Welcome to this month's Energy and Water update, keeping you up to date with the major developments you need to know.


Biomass

The role of Biomass in achieving Net Zero - Call for Evidence

A Department for Business, Energy & Industrial Strategy (BEIS) consultation to inform the development of the upcoming biomass strategy, we're seeking evidence on how sustainable biomass should be sourced and used to best support our net zero target. Consultation ends: 15 June 2021.
BEIS, 20 April 2021

Energy from Waste

Strategic assessment for the future need for energy from waste capacity in Wales

A strategic assessment document by the Welsh Government provides information to be used by developers, local planning authorities and the Planning Inspectorate Wales when considering the need for new, or variations of, planning permissions for energy from waste facilities and energy facilities using waste as a fuel.
Welsh Government, 24 March 2021

Energy Regulation

Electricity Retail Market-wide Half-hourly Settlement: Decision and Full Business Case

An Ofgem decision document in respect of its electricity retail market-wide half-hourly settlement (MHHS) consultation.
Ofgem, 20 April 2021

Statutory consultation on modifications to the RIIO-2 Transmission, Gas Distribution and Electricity System Operator licence conditions

An Ofgem consultation is seeking views on proposed modifications to the licence conditions that implement the RIIO-2 price control settlement for the transmission companies, gas distribution networks and the electricity system operator. Consultation ends: 13 May 2021.
Ofgem, 14 April 2021

Introducing a new ‘Electricity System Restoration Standard’

A policy statement providing information on the decision by the Secretary of State for the Department for Business, Energy and Industrial Strategy (BEIS) to introduce a new legally binding target for the restoration of electricity supplies in the event of a nationwide electricity failure – a new Electricity System Restoration Standard.
Department for Business, Energy & Industrial Strategy, 1 April 2021

Consultation on licence amendments to facilitate the introduction of an Electricity System Restoration Standard

An Ofgem consultation on amendments to the ESO’s licence conditions that will facilitate the introduction of an Electricity System Restoration Standard and align the regulatory framework for procurement of restoration services with that of balancing services. Final proposals for the licence amendments are expected in June 2021. Consultation ends: 14 May 2021.
Ofgem, 1 April 2021

Ofgem publishes Forward Work Programme for 2021/22

A document setting out Ofgem's activities that will deliver their new Strategic Framework over the five-years. The framework will focus on: investment in low carbon infrastructure to deliver net zero; full chain flexibility; the delivery of a future retail market with innovative new retail products; the benefits of data and digitalisation; and energy system governance arrangements.
Ofgem, 29 March 2021

Energy Suppliers

The Gas is Always Greener on the Other Side... of the RHI

This article summarises the support available for green gas (biomethane) injected into the GB gas network once the Renewable Heat Incentive (RHI) support ends. The new Green Gas Support Scheme (GGSS) will open for applications in autumn this year.

Guidance on renewable energy obligations for suppliers

A document setting out guidance for all GB and NI licensed electricity suppliers under the Renewables Obligation (RO). It explains what licensed electricity suppliers are required to do in order to comply with the RO, and has been updated to reflect changes to the calculation methodology for the mutualisation threshold, in line with the Renewables Obligation (Amendment) Order 2021.
Ofgem, 9 April 2021

Switching Programme Significant Code Review: Retail Energy Code v3.0

Ofgem is consulting on the schedules to the Retail Energy Code (REC) that enable faster, more reliable switching. This involves inserting a number of new schedules into the REC at v3.0, and updating a small number of schedules which will have been part of REC v2.0. It is also consulting on v3.0 of the Data Specification, which is an incremental update to v2.0, which was consulted on in December 2020. The incremental changes are related to new capabilities which will be established within REC v3.0 such as the new switching arrangements, Gas Enquiry Service arrangements and consequential changes to existing data.
Consultation ends: 30 July 2021.
Ofgem, 31 March 2021

