A coalition of major industrials is stepping up government lobbying to force a gas security inquiry. Gas Security Group member, the British Ceramic Confederation, says members are willing to pay an insurance premium to help finance adequate gas storage. The British Ceramic Confederation represents some 90 highly gas intensive ceramics manufacturers. Confederation technical director, Andrew Read more…

Economist and consultant Franck Latrémolière outlines the key arguments in the embedded benefits legal challenge, why they failed, what could have been, and what may now rear its head as a result. In November 2017 I predicted that Ofgem would be defeated in the application for judicial review of its decision to reduced embedded benefits for Read more…

Ofgem has seen off a legal challenge over cuts to embedded benefits. The judgement was handed down this morning by Mr Justice Lavender, who rejected the application for judicial review. Peak Gen Power had led a challenge to Ofgem’s decision to drastically reduce so-called embedded benefits, which have been a significant source of income for distributed Read more…

The energy market is changing far more quickly than the rules, stifling innovation and creating mounting problems. Jo Butlin urges rule makers to keep up. I gave a presentation last week on the future of the Energy market to 2050. During the presentation, I heard myself say ‘change has happened in the market far faster Read more…

Government will legislate to increase efficiency requirements of combined heat and power (CHP) plants supported by the contracts for difference (CfD) regime. Both large and smaller (sub-25MWe) plants applying for CfD support will need to demonstrate a minimum of 70% overall efficiency, primary energy savings of 10% and 10% heat efficiency. The department for business, Read more…

MPs on the Business, Energy & Industrial Strategy Committee have launched an inquiry into carbon capture and storage (CCS), or as it is now called, carbon capture, usage and storage (CCUS). CCS/CCUS involves capturing emissions and either burying them in old gas fields or salt caverns, or using some of the carbon in industrial products. Read more…

Electrification of heat was seen as a key policy objective in the early part of this decade, but appears to have receded in recent years, largely on grounds of cost of meeting winter peak demand. The government and much of industry now talk about a ‘whole systems approach’ that involves greener gases, such as hydrogen Read more…

Hydrogen is seen as a key option for decarbonising gas and therefore heat. Some studies suggest it could reduce emissions from heat by almost three quarters, while also helping to decarbonise transport, power and industry. So what’s the catch? The Committee on Climate Change has repeatedly called for “proper” hydrogen trials so that decisions on Read more…

Cadent has published plans to inject hydrogen into its distribution network in the North West while capturing and storing carbon in depleted gas fields in Liverpool Bay. The UK’s largest gas distribution network operator, formerly owned by National Grid, says the £0.9bn HyNet project, if given support by the government and allowed by the regulator, Read more…

The Competition and Markets Authority says heat networks should be regulated, echoing calls from industry. The watchdog is investigating the heat network market and its view is provisional. The CMA outlined concerns over corner cutting, transparency, competition and costs to consumers. Ofgem currently regulates gas and electricity, but not heat. As such, customers on heat Read more…

The Environment Agency (EA) has shelved plans that would effectively prevent unabated generators performing Triad avoidance. Under the Medium Combustion Plant Directive (MCPD), generators that take on new balancing services agreements with National Grid, or new Capacity Market contracts, must comply with strict emissions limits by 1 January 2019. They are classified as ‘Tranche B’ Read more…

Gas and electricity network companies have set out plans for closer collaboration ahead of the next regulatory pricing regime. The Energy Networks Association’s Innovation Strategy documents outline how gas and electricity networks and system operator have spent innovation funding to date, and what they plan to deliver next. It comes as Ofgem consults on the Read more…

Ofgem chief executive Dermot Nolan has warned that there will be losers from its overhaul of network charging arrangements. The regulator intends to come up with a new set of rules around how people access and pay for the grid, due in part to the number of people now avoiding charges, leaving others to pay a Read more…

EDF Energy believes it could make a new nuclear power station at Sizewell around 20% cheaper than Hinkley C, according to Simone Rossi. Speaking at Aurora’s Spring Forum, the chief executive of EDF’s UK business said the firm “hopes to bring to fruition a new nuclear project at Sizewell, on the premise it will be competitive Read more…

National Grid has urged government to get to grips with decarbonising gas in order to also decarbonise heat, transport and industry. The gas and electricity system operator recommends government appoints a lead official with responsibility for gas decarbonisation with a remit to set strategy and policy. In a wide-ranging report on the future of gas, Read more…

UK organisations should keep bidding for innovation funding under the flagship EU Horizon 2020 programme, the department for business, energy and industrial strategy (Beis) has urged. While much uncertainty remains over Brexit terms, the European Commission and UK government agreed in December that the UK would continue participation in programmes financed by the Commission’s multiannual financial Read more…

Ofgem has proposed a much tougher price control for energy networks. The regulator has come under fire after suggestions its current framework has allowed networks to make excess profits at the expense of consumers. Ofgem boss Dermot Nolan acknowledged that assertion within the consultation, stating “returns across companies have been higher than we expected and Read more…

A consortium led by gas networks aims to work out whether using more hydrogen within existing infrastructure could cut UK carbon emissions. Cadent and Northern Gas Networks believe it could also lay the ground for renewed efforts to crack carbon capture and storage. The HyDeploy project, funded by bill payers under Ofgem’s Network Innovation Competition, Read more…

SSE chief executive Alistair Phillips-Davies has urged Brexit negotiators to clarify the UK-EU energy relationship to avoid scuppering decarbonisation efforts. Phillips-Davies said a genuine European market, of which Britain is a part, was “critical” to decarbonising electricity, and that a collaborative EU-UK relationship on energy was “imperative”. Without collaboration, he suggested, the potential to link the Read more…

The capacity market auction for guaranteed power in four year’s time has cleared at £8.40/kW. The result is significantly lower than the previous T-4 auctions, which ranged between £18 and £22.50/kW – and well below virtually all analyst forecasts. Procurement of around 50GW was targeted, with 74GW of derated capacity, most of the UK’s generation fleet, Read more…