This month we cover the Autumn Budget, Net Zero Strategy, Heat and Buildings Strategy and various other consultations on heat, the RAB model for nuclear and more.

Autumn Budget
Autumn Budget and Spending Review 2021

A Treasury publication sets out the Autumn 2021 Budget in full. The government has said it is investing £1.5 billion in net zero innovation, and lays the foundations for the wider transition to a more resilient energy supply by investing in nuclear technologies and offshore wind. This includes £1.7 billion to enable a final investment decision for a large-scale nuclear project in this Parliament. To decarbonise industry and power the government also confirmed £1 billion for Carbon Capture, Usage and Storage (CCUS), selecting Hynet and East Coast as the first CCUS clusters. In addition, the government is providing up to £140 million over the Spending Review period to support hydrogen producers and heavy industry adopting CCUS through the Industrial Decarbonisation and Hydrogen Revenue Support scheme.
HM Treasury, 27 October 2021

Climate Change Update Statement 

An update by the Minister of State for Energy, Clean Growth and Climate Change on the UK’s CCUS Cluster Sequencing Process which was launched in May this year.
UK Parliament, 19 October 2021

Energy Regulation
Consultation outcome: Domestic Renewable Heat Incentive: ensuring a stable scheme

The Department for Business, Energy & Industrial Strategy (BEIS) has published the government's response to its consultation on the domestic renewable heat incentive (DRHI). The response outlines an intention to proceed with the majority of the proposals as outlined in the consultation, which includes a commitment to close the DRHI to new applications on 31 March 2022.
BEIS, 29 October 2021

Heat and Buildings Strategy 

A policy paper looking at how the UK will decarbonise homes, and commercial, industrial and public sector buildings, as part of setting a path to net zero by 2050.
BEIS, 19 October 2021 

Consultation: A market-based mechanism for low-carbon heat

BEIS are seeking views on proposals to create a market-based incentive to develop the UK market for low-carbon electric heat pumps. It covers: the proposed scope of technologies and installations; the choice of core target for the mechanism; options for trading within the mechanism; and options for scheme administration, penalties and enforcement. Consultation ends: 12 January 2022.
BEIS, 19 October 2021

Consultation response to Clean Heat Grant proposals within ‘Future support for low carbon heat’ 

The scheme formally named the Clean Heat Grant and now known as the Boiler Upgrade Scheme (BUS) is set to proceed. The response contains details of decisions on grant levels, eligibility criteria, types of heating systems, capacity and building requirements, and financial mechanisms, including annual budget caps and budget data.
BEIS, 19 October 2021

Phasing out the installation of fossil fuel heating in homes off the gas grid

BEIS is seeking views on proposals to phase out the installation of fossil fuel heating systems in homes off the gas grid. Consultation ends: 12 January 2022.
BEIS, 19 October 2021

Phasing out the installation of fossil fuel heating systems in businesses and public buildings off the gas grid

BEIS is seeking views on proposals to phase out fossil fuel heating system installations in businesses and public buildings off the gas grid. Consultation ends: 12 January 2022.
BEIS, 19 October 2021

Heat Network Zoning

BEIS is seeking views on a proposed approach to deliver heat network zoning in England and to identifying areas where heat networks are the most appropriate solution for decarbonising heating. Consultation ends: 19 November 2021.
BEIS, 8 October 2021

Heat in Buildings Strategy - achieving net zero emissions in Scotland's buildings

A Scottish Government publication sets out its vision for the future of heat in buildings, and the actions it is taking in the buildings sector to deliver climate change commitments, maximise economic opportunities, and ensure a just transition, including helping to address fuel poverty.
Scottish Government, 7 October 2021 
Scots Law

New Build Heat Standard - scoping consultation: analysis

Independent analysis of the responses made to the scoping consultation into the New Build Heat Standard.
Scottish Government, 7 October 2021 
Scots Law

Net Zero
Key Takeaways from the UK Government's net zero strategy: build back greener

The net zero policy document sets out how the UK will deliver on its commitments to meet net zero carbon emissions by 2050, including measures to support businesses and consumers, create jobs and leverage up to £90 billion of private investment by 2030. Some of AG's energy and sustainability lawyers provide commentary and analysis around key announcements as set out in the strategy.

