WELCOME TO THIS MONTH'S ENERGY AND WATER UPDATE, KEEPING YOU UP TO DATE WITH THE MAJOR DEVELOPMENTS YOU NEED TO KNOW.
This month we cover our thoughts on COP26, the latest on CCUS, EV developments, the Green Gas Support Scheme, offshore and onshore wind, and much, much more.
Throughout COP26 we published a series of blogs which saw AG Trainees reflect on theirthoughts around the event.
CCUS business models and cluster sequencing deployment
The Department for Business, Energy & Industrial Strategy (BEIS) has published thefollowing in relation to carbon capture, usage and storage (CCUS):
- Updates on the proposed commercial frameworks for transport and storage, power, andindustrial carbon capture business models;
- A call for submissions from organisations wanting to take part in Phase-2 of the CCUSCluster Sequencing Process; and
- The design of the Carbon Capture and Storage (CCS) Infrastructure Fund.
BEIS, 8 November 2021
- Electricity Networks
Ofgem's initial findings from its Electricity Network Planning Review are a cause forconcern for renewable energy developers. The key proposal is to centralise strategicnetwork planning. This throws up a number of questions. Read the full article to find out theimplications for your future projects.
Ofgem reform of Distribution Use of System Charges under separate SignificantCode Review on revised timescales
Ofgem have launched a consultation seeking views on a proposal to take forward the wide-ranging review of Distribution Use of system (DUoS) under a separate vehicle to theAccess and Forward Looking Charges Significant Code Review (Access SCR), on arevised timescale. Procedurally, this entails descoping DUoS from the Access SCR andlaunching a new, dedicated SCR which would retain the original ‘wide ranging review’scope of DUoS reforms as set out previously. Consultation ends: 6 December 2021.
Ofgem, 1 November 2021
- Electric Vehicles
The Government recently announced it will introduce new requirements for installing EVcharge points in new homes, new non-residential buildings and renovated buildings wherethere are parking spaces, applying only to England. Our insight article considers therequirements and timescales.
National Highways (formerly known as Highways England) has announced it will invest inEnergy Storage Systems for service stations where the grid supply is not enough for rapidcharging infrastructure.
National Highways, 22 November 2021
Review of the schemes to compensate energy intensive industries for indirectemission costs in electricity prices: Summary of consultation responses
A summary of 34 responses that have been received to the BEIS consultation on the risk ofcarbon leakage due to the indirect emission cost from the UK Emissions Trading Scheme(ETS) and compensation price support (CPS) mechanism. A full government response willbe published at a later date.
BEIS, 17 November 2021
A BEIS publication aims to help stationary installation operators understand theGreenhouse Gas Emissions Trading Scheme Order 2020 requirements for biomassmonitoring and reporting in the UK ETS.
BEIS, 16 November 2021
An updated tax information and impact note in relation to the reform of red diesel and otherrebated fuels entitlement.
HM Treasury, 29 November 2021
BEIS has announced that the Green Gas Support Scheme (GGSS) opened on Tuesday, 30November 2021. The scheme provides tariff support for biomethane produced viaanaerobic digestion which is injected into the gas grid. GGSS will be open to applications for 4 years.
BEIS, 29 November 2021
The draft Green Gas Support Scheme Regulations 2021 were laid in September 2021 andcame into force on 30 November. Ofgem are consequently releasing procedural guidancein phases and focussing on areas where early insight may be needed. This draft guidanceallows stakeholders to review the proposed guidance and should be used as a 'livedocument' until the next phase is published. Consultation ends: 2 December 2021.
Ofgem, 18 November 2021
Heat in Buildings: Scotland's National Public Energy Agency: Consultation: Call forEvidence 2021/2022
The Scottish Government are committed to establishing a new National Public EnergyAgency by 2025 to provide leadership and coordination of heat decarbonisation delivery inScotland. This call for evidence is the first step in a process of collaboration and co-development of the new body. Consultation ends: 8 February 2022.
Scottish Government, 30 November 2021
This draft heat network delivery plan sets out how the provisions of the Heat Networks(Scotland) Act 2021, and related policies, will contribute to increased heat networks acrossScotland. It also outlines the proposed regulatory regime for the heat networks sector inScotland. Consultation ends: 13 December 2021.
