The levy control framework (LCF) & contracts for difference (CfD) allocation what it means for the low-carbon generation mix

Size: px
Start display at page:

Download "The levy control framework (LCF) & contracts for difference (CfD) allocation what it means for the low-carbon generation mix"

Transcription

1 The levy control framework (LCF) & contracts for difference (CfD) allocation what it means for the low-carbon generation mix Gareth Redmond 24 th September, 2014

2 Paid for through energy bills costs passed on to consumers, making close and careful control of planning how to allocate and control the LCF exceptionally important. The LCF It s how we pay to support deployment of low-carbon electricity generation principally via the feed-in tariffs (FITs), the renewables obligation (RO) and now, contracts for difference (CfD) The LCF is set at 4.3 billion in 2015/16 rising to 7.6 billion in 2020/21 2

3 Electricity market reform (EMR) EMR began in to secure investment to: Maintain electricity security of supply De-carbonise the electricity sector to meet carbon budgets out to 2030, and greenhouse gas emissions reduction targets to 2050 Keep costs to consumers as low as possible Policy designed Legal framework: The Energy Act 2013; and Secondary legislation came into force this year. So now it s about implementation: CfD allocation round opening in October Capacity market auction in December RO closes to new generation in

4 Contracts for difference (CfDs) A private law contract between a low carbon project and the Low Carbon Contracts Company (LCCC, a Government-owned company) Contract guarantees a strike price a payment is made to the generator for the difference between the strike price and the market electricity price, or re-paid by the generator if the market price rises above the strike price. Protects investors from electricity price uncertainty and allows potentially greater gearing and a lower cost of capital 15 year contract term Payments linked to CPI Flexibility over delivery and capacity Legal contract protections change-in-law, force majeure etc. 4

5 CfD Payments Strike Price & Reference Price CfDs how do they work? Strike price: - Determined by competitive bidding - No higher than the administrative cap Year 14/15 15/16 16/17 17/18 18/19 Max SP ( /MW 2012 Prices) Reference price - Determined by the day-ahead GB price Difference payment to generator Difference payment from generator 5

6 CfDs how are they allocated? and will be responsible for: Event will act as the delivery body and will run the allocation process for us - checking eligibility - running the auctions for three groupings - assessing affordable projects against budget Timing Established techs (incl. solar & onshore wind) Lessestablished techs (incl. offshore wind) Biomass conversion Indicative CfD Budgets published Allocation framework & budget notice issued Allocation opens for applications Deadline for applications Dispute Resolution processes Analysis of whether budget allocation is exceeded Sealed bids invited 6 July 10 working days ahead of allocation process Expected mid-october + 10 working days (varies) (varies) CfD award End 2014 Around mid November CfD signature Early January 2015 Eligibility criteria: - Qualifying generating station - No funds from other govt support - Applicable planning consents - Connection agreement requirements - Statement identifying the CfD terms & conditions that apply - Relevant supporting info - Supply chain plan (for facilities >300MW)

7 Low-carbon generation - now Nuclear Natural gas Petroleum Renewables Coal ELECTRICITY 8 % 35 % 32 % 4 % 20 % Source: 2013 DUKES Source: Energy Trends June 2013 ENERGY Source: UK Energy Trends March

8 and where we need to get to A legally binding, EU target to deliver 15% of the UK s energy needs from renewable energy sources. There are three elements to delivery of the target: Electricity where we need to deliver over 30% of our electricity needs from renewables; Heat - around 12% of our total heat demand in 2020 would have to come from renewables Transport - around 10% of energy used in transport in 2020 would have to come from renewables. The UK must secure a factor of ten increase in renewable energy over the period, compared with an average factor of two increase across Europe all while increasing demand means additional deployment is needed just to stand still 8

9 Low-carbon electricity ELECTRICITY METER TWh In 2013, renewable generation made up nearly 15% of the electricity consumed in the UK nearly 20% in the first quarter of That s half way to our target of 105 TWh. More than 20 GW of generating capacity has been installed up 25% & enough to power 13m homes. This is backed by resilient investment and a strong forward pipeline. Ernst and Young still assess the UK as being the number one international market for offshore wind; number seven market globally for investment in renewables. 9

10 offshore solar onshore biomass Technology deployment 3.7 GW capacity 11.4 TWh generated 3.2% total generation Power 2.7m homes (2013 nos.) 2.8 GW 2 TWh 0.6% 0.5m 7.5 GW 17 TWh 4.7% 4.1m 4 GW 18.5 TWh 4.2% 4.4m Supply chain developments & increased deployment will drive costs down Significant and rapid deployment above expectations proposed constraint of RO for >5MW solar Increasingly politically sensitive and subject, in some areas, to tighter planning controls. Subject to close scrutiny by EU competition commissioner GW capacity by 2020 (delivery plan) GW GW GW 10

