Department of Energy and Climate Change

Edward Davey appointed Secretary of State for Energy and Climate Change

Fri, 3 Feb 2012 18:22:00 GMT

Edward Davey MP has today been appointed Secretary of State for Energy and Climate Change.

Arriving at DECC’s headquarters in London, Mr Davey said:

“This is a sad day because Chris Huhne has had a real vision for a green economy and he’s done fabulous work as Secretary of State.

“I’ve now got to take up the challenges - the challenge of climate change, the challenge of energy security.

“And I’m particularly conscious of the impact on households across the country of high energy bills.

“I’m determined to work to follow on Chris’s priorities, the Coalition’s priorities and to make them my priorities.

“I want us to have a green economy, with the green jobs and investment we need to help grow our economy.”

Notes for editors:

In accordance with the requirements of the Ministerial Code, the Secretary of State has provided his Permanent Secretary with a full list of his interests, including details of his brother’s employment as a partner at Herbert Smith LLP which will be recorded and published in the List of Ministers’ Interests in the usual way. Appropriate safeguards are being put in place to avoid any conflicts of interest.

Statement by Charles Hendry on Coryton Refinery

Thu, 2 Feb 2012 15:33:00 GMT

Energy Minister Charles Hendry today chaired a meeting of interested parties to discuss the future of the Coryton refinery. The meeting took place at the Department of Energy and Climate Change in Central London.

This is the second time the Energy Minister has convened such a meeting since the refinery was placed in the control of the administrators. Local politicians, industry and unions were among those present.

Following the meeting, the Minister said: “We have had another positive meeting this afternoon at which the joint administrators updated those present on what they have achieved so far and their planned next steps.

“I welcome the progress that the administrators have made. The deal last week that allowed petrol and diesel to be delivered to forecourts from the refinery was a crucial boost, while the crude oil delivery acquired on Tuesday was important to maintaining refining operations. The collaborative approach taken by the workforce and the refinery’s management has also been vital in making these things happen.

“There are critical issues to be resolved in the coming weeks. For the long term, I understand there have been over 40 expressions of interest in Coryton from companies around the world, which is extremely encouraging. Work will now focus on securing a sustainable long-term future for the refinery.”

Minister’s Winter Warmth Appeal

Thu, 2 Feb 2012 13:46:00 GMT

As the big freeze grips the country, pensioners and the most vulnerable are being urged to take advantage of a government grant scheme to help make homes warmer.

Letters have just landed on 675,000 doormats across England to raise awareness about the Warm Front scheme.

The letters explain how pensioners and people on very low incomes can get money off having their heating repaired or replaced or having their lofts insulated through picking up the phone and contacting Warm Front.

So far the scheme has assisted 21,000 homes this financial year, but has the capacity to help at least 16,000 more before the end of March and at least 40,000 next year.

Energy and Climate Change Minister Greg Barker said: "The cold weather we’re experiencing at the moment reminds everyone how important it is to have a cosy home so I’m urging anyone who’s eligible for a Warm Front grant to pick up the phone. Getting a new boiler, fixing an old one, or even just topping up loft insulation can lead to a warmer home in the future. It’s easy to apply, all you have to do is call 0800 316 6004 and, if you’re eligible, the Warm Front team will do all the paperwork for you.”

The mailouts concentrated on areas where there are high levels of fuel poverty like Birmingham, Leeds, Bradford, Sheffield and County Durham.

The Government has also been working with National Energy Action, Consumer Focus and Citizens Advice to further promote the Warm Front scheme.

As forecasters predict freezing temperatures across the country this weekend, pensioners and the most vulnerable are being reminded what help is available to keep warm.

Warm Front

Provides grants to people in poorly heated or insulated homes to pay for boiler repairs, new central heating systems and insulation work. Those eligible can apply for up to £3,500 towards the cost of the work or up to £6,000 for homes not connected to mains gas.

Warm Home Discount

This scheme will help around two million low income and vulnerable households this year, including automatically giving £120 discount to about 600,000 of the most vulnerable pensioners this winter.

Cold Weather Payments

Cold Weather Payments are paid to pensioners who receive pension credit or people on income-related benefits who meet certain criteria, during periods of severely cold weather. Since the start of this winter’s Cold Weather Payment season, DWP has paid an estimated £27.8m to more than 1.1m customers across Great Britain through Cold Weather Payments.

Winter Fuel Payment

Annual payments for pensioners worth up to £300 have been paid out to an estimated 12.7 million people older people in more than 9 million homes.

The Government is also taking action this winter to help consumers help themselves and save money on bills by shopping around and switching. Consumers can log on to www.direct.gov.uk/homeenergy for advice on how to Check, Switch and Insulate to Save.

Notes for editors:

1. Further details on the Warm Front scheme can be found on Directgov
2. The total budget of £143m consists of £110m allocated to Warm Front and associated activities secured through the Spending Review 2010. Of this, £108m was directly allocated to Warm Front. In addition DECC allocated £25m to support the completion of outstanding work from 2010/11 with a further £10m allocated to Warm Front in 2011/12 from the Department of Health.
3. The scheme is targeted at people on certain income-related benefits and living in properties that are poorly insulated and/or do not have a working central heating system. Applicants must own their home or rent it from a private landlord. The measures provided under the scheme are tailored to each property drawn from the measures listed below:

Loft insulation (where suitable)
Draught proofing
Cavity-wall insulation (some cavity walls are unsuitable and approx one third of properties have solid walls)
Hot-water-tank insulation
Repairs to an existing heating systems
A new gas or oil central heating system
Electric storage heaters
Electric heaters for bathrooms where electricity is the main heating source*
Conversion of a solid-fuel open fire to a modern glass-fronted fire
Timer controls for electric space and water heaters
Liquid petroleum gas (LPG) heating systems

4. Through Warm Home Discount, a person may be eligible for a Core Group discount if, on 11 September 2011, they (or their partner) were receiving the guarantee credit element of Pension Credit but not the savings credit element, naed on the electricity bill where they live and getting their electricity from one of the energy companies taking part in the scheme.

5. There are also other energy advice lines such as the Home Heat Helpline for advice on the help from energy suppliers available at the moment on 0800 336699.

Written ministerial statement by Charles Hendry on the 27th offshore oil and gas licensing round and the strategic environmental assessment (sea) post adoption process

Wed, 1 Feb 2012 09:42:00 GMT

I am pleased to inform the House that I am today inviting applications for petroleum licences for unlicensed seaward blocks which will form the 27th round of offshore petroleum licensing.

Supporting around 350,000 jobs and spending around £14 billion a year, the UK oil and gas industry plays a vital role in the UK economy and in meeting our energy needs. Indigenous oil and gas production supplies the equivalent of about one half of the UK’s primary energy demand. It is vital that we continue to do all we can to maximise economic recovery of indigenous hydrocarbon reserves. The licensing of new areas forms an essential part of this process enabling the exploration necessary to ensure we tap into, and fully realise, our remaining reserves – which could equate to around 20 billion barrels or perhaps more.

DECC's draft plan to offer licences for offshore oil and gas exploration and production through a 27th licensing round was the subject of a Strategic Environmental Assessment (SEA) completed in October 2011.

The Assessment can be viewed on the Offshore Sea Strategic Environmental Assessment website.

The SEA includes commissioned reports on various components of the natural environment and effects of previous activities.

The potential implications of the exploration and production activities that could follow if the draft plan was adopted were considered at an expert assessment workshop and a series of stakeholder workshops. The results of these workshops were assessed further and documented in an Environmental Report that then formed the basis for consultation with consultation bodies and the public. The three-month consultation period on DECC's draft plan and the Environmental Report was advertised in a number of local and national newspapers and emailed to a wide range of individuals and organisations.

DECC has considered all responses and a post consultation report for the latest Offshore Energy SEA was prepared and in August 2011 placed on the SEA website.

The post-consultation report can be viewed on the Offshore Sea Strategic Environmental Assessment website.

This summarises consultee comments and DECC responses to them. In the 12th October 2011 Statement to Parliament on the assessment we announced our intention to make preparations to proceed with this 27th offshore licensing round.

Outcomes

In deciding to proceed with a 27th offshore licensing round, DECC has had regard to the conclusions and recommendations of the Environmental Report and consultation feedback. As a result of the SEA process, blocks in the deepest waters of the South West approaches are currently not being offered as part of the 27th round of offshore petroleum licensing because of inadequacy of data including data on potentially vulnerable
components of the marine environment.

A number of blocks excluded from earlier licensing rounds on the basis of recommendations of previous SEAs, or currently in the process of appropriate assessment consultation, are currently not being offered as part of the 27th round of offshore petroleum licensing.

The Environmental Report recommended the blocks in or overlapping with the boundaries of the Moray Firth and Cardigan Bay SACs should also be withheld from this licensing round for the present pending conclusion of the further assessments initiated following the 24th Licensing Round applications. We have therefore excluded at present 14 blocks in the Cardigan Bay area and 12 in the Moray Firth from this round of offshore petroleum licensing.

In addition some blocks are currently withheld from this round of offshore petroleum licensing at the request of The Crown Estate as they overlie the Cleveland potash mine, and some at the request of the Ministry of Defence due to them being used for intense military testing and training.

Licensing of the blocks not currently included in this round may be revisited in the future, as more information on those blocks becomes available.

In addition, a number of blocks may be licensed but with conditions attached restricting or prohibiting certain marine activities. It should be noted that the Offshore Petroleum Production and Pipe-lines (Assessment of Environmental Effects) Regulations 1999 (as amended) and the Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001 (as amended) variously require that all major activities undertaken in connection with UK offshore hydrocarbon exploration and production are subject to environmental assessment before consent can be given for these activities.

Before any licence awards are made, DECC will assess whether the grant of licences applied for in the 27th Round is likely to have a significant effect on the management of any protected conservation sites. Where such effects cannot be excluded, a further detailed assessment will be needed to determine whether there are any adverse effects on the integrity of these protected conservation sites. This is required under Council Directive 92/43/EEC on “the conservation of natural habitats and wild fauna and flora”, and UK implementing regulations.

DECC has, with industry and statutory environmental advisors, established an offshore oil and gas environmental monitoring committee charged with coordinating the strategic monitoring of potentially significant environmental effects of the industry, including those that could arise from the implementation of the plan to hold a 27th round of offshore licensing.

New opportunity for North Sea oil and gas exploration

Wed, 1 Feb 2012 09:09:00 GMT

01 February 2012

Press ref: 12/004

Energy Minister Charles Hendry today announced new opportunities for UK oil and gas exploration with the launch of the 27th offshore licensing round.

2,800 blocks are being offered as the Government ensures the UK gets maximum benefit from our resources.

This offer follows on from the successful 26th round in 2010, which resulted in the largest number of licences issued 190 since offshore licensing began in 1964.

Energy Minister Charles Hendry said:

“I am very pleased to launch the 27th offshore oil and gas licensing round. This is shaping up to be a very prosperous year for the North Sea as we expect a substantial increase in field approvals. With around 20 billion barrels of oil still to be extracted, the UK Continental Shelf has many years of productivity left.

“The industry supports nearly half a million jobs and today’s announcement will ensure a wealth of outstanding long-term career opportunities for people of all ages from North East Scotland right across the UK.”

The Round closes for applications on the 1st May 2012.

Notes for editors

For further information on the 27th Oil and Gas Offshore Licensing round, see http://og.decc.gov.uk/.
The UK’s Oil and gas sector currently provides around 60% of the country’s energy and is by far the largest single industrial UK investor and directly and indirectly supports over 450,000 jobs though out the economy.
Before any licences are awarded, DECC will carry out a screening exercise on the areas applied for, to assess whether the activities likely to result from the issue of oil and gas licences will have significant effects on any protected nature conservation sites (called “Natura 2000 sites”). Where such significant effects are likely, an “Appropriate Assessment” will be necessary and, unless the relevant derogation applies, these licences can only be awarded where we can be certain that there will be no adverse effects on the integrity of any Natura 2000 sites. This is required under the provisions of the Offshore Petroleum Activities (Conservation of Habitats) Regulations, 2001 which implement the “Habitats Directive”.
Any licences that are awarded in the round will contain conditions to protect environmental interests, and the interests of other sea users. In addition, activities carried out under the licences will be subject to a range of legislation which is designed to protect the marine environment, including regulations which apply the Environmental Impact Assessment and Habitats Directives to offshore oil and gas activities.

Written ministerial statement by Charles Hendry on the cost of installing underground power cables

Tue, 31 Jan 2012 11:30:00 GMT

31 JANUARY 2012

The Institution of Engineering and Technology (IET) has today published a comprehensive study on the whole life costs of installing new high voltage transmission lines under the ground, under the sea and over ground.

This study has been undertaken at the Government’s request in order to provide an authoritative and independent point of reference for the Infrastructure Planning Commission in evaluating planning applications for new transmission connections and reinforcements.

Research and production of the study has been carried out by international engineering consultancy Parsons Brinckerhoff, in association with Cable Consulting International. It draws on a broad range of data from manufacturers, installers, operators and other parties. National Grid has funded the work, and the IET has provided independent quality assurance.

Main findings are as follows:

the cost of new power infrastructure varies considerably but installing new power circuits underground is always more expensive than installing overhead lines
the study also identifies factors that have an impact on costs - such as terrain, distances and energy loss
the study’s remit purely relates to engineering costs, although it does acknowledge the aesthetic, human and environmental impacts, it makes no analysis of these areas

Over the coming years major transmission reinforcements will be needed to connect Britain’s new power stations. Many people are concerned about the impact that new transmission lines can have on the landscape and on local communities, and it is therefore essential that these reinforcements are taken forward on the basis of informed discussion and the best available knowledge. The Government welcomes this authoritative study which will provide a well-informed and objective baseline when considering the costs and impacts of different transmission line solutions.

Copies of the study have been placed in Libraries of the House and can be obtained from the IET website.

MEDIA STATEMENT

Responding to the study, Charles Hendry, Minister of State for Energy, said: "Over the coming years major transmission reinforcements will be needed to connect Britain’s new power stations.

"I know that many people are concerned about the impact that new transmission lines can have on the landscape and on local communities.

"It is essential that these reinforcements are taken forward on the basis of the best available evidence. While the costs of individual proposals will differ on a case by case basis, the IET’s report is a vital contribution."

Statement on meeting on Coryton Refinery

Thu, 26 Jan 2012 16:45:00 GMT

Energy Minister Charles Hendry this afternoon chaired a meeting with a range of interested parties to discuss the future of the Coryton refinery. The meeting took place at the Department of Energy and Climate Change in Central London.

Following the meeting, the Minister said:

“We have had a positive meeting this afternoon where the administrator set out what has been done so far and the plan of action to secure the long term future of Coryton refinery. The administrator has worked hard to restore deliveries to customers so quickly and I am greatly encouraged by the overall collaborative approach being taken.

“Coryton has strong advantages as a refinery and is an important part of the UK’s refining infrastructure. All those at today’s meeting made clear that they were committed to doing all they can to ensure the future of the refinery.

