DESNZ monthly newsletter
Welcome to the latest bulletin from the Department for Energy Security and Net Zero, with updates on:
Review of Electricity Market Arrangements
On 12 March, the government launched the biggest reform of the electricity market in a generation, with its second consultation on the Review of Electricity Market Arrangements (REMA).
The government set out a plan to boost gas power capacity, firstly by broadening existing laws requiring new gas plants to be built net-zero ready. Secondly, these gas power plants will run less frequently as the UK continues to roll out other low carbon technologies.
The government has also discounted nodal pricing, due to the impacts it would have on investor confidence and deliverability of its 2035 decarbonisation targets.
Your input on this second consultation will shape our system for decades to come, setting out a clear direction of travel for how electricity market arrangements need to evolve in the future, structured around key 4 challenges. These include:
This 8-week consultation closes on 7 May.
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?75% increase in demand for heat pumps
Latest figures, published on 28 February, show applications to the government’s heat pump grant rose by 75% in February, compared to the same month in 2023.
Following the 50% increase to the Boiler Upgrade Scheme , the statistics show that the monthly average for applications received between November 2023 and February 2024 is 45% higher than the monthly average before the uplift.
Record numbers of people are choosing to install heat pumps, taking advantage of the ￡7,500 government grant, and many of their questions have been answered by industry experts .
These increases also follow changes made to the Boiler Upgrade Scheme criteria, which will make heat pumps cheaper and easier to install. Families will no longer have to install cavity wall or loft insulation to use the scheme, giving them greater choice on how they improve their home.??
One billion budget for renewable energy
On 6 March, the government announced the largest ever budget for the upcoming Contracts for Difference auction round.
As part of the Chancellor's spring statement , over ￡1 billion has been pledged for renewables.
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The Allocation Round 6 budget includes:?
DESNZ in the Spring Budget
On 6 March, the Chancellor delivered his Spring Budget .
The government announced that an agreement has been reached to purchase the Wylfa (Wales) and Oldbury (Gloucestershire) nuclear sites for use in new nuclear projects , as well as the launch of the next stage of the Small Modular Reactor (SMR) selection process.?
The Green Industries Growth Accelerator (GIGA) was also awarded a further ￡120m in to help stimulate the growth of low-carbon manufacturing supply chains across the UK.
Tougher action on the connections queue also featured, so that only the most viable projects remain in the queue. We introduced a new taskforce to resolve disputes between landlords and network operators.
The government will consult on introducing full cost recovery charging for energy planning applications, so we can explore funding planning authorities to process the large and growing volumes of grid applications.
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Solar Taskforce meets at Number 10
The Solar Taskforce, which brings together key stakeholders from government, industry, regulatory bodies, and other organisations, convened for its final session at No 10 Downing Street on 12 March.
Established with the objective of identifying and advancing actions required by both the government and industry to achieve the UK's ambition of increasing solar deployment to 70GW by 2035, the Taskforce reflects the government's strong commitment to this undertaking, aiming to more than quadruple the current installed solar capacity.
Throughout its tenure, the Taskforce has explored various challenges faced by the solar industry, spanning from skills shortages to supply chain constraints and technological innovations. The final meeting served as a platform for the Taskforce to deliberate on the government's upcoming Solar Roadmap, prior to its launch. Minister Bowie also took the opportunity to express thanks to all participants for their contributions and hard work.?
Other DESNZ news:
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Principal Knowledge Lawyer (Energy, Transport & Infrastructure Projects) at Addleshaw Goddard
7 个月Thanks - this is a very useful round-up
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7 个月Excellent news