11 hydro AD wave tidal Technology deployment Smaller, demonstration technologies with little deployment beyond R & D testing. Tremendous potential capacity and predictability. 0.1 GW by 2020 Small & farm-scale relatively low-level deployment through FITs GW by GW capacity & 4.7 TWh in % total generation. Limited further potential. 1.7 GW by 2020 Other smaller technologies: ACT ( GW) Ded. biomass w/chp ( GW) Energy from waste w/chp (0.4 GW) Geothermal (<0.1 GW) Landfill gas (0.9 GW) Sewage gas (0.2 GW) A mix of technologies to deliver around 30% of our electricity from renewables by Investment in more expensive technologies now to build supply chains and drive down costs. A mix designed to support security of supply and decarbonisation, supported by new nuclear, the capacity market and carbon capture and storage. 11

12 Risks and drivers None of this is straightforward! Delivery of EMR involves balancing a complex array of risks, pressures and drivers Consumer energy bills are a huge public concern. EMR and other support schemes need to recognise this. 12 Deployment needs to be affordable within the levy control framework which means careful modelling & recalibration Our programmes and support schemes must comply with EU state aid rules. Growth and jobs investment in new infrastructure brings jobs and growth and investment in supply chain reduces technology costs. Community involvement in generation projects is very important to Ministers Community Energy Strategy. Public support for renewables is high but varies according to location, technology etc. Security of supply ensuring that we have enough capacity to keep the lights on, long into the future.

13 13 Questions and contact details

Investing in renewable technologies CfD contract terms and strike prices

Investing in renewable technologies CfD contract terms and strike prices Investing in renewable technologies CfD contract terms and strike prices December 2013 Crown copyright 2013 You may re-use this information (not including logos) free of charge in any format or medium,

More information

Environment and energy briefing from Burges Salmon published in the March 2014 issue of The In-House Lawyer:

Environment and energy briefing from Burges Salmon published in the March 2014 issue of The In-House Lawyer: Environment and energy briefing from Burges Salmon published in the March 2014 issue of The In-House Lawyer: Electricity market reform: an update on contracts for difference Electricity market reform:

More information

This seeks to define Contracts for Difference (CfDs) and their relevance to energy related development in Copeland.

This seeks to define Contracts for Difference (CfDs) and their relevance to energy related development in Copeland. Contracts for Difference and Electricity Market Reform LEAD OFFICER: REPORT AUTHOR: John Groves Denice Gallen Summary and Recommendation: This seeks to define Contracts for Difference (CfDs) and their

More information

Electricity Market Reform

Electricity Market Reform 2016 Electricity Market Reform Background The Electricity Market Reform (EMR) was issued by the UK government as a potential solution to the nation s core energy problems which include; keeping energy

More information

UK renewable energy an update

UK renewable energy an update UK renewable energy an update 30 October 2014 Robert Hull, Managing Director Renewable energy key challenges 1 2 3 Costs to Climate change: Risks to security consumers: decarbonising of supply: short affordability

More information

Contracts for Difference - the new support regime for low carbon generation

Contracts for Difference - the new support regime for low carbon generation Contracts for Difference - the new support regime for low carbon generation James Taylor Raj Bavishi 11 November 2014 UK Incentive Regimes Small scale Feed in Tariffs and the Renewables Obligations have

More information

Opening the CfD support scheme to non-uk renewables projects

Opening the CfD support scheme to non-uk renewables projects Opening the CfD support scheme to non-uk renewables projects European Commission workshop, Brussels, 5 November 2014 Agenda 1. What is the CfD support scheme? 2. What may be the benefits of opening the

More information

Contract for Difference: The Basics. Levy Control Framework

Contract for Difference: The Basics. Levy Control Framework Contract for Difference: The Basics Electricity Market Reform has long been a key priority for the renewable energy industry. Scottish Renewables has been closely involved in this fast changing policy

More information

4. Comparison with DECC (2014) Estimated impacts of energy and climate change policies on energy prices and bills

4. Comparison with DECC (2014) Estimated impacts of energy and climate change policies on energy prices and bills Energy prices and bills - supplementary tables Contents: 1. Energy prices and bills 2. Assumptions 3. Scenarios to 2030 4. Comparison with DECC (2014) Estimated impacts of energy and climate change policies

More information

Foratom event 29 April 2015

Foratom event 29 April 2015 Foratom event 29 April 2015 New nuclear in the UK and Electricity Market Reform Colin Parker Head of European Liaison - EDF Energy 1 April 2015 EDF Energy plc. All rights reserved. EDF Energy A UK energy

More information

Regulatory Briefing. Capital Markets Day. 17 October 2013

Regulatory Briefing. Capital Markets Day. 17 October 2013 Regulatory Briefing Capital Markets Day 17 October 2013 Agenda Andrew Koss Director of Strategy Damien Speight Head Trader Renewables Obligation Contracts for Difference Levy Control Framework Capacity

More information

ANNEX B FEED-IN TARIFF WITH CONTRACTS FOR DIFFERENCE: DRAFT OPERATIONAL FRAMEWORK

ANNEX B FEED-IN TARIFF WITH CONTRACTS FOR DIFFERENCE: DRAFT OPERATIONAL FRAMEWORK ANNEX B FEED-IN TARIFF WITH CONTRACTS FOR DIFFERENCE: DRAFT OPERATIONAL FRAMEWORK 1 CONTENTS Introduction...3 Section A Price Setting...8 Section B CfD Allocation... 18 Section C CfD Terms Pre Commissioning...