“There was agreement that the best way to secure the sustainable future of the plant is to maintain current operations and to find a buyer as quickly as possible. I made clear that the government will do all it can to support this process.”

Written ministerial statement by Chris Huhne on Feed-in Tariffs

Thu, 26 Jan 2012 09:44:00 GMT

26 January 2012

As the House will be aware, the Government’s proposed changes to the Feed-in Tariffs (FITs) scheme are the subject of a judicial review. Specifically, the Government has been challenged regarding its proposal to apply new tariffs for solar photovoltaics (PV) from 1 April 2012 to all new installations with an eligibility date on or after an earlier “reference date”, which we proposed should be 12 December 2011.

Yesterday, the Court of Appeal handed down a negative judgment on the Government’s appeal against an earlier decision by the High Court. We respectfully disagree with the judgment and are seeking permission to appeal to the Supreme Court. In the light of that, we cannot rule out the possibility that lower tariffs could be applied to installations which became eligible for FITs on or after the proposed reference date. It is important that consumers are aware of this.

The reason for appealing is that we want to maximise the number of installations that are possible within the available budget for FITs, rather than use available money to pay a higher tariff to half the number of installations. Solar PV can have strong and vibrant future in UK and we want a lasting FITs scheme to support that future and jobs in the industry.

We have already put before Parliament draft licence modifications that (subject to the Parliamentary process) would bring a 21p rate into effect from April for solar PV installations which become eligible for FITs on or after 3 March, to help reduce the pressure on the budget and provide as much certainty as we can for consumers and industry.

In the meantime, we want as far as possible to minimise the uncertainty for PV and other technologies eligible for support under FITs. We are therefore still intending to publish the phase 2 consultation by 9 February. This will include proposed tariffs for other FITs technologies and a set of reform proposals for the scheme. We are also intending to publish the Government’s response to the other aspects of the phase 1 consultation that are not affected by the Judicial Review (namely the proposals on energy efficiency and for multi-installation tariff rates).

Chris Huhne on Court of Appeal decision on Feed-in Tariffs

Wed, 25 Jan 2012 12:07:00 GMT

Energy and Climate Change Secretary Chris Huhne said:

"The Court of Appeal has upheld the High Court ruling on FITs albeit on different grounds. We disagree and are seeking permission to appeal to the Supreme Court.

“We have already put before Parliament changes to the regulations that will bring a 21p rate into effect from April for solar pv installations from 3 March to help reduce the pressure on the budget and provide as much certainty as we can for consumers and industry.

“We want to maximise the number of installations that are possible within the available budget rather than use available money to pay a higher tariff to half the number of installations. Solar PV can have strong and vibrant future in UK and we want a lasting FITs scheme to support that future and jobs in the industry.”

Charles Hendry speech to Wilton Park conference

Wed, 25 Jan 2012 10:23:00 GMT

1. Introduction

Thank Wilton Park for opportunity to speak.
Natural gas is a critical part of the UK energy mix today and will continue to have a crucial role tomorrow, and beyond 2030. I am very conscious that just as we want security of supply, producers also need security of demand.
Energy security matters greatly in the UK. And gas imports matter greatly to help ensure the UK’s energy security. In 2011 we imported more gas than we pumped from our continental shelf. Our projections show that this decline in domestic production is a reality, and that it will make us increasingly reliant on imports to secure our energy supply.
I think everyone here today agrees that climate change is a real and growing threat that we need to tackle together, globally, because it affects us all. In the UK we have strict and ambitious targets to meet. Gas will also help us to meet these challenging targets.
So both on the energy security and climate change accounts, for the short, medium and longer term, gas matters greatly to the UK.
I want to cover three key topics today:

The role gas plays in the UK market today;
Our views on the role gas will play in the UK market in the future; and
What that means for European gas markets.

2. Gas in the UK market today

If we look at the UK’s energy mix today, natural gas is the single most important fuel.
We are among the largest gas consumers in Europe. Crucially, in 2011 gas accounted for around a third of the UK’s final energy consumption. The use of gas in the UK has grown dramatically over the past three decades, drawing initially on the significant reserves under the North and Irish Seas and now increasingly dependent on imports. UK domestic production peaked in 2001, and we became a net importer in 2004. By then the UK had already become a large consumer of gas for home heating, electricity and industry.
These high levels of gas consumption are no accident. Gas has important advantages as an energy source:

It is reliable: we have plentiful gas supplies for many years to come from a diverse range of sources; we have a strong market framework with extensive infrastructure – including a 500 per cent increase in import capacity in last decade, and a 25 per cent increase in storage. Furthermore gas generation is readily flexible to provide both base load and back-up generation;
It is the cleanest fossil fuel: On average gas generation emits around half the level of CO2 of coal
It is relatively cheap.

3. Gas in the UK market in the future

As I mentioned earlier, the UK is fully committed to ambitious decarbonisation targets. The UK Government has made clear its commitment to a legally binding target of 15% of all energy from renewable sources by 2020. We have made public our support for new nuclear and for CCS, and we are taking significant steps to increase energy efficiency. Gas also has a role in helping us achieve an 80% emissions reductions by 2050.
Let me explain how gas will help us achieve our ambitions. I think we need to split this into two time horizons – over the next 10-20 years, and then the longer term out to 2050.
Changes in the UK energy sector over the next 10-20 years will create new sources of gas demand. We will need gas to retain sufficient electricity generation capacity margin in the face of coal/nuclear closures, to manage intermittency from increased renewables, and continue to meet the majority of our heat needs:

In the electricity sector, approximately a fifth (19 GW) of existing capacity is expected to come off the system between now and 2020, principally coal and nuclear generation due to environmental regulation and age. New gas generation will play a key role in filling this gap in base-load/mid-merit generation. Over 11GW of CCGT has received planning consent since 2009, with around 3 GW under construction. I think you’ll agree with me that this is not exactly a “dash for gas”, but rather a significant, and sustainable, increase in the role of gas here in the UK.
As the share of renewables in our electricity mix rises, much of it in the form of intermittent wind, there will be an increasingly important role for gas in providing back–up generation for the times when the wind doesn’t blow.
And gas will continue to provide the significant majority of our heat. Gas is still expected to meet around two-thirds of heat demand by 2030. There will also be new opportunities for gas in meeting some of the extra generation required to power the growth in electric heating.
So our conclusion is that although the precise share of gas in the overall energy mix will be determined by the gas industry, unabated gas is likely to retain a significant role through to the 2030s.
So much for the demand side. We also have a broadly benign view of the supply side. While global gas demand is set to rise rapidly, the global outlook for gas supply is generally good. The IEA has described the global gas resource base as “vast and widely dispersed geographically”, with unconventional gas resources now estimated to be as large as conventional ones: remaining recoverable reserves of conventional gas are equivalent to about 130 yrs of current consumption, and those of unconventional gas could be equivalent to another 125 years.
The IEA also rightly points out that increased use of gas over the very long term (out to 2050 and beyond) without CCS will not be enough to put us on a carbon emissions path consistent with limiting the rise in average global temperatures to 2C. Although gas is the cleanest fossil fuel, we need to put the right policies in place to ensure a balanced and diverse energy portfolio that is consistent with our energy security and our climate change objectives. I believe this is challenging but achievable, this is what the UK is working towards (I will be very interested to hear from Anne-Sophie Corbeau (IEA) later on this afternoon about the latest IEA thinking on the global prospects for gas).
In the UK exploration for unconventional gas has recently begun. Initial indications of our potential unconventional resource are promising. While it is too early to say how significant a role it might play in our future gas supplies unconventional gas could make a welcome contribution to the diversity of the UK energy supply in the future, alongside our existing conventional gas fields, piped gas from Norway and from the Continent and LNG.
But we do need to do more. Energy security matters greatly to the UK and we cannot afford to be complacent now, or in the future. We are working internationally to encourage: investment in new gas production, supporting UK companies overseas in that work as well; diverse and efficient liberalised gas markets; restraining global gas demand via energy efficiency; and the opening of new gas supply routes to diversify and enhance the resilience of global gas markets;
I would like to pause for a moment here, while we are talking about our gas supply. There has been a lot of talk and speculation in these last few weeks about Iran and the Strait of Hormuz.
The Iranians talk about closing the Strait of Hormuz, but this is a diversionary tactic. They simply don’t want the world to focus on the real issue at play here – the nature of their nuclear programme.
The British Government and the Defence Secretary have been clear. The US Government have been clear. Disruption to the flow of oil through the Straits of Hormuz would threaten regional and global economic growth.
Any attempt by Iran to close the Straits would be illegal, and we would be determined to ensure they are ultimately unsuccessful.
The UK does get a large proportion of its imported gas from Qatar, via the Straits of Hormuz. But, in 2011 we imported LNG from eight countries and the infrastructure exists to continue to import large volumes, should we need to.
So far this winter, LNG has supplied 17% of GB gas demand. This level of demand could easily be replaced by alternative sources.
We are second in the EU only to the Netherlands in domestic gas production, the UK can meet near 60 per cent of its gas demand through its own production. We can also import from Norway the Continent through our pipeline connections.
We have an increasingly diverse energy mix – we can call upon coal, nuclear, domestic oil and gas and renewables - and this helps to insure us against even the most exceptional international events.
Now let me turn more briefly to the longer term.
Our 2050 analysis suggests that, even without CCS, gas usage in the UK could still be 60 per cent of 2007 consumption levels by 2050, if heroic decarbonisation efforts are made in other sectors. That is one of the reasons why we are working so hard to demonstrate CCS at commercial scale and encouraging CCS deployment internationally and why our £1bn CCS programme will be open to gas projects as well as coal.
We believe that carbon capture and storage means gas has the potential to be not just a transitional fuel, but a destination fuel.

4. Gas and the EU

Let me now turn to European gas markets, as indeed the conference is themed around EU and UK gas security of supply. Doing so gives me an opportunity to put what we are doing in the UK in the context of what is happening more widely in neighbouring European markets.
The UK is geographically well-placed as an entry point for gas imports for onward distribution into the EU – both piped gas from Norway, and LNG from the global market. And we have put in place the necessary gas import infrastructure in recent years.
We have had this role over the last few years, and it will if anything be even more important as demand for gas increases, and as EU energy markets also prepare for a low carbon future, with an major role for gas. This role is underpinned by the liquidity provided by GB’s gas market – one of the largest in the world.
The UK has long been an advocate of increased liberalisation and integration of European gas markets. We think such developments work in the interests of all. We will continue to pursue this, and expect the UK market to become increasingly integrated with the rest of the EU.
EU gas markets are changing – and for the better. But we are still some way off from a well functioning, liquid and integrated EU gas market. The Third Package of energy market legislation contains most of the tools to achieve this, so it is important that it is fully implemented in all Member States and that the technical codes provided for in the Third Package are agreed as soon as possible.
These will put in place arrangements to ensure that there is non-discriminatory access to pipelines using market-based methods, providing signals for investment in additional capacity, and hub-to-hub trading.
It is therefore important that all interested parties – Member States, regulators, market players, and the Commission - work closely together to develop these cross-border rules. This should set us firmly on the path towards an EU gas market which gives us the secure, flexible and competitively priced gas supplies we need.
The Third Package will also provide most of the necessary incentives for private sector investment in the new internal EU pipelines needed for our gas security. It will be enhanced by the reverse flow and other infrastructure obligations in the EU’s 2010 Gas Security Regulation, which requires Member States to have energy resilience measure in place to cope with major supply disruptions.
However, a well-functioning single market, with gas moving between Member States in response to market signals without regulatory or physical barriers, is a necessary, but still not sufficient, condition for energy security. Increasing EU dependence on gas imports means we need new pipelines bringing gas into the EU.
While individual pipelines are of course commercial matters, the UK and EU partners particularly welcome projects to bring gas from new sources. That explains our support for the Southern Corridor pipeline to bring gas from the Caspian to Europe. Recent completion of the first Nord Stream pipe, bringing gas into the EU from the Russian system directly to Germany, is an impressive achievement; but it will not increase the EU’s diversity of supply, even if it provides a new route to market.
In this context, we hope that Nord Stream will increase overall gas supply into the EU rather than, as some fear, merely displace existing supply through Ukraine. Similarly, Russia’s proposed South Stream project would diversify gas routes into the EU but not supply sources. So while Russia, Algeria and Norway will remain major suppliers of piped gas to the EU, fuller European gas security requires projects bringing gas directly to the EU from other third countries – notably the Caspian region, initially Azerbaijan and later Turkmenistan via the proposed Trans-Caspian Pipeline, and, in time, the Middle East. We therefore welcome last year’s intergovernmental agreements between Turkey and Azerbaijan that will facilitate gas transit through Turkey and pave the way for further investment towards the development of a Southern Gas Corridor.
To close this opening address I would encourage those here today with a role in making this happen – that is to say development of an EU gas market giving us secure, flexible and competitively priced gas supplies- to continue to play an increasingly active role in doing so.

5. Conclusion

I am delighted to be able to open such a high-level conference with an outline of the role of gas in the UK and I am honoured that Wilton Park have given me the opportunity to do so.
I am also delighted that you have all chosen to come and meet here today to talk about this very important topic. I hope I managed to set the scene for a productive discussion by outlining the British Government’s assessment of the importance gas has in the UK’s energy mix, and indeed on the fact that this is not a short-term arrangement or a passing fad: Gas has, and will continue to have, a significant role in the UK energy mix for many years to come.
And I am delighted to be able to stay here for the whole afternoon and look forward to listening to your input and to taking part in the other presentations and discussions that are programmed for the rest of the day.

THANK YOU.

South West makes splash as first marine energy park

Mon, 23 Jan 2012 08:23:00 GMT

23 January 2012

The South West has today been named as the UK’s first Marine Energy Park, firmly placing the region on the international map for leadership in marine renewable energy.

Climate Change Minister Greg Barker made the announcement on a visit to Bristol where he met with key members of the new initiative.

The South West Marine Energy Park will stretch from Bristol through to Cornwall and as far as the Isles of Scilly. It will create a collaborative partnership in the region between national and local government, Local Enterprise Partnerships, the Universities of Plymouth and Exeter and industry including Cornwall’s famous Wave Hub. The aim of the partnership will be to speed up the progress of marine power development.

Energy from the waves or tides has the potential to generate up to 27GW of power in the UK alone by 2050, equivalent to the power generated from 8 coal-fired power stations, as well as helping to reduce emissions to fight climate change.

Greg Barker said:

“This is a real milestone for the marine industry and for the South West region in securing its place in renewables history as the first official marine energy park. The South West can build on its existing unique mix of renewable energy resource and home-grown academic, technical and industrial expertise.

“Marine power has huge potential in the UK not just in contributing to a greener electricity supply and cutting emissions, but in supporting thousands of jobs in a sector worth a possible £15bn to the economy to 2050.

“The UK is already a world leader in wave and tidal power, so we should capitalise on this leadership to make marine power a real contender in the future energy market.”

During his visit, the Minister launched the South West Marine Energy Park Prospectus which outlines how the region’s public and private sector will work together with the government and other key national bodies such as the Crown Estate.

The work to develop the South West Marine Energy Park has been commissioned by Cornwall Council and Plymouth City Council. The work was undertaken by Regen SW.

Welcoming today’s announcement the Cabinet member for economy at Cornwall Council, Chris Ridgers, said:

“Cornwall’s marine energy programme is reinforced by more than a thousand years of industrial heritage. The land and the sea have provided the foundation of Cornish entrepreneurship in engineering and innovation, recognised across the world. Now, in the 21st century, Cornwall continues to provide the perfect balance between resource, people and infrastructure supporting the South West Marine Energy Park and unlocking the potential of a global industry. ”

The Leader of Plymouth City Council, Councillor Vivien Pengelly, said:

“The opportunity for growth and increased commercialisation in marine renewable energy, which underpins the ethos of the South West Marine Energy Park, represents a major opportunity to help Plymouth’s economy generate investment and jobs. Plymouth has world - class research and development expertise in this field along with a strong marine business base and advanced manufacturing sector and looks forward to working closely with its private and public sector partners to make the South West Marine Energy Park a success.”

Programme Director at Regen SW, Johnny Gowdy, said:

“The launch of the South West Marine Energy Park is a recognition of the great resources, research facilities and businesses we have in the region - it also puts the South West in a position to attract future investment, and to be at the forefront of the new global marine energy industry”

Notes to editors:

South West Marine Energy Park media contacts:

Regen SW
Johnny Gowdy – Programme Director
Tel: 01392 474323 / 07976 284707     JGowdy@regensw.co.uk
Cornwall Council
Patricia Hewitt – Media Relations’ Manager
Tel: 01872 322186       phewitt@cornwall.gov.uk
Tim German - Renewable Energy & Partnerships’ Manager
Tel: 07968 810588        tim.german@cornwall.gov.uk
Plymouth City Council
Jane Slavin - Corporate Communications’ Officer
Tel: 01752 304049         Jane.Slavin@plymouth.gov.uk
Stephen James - Economic Development Co-ordinator
Tel: 01752 305452         Stephen.James@plymouth.gov.uk

The South West Marine Energy Park prospectus launched by Greg Barker has been commissioned by Cornwall Council and Plymouth City Council and is produced by Regen SW. A copy of the prospectus can be downloaded on the Cornwall council website.
In the past seven years £100 million has been invested in the south west marine energy industry creating world leading research and demonstration facilities. Such investment has supported the development of the largest consented area for marine technologies in the world at Cornwall’s Wave Hub, the Fab–Test nursery site at Falmouth, the new marine science building at Plymouth and globally–leading research facilities at Exeter University and the National Composites Centre at Bristol.
Other areas, such as in the Pentland Firth and Orkneys, are working on developing a Marine Energy Park based on their own regional strengths and activities.
Government support for marine power:
To help develop and commercialise wave and tidal technology, the UK has the most comprehensive marine energy support programme in the world. This provides help from the earliest stages of university research through to demonstration and roll-out under the Renewables Obligation.

Under the banded Renewables Obligation, the government is proposing to more than double the amount of financial support to wave and tidal stream technologies;
Up to £20 million from DECC’s budget of over £200 million to fund low carbon technologies, announced at the Spending Review, will help progress the development of marine devices from the current large scale prototypes to bigger formations in the sea;
The Government provides support across the sector with early-stage research and development funding for marine energy provided through the Research Councils’ SuperGen Marine programme. Later-stage technology development and demonstration funding is provided through various bodies, such as the Technology Strategy Board (TSB), the Carbon Trust and the Energy Technologies Institute (ETI).

Chris Huhne visits Leeds as part of Big Energy Week

Sat, 21 Jan 2012 09:14:00 GMT

Chris Huhne visited Leeds and East Yorkshire on Friday 20 January as Big Energy week came to a close.

The Secretary of State started off by visiting the Reginald Centre in Leeds where he visited stalls giving advice from organisations which included Green Doctors (Groundworks), Wrap up Leeds, Feel Good Factor, Community and Safety and various others. Each of them looked at one specific area of energy saving advice such as insulation, switching, benefits entitlement and even food that can keep you warm.

He then met Leeds Council Chief Executive, Tom Riordan where they talked about ‘The Economics of Low Carbon Cities’ a paper looking at return on investment of low carbon options. It states that for every £1 billion invested there would be estimated returns of £220 million and 1000 jobs created.

Next on the agenda was a visit to Greenhouse, a mixed-use sustainable development, and winners of one of the Yorkshire Post Environmental Awards in 2011.

The site they built on was an old 1930's workers lodge earmarked for demolition, within a major regeneration area. Blending old with new, they enhanced existing features and built on the existing foundations.

The overall project consists of a collection of distinctive homes and offices powered by sustainable energy. Using pioneering technology, they create clean energy to support everyday living and working, without compromising on design, function or quality.

The homes at Greenhouse will save the average resident around £600 a year on their energy bills.

Finally he paid a visit to GWE Biogas who are another company who won one of the Yorkshire Post Environmental Awards .
The visit consisted of a tour of the facility, where the Secretary of State was shown through the whole process from beginning to end.

GWE Biogas Ltd is a privately owned company formed by Tom Megginson and Mathew Girking in early 2008 to develop an Anaerobic Digestion plant designed to treat 50,000 tonnes of food waste.

Letter from Charles Hendry to the Daily Mail on Smart Meters 20 January 2012

Fri, 20 Jan 2012 09:51:00 GMT

The Government is determined to see consumers benefit from the introduction of smart meters and will study carefully the Public Accounts Committee report claiming the £11billion smart meter plan ‘risks fiasco’ from which only the energy suppliers will benefit (Mail). Consumer protection is at the core of the programme and we’ve been consulting consumer groups over the past year. Smart meters will give more control over how we use energy at home and work, helping us cut waste and save money. And it will mean an end to estimated billing: no more nasty surprises for consumers.

They also have a key role in modernising our electricity system so we keep the lights on and bills down. Energy companies will be able to do their job more efficiently, which will mean fewer costs for us. The potential benefits of smart meters are £18.7 billion from an £11.7 billion investment.

Energy Minister Charles Hendry

Department of Energy, London SW1.

Feed-in Tariff Update

Thu, 19 Jan 2012 13:23:00 GMT

DECC has today laid before Parliament draft licence modifications which, subject to the Parliamentary process set out in the Energy Act 2008, makes provision for a reduced tariff rate (from 1 April 2012 onwards) for new solar PV installations with an eligibility date on or after 3 March 2012 under the Feed – in Tariffs scheme (FITs).

Energy and Climate Change Minister Greg Barker said:

“I know this is a difficult time for the sector and I want to do as much as I can to end the current uncertainty created by the legal challenge.

“We must reduce the level of FITs for solar panels as quickly as possible, to protect consumer bills and to avoid bust in the whole Feed-in Tariff budget. We’re appealing against the court ruling that’s challenged our proposal for a December reference date. This remains our aim, and we are waiting for the judgment of the Court of Appeal. But this is too important for us to sit and do nothing while we wait. Today we’re putting in place a contingency that will bring a 21p rate into effect from April for installations from 3 March.

“However, we are still pressing ahead with our appeal and if successful, we retain the option of introducing a December reference date. In the circumstances we believe this gives the industry as much certainty as is possible. And it puts us in a better position to protect the budget for everyone involved.”

Further information on the Government’s response to this aspect of the FITs consultation, together with a summary of the relevant consultation responses, is also being published today on the Department of Energy and Climate Change’s website.

The consultation closed on 23 December 2011 and over 2,000 consultation responses were received which we have been analysing carefully. We are intending to announce the outcome of the consultation by 9 February 2012, in time for any resulting legislative changes to come into effect from 1 April 2012. Our aim is that this announcement will be accompanied by a set of reform proposals for the next phase of the comprehensive review of the FITs scheme, which will be the subject of a further consultation.

Written Ministerial Statement

Written Ministerial Statement on Solar PV Feed-in Tariffs

Thu, 19 Jan 2012 13:04:00 GMT

19 January 2012

On 31 October 2011, the Government published a consultation on Feed-in Tariffs (FITs) for solar photovoltaics (PV). This was in response to a substantial increase in deployment of PV, prompted by falling prices, with levels at nearly double the original projections for the first two years of the scheme. The consultation set out proposals for responding to these developments, which were putting unsustainable pressure on the budget available for FITs.

The consultation sought views on whether to reduce the generation tariffs available for new solar PV installations to a more financially sustainable level. Among other things, it proposed applying the new generation tariffs from 1 April 2012 to all new solar PV installations with an eligibility date on or after an earlier “reference date”, which we proposed should be 12 December 2011. This reference date proposal has since been challenged by judicial review and the Government has sought an appeal of the decision of the High Court. We are now waiting for a judgment from the Court of Appeal and we cannot be sure of the date on which this will be issued.

We continue to stand by our original proposal. However, I know that the uncertainty while we await the Court’s decision is difficult for the industry. A retention of the 43p tariff could also create substantial risks to the FITs budget if our appeal is unsuccessful. For these reasons, we believe it is prudent to bring forward our decision on one aspect of the consultation: the proposals for new solar PV tariffs.

We are therefore laying before Parliament today some draft licence modifications which, subject to the Parliamentary process set out in the Energy Act 2008, makes provision for a reduced tariff rate (from 1 April 2012 onwards) for new PV installations with an eligibility date on or after 3 March 2012.

If the Court finds in favour of the Government’s appeal, we intend to stand by all our consultation proposals, including an earlier (December) reference date, subject to the Parliamentary procedure and consideration of consultation responses. It is very important that we reserve this as an option because these 43p payments will take a disproportionate share of the budget available for small-scale low-carbon technologies. We want instead to maximise the number of installations that are possible within the available budget rather than use available subsidy to pay a higher tariff to a smaller number of installations.

The consultation closed on 23 December 2011 and over 2,000 consultation responses were received which we have been analysing carefully. We are intending to announce the outcome of the consultation by 9 February 2012, in time for any resulting legislative changes to come into effect from 1 April 2012. Our aim is that this announcement will be accompanied by a set of reform proposals for the next phase of the comprehensive review of the FITs scheme, which will be the subject of a further consultation.

The new generation tariffs set out in the draft licence modifications being laid today are set out in the table below and would apply for all installations with an eligibility date on or after 3 March 2012. Further information on the Government’s response to this aspect of the consultation, together with a summary of the relevant consultation responses, is also being published today on the Department of Energy and Climate Change’s website and will be available from www.decc.gov.uk/FITs.

Greg Barker Keynote Speech – Launch of the Green Deal Skills Alliance

Tue, 17 Jan 2012 13:11:00 GMT

12 January 2012

DECC Climate Change Minister Greg Barker gave the key note address at an event to officially launch the Green Deal Skills Alliance.

Highlighting the crucial importance of having the right skilled professionals delivering the Green Deal to households and businesses across Great Britain, Greg Barker praised the work that the three Sector Skills Councils - Asset Skills, Construction Skills and Summit Skills - have already done as part of the Alliance: ’

Already, each of the respective Sector Skills Councils have been working with my department to deliver some fundamental pieces of the jigsaw. Their commitment and expertise has been invaluable in helping us deliver the Green Deal.’

The event marked the midpoint of a very successful series of free national ‘Green Deal Connections’ events which the Alliance has organised to raise skills awareness and help facilitate the Green Deal process. The events have attracted a large number of delegates including energy efficiency assessors, installers and learning providers.

More details of the Green Deal Connections events and work the Alliance is doing to support the Green Deal can be found on the Asset Skills website.

Big Energy Week

Tue, 17 Jan 2012 09:31:00 GMT

Following DECC's Consumer Energy Summit in November 2011, Citizens Advice is coordinating the Big Energy Week advice campaign (16-21 January 2012), which will see thousands of people across the country get practical help and advice to cut their fuel bills and get all the financial support they are entitled to.

Chris Huhne officially launched Big Energy Week at the House of Commons along with Rt Hon Caroline Flint MP and Gillian Guy, Citizens Advice Chief Executive.

The Secretary of State said

"We know that a lot of households are struggling to cope with rising energy costs. Many people could cut their gas and electricity bills by moving to a better deal with their existing supplier, switching to another supplier altogether, or by taking up home insulation offers. But we need to make sure consumers are aware of this and make it easier for them to take action to save money. That is why I am backing Big Energy Week. We want to get the advice and information out to as many consumers across the country as possible.”

Secretary of State comment on E.ON price cut announcement

Mon, 16 Jan 2012 17:33:00 GMT

"We have now seen seven suppliers announce energy price cuts, which is really good news for hard-pressed households struggling with energy bills. We saw big energy price increases last year when suppliers passed on the rising international cost of gas to consumers, and it is right that consumers should also benefit when those international prices fall.

“This is particularly timely news as it coincides with Big Energy Week, a nationwide drive led by Citizens Advice to make sure consumers have the information and advice they need to help keep their gas and electricity bills down, including how to switch to cheaper deals and take advantage of home insulation offers. My message to consumers is this: make the companies work for your money. Shop around, and if you find a better deal, switch.

“I also want to see simpler tariffs and greater competition in the market to help consumers find the best deals, and that is what we are working with the independent regulator Ofgem to achieve.”

£4 million boost for 82 local energy schemes

Mon, 16 Jan 2012 08:00:00 GMT

Press Ref: 12/002

16 January 2012

Energy and Climate Change Secretary Chris Huhne today announced the first 82 local energy projects to win funding from the new £10m Local Energy Assessment Fund.

Winning bids include opening show homes to demonstrate solid wall insulation to the public, schemes to check the energy efficiency of homes and invest in renewable energy, and events to promote the uptake of energy efficiency in local communities.

Chris Huhne said:

“We face a gigantic challenge in the coming years to keep the lights on and energy bills down. This means nurturing cleaner, more secure, homegrown energy sources here in the UK so we are not so dependent on imported gas, and boosting the energy efficiency of our homes and businesses to cut out waste. Local communities, with their energy, drive and innovation, are going to be at the heart of this effort, and I hope that this funding acts as a booster rocket to the winning projects.”

The funding comes as the Government gears up for the launch of the Green Deal later this year, the first scheme of its kind in the world, aimed at radically overhauling the energy efficiency of millions of homes across the UK.

Organisations including parish councils, voluntary associations, development trusts and faith groups are all eligible to apply for LEAF funding. Around 200 projects are expected to benefit in total and there is still time to apply – the second round will close to applications at noon on 20 January 2012 with successful communities notified at the end January.

LEAF is managed by a consortium of community networks administered by the Energy Saving Trust. Money is intended to be used for understanding energy efficiency at a local level and renewable energy generation issues. There is on average £50,000 available for each successful bid but money allocated depends on the proposals put forward. Any work needs to be completed by end of March 2012.

Peter Lipman, Chair of Communities and Climate Action Alliance said:
“Hundreds of communities responded fantastically to the opportunity afforded by LEAF with imaginative and innovative schemes. It’s wonderful to see that many of them will be funded and so will have a chance to show just what those communities can deliver.”

Philip Sellwood, Chief Executive of the Energy Saving Trust, said:
“Showing people that ‘going green’ is practical and realistic is essential if we’re to successfully refurbish the housing stock, and enabling people to see energy efficiency measures installed in real homes in their area is a key part of this. It’s also absolutely crucial that residents of local communities have a say in what will work best in their area, so they can have a stake in our more sustainable future. LEAF, on both counts, sets the groundwork for success.”

Notes to editors

Statement by DECC spokesperson on FITs case

Fri, 13 Jan 2012 16:56:00 GMT

13 January 2012

"The Court of Appeal has not yet decided whether to give permission for an appeal or made a judgement on the FITs case. The Court will wrap up the decision on permission for an appeal and a possible judgement if an appeal is allowed in the next few weeks. Once the outcome is known we will consider our options and make an announcement on the way forward to provide clarity to consumers and industry."

Greg Barker key note speech at launch of Green Deal Skills Alliance

Thu, 12 Jan 2012 10:11:00 GMT

I’d like to thank the Green Deal Skills Alliance for inviting me to this event, which formally launches their partnership to help deliver the skills needed to support the Coalition’s Green Deal programme.

I know I don’t have to tell this audience that energy efficiency is pivotal to helping the government achieve our climate change targets and ensuring the UK is able to reduce reliance on imported energy. But more than that, as the price of fossil fuels invariably rise in the future, energy efficiency will help households and businesses stay warm and keep their bills down. For households this means more money in pockets at a difficult time. For businesses it means being more competitive. Around 50% more energy is used to heat and power homes than is used to power UK industry. And more than half of Britain’s homes don’t have sufficient insulation. It has been estimated that 5% of profits every year in UK companies may be lost through inefficient use of resources.

Despite having such clear benefits, the take-up of energy efficiency measures to date has not been as great as it could be. The efficiency of our building stock still lags behind many other countries, and although we are blessed with many older period properties, these are also the ones that often require more care and attention to make them as efficient as they can be whilst maintaining their character.

The Green Deal will break down many of the barriers that have prevented take-up of energy efficiency measures, with the potential for many more properties across Great Britain to benefit. By removing up front cost of energy efficiency measures, households and businesses will be able to repay while they benefit from a warmer property that is cheaper to heat.

With the passing of the Energy Act into statute last October the legal framework for the Green Deal is now set in stone. We are now moving on to the next steps of making the Green Deal a reality. This is about more than legislation. It is about working with the market to deliver a Green Deal that the consumer has confidence in. A Green Deal that will revolutionise the energy efficiency of our nation’s homes and businesses.

We are confident that it will stimulate the economy, revitalising the construction industry and driving growth across the supply chain. We envisage that employment in the green economy will expand significantly.

From one man bands and local authorities, to the big supermarket chains and DIY stores, we want as many assessors, installers and providers to get involved as possible. That way the consumer will get the best deal. The programme is expected to attract capital investment of up to £15 billion in the domestic sector alone in the next decade and at its peak could support 250,000 jobs.

We know that the range of skills that will be needed to deliver this programme effectively is wide - from the most basic installations to the most complex measures and packages, in small dwellings and large commercial premises. For example we need plumbers, electricians and those with construction skills.

We also need independent telephone advice that everyone is able to access and robust assessments for households and businesses, tailored to the property but impartial enough so that customers can shop around.

Yes, this is a big challenge but it is also a big opportunity. I know that a lot of people are worried about whether the sectors of industry can step up to this but we need to be positive. I for one am certain that with your commitment this can be a shining example of how industry communities can respond to a new agenda.

The Green Deal also presents a great opportunity for the young people of this country. The Government is strongly committed to improving the skills and employment prospects of our young people. The expansion of the market through the Green Deal will provide excellent opportunities for them to up-skill through apprenticeships and training schemes so they are ready to meet the challenge of this new job market.

Of course the training provision for advisors and installers to ensure they have the necessary skills will be crucial to the success of the Green Deal programme. We are therefore working to ensure that people have the confidence to invest in the training and following that to sign up to the certification schemes that will form part of the framework to protect the consumer.

The Green Deal Skills Alliance and the work that is going on as part of this partnership is an important example of this. Already, each of the respective Sector Skills Councils have been working with my department to deliver some fundamental pieces of the jigsaw:

Green Deal Advisors will be an important first point of contact for many and making sure they have the right skills and competency is crucial to the success of the Green Deal. In this regard, I would particularly like to thank Asset Skills for all the hard work they are doing to develop the standards for Green Deal Advisors, working with a wide range of stakeholders in a short space of time to help ensure a robust training and qualifications framework is in place ahead of the launch of the Green Deal programme.
DECC has also been working closely with the Sector Skills Councils to develop the Green Deal standard for installers and we will continue to work with them to deliver these standards through apprenticeships and training. I would particularly like to thank Construction Skills for all their hard work on this.
The Green Deal is a ‘whole building’ approach that incorporates a wide range of environmental technologies including microgeneration. The work Summit Skills are doing, for example through leading the Skills and Knowledge workstream for the Microgeneration Strategy for England which DECC published last year is instrumental in helping to deliver the expertise required. I would like to thank them for all their hard work in this area.

What has been particularly impressive is the tight timetable to which the Alliance are delivering this work. Their commitment and expertise has been invaluable in helping us deliver the Green Deal.

I would also like to say to those of you who haven’t as yet responded to the Government’s Consultation on the Green Deal that there is still time - you have until the 18th of this month to respond. This is your opportunity to contribute and share your opinions with us. We really would like as many of you to respond as possible to help us make this programme the best it can possibly be.

I know that today’s event is just one of a series of what have so far been incredibly successful events organised by the Green Deal Skills Alliance to help raise the awareness of the skills required under the Green Deal. I’d like to take this opportunity to wish you well for the remaining events.

-end-

Chris Huhne comment on EDF domestic gas price announcement

Wed, 11 Jan 2012 12:37:00 GMT

11 January 2011

“Households have faced real difficulties this winter after last year’s global gas prices pushed up bills. The situation is now changing, with the cost of gas imports falling, and I welcome that EDF have today responded, joining small suppliers Coop and Ovo, by cutting domestic gas bills.

“Some big energy suppliers were quick to pass on rising costs last year, and it is only right that they should now pass on cost reductions to hard-pressed householders as quickly as possible. I urge the remaining five large energy suppliers to follow suit and give consumers some respite this winter. If suppliers do not reduce prices, consumers can send them a clear message by voting with their feet and taking their business elsewhere.”

Chris Huhne

Secretary of State visit to the Olympic Park Energy Centre

Mon, 9 Jan 2012 10:23:00 GMT

09 January 2012

Secretary of State, Chris Huhne visited the Energy Centre at the Olympic Park this morning.

The park, which is the largest energy centre scheme to be built so far in the UK, will contribute towards the Olympic Delivery Authority's overall target to reduce carbon emissions by 50 percent.

Kings Yard is first of two energy centres to be built on the site - the other being the Stratford City Energy Centre which will provide power to the Stratford City retail and entertainment venues and the eastern side of the Olympic Park.

As the larger of the two schemes, Kings Yard will supply power to the National Grid as well as heating and cooling to the Park's permanent and temporary Olympic venues and the Olympic village. It uses both biomass and a natural gas powered Combined Cooling Heat & Power (CCHP) system which is 30 percent more efficient than traditional power generation methods.

Earlier, Chris Huhne attended the first Cabinet meeting of the year at the Olympic Park, marking 200 days until the start of the games.

Read more about the Cabinet meeting on the Number 10 and Department of Culture, Media and Sport websites

Heat scheme hots up

Fri, 6 Jan 2012 09:00:00 GMT

Press Ref: 2012/001
06 January 2012

Umbrella company and holiday cottages are first two successful applicants to low carbon heating incentive

Umbrella supplier Booth Brothers in Sheffield entered the history books today by becoming one of the first places in the UK to get the government’s Renewable Heat Incentive.

Its offices, housed in an 18th century former corn mill in Penistone, will be kept warm through an underfloor heating system powered by a renewable energy heat pump.

The second installation to be accredited is at a set of holiday cottages in East Yorkshire. A ground source heat pump will provide heat and hot water to five holiday lets at Broadgate Farm Cottages in Beverley.

The £860m Renewable Heat Incentive (RHI) was launched last year to make it more financially attractive for industry and businesses to install low carbon heating systems like heat pumps, biomass boilers or solar thermal panels.

The RHI is expected to increase the number of installations in industry, the commercial and public sector by seven times to around 126,000 and support the thousands of existing jobs in the heating sector.

Climate Change Minister Greg Barker said:

“It’s fantastic news that the Renewable Heat Incentive has received its first two successful applicants, and this is just the start.

“Renewable heat is a largely untapped resource and an important new green industry of the future. It’ll help the UK shift away from fossil fuel, reducing carbon emissions and encouraging innovation, jobs and growth in new advanced technologies.”

Chief Executive of Booth Brothers, Charles Booth said:

“Being amongst the first installations to be accredited under the Renewable Heat Incentive is very satisfying for Booth Brothers in terms of developing our strategic target of carbon neutral for our Bullhouse Mill site and eco-umbrella factory. Last year our Old Corn Mill offices were commended for their eco rating and we generate electricity from two wind turbines, solar panels and hydro generation so making the heat we use low carbon was naturally the next step.”

Owner of Broadgate Farm Cottages, Elaine Robinson said:

“We don’t have mains gas and the price of oil and LPG is very expensive so when we decided to develop the holiday cottages a ground source heat pump was the most economically attractive in the long term, especially with the Renewable Heat Incentive. This is the first of our applications to be approved.”

Currently around half of the UK’s carbon emissions come from the energy used to produce heat – more than from generating electricity. The RHI will reduce emissions by 44 million tonnes of carbon to 2020, equivalent to the annual carbon emitted by 20 typical new gas power stations.

Over 95% of heat in the UK is currently produced by burning fossil fuel but with North Sea supplies now in decline leading to an increase in imports, low carbon alternatives are needed.

Notes to editors:

The first two accreditations were made by Ofgem E-serve, which administrates the RHI scheme on behalf of Government.
The Booth Brothers installation supplies offices which are heated by underfloor heating using water heated by the 24kW water source heat pump accredited under the Microgeneration Certification Scheme (MCS), and with an efficiency above that required by the RHI. It has been accredited under the ‘small commercial heat pumps’ tariff(1) of 4.5p / Kilowatt-hour (kWh) and receive quarterly payments(2) for a twenty year period(3).
The Broadgate Farm Cottages has installed a 4.3kW ground source heat pump which has been accredited under the Microgeneration Certification Scheme (MCS) with an efficiency above that required by the RHI. It supplies space heating and hot water. The heat output is measured by an appropriate heat meter. It has been accredited under the ‘small commercial heat pumps’ tariff of 4.5p / Kilowatt-hour (kWh) and receive quarterly payments for a twenty year period.
The Renewable Heat Incentive (RHI) opened for applications on Monday 28 November 2011. It is the first financial support scheme for renewable heat of its kind in the world. It aims to help the UK reduce carbon emissions and hit its EU renewable energy targets through the provision of incentive payments to eligible generators of renewable heat and producers of biomethane.
The RHI tariffs will be paid for 20 years to eligible technologies that have installed since 15th July 2009 with payments being made for each kWh of renewable heat which is produced. Once in the scheme the level of support an installation will receive is fixed and adjusted annually with inflation.

(1) For heat pumps with an installed capacity less than 100 Kilowatts-thermal (kWth)
(2) Based on metered heat generation
(3) Providing they continue to be eligible for this period

Feed-in tariff appeal: Statement by DECC spokesperson

Wed, 4 Jan 2012 16:31:00 GMT

On the FITs appeal, A DECC spokesperson said:

“We have lodged grounds of appeal with the Court of Appeal. We hope that permission will be granted for an appeal and that we can secure a hearing as soon as possible so that we can provide clarity for consumers and industry on the way forward following the consultation.

“The High Court’s decision was based on the view that the proposed approach to implementing new tariffs for solar PV is inconsistent with the FIT scheme’s statutory purpose of encouraging small-scale low-carbon electricity generation.

“We disagree with this for a number of reasons. The overriding aim of the proposed reduction in tariffs for solar PV (as set out in the recent consultation) is to ensure that over the long term as many people as possible are encouraged to install small scale low-carbon generation (including other technologies as well as solar PV) and benefit from the funding available for the FIT scheme. Without an urgent reduction in the current tariffs, which give a very generous return, the budget for the scheme would be severely depleted and there would be very little available for future solar PV generators, or for other technologies. Our view is that the urgent steps we have proposed to protect the scheme for the future are fully consistent with the scheme’s statutory purpose.

We have also made the point that the judicial review was premature as no decision has yet been taken, and a decision will only be taken after a full analysis of the responses to the consultation.”

Department of Energy and Climate Change

Edward Davey appointed Secretary of State for Energy and Climate Change

Notes for editors:

Statement by Charles Hendry on Coryton Refinery

Minister’s Winter Warmth Appeal

Warm Front

Warm Home Discount

Cold Weather Payments

Winter Fuel Payment

Notes for editors:

Written ministerial statement by Charles Hendry on the 27th offshore oil and gas licensing round and the strategic environmental assessment (sea) post adoption process

Outcomes

New opportunity for North Sea oil and gas exploration

01 February 2012

Press ref: 12/004

Notes for editors

Written ministerial statement by Charles Hendry on the cost of installing underground power cables

MEDIA STATEMENT

Statement on meeting on Coryton Refinery

Written ministerial statement by Chris Huhne on Feed-in Tariffs

26 January 2012

Chris Huhne on Court of Appeal decision on Feed-in Tariffs

Charles Hendry speech to Wilton Park conference

1. Introduction

2. Gas in the UK market today

3. Gas in the UK market in the future

4. Gas and the EU

5. Conclusion

South West makes splash as first marine energy park

23 January 2012

Notes to editors:

Chris Huhne visits Leeds as part of Big Energy Week

Letter from Charles Hendry to the Daily Mail on Smart Meters 20 January 2012

Feed-in Tariff Update

Written Ministerial Statement on Solar PV Feed-in Tariffs

19 January 2012

Greg Barker Keynote Speech – Launch of the Green Deal Skills Alliance

12 January 2012

Big Energy Week

Secretary of State comment on E.ON price cut announcement

£4 million boost for 82 local energy schemes

Press Ref: 12/002

16 January 2012

Notes to editors

Statement by DECC spokesperson on FITs case

13 January 2012

Greg Barker key note speech at launch of Green Deal Skills Alliance

Chris Huhne comment on EDF domestic gas price announcement

11 January 2011

Secretary of State visit to the Olympic Park Energy Centre

09 January 2012

Heat scheme hots up

Press Ref: 2012/001 06 January 2012

Notes to editors:

Feed-in tariff appeal: Statement by DECC spokesperson

Press Ref: 2012/001
06 January 2012