Net Zero

UK enshrines new target in law to slash emissions by 78% by 2035

The UK government announced that it will set in law an ambitious climate change target, cutting emissions by 78% by 2035 compared to 1990 levels. The new target will become enshrined in law by the end of June 2021. The government laid a draft Carbon Budget Order 2021 before Parliament on 21 April to set the carbon budget for 2033-2037 at 965 million tonnes of carbon dioxide equivalent, as recommended by the sixth Carbon Budget report (published in December 2020).
Department for Business, Energy and Industrial Strategy, 20 April 2021

Nuclear

How we regulate radiological and civil nuclear safety in the UK

A Department for Business, Energy and Industrial Strategy (BEIS) publication providing an overview of the UK regulatory framework for all aspects of radiological and civil nuclear safety across the UK, outlining the work of 11 government departments and 16 regulatory bodies across the UK. 
BEIS, 20 April 2021

Oil & Gas

Aligning UK international support for the clean energy transition

Following a consultation and consequent response, the Department for Business, Energy and Industrial Strategy (BEIS) has published a document that sets out the detail of the new policy on UK government support for the fossil fuel energy sector overseas, effective from 31 March 2021. This will include UK Export Finance support, international aid funding, and trade promotion for new crude oil, natural gas and thermal coal projects.
BEIS, 31 March 2021

Consultation: Offshore Energy Strategic Environmental Assessment Scoping

BEIS is conducting a Strategic Environmental Assessment of a draft plan/programme to enable future renewable leasing for offshore wind, wave and tidal devices and licensing/leasing for seaward oil and gas rounds, hydrocarbon and carbon dioxide gas storage, and offshore hydrogen. Consultation ends: 7 May 2021.
BEIS, 29 March 2021

Real Estate

Energy efficiency - Revision of the Energy Performance of Buildings Directive

A European Commission consultation seeks the views on proposals for a revision of the Energy Performance of Buildings Directive that focuses on provisions that are central to boosting building renovation of buildings in the EU. Consultation ends: 22 June 2021.
European Commission, 30 March 2021

Renewable Energy

The Gas is Always Greener on the Other Side... of the RHI

This article summarises the support available for green gas (biomethane) injected into the GB gas network once the Renewable Heat Incentive (RHI) support ends. The new Green Gas Support Scheme (GGSS) will open for applications in autumn this year.

Consultation: Offshore Energy Strategic Environmental Assessment Scoping

The Department for Business, Energy and Industrial Strategy (BEIS) is conducting a Strategic Environmental Assessment of a draft plan/programme to enable future renewable leasing for offshore wind, wave and tidal devices and licensing/leasing for seaward oil and gas rounds, hydrocarbon and carbon dioxide gas storage, and offshore hydrogen. Consultation ends: 7 May 2021.
BEIS, 29 March 2021

Water

OFWAT regulatory accounting guidelines 2020-21: Further guidance on reporting of greenhouse gas emissions

An OFWAT publication reiterates the explanation for the changes outlined in their "Consultation on regulatory reporting for the 2020-21 reporting year" and accompanying "IN 20/08 Regulatory accounting guidelines 2020-21", relating to how they would like companies to report on their greenhouse gas (GHG) emissions for 2020-21, as well as providing further guidance to assist companies to report on their operational GHG emissions. A brief update on embedded emissions is also provided.
OFWAT, 1 April 2021

Building back better with a Green Recovery Insight Series

Addleshaw Goddard's Energy & Utilities team are seeking to find a way to support our clients' as they strive to meet their own carbon zero targets. As part of this endeavour we will be releasing a series of Green Recovery; Build Back Better Insights, which will provide a synoptic snapshot into a variety of different elements of this transition phase and continue to offer an optimistic glimpse into the low-carbon future we all need. Here are the latest insights:

Can the UK North Sea encourage the tides of change?

The North Sea Sector Deal: Does the oil and gas sector have the potential to be a beacon for change in an industry which historically has always been seen as an emitter for fossil fuels?

Key Contacts

Anna Sweeney

Anna Sweeney

Senior Knowledge Lawyer, Projects & Infrastructure
Leeds

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Richard Goodfellow

Richard Goodfellow

Partner, Head of Infrastructure, Projects & Energy Group
United Kingdom

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