More information

Contracts for Difference Round Guidance

Contracts for Difference Round Guidance 30th June 2014 Contracts for Difference Round Guidance Contracts for Difference Allocation Round 1 2014 CFD Round Guidance 3 rd October 2014 National Grid Delivery Body Page 1 CFD Allocation Round Guidance

More information

Power Generation. Lilian Macleod Power Supply Manager National Grid

Power Generation. Lilian Macleod Power Supply Manager National Grid Power Generation Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line. This text box and image can

More information

The UK Offshore Wind Experience

The UK Offshore Wind Experience The UK Offshore Wind Experience Tom Simchak Policy Advisor, Energy British Embassy, Washington EESI Briefing, 28 September 2015 UNCLASSIFIED The United Kingdom is The global market leader in offshore wind:

More information

POLICY FEEDING RENEWABLE. How the Energy Bill might affect green electricity suppliers and also renewable generators

POLICY FEEDING RENEWABLE. How the Energy Bill might affect green electricity suppliers and also renewable generators FEEDING RENEWABLE POLICY How the Energy Bill might affect green electricity suppliers and also renewable generators Holly Tomlinson Regulation and Compliance Analyst for Ecotricity 18 th January 2013 Contents

More information

ELECTRICITY MARKET REFORM (EMR) & THE ENERGY BILL INENCO OVERVIEW

ELECTRICITY MARKET REFORM (EMR) & THE ENERGY BILL INENCO OVERVIEW ELECTRICITY MARKET REFORM (EMR) & THE ENERGY BILL INENCO OVERVIEW February 2014 ELECTRICITY MARKET REFORM (EMR) & THE ENERGY BILL The Energy Bill is the government s flagship energy policy. There have

More information

Contract for Difference for non-uk Renewable Electricity Projects

Contract for Difference for non-uk Renewable Electricity Projects Contract for Difference for non-uk Renewable Electricity Projects August 2014 Crown copyright 2014 URN 14D/291 You may re-use this information (not including logos) free of charge in any format or medium,

More information

CFDS: POTENTIAL OPPORTUNITIES FOR HYDRO PROJECTS. John Puddephatt October 29th 2014

CFDS: POTENTIAL OPPORTUNITIES FOR HYDRO PROJECTS. John Puddephatt October 29th 2014 CFDS: POTENTIAL OPPORTUNITIES FOR HYDRO PROJECTS John Puddephatt October 29th 2014 Statkraft at a glance Installed capacity * 17 607 MW Power production (2013) * 55.9 TWh 97% renewable energy 3 600 employees

More information

Consultation on the draft Electricity Market Reform Delivery Plan

Consultation on the draft Electricity Market Reform Delivery Plan Consultation on the draft Electricity Market Reform Delivery Plan July 2013 URN:13D/139 Department of Energy and Climate Change 3 Whitehall Place London SW1A 2AW Telephone: 0300 068 4000 Website: www.decc.gov.uk

More information

Renewable Energy in the UK. Dr John Roberts CBE FREng

Renewable Energy in the UK. Dr John Roberts CBE FREng Renewable Energy in the UK Dr John Roberts CBE FREng Renewable Energy in the UK Legislation and Targets: Technology: International Frameworks EU Context National Context Overview and outlook for key renewable

More information

Wind and solar reducing consumer bills An investigation into the Merit Order Effect

Wind and solar reducing consumer bills An investigation into the Merit Order Effect Switch for Good Wind and solar reducing consumer bills An investigation into the Merit Order Effect Executive summary Concerns over the cost of renewable subsidy schemes have led to significant policy

More information

Implementing Electricity Market Reform (EMR)

Implementing Electricity Market Reform (EMR) Implementing Electricity Market Reform (EMR) Finalised policy positions for implementation of EMR June 2014 Crown copyright 2014 URN 14D/221 You may re-use this information (not including logos) free of

More information

Electricity Market Reform: Consultation on proposals for implementation Government Response

Electricity Market Reform: Consultation on proposals for implementation Government Response Electricity Market Reform: Consultation on proposals for implementation Government Response June 2014 Crown copyright 2014 URN 14D/222 You may re-use this information (not including logos) free of charge

More information

2014 No. 0000 ELECTRICITY. The Contracts for Difference (Allocation) Regulations 2014

2014 No. 0000 ELECTRICITY. The Contracts for Difference (Allocation) Regulations 2014 Draft Regulations laid before Parliament under section 6(8) of the Energy Act 2013, for approval by resolution of each House of Parliament. D R A F T S T A T U T O R Y I N S T R U M E N T S 2014 No. 0000

More information

What next for UK auctions of renewable Contracts for Difference?

What next for UK auctions of renewable Contracts for Difference? What next for UK auctions of renewable Contracts for Difference? In February we saw the results of the first competitive auction for Contracts for Difference (CfDs), the primary support mechanism for incentivising

More information

White Paper Growing Up: Onshore wind s place in a competitive, low carbon power generation system. At a Crossroad the UK Power Market

White Paper Growing Up: Onshore wind s place in a competitive, low carbon power generation system. At a Crossroad the UK Power Market FTI Consulting: Energy sector White Paper Growing Up: Onshore wind s place in a competitive, low carbon power generation system October 2015 At a Crossroad the UK Power Market The UK is at a pivotal moment

More information

UK legislative framework for renewable energy

UK legislative framework for renewable energy UK legislative framework for renewable energy 2015 Update Dominic FitzPatrick Partner, Head of Energy (UK) Last year s article for Clean Energy UK Finance Guide 2014 set out a comprehensive review of the

More information

Future Energy Systems in the UK. Hergen Haye

Future Energy Systems in the UK. Hergen Haye Future Energy Systems in the UK Hergen Haye The Context for Electricity Market Reform (EMR) The UK s electricity market faces big challenges Fifth of plant closing by 2020 Long run electricity demand could

More information

Electricity Market Reform Contract for Difference: Contract and Allocation Overview

Electricity Market Reform Contract for Difference: Contract and Allocation Overview Electricity Market Reform Contract for Difference: Contract and Allocation Overview August 2013 EMR: Contract for Difference: Contract and Allocation Overview Version 1.0 Contents Energy Market Reform

More information

Electricity Market Reform: policy overview

Electricity Market Reform: policy overview Electricity Market Reform: policy overview November 2012 2 ELECTRICITY MARKET REFORM: POLICY OVERVIEW Presented to Parliament by the Secretary of State for Energy and Climate Change by Command of Her Majesty

More information

Offshore Wind Economics under EMR: Quantifying the risks

Offshore Wind Economics under EMR: Quantifying the risks Offshore Wind Economics under EMR: Quantifying the risks Daniel Radov - Associate Director, Environment Practice (presenting) Dr. Mauricio Bermudez-Neubauer - Associate Director, Environment Practice Aberdeen

More information

Disclaimer: All costs contained within this report are indicative and based on latest market information. 16 th March 2015

Disclaimer: All costs contained within this report are indicative and based on latest market information. 16 th March 2015 Disclaimer: All costs contained within this report are indicative and based on latest market information 16 th March 2015 FD SUMMARY The make up of the electricity bill is changing, with non-commodity

More information

Electricity market reform: policy overview

Electricity market reform: policy overview Electricity market reform: policy overview May 2012 Contents Introduction... 3 Electricity Market Reform... 6 The Move to EMR... 21 Costs and Benefits of EMR... 24 EMR in the Devolved Administrations...

More information

Government response to the consultation on proposals for the levels of banded support under the Renewables Obligation for the period 2013-17 and the

Government response to the consultation on proposals for the levels of banded support under the Renewables Obligation for the period 2013-17 and the Government response to the consultation on proposals for the levels of banded support under the Renewables Obligation for the period 2013-17 and the Renewables Obligation Order 2012 July 2012 Government

More information

Electricity Generation Costs

Electricity Generation Costs October 2012 Introduction Electricity generation costs are a fundamental part of energy market analysis, and a good understanding of these costs is important when analysing and designing policy. DECC regularly

More information

Germany's energy transition: Status quo and Challenges.

Germany's energy transition: Status quo and Challenges. Ulrich Benterbusch Germany's energy transition: Status quo and Challenges. 2 nd Session Group of Experts on Renewable Energy, UNECE, Geneva 1 Agenda. Energy transition: Status quo and official goals. German

More information

Early contracts for renewable electricity

Early contracts for renewable electricity Report by the Comptroller and Auditor General Department of Energy & Climate Change Early contracts for renewable electricity HC 172 SESSION 2014-15 27 JUNE 2014 Our vision is to help the nation spend

More information

IMPACT OF GB S ELECTRICITY MARKET REFORM ON INTERCONNECTIONS, CONSEQUENCES ON NORDIC MARKET Michel Martin, 3 April 2014

IMPACT OF GB S ELECTRICITY MARKET REFORM ON INTERCONNECTIONS, CONSEQUENCES ON NORDIC MARKET Michel Martin, 3 April 2014 IMPACT OF GB S ELECTRICITY MARKET REFORM ON INTERCONNECTIONS, CONSEQUENCES ON NORDIC MARKET Michel Martin, 3 April 2014 PÖYRY MANAGEMENT CONSULTING ENERGY Pöyry offices (c) grafikdienst.com Pöyry Management

More information

OFF-TAKE UNDER THE CFD - BUSINESS AS NORMAL? Electricity Market Reform: Edging Towards Delivery 24 September 2014

OFF-TAKE UNDER THE CFD - BUSINESS AS NORMAL? Electricity Market Reform: Edging Towards Delivery 24 September 2014 OFF-TAKE UNDER THE CFD - BUSINESS AS NORMAL? Electricity Market Reform: Edging Towards Delivery 24 September 2014 Statkraft providing Pure Energy Statkraft is Europe s largest generator of renewable energy

More information

Subsidising Biomass Electricity - Contracts for Difference and what they mean for dedicated and converted biomass power stations

Subsidising Biomass Electricity - Contracts for Difference and what they mean for dedicated and converted biomass power stations January 2014 Subsidising Biomass Electricity - Contracts for Difference and what they mean for dedicated and converted biomass power stations New Government support for renewable electricity, and hence

More information

Caithness-Moray Needs Case Consultation

Caithness-Moray Needs Case Consultation Caithness-Moray Needs Case Consultation Introduction RenewableUK and Scottish Renewables are the leading trade associations for renewable technologies in the UK and Scotland respectively, and welcome the

More information

UK Renewable Energy Roadmap Update 2012

UK Renewable Energy Roadmap Update 2012 UK Renewable Energy Roadmap Update 2012 27 December 2012 2 Contents Ministerial Foreword... 4 Executive Summary... 6 Introduction... 9 Background: Renewables Roadmap... 9 Purpose of Roadmap Update... 9

More information

Electricity Market Reform: Contract for Difference - Allocation Methodology for Renewable Generation

Electricity Market Reform: Contract for Difference - Allocation Methodology for Renewable Generation Electricity Market Reform: Contract for Difference - Allocation Methodology for Renewable Generation 5 August 2013 Contents Contents... 2 Overview... 4 PART 1... 6 Section 1 - Application... 6 Application

More information

UNCLASSIFIED. Speech by Ambassador Paul Johnston to IVA seminar on lessons from the UK energy market,

UNCLASSIFIED. Speech by Ambassador Paul Johnston to IVA seminar on lessons from the UK energy market, Speech by Ambassador Paul Johnston to IVA seminar on lessons from the UK energy market, 18th March 2015 Energy has come to the forefront of European policy debates, both as a Prosperity and Security issue.

More information

The UK Electricity Market Reform and the Capacity Market

The UK Electricity Market Reform and the Capacity Market The UK Electricity Market Reform and the Capacity Market Neil Bush, Head Energy Economist University Paris-Dauphine Tuesday 16 th April, 2013 Overview 1 Rationale for Electricity Market Reform 2 Why have

More information

Emerging market for Green Certificates

Emerging market for Green Certificates Emerging market for Green Certificates Dr Marianne OSTERKORN, Director of REEEP Dr Xavier LEMAIRE, SERN/REEEP CONTENT 1. What is a certificate system? 2. How certificates system works 3. What are the benefits

More information

Success story: Feed-In Tariffs Support renewable energy in Germany

Success story: Feed-In Tariffs Support renewable energy in Germany Success story: Feed-In Tariffs Support renewable energy in Germany This document will show how this success story has been brought about and is made up of the following sections: 1. What is a Feed-In Tariff?

More information

The Future of Renewables. Stuart Pocock Chief Operating Officer

The Future of Renewables. Stuart Pocock Chief Operating Officer The Future of Renewables Stuart Pocock Chief Operating Officer Who we are The REA was established in 2001 as a not-for-profit trade association, representing British renewable energy producers and promoting

More information

Annex B: Strike price methodology July 2013

Annex B: Strike price methodology July 2013 July 2013 URN 13D/189 Contents Introduction... 3 Overview of methodology for deriving a CfD strike price... 3 Strike Prices during the cross-over period with the RO (2014/15 2016/17)... 4 Comparison of

More information

Electricity Market Reform: Amendment to Contracts for Difference (Definition of Eligible Generator) Regulations

Electricity Market Reform: Amendment to Contracts for Difference (Definition of Eligible Generator) Regulations Electricity Market Reform: Amendment to Contracts for Difference (Definition of Eligible Generator) Regulations Consultation on a proposed amendment to enable retrofit Carbon Capture and Storage projects

More information

npower EMR Explained Session The Energy Event 10 th & 11 th September 2013

npower EMR Explained Session The Energy Event 10 th & 11 th September 2013 npower EMR Explained Session The Energy Event 10 th & 11 th September 2013 Welcome Chris Billing, Head of Indirect Sales, npower Agenda > 13.30 Welcome & introduction Chris Billing EMR Pulse Survey Results

More information

RENEWABLE ENERGY DEVELOPMENT IN LITHUANIA ACHIEVEMENTS AND DRAWBACKS

RENEWABLE ENERGY DEVELOPMENT IN LITHUANIA ACHIEVEMENTS AND DRAWBACKS RENEWABLE ENERGY DEVELOPMENT IN LITHUANIA ACHIEVEMENTS AND DRAWBACKS Ieva Kuodė Ministry of Energy of the Republic of Lithuania SOLINVEST 2015-06-02 RES TARGETS BY 2020 23% the share of energy from renewable

More information

Renewable Energy in Wales: in figures

Renewable Energy in Wales: in figures National Assembly for Wales Research paper Renewable Energy in Wales: in figures August 2013 Research Service The National Assembly for Wales is the democratically elected body that represents the interests

More information

July 2011. UK Renewable Energy Roadmap

July 2011. UK Renewable Energy Roadmap July 2011 UK Renewable Energy Roadmap Contents Executive Summary... 5 Chapter 1: Introduction... 9 Chapter 2: Analysis... 13 Chapter 3: Actions... 27 Onshore wind... 30 Offshore wind... 42 Marine Energy...

More information

Germany's renewable energy sector in the context of energy transition.

Germany's renewable energy sector in the context of energy transition. Oliver Frank Germany's renewable energy sector in the context of energy transition. May 11 th, Hong Kong 1 Agenda. About dena Energy transition / main trends in the German energy sector Renewable Energies

More information

Energy Act 2013 CHAPTER 32. Explanatory Notes have been produced to assist in the understanding of this Act and are available separately

Energy Act 2013 CHAPTER 32. Explanatory Notes have been produced to assist in the understanding of this Act and are available separately Energy Act 2013 CHAPTER 32 Explanatory Notes have been produced to assist in the understanding of this Act and are available separately Energy Act 2013 CHAPTER 32 CONTENTS PART 1 DECARBONISATION 1 Decarbonisation

More information

17 October 2013. Update on EMR. Chris Andrew and Mark Walker

17 October 2013. Update on EMR. Chris Andrew and Mark Walker 17 October 2013 Update on EMR Chris Andrew and Mark Walker Allen & Overy 2013 The UK Energy Policy Trilemma Security of Supply In the next decade a fifth of existing UK generating capacity will come off-line.

More information

Contracts for Difference: an EMR CfD Primer

Contracts for Difference: an EMR CfD Primer Contracts for Difference: an EMR CfD Primer 1 Briefing note October 2015 Contracts for Difference: an EMR CfD Primer This primer briefing is the first in a series of briefings describing the principal

More information

Making CfDs work for renewable generators

Making CfDs work for renewable generators Making CfDs work for renewable generators This is in two parts. 1 st a brief introduction to the Green Power Auction Market. 2 nd gives more detail on the structure and follows on. We consider this a critical

More information

Renewable Electricity Generation in Scotland

Renewable Electricity Generation in Scotland Renewable Electricity Generation in Scotland Renewable electricity output 2020 target of 100% (blue line marks progress) Major success - 400% increase in renewable electricity output over 10 years. Scotland

More information

Electricity Market Reform: Catering for smaller players and onsite generation under EMR. REA 27 March 2013 Chris Hemsley, DECC

Electricity Market Reform: Catering for smaller players and onsite generation under EMR. REA 27 March 2013 Chris Hemsley, DECC Electricity Market Reform: Catering for smaller players and onsite generation under EMR REA 27 March 2013 Chris Hemsley, DECC Overall objectives and the role of independent renewables The Government s

More information

Annex A Feed-in Tariff with Contracts for Difference: Operational Framework

Annex A Feed-in Tariff with Contracts for Difference: Operational Framework Annex A Feed-in Tariff with Contracts for Difference: Operational Framework November 2012 Contents Executive Summary... 5 Document Overview... 9 1. Introduction... 10 The Energy Bill: The Legal Framework

More information

ELECTRICITY MARKET REFORM SHAPING THE FUTURE GB POWER MARKET

ELECTRICITY MARKET REFORM SHAPING THE FUTURE GB POWER MARKET ELECTRICITY MARKET REFORM SHAPING THE FUTURE GB POWER MARKET A Pöyry briefing note Electricity Market Reform (EMR) proposals, intended to deliver the transition to a decarbonised electricity sector, have

More information

Renewable energy in 2014

Renewable energy in 2014 Renewable energy in 2014 Special feature Renewable energy in 2014 Introduction This article updates the information on renewable energy published in the June 2014 edition of Energy Trends, and in the 2014

More information

CFD Auction Guidance 25 September 2014

CFD Auction Guidance 25 September 2014 CFD Auction Guidance 25 September 2014 This Guidance is intended for information only, it remains subject to change and is not legally binding. This Guidance does not constitute legal or investment advice

More information

Consultation on changes to Feed-in Tariff accreditation

Consultation on changes to Feed-in Tariff accreditation Consultation on changes to Feed-in Tariff accreditation Removing preliminary accreditation from the Feedin Tariff 21 July 2015 Department of Energy and Climate Change 3 Whitehall Place London SW1A 2AW

More information

Progress'with'the'UK'Electricity' Market'Reform'(EMR) :

Progress'with'the'UK'Electricity' Market'Reform'(EMR) : Progress'with'the'UK'Electricity' Market'Reform'(EMR) : Prof.&Michael&Pollitt& Cambridge*Judge*Business*School* & CEEP& Beijing&Institute&of&Technology& 12&May&2015& Outline: Introduction&and&background&

More information

Renewable energy Prepared by Audit Scotland

Renewable energy Prepared by Audit Scotland Renewable energy Prepared by Audit Scotland September 2013 Auditor General for Scotland The Auditor General s role is to: appoint auditors to Scotland s central government and NHS bodies examine how public

More information

Briefing. Electricity Market Reform

Briefing. Electricity Market Reform Updated April 2012 Briefing Electricity Market Reform The Government s aspirations for Electricity Market Reform decarbonisation, security and affordability are sound. But the policies proposed in the

More information

NIRIG response to EMR: Consultation on Proposals for Implementation

NIRIG response to EMR: Consultation on Proposals for Implementation 90% NIRIG response to EMR: Consultation on Proposals for Implementation 23 rd December 2013 The Northern Ireland Renewables Industry Group (NIRIG) is a joint collaboration between the Irish Wind Energy

More information

Electricity Market Reform. Consultation by DECC. Response by E.ON. Summary

Electricity Market Reform. Consultation by DECC. Response by E.ON. Summary Electricity Market Reform Consultation by DECC Response by E.ON Summary We recognise that Government needs to provide stronger incentives to build new low carbon generating capacity to meet the UK s specific

More information

Energy Policy & Regulation Briefing Note

Energy Policy & Regulation Briefing Note Creating a sporting habit for life UK Energy Policy and Regulation and what it means for the sports and leisure sector Introduction We have got used to the fact that energy costs will continue to increase.