Scottish Government, 15 November 2021
The Scottish Government's draft Hydrogen Action Plan articulates the actions that will betaken over the next five years to support the development of the hydrogen economy inScotland. Consultation ends: 19 January 2022.
Scottish Government, 10 November 2021
- Net Zero
In the first of a new series, our insight piece takes a look at the UK's Net Zero Strategy, itstargets and ambitions and whether policies are in place to achieve them.
A Government Office for Science publication explores the role of future societal changewithin UK pathways to net zero. A Foresight project will produce several core outputs,including an expert evidence review, a set of future scenarios exploring different assumptions of future societal and behavioural change, and modelling to quantifyimplications of each scenario for the energy system and for different groups within society.
Government Office for Science, 10 November 2021
A BEIS publication sets out how the Government intends to drive products to use lessenergy, resources and materials, and discusses how this will contribute to achieving netzero.
BEIS, 4 November 2021
The Office for Nuclear Regulation's (ONR's) revised position statement on the interpretationof "bulk quantities" in relation to the storage and disposal of radioactive matter providesclarity for ONR inspectors and prospective operators.
Office for Nuclear Regulation, 24 November 2021
- Real Estate
A progress report providing an update on the delivery of the EPC action plan, designed toimprove the quality of Energy Performance Certificates (EPCs).
Department for Levelling Up, Housing and Communities and BEIS, 8 November 2021
BEIS has published its response to its scoping consultation on the draft plan/programme toenable future offshore energy leasing and licensing.
BEIS, 22 November 2021
A House of Lords Library publication discusses the Onshore Wind Bill which would requirethe Government to amend planning guidance to enable local planning authorities to grantmore onshore wind applications for the purpose of meeting the UK’s carbon targets. The Bill's second reading was heard on 19 November 2021.
House of Lords Library, 11 November 2021
The Crown Estate has published further details of its plans for floating wind leasingagreements in the Celtic Sea, which is expected to unlock up to 4GW of new clean energycapacity in England and Wales.
The Crown Estate, 11 November 2021
This document sets out the strategic aims for the role of biomass across the economy inthe short, medium and long term to deliver towards net zero.
BEIS, 4 November 2021
Marine Scotland's first annual sectoral marine planning call for evidence on the SectoralMarine Plan for Offshore Wind Energy (SMP-OWE). The plan has identified 15 plan optionsfor offshore wind development in Scotland and seeks views to determine whether the Plan is still relevant or needs reviewing. Consultation ends: 28 February 2022.
Scottish Government, 4 November 2021
The government will invest £20 million per year in Tidal Stream electricity, with the cashboost supporting marine technologies. This is added to the Contracts for Difference (CfD)Allocation Round 4 budget and is ring-fenced for tidal stream projects.
BEIS, 24 November 2021
The Water Environment (Controlled Activities) (Scotland) Regulations 2011 (as amended) provide a regulatory framework for controlling activities which could have an adverse effecton Scotland’s water environment, including abstraction, impoundments, engineering,dredging, surface water drainage, and pollution.
In force: 1 January 2022 (for the purpose of regulation 1(2)) and 1 January 2023 (for thepurpose of regulation 1(3)).
The Environment Agency and Ofwat have launched a major investigation into sewagetreatment works, this is after new checks led to water companies admitting that they couldbe releasing unpermitted sewage discharges into rivers and watercourses.
Department for Environment, Food & Rural Affairs, Environment Agency & The WaterServices Regulation Authority, 18 November 2021
A discussion paper setting out further detail on Ofwat's approach to long-term deliverystrategies at PR24, following its recent consultation, ‘Creating tomorrow together’, andsubsequent engagement. The paper sets out Ofwat's expectations for what companiesshould include in their long-term delivery strategies as part of the business plan submissionfor PR24. Consultation ends: 6 January 2022.
Ofwat, 17 November 2021
A decision document setting out changes to the Wholesale Retail Code with respect toimproved codes for "remote read types". The recommended date of implementation is 13May 2022.
Ofwat, 8 November 2021