Category Archives: Energy News

New laws to guarantee payment for solar homes providing excess electricity

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UK Homes and green businesses generating renewable and low-carbon electricity to be guaranteed money for power supplied to the grid.

New solar homes and businesses creating and exporting electricity to the grid will be guaranteed a payment from suppliers under new laws to be introduced by the government this week (Monday 10 June).

The Smart Export Guarantee (SEG) will ensure small-scale electricity generators installing solar, wind or other forms of renewable generation with a capacity up to 5MW will be paid for each unit of electricity they sell to the grid – tracked by their smart meter.

Residential solar panels are now over 50% cheaper than in 2011. SEG will build on the previous government subsidy scheme, which drove the installations of 850,000 small-scale renewable projects, but without passing on the cost to consumers.

Encouraging suppliers to competitively bid for electricity will give households the best market price for their energy, while providing the local grid with more clean, green energy, as the UK bids to become a net zero emissions economy.

Energy and Clean Growth Minister Chris Skidmore, said:

The future of energy is local and the new smart export guarantee will ensure households that choose to become green energy generators will be guaranteed a payment for electricity supplied to the grid.

We want the energy market to innovate and it’s encouraging to see some suppliers already offering competitive export tariffs to reduce bills. We want more to follow suit, encouraging small-scale generation without adding to consumer bills, as we move towards a subsidy-free energy system and a net zero emissions economy.

SEG will place a legal obligation on energy suppliers with over 150,000 customers –covering more than 90% of the retail market – to introduce export tariffs by 1 January 2020. Some energy suppliers, including Octopus and Bulb, are already offering new smart tariffs, with some exceeding those offered under the previous subsidy scheme. At peak, solar has provided more than a quarter of the UK’s energy demands.

Chief Executive of Octopus Energy, Greg Jackson, said:

These smart export tariffs are game changing when it comes to harnessing the power of citizens to tackle climate change. They mean homes and businesses can be paid for producing clean electricity just like traditional generators, replacing old dirty power stations and pumping more renewable energy into the grid. This will help bring down prices for everyone as we use cheaper power generated locally by our neighbours.

The previous Feed-in Tariffs (FIT) scheme closed to new entrants from 31 March 2019, following consultations in 2015 and 2018, to reduce the costs to consumers as the price of installing solar panels came down.

SEG is designed to continue to grow the small-scale renewables export market by supporting local generation. Combined with existing technologies, like smart meters and battery storage, SEG will help bridge the gap to a smarter and more efficient energy system of the future.

The government is keen to support households and businesses in being able to store energy in batteries in their homes, which consumers will monitor on their smart meters, respond to price signals and choose the most economical times to charge their electric cars and sell their electricity back to the grid. In turn, this will help cut consumer bills, reduce the strain on energy networks, and give consumers more control of their energy use.

The new solar scheme comes as the government will unveil the winners of the latest round of the Energy Entrepreneurs Fund this week. One of the winners, Brill Power, has been awarded £686,000 in grant funding to explore further boosting the lifetime of lithium-ion battery packs for household energy storage and to bring down their cost for consumers.

HS2 could provide green energy to hundreds of new homes

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In an innovative first, engineers developing the HS2 super-hub at Old Oak Common in north west London are proposing plans to tap heat from the brakes and engines of high speed trains to heat water and power central heating of up to 500 new homes that could be built nearby.

The scheme would see 5 air source heat pumps draw warm air from the railway’s tunnels, where the waste heat from trains is usually extracted by traditional ventilation systems and seeps into the ground surrounding the tunnels.

Instead HS2 Ltd’s plans would see waste heat fed into a local District Heating System. The new HS2 station at Old Oak Common is set to be the UK’s best connected rail interchange, with an estimated 250,000 people passing through every day. It will help kick-start the UK’s largest regeneration project, which aims to transform the former railway and industrial area, into a new neighbourhood supporting up to 65,000 jobs and 25,500 new homes*.

HS2 innovation manager, Pablo García, said:

HS2 is so much more than a railway. By taking a long term view of how the benefits of investing in the new high speed railway can be shared, we’re investigating how to provide sustainable, low-carbon heating and hot water to up to 500 new homes.

Near Old Oak Common we’re building a crossover box. This is an underground hall that houses a points junction to enable trains to arrive and depart from any of the station’s platforms.

Our plans would see warm air pushed into the crossover box by trains, in effect acting like pistons. It then rises to be harnessed by air source heat pumps, converted into hot water and transported to homes by insulated pipes.

Aerial view of Old Oak Common

Old Oak Common’s crossover box is capable of supporting waste heat recovery technology.

Based on current energy price forecasts, HS2 estimates that the investment in waste heat recycling system would pay for itself after just 4 years.

Compared to gas boilers being used in the homes, recycling heat generated by trains’ engines and brakes could reduce the carbon footprint of 500 houses by more than a fifth (22%).

Plans are at an early stage but the technology is proven. As the project progresses HS2 Ltd will work with local partners to make this aspiration a reality.

Pablo explained how Old Oak Common’s crossover box is the only place on HS2’s first section between London and the West Midlands capable of supporting waste heat recovery technology, but there may be further opportunities on the high speed network’s Leeds and Manchester routes.

Our study focused on possible Phase One opportunities because its designs are most advanced. Designs for the second phase of the railway are at an earlier stage, and we hope to look at whether waste heat recovery technology could be deployed there too.

Currently more than 1,000 people are at work on HS2 across London, clearing the way for the start of construction.

At Euston and the future HS2 terminus at Curzon Street in Birmingham demolitions are well underway alongside the project’s pioneering archaeology programme. Meanwhile clearance of the Washwood Heath site, the Birmingham location of the project’s future network control centre and rolling stock depot, is also in full swing.

In total more than 7,000 jobs are currently supported by the HS2 project, both directly and in the UK-wide supply chain.

Cyient Selected by UK Power Networks to Develop an Outage Planning Portal

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Cyient, a global provider of engineering, manufacturing, geospatial, networks, digital, and operations management solutions to global industry leaders, will execute a project for UK Power Networks, the UK’s largest electricity distribution network operator. As part of the innovation project, called “Network Vision”, Cyient will develop an online outage planning and tracking integration portal that will help optimize distributed energy generation performance and deliver cost savings of as much as £1 million per year.

Planning network downtime is a complex process that involves balancing competing factors, making it necessary to interrupt power supplies on parts of the electricity network so engineers can undertake maintenance, upgrades and other tasks safely.

Cyient’s solution development team is working in collaboration with UK Power Networks to design and build the outage planning and tracking portal from the ground up. This will allow UK Power Networks to automate current processes and streamline how upgrades and maintenance tasks are scheduled.

Network Vision will give local energy generators – including renewable generation – visibility of planned work so they have the option to coordinate their own maintenance at the same time as the electricity network’s maintenance operations, and so minimize downtime.

Reducing downtime helps maximise the potential of renewable energy to feed into local electricity networks and could enable an extra 1080 MWh of renewable generation per year, saving 344 tonnes of CO2 emissions. That’s the equivalent effect of planting 172,000 trees (a forest 2.5 times the size of the City of London) every year.

John Renard, President of Utilities and Geospatial, and President of EMEA, Cyient said, “We are excited to be working with UK Power Networks on this innovative and revolutionary project that will enable utilities to change the way they manage their networks.”

“UK Power Networks has listened to what its stakeholders in the distributed energy community have said and responded with this project as a direct solution to their requests. It will give customers the ability to harmonize their plans with the network and ensure greater efficiency on network capacity.”

Ian Cameron, head of innovation at UK Power Networks, said: “The rapid growth of renewable energy in recent years means that our customers are changing and want us to respond to the needs they highlighted at our Distributed Generation Forums. We’re excited to improve the service we offer them and to share our learnings so that all networks can also benefit.”

Defence Minister opens first military airbase to be powered by green energy

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RAF Marham, the home of the UK’s F-35 multi role combat jets, is set to become the first military airbase to be powered by green electricity.

Defence Minister Tobias Ellwood made the announcement today during a visit to a Norfolk biogas plant, where he officially opened the new site that will provide energy to the airbase.

Electricity will be fuelled by fermented locally grown crops, providing 95% of RAF Marham’s energy needs and saving the MOD nearly £300,000 every year.

The facility, built by Future Biogas, will generate 4.5 MVA of electricity every day, which can power 350,000 LED bulbs. This project has been delivered by the Defence Infrastructure Organisation (DIO) with government and private sector colleagues.

Minister for Defence People & Veterans Tobias Ellwood MP said:

RAF Marham is leading the way as Britain’s first green military airbase. The biogas fuel is a truly green and sustainable solution, helping us tackle climate change, support the local economy and save taxpayer money.

I hope that this plant can act as a model and we can see more sustainable energy schemes rolled out across other military bases.

The process, known as Anaerobic Digestion, produces gas which is collected and used to power multiple generators that produce electricity and will reduce the Ministry of Defence’s carbon emissions by 14,000 tonnes of CO2 annually. The waste residue from this process can then be dried and used as fertiliser to help grow local crops.

The plans have been in development since February 2015 and DIO, the part of the MOD which manages the Defence Estate, has been hard at work with colleagues in Crown Commercial Service (CCS), Future Biogas and energy company EDF to develop an electricity supply that is green and sustainable as well as providing financial savings.

