Tag Archives: DECC

Government to invest £1bn in carbon capture and storage technology

By David Bicknell

The government is to commit more than £1bn of public funds to develop carbon capture and storage (CCS) technology with the prospect of generating an industry with 100,000 jobs.

It follows  the publication of plans yesterday to create a government-sponsored competition to design the first workable demonstration project.

CCS uses technology to capture carbon dioxide from power plants and store it permanently underground. Such a move, it is said, will help meet climate change targets.

The government has also published the first UK CCS Roadmap which it says sets out the steps that the Government is taking to develop a new world-leading CCS industry in the 2020s. The Roadmap includes:

  • The competition, the ‘CCS Commercialisation Programme’, to drive down costs by supporting practical experience in the design, construction and operation of commercial scale CCS with £1bn capital funding, and additional support, subject to affordability, through low carbon Contracts for Difference;
  • £125m funding for Research and Development, including a new £13m UK CCS Research Centre;
  • Planned long term Contracts for Difference through Electricity Market Reforms to drive investment in commercial scale CCS in the 2020s and beyond;
  • Commitments to working with industry to address other important areas including developing skills and the supply chain, storage and assisting the development of CCS infrastructure

Here is the Guardian’s view on the story

UK CCS Commercialisation Programmme

Department of Energy & Climate Change announces new consultation on CRC

By David Bicknell

In a press release today, the Department of Energy & Climate Change has announced a consultation on simplifying the Carbon Reduction Commitment (CRC) Energy Efficiency scheme.

DECC says that participants will see their administrative costs cut by almost two-thirds, equating to around £330 million of savings up to 2030.

CRC is a mandatory UK-wide trading  scheme covering large business and public sector organisation, who produce 12% of UK carbon emissions. It requires businesses to report on and pay a tax on energy used, and ranks businesses in a performance league table which provides a further reputational incentive to improve their energy efficiency.

Following Chancellor George Osborne’s criticism of the scheme’s complexity in last week’s Budget, DECC now says businesses will now have the opportunity to comment on Government’s proposals. 

The simplified package proposed is aimed at retaining the energy-saving and reputational benefits of the CRC, whilst reducing the bureaucracy of taking part.

Secretary of State Ed Davey said:

“We have listened to businesses’ concerns about the CRC and have set out proposals to radically cut down on ‘red tape’ to save businesses money. The benefits of the scheme are clear though. It will deliver substantial carbon savings helping us to meet carbon budgets, and it encourages businesses to take action to improve their energy efficiency”.

DECC says the simplified package will include:

  • A shortening of the CRC qualification process.
  • Reducing the number of fuels covered by CRC from 29 to 4.
  • Reducing the amount of reporting required by businesses.
  • Reducing the length of time participants will have to keep records.
  • Removing the requirement on facilities covered by Climate Change Agreement or EU Emissions Trading System installations to purchase CRC allowances. 
  • Adopting new emissions factors for the CRC which will align it with Greenhouse Gas reporting processes.
  • Removing the detailed metrics of the Performance League Table from legislation and placing them in government guidance.

The formal consultation will run for twelve weeks, with the Government planning to amend the legislation for CRC by April 2013.

Consultation on a simplified CRC Energy Efficiency Scheme

DECC faces Renewable Sources Challenge

By David Bicknell

Interesting story from Reuters today saying Britain will miss its 2010 goal of making 10 percent of electricity from renewable sources, according to a Public Accounts Committee report.

According to the PAC report into the funding of renewable energy, the Department of Energy and Climate Change (DECC) has admitted it will not meet the government’s own target of increasing the share of low-carbon renewable energy in Britain’s electricity supply to 10 percent by the end of 2010.

DECC estimates that over 30 percent of electricity will have to come from renewable sources by 2020 in order to meet the target set by the EU to get 15 percent of all Britain’s energy from renewables by the end of the decade.

The share of renewables crept slowly up from 2.7 percent in 2000 to 6.7 percent at the end of 2009, leaving Britain lagging in performance for green energy growth and making it a challenge to reach the 2020 goals.

According to PAC chairman Margaret Hodge, DECC will have to have a “greater sense of urgency and purpose if it is to achieve the dramatic increase in renewable energy supplies needed to meet the goals.”

The PAC went on, “We are concerned that the Department agreed to the legally binding EU-target to supply 15 percent of the UK’s energy from renewable sources by 2020, without clear plans, targets for each renewable energy technology, estimates of funding required or understanding how the rate at which planning applications for onshore wind turbines were being rejected might affect progress.”

Although the DECC is responsible for ensuring Britain reaches the targets, which are aimed at cutting emissions of climate warming gases from the energy sