GOVERNMENT ANNOUNCES '10 POINT PLAN' FOR STAGING A GREEN INDUSTRIAL REVOLUTION

Centred around investment in green technologies as a means of advancing along the UK’s path to net-zero, the plan aims to advance and decarbonise existing energy production through offshore wind and nuclear, whilst building a framework to meet hydrogen generation targets over the coming decades. Further points within the plan centre around making the UK a world leader in carbon capture technology and improving current transport and infrastructure to ensure Britain meets its zero-emissions targets.

The PM stated that the plans aim to create and support up to 250,000 British jobs and is backed by £12 billion of government investments, with the expectation that it will receive 3 times that figure in private sector backing. The industry has welcomed this initial commitment shown by the UK government, however, we still await the details behind these ambitious plans.  

Read the Carter Jonas response to the announcement in the article below.

BRITAIN’S FIRST ELECTRIC VEHICLE (EV) FORECOURT HAS OPENED FOR BUSINESS

The developer, Gridserve, has hailed the opening as a ‘a major milestone’ in the journey to Net-Zero. Based in Essex, it comes as the first step in a plan to roll out over 100 similar sites over the next 5 years. The site carries enough capacity to charge up to 36 EVs at the same time, and a network of solar panels helps power the site. 

If you are a landowner along a major road network and would like to discuss the potential for EV chargers on your land, please get in touch with a member of the energy team.

 

CARTER JONAS ENERGY TEAM CONTINUES TO PROGRESS LARGE-SCALE SOLAR DEVELOPMENTS ACROSS THE COUNTRY

We are currently advising clients on numerous large-scale subsidy free solar farms, with the next round of sites expected to go into planning in the next two months. This includes a 30MW scheme near Scarborough which is being proposed by Voltalia, and a 49.9MW scheme near Hartlepool, which is being proposed by Lightsource bp. Our biggest scheme to date, the 63MW Elwy Solar Farm in North Wales which is proposed by Solarcentury, is due to be submitted to the Planning Inspectorate for approval after successful pre-application consultation.

However, this won’t be the largest in the coming months, as survey work is now underway on two solar farm projects with Lightsource bp in North Wales; the largest of which is 350MW, requiring circa 1,200 acres.

WINTER VOLATILITY IN THE UK WHOLESALE POWER MARKET OPENS A WINDOW OF OPPORTUNITY FOR PPA RENEWALS

After a year of downward momentum for wholesale power markets, we are now starting to see markets recover and gain some upward momentum. Generally, power prices tend to find support over the winter months due to supply and demand volatility but, this year, wider global market positivity from events such as the US election and Covid-19 vaccine successes have helped provide additional support.

This, along with a tight UK supply capacity and cold weather forecasts, has resulted in a number of significant power price spikes over the last couple of weeks.

We therefore recommend getting in touch if you have a PPA renewing over the next few months so we can help you secure your next contract at the optimum time.


Ten Point Plan for Net-zero Transition – Carter Jonas RESPONSE

Carter Jonas’s Energy team responds to the release of Prime Minister Boris Johnson’s Ten Point Plan for net-zero transition. Released on Tuesday, 17 November, the £12bn plan is aimed at eradicating the UK’s contribution to climate change by 2050, as part of the net-zero emissions target.

READ THE FULL ARTICLE >>

 

THE UK ENERGY MARKET

Only small price rises occurring largely off the back of lower temperature forecasts and low wind power generation. These were relatively short-lived as falling gas prices filtered through to pull power prices back down. However, power prices turned bullish towards the end of November and into December, spiking to £67/MWh on the 25th November then spiking to £112/MWh on the 5th December. These surges in day-ahead prices were driven by significant falls in wind power generation which, in the first spike, slipped to just 0.75GW or 2% of supply. Rallying gas prices, along with French power strikes, also contributed.

Annual prices rose by as much as 5% on improved market confidence, which also helped push up oil, coal and carbon emission markets. Power prices dipped back down mid-month, before following short-term prices on an upward trend towards the end of the November and into December. Over that period, April ’21 Annual gained £3.3/MWh, or 7.5%, breaking above the £48/MWh for the first time since mid-September.

We therefore think it likely that further price rises will occur across all UK power periods over the coming weeks and months particularly given the positive vaccine news which has bolstered global markets.

Any businesses interested in advice on how current markets will impact their energy contract and/or Power Purchase Agreement (PPA) should get in touch with Helen Melling, Energy Specialist at Carter Jonas on 07467 335587 or helen.melling@carterjonas.co.uk.

In other news

Together the companies will push to accelerate the growth of solar even further both across the UK and further afield. Statkraft expect solar power to account for 38% of global power generation by 2050.
It will outline the business case of hydrogen as a decarbonised energy carrier in the UK context. The Department for Business, Energy and Industrial Strategy expects to see the demand for hydrogen to increase to 150-450TWh by 2050 and has emphasised the need to act over the coming decade in order to provide increasing support for meeting these eventual targets. An example of the required early action comes in the form of the H100 Fife green hydrogen generation scheme, which is set to receive part of a £58 million funding package from Ofgem, designed to support the initial steps in the UK’s transition to Net Zero.
Construction expected to begin as soon as 2024. The planned £3 billion venture will link Peterhead and Torness in the east of Scotland with points in Selby and Hawthorn Point, situated 440 kilometres away in the north east of England, and aims to transfer enough energy generated from Scottish offshore wind farms to be able to power around 4.5 million homes.
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Helen Melling
Senior Energy Specialist
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Helen is a Senior Energy Specialist based in our Leeds office.

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