The Road to Net Zero: On Track?

We have published The Road to Net Zero – On Track? which is an update to the first Road to Net Zero report we published in January 2020. We look closely at the progress made over the last 18 months, during a very challenging period for everyone, and the distinct shift towards a more collaborative cross-sector approach towards reaching stretching carbon-zero targets. As we move into November, with Glasgow hosting COP26, all eyes will be on Scotland. We have highlighted some of the really positive, innovative projects our Scottish clients have been delivering, that lead the way in carbon reduction on a global scale.

Committee on Fuel Poverty Annual Report 2021

The Committee on Fuel Poverty (CFP) annual report assesses progress towards the 2025 fuel poverty milestone and 2030 target and makes recommendations on energy bill affordability and a fair transition to net zero.
Committee on Fuel Poverty, 13 October 2021

Plans unveiled to decarbonise UK power system by 2035

Plans to ensure that Britain’s homes and businesses are powered by affordable, clean and secure electricity by 2035 have been unveiled by the government.
BEIS, 7 October 2021

Fast-tracking net zero infrastructure

The first projects to benefit from a programme driving investment in low carbon infrastructure have been announced.
Scottish Government, 8 October 2021
Scots Law

New finance model for nuclear power projects announced

The Department for Business, Energy & Industrial Strategy (BEIS) has announced that the new Nuclear Energy (Financing) Bill will introduce a Regulate Asset Base (RAB) model as an option to fund future nuclear projects.
BEIS, 26 October 2021

Research Briefing: Nuclear Energy (Financing) Bill 2021-22

A House of Commons Library research briefing paper on The Nuclear Energy (Financing) Bill.
House of Commons Library, 1 November 2021

Renewable Energy
Scotland and Wales could be home to new floating offshore wind ports thanks to £160m UK government funding

New large-scale floating offshore wind ports and factories are to be built in the UK with up to £160 million of government investment. The newly allocated funding will support the target in the prime minister's Ten Point Plan to deliver 1GW of energy through floating offshore wind by 2030 as a stepping stone to substantial further growth in the UK of this technology. It is expected that the £160 million will develop port infrastructure capable of mass-producing floating offshore wind turbines and installing them out at sea, creating thousands of new jobs in the UK's industrial heartlands, whilst reducing the need to import from overseas.
Prime Minister's Office, 30 October 2021

Onshore wind - policy statement refresh 2021: consultative draft

A Scottish Government consultation seeks views on the ambition to secure an additional 8-12 GW of installed onshore wind capacity by 2030, how to tackle the barriers to deployment, and how to secure maximum economic benefit from these developments. Consultation ends: 21 January 2022.
Scottish Government, 28 October 2021
Scots Law

Renewable energy in Wales: Government response to the Committee’s Second Report

In its response to the Welsh Affairs Committee’s report, Renewable energy in Wales, the UK Government has emphasised its ongoing commitment to a range of renewable energy projects in Wales.
UK Parliament, 26 October 2021

Terms of Reference published for NIC Surface Water Flooding Study

The terms of reference for the National Infrastructure Commission's upcoming study on the effective management of surface water flooding in England. The study will examine the current approaches to managing surface water and assess the role of a range of interventions including both traditional built infrastructure and nature-based solutions. 
HM Treasury, 27 October 2021

Wholesale charging rules

Updated charging rules, issued by the Water Services Regulation Authority under sections 66E and 117I of the Water Industry Act 1991, effective from April 2022.
Ofwat, 20 October 2021

Open data in the water industry

An Ofwat discussion paper examines the case for open data in the water industry and how it can allow water companies to create value for water customers, communities and the environment. This includes data on: adapting to climate change; protecting the environment; and meeting the expectations of customers and other stakeholders.
Ofwat, 13 October 2021

Key Contacts

Anna Sweeney

Anna Sweeney

Principal Knowledge Lawyer, Projects & Infrastructure

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Richard Goodfellow

Richard Goodfellow

Head of IPE and Co-head of Energy and Utilities
United Kingdom

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