More information

Investment risks in a decarbonising electricity market

Investment risks in a decarbonising electricity market Investment risks in a decarbonising electricity market Dr William Blyth, Oxford Energy Associates International Energy Agency Emissions Trading Workshop Paris, September 2013 Investment challenges Uncertain

More information

Fixed + Reflective Electricity supply contracts explained for large business customers

Fixed + Reflective Electricity supply contracts explained for large business customers Fixed + Reflective Electricity supply contracts explained for large business customers 2/7 Fixed + Reflective explained We fix your electricity price, with a small tolerance on how much your electricity

More information

ACCELERATING GREEN ENERGY TOWARDS 2020. The Danish Energy Agreement of March 2012

ACCELERATING GREEN ENERGY TOWARDS 2020. The Danish Energy Agreement of March 2012 ACCELERATING GREEN ENERGY TOWARDS The Danish Energy Agreement of March 2012 The most ambitious energy plan of the world In March 2012 a historic new Energy Agreement was reached in Denmark. The Agreement

More information

Impact Assessment (IA)

Impact Assessment (IA) Title: Electricity Market Reform ensuring electricity security of supply and promoting investment in low-carbon generation IA No: DECC0104 Lead department or agency: DECC Impact Assessment (IA) Date: 26/11/2012

More information

DRAFT DELIVERY PLAN KEY FACTS

DRAFT DELIVERY PLAN KEY FACTS DRAFT DELIVERY PLAN KEY FACTS The draft EMR Delivery Plan sets out the detail of how the Government will drive investment in renewables while securing electricity supplies at lower cost to consumers. The

More information

Energy prices and bills - impacts of meeting carbon budgets. Committee on Climate Change December 2014

Energy prices and bills - impacts of meeting carbon budgets. Committee on Climate Change December 2014 Energy prices and bills - impacts of meeting carbon budgets Committee on Climate Change December 2014 Energy prices and bills impacts of meeting carbon budgets Committee on Climate Change December 2014

More information

EMR Explained. Update 1. npower Pulse report on businesses views of Electricity Market Reform. August/September 2013.

EMR Explained. Update 1. npower Pulse report on businesses views of Electricity Market Reform. August/September 2013. EMR Explained Update 1 npower Pulse report on businesses views of Electricity Market Reform August/September 2013 01 02 EMR explained overview Executive summary npower has been giving businesses a voice

More information

Viewpoint. Insights and opinions from Baringa Partners. UK Contracts for Difference: Risks and opportunities

Viewpoint. Insights and opinions from Baringa Partners. UK Contracts for Difference: Risks and opportunities Viewpoint Insights and opinions from Baringa Partners UK Contracts for Difference: Risks and opportunities UK Contracts for Difference: Risks and opportunities The UK Government is set to introduce a

More information

CRS Report Summaries WORKING DRAFT

CRS Report Summaries WORKING DRAFT CRS Report Summaries R40147 Green Buildings This is a definition and analysis of the cost and benefits of green buildings. It also cites agencies and laws that encourage the building of environmentally

More information

REA response to Commons Energy & Climate Change Committee Inquiry into Low Carbon Infrastructure

REA response to Commons Energy & Climate Change Committee Inquiry into Low Carbon Infrastructure REA response to Commons Energy & Climate Change Committee Inquiry into Low Carbon Infrastructure The Renewable Energy Association (REA) is pleased to submit this response to the above consultation. The

More information

ANNEX D ELECTRICITY MARKET REFORM: UPDATE ON THE EMISSIONS PERFORMANCE STANDARD

ANNEX D ELECTRICITY MARKET REFORM: UPDATE ON THE EMISSIONS PERFORMANCE STANDARD ANNEX D ELECTRICITY MARKET REFORM: UPDATE ON THE EMISSIONS PERFORMANCE STANDARD Contents Excutive Summary... 3 Background... 3 Level and Compliance... 4 Administration - Monitoring and Enforcment arrangements...

