energy Modelling is an advanced software tool that employs the latest mathematical programming methods ...

Buyers Guide Companies

Huggenberger AG

AVC Specialists Inc

POWERCON 900 electrostatic precipitator voltage controllers, RAPPERCON 9...

Standardkessel-Baumgarte Group

Founded more than 80 years ago, Standardkessel and Baumgarte are today a...

URS

URS plans, designs, engineers, constructs, retrofits, and maintains powe...

Moisttech

Dynamic Systems Inc

Barcode Tracking Includes: > Equipment & Tool > Inventory > ID Badge Sys...

EPG Enginuity Portable Grid

Enginuity Portable Grid (EPG) designs and manufactures unique rental gra...

Mid America Engine Inc

Mid-America Engine is a distributor and reseller of new and used, diesel...

M+M Turbinen-Technik GmbH

M+M Turbinen-Technik designs and manufactures steam turbines and package...

Paharpur USA

Manufactures water cooling towers, air cooled heat exchangers (fin fan c...

Buyers Guide Products

Spare parts manufacturing / Re-engineering / CNC / CMM / Machining / workshop service

CMM/laser scanning technology (workshop, r...

Steam turbine maintenance / overhaul / (blade) repair / outage management

Outage delivery/managementOn-site inspecti...

Gas turbine maintenance / overhaul / (blade) repair / outage management

Outage delivery/managementProject manageme...

Hydro turbine maintenance / repair / overhaul / rebuild service

Outage support in workshop/on-site Site i...

Inspection service (Nondestructive testing and evaluation)

Life time evaluationPhased array /Ultrason...

Transformer Oil Moisture Measurement Instruments

Vaisala offers a wide variety of online tr...

DPT145 Multiparameter Transmitter for SF6 Gas

DPT145 is a unique innovation that enables...

ASCR Advanced SCR

80% + NOx Reduction - Lower Capital and Op...

SNCR - NOxOUT and HERT

25-50% NOx reduction - Urea-based Customiz...

TIFI Targeted In-Furnace Injection

Improve Fuel Flexibility - Reduce Slagging...

Power Engineering International

Whitepapers

How to lower your total cost of ownership on DC Control Power

In this whitepaper, we look at implementing battery management solutions and how smart battery management effectively lowers the total cost of DC Control power systems and the risk of their failure...

Portfolio Optimization by PLEXOS

PLEXOS performs the Security Constrained Unit Commitment and Economic Dispatch using Mixed Integer Programming (MIP) to minimize a cost function subject to all operational constraints. The PLEXOS M...

Evaluating cogeneration for your facility: A look at the potential energy-efficiency, economic and environmental benefits

The energy-efficiency, economic and environmental benefits of cogeneration are the subject of this in-depth white paper. The paper argues that producing electricity and heat/cooling from the same f...

The Effect of Moisture on the Breakdown Voltage of Transformer Oil

Power transformers utilize oil as a heat transfer medium and a dielectric material, together with cellulose. Breakdown voltage (dielectric strength) is one of the most important parameters of trans...

Improving Mission Critical Cooling Systems With More Reliable Level Sensing

The choice of coolant level sensor may seem like an insignificant detail when designing complex machinery such as emergency generators and cranes, but if this sensor fails, the operator has no warn...

Steps Towards a Low Carbon Future: Solutions and Technologies That Will Support the Global Revolution Required

A smart grid is becoming more and more essential as clean energy becomes more dominant. In addition, the demand for electricity is expected to treble the ability to supply it over the next decade. ...

Latest Digital Edition

  Power
  Engineering
  International
Look Inside >
Cover
Current Issue

Article Archives for Power Engineering International Magazine

Latest Energy Jobs

View more Job Listings >>