Sam Ulyatt, Crown Commercial Services, Buildings Strategic Commercial Director, said:

This is an excellent example of how CCS can work with forward-thinking public sector partners like DIO, and suppliers like EDF and Future Biogas, to source power supply solutions for the Royal Air Force which provide resilience and strong green credentials, while boosting the local economy and providing energy security for the UK.

Philipp Lukas, Future Biogas Managing Director, said:

It’s fantastic to see the UK military join the green revolution. If we are to combat the imminent global threat of climate change, everyone, from all walks of life, needs to transition to renewable, sustainable energy as quickly as possible.

The AD plant in Swaffham now powers a significant local institution. In doing so, it not only helps secure the energy supply of a strategic national asset, but also takes the pressure off the local electrical infrastructure, which has been really struggling to keep up with growing regional demand.

A feasibility assessment was undertaken by DIO to determine what benefits could be derived from this supply of clean energy. As well as saving money and reducing carbon emissions, it was determined that the new plant would increase power resiliency at RAF Marham by providing multiple pathways to electrical resources.

The project was sourced through frameworks put in place by the Crown Commercial Service, which helps the entire public sector to save time and money when buying common goods and services. CCS continues to work with the RAF on demand management and renewable energy.

Loyal Energy Customers To Pay Fair Price From Now

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Around 11 million households who have stayed loyal to energy suppliers on poor value energy tariffs will pay a fair price from today (1 January 2019) thanks to the government’s price cap.

The cap will bring down the amount consumers have been overpaying to energy companies, including the Big Six, by £1 billion a year, starting this winter when households are typically using more energy to heat and light their homes. It will remain in place until at least 2020, while energy suppliers and industry continue to work with the energy regulator Ofgem and the government to build an energy market that works better for all consumers.

Prime Minister Theresa May said:

Our energy price cap will cut bills for millions of families and people across the UK who have been ripped off by energy companies for far too long. From today, money will go straight back into the pockets of loyal consumers, including the elderly and those on lower incomes who feel the pinch more acutely.

But work to tackle this issue doesn’t stop there. We’re working with regulators and industry to ensure that consumers are not unfairly overcharged in the future – whether on their phone bills or their insurance premiums.

Energy and Clean Growth Minister Claire Perry said:

Today marks the end of unjustified price rises on energy bills as this government delivers on time on its promise to protect millions of households from poor value deals, especially the vulnerable.

For too long, suppliers have failed to pass on any savings to their customers, who deserve to pay a fair price for their gas and electricity. Switching supplier is still the best way to find a better deal, but that doesn’t mean customers should be punished for their loyalty.

Bill payers can now be confident that any change to the price cap will be a fair representation of the actual costs of energy, rather than suppliers passing on inefficiencies to their customers or as excess profits.

Following a consultation, Ofgem set the price cap level at £1,137 per year for a typical dual fuel customer paying by direct debit. The amount customers will pay depends on how much energy they actually use, as the price cap sets a limit on how much suppliers can charge per unit of gas and electricity not on overall energy bills.

The cap will also protect around one million households who receive the Warm Home Discount currently protected by Ofgem’s safeguard tariff. Ofgem already caps energy prices through its safeguard tariff for 4 million households on pre-payment meters.

Ofgem will review the level of the cap every 6 months taking into account any changes to the actual costs of providing gas and electricity to energy customers. The first review will take place in early February coming into effect on 1 April 2019.

Dermot Nolan, chief executive at Ofgem, said:

Under the cap, Ofgem will protect consumers from being overcharged and ensure they pay a fair price to heat and light their homes. Consumers can have confidence that any rise in prices in the future will only be down to genuine increases in energy costs rather than supplier profiteering while falls in energy costs will always be passed on to them.

Households who are protected by the cap will be able to save even more money by shopping around for a better deal. In the meantime Ofgem will continue with reforms which aim to deliver a smarter, more competitive energy market which, combined with protection for those who need it, works for all consumers.

The Domestic Gas and Electricity Act, which passed Parliamentary scrutiny and became law on 19 July 2018, put in place a requirement on Ofgem to cap standard variable and default energy tariffs after the Competition and Markets Authority (CMA) found consumers had been overpaying the Big Six an average of £1.4 billion a year.

While the temporary cap is in place, energy suppliers and industry will continue to work with Ofgem and government to build an energy market that works better for all consumers, ensuring they get the best service for a fair price so that everyone reaps the benefits of the move to a smarter, more digital economy.

Other measures designed to deliver the government’s objective of clean, affordable and innovative energy, while tackling fuel poverty, as part of our modern Industrial Strategy include:

  • the rollout of smart meters
  • initiatives to promote smarter and faster switching
  • a joint review with Ofgem on the future of the retail market