More information

DECC LEGAL GRADE 7 LAWYER RECRUITMENT SEPTEMBER 2015

DECC LEGAL GRADE 7 LAWYER RECRUITMENT SEPTEMBER 2015 DECC LEGAL GRADE 7 LAWYER RECRUITMENT SEPTEMBER 2015 DECC lawyers and their work in their own words JB I joined DECC six months ago, having just moved to London from Ireland where I worked in both private

More information

Fixed + Protect Electricity supply contracts explained for large business customers

Fixed + Protect Electricity supply contracts explained for large business customers Fixed + Protect Electricity supply contracts explained for large business customers 2/7 Fixed + Protect explained We fix your unit price, with a generous tolerance on how much your electricity use can

More information

Electricity Market Reform

Electricity Market Reform e-factsheet Electricity Market Reform Making sure your business is ready 2/9 Electricity Market Reform is here The UK s energy policy is no longer in debate: it s now reality. On 1 August, the Capacity

More information

Summary of the Impact assessment for a 2030 climate and energy policy framework

Summary of the Impact assessment for a 2030 climate and energy policy framework Summary of the Impact assessment for a 2030 climate and energy policy framework Contents Overview a. Drivers of electricity prices b. Jobs and growth c. Trade d. Energy dependence A. Impact assessment

More information

Increasing Distributed Solar Power through the Building Integrated Photovoltaic Project

Increasing Distributed Solar Power through the Building Integrated Photovoltaic Project RENEWABLE ENERGY Increasing Distributed Solar Power through the Building Integrated Photovoltaic Project A COMPREHENSIVE APPROACH Capacity support and incentives grow the photovoltaic market in Malaysia

More information

Fixed + Protect Electricity supply contracts explained for large business customers

Fixed + Protect Electricity supply contracts explained for large business customers Fixed + Protect Electricity supply contracts explained for large business customers 2/7 Fixed + Protect explained We fix your unit price, with a generous tolerance on how much your electricity use can

More information

How Electricity Market Reform may affect independent renewable generators. Robert Buckley Cornwall Energy

How Electricity Market Reform may affect independent renewable generators. Robert Buckley Cornwall Energy How Electricity Market Reform may affect independent renewable generators Robert Buckley Cornwall Energy What we will talk about Current baseline RO & CfD FiTs Commercial implications some thoughts 2 Current

More information

The role of coal in the UK generation industry. Philip Garner - Director General of the Confederation of UK Coal Producers

The role of coal in the UK generation industry. Philip Garner - Director General of the Confederation of UK Coal Producers The role of coal in the UK generation industry Philip Garner - Director General of the Confederation of UK Coal Producers Recent History In 1983 there were 170 underground mines owned by the National Coal

More information

Fixed + Peace of Mind Electricity supply contracts explained for large business customers

Fixed + Peace of Mind Electricity supply contracts explained for large business customers Fixed + Peace of Mind Electricity supply contracts explained for large business customers 2/7 Fixed + Peace of Mind explained This contract guarantees your unit price will stay fixed in all but exceptional

More information

Offshore Wind: some of the Engineering Challenges Ahead

Offshore Wind: some of the Engineering Challenges Ahead Offshore Wind: some of the Engineering Challenges Ahead David Infield CDT in Wind Energy Systems Institute of Energy and Environment University of Strathclyde International context (from IPCC report) Greenhouse

More information

LEVELISED COSTS OF POWER FROM TIDAL LAGOONS. LEVELISED COSTS OF POWER FROM TIDAL LAGOONS A report to Tidal Lagoon Power plc.

LEVELISED COSTS OF POWER FROM TIDAL LAGOONS. LEVELISED COSTS OF POWER FROM TIDAL LAGOONS A report to Tidal Lagoon Power plc. LEVELISED COSTS OF POWER FROM TIDAL LAGOONS A report to Tidal Lagoon Power plc Contact details Name Email Telephone Patrick Mohr patrick.mohr@poyry.com +44 (0)1865 812256 Ali Lloyd ali.lloyd@poyry.com

More information

Critical Policy Options to Protect Industry Competitiveness

Critical Policy Options to Protect Industry Competitiveness Critical Policy Options to Protect Industry Competitiveness Graham Weale Chief Economist, RWE AG IEA Energy Business Council Meeting, Paris 4 th June 2013 RWE Group a leading European energy utility >

More information

Consultation: CFD Implementation in NI Strategic Issues Discussion Paper Date: 08/05/15 Contact: Andy McClenaghan Our reference number: 2259 PD20010

Consultation: CFD Implementation in NI Strategic Issues Discussion Paper Date: 08/05/15 Contact: Andy McClenaghan Our reference number: 2259 PD20010 Consultation: CFD Implementation in NI Strategic Issues Discussion Paper Date: 08/05/15 Contact: Andy McClenaghan Our reference number: 2259 PD20010 Introduction The Consumer Council welcomes the opportunity

More information

Supporting Carbon Capture and Storage through Policy and Regulation: UK approach 22 April 2015

Supporting Carbon Capture and Storage through Policy and Regulation: UK approach 22 April 2015 Supporting Carbon Capture and Storage through Policy and Regulation: UK approach 22 April 2015 UK Position Most active country in EU on CCS One of the best policy environments for CCS in the world (GCCSI)

More information

THE COSTS OF DECARBONISING ELECTRICITY GENERATION

THE COSTS OF DECARBONISING ELECTRICITY GENERATION THE COSTS OF DECARBONISING ELECTRICITY GENERATION This technical annex to Building a low-carbon economy presents further details on the analysis underlying the estimates of the costs of decarbonising the

More information

Energy UK MPs Information Pack

Energy UK MPs Information Pack Energy UK MPs Information Pack Section 1 Guidance for constituents Section 2 Energy policy explained Guidance for constituents Help for customers Energy supply Ways to pay for energy Issues with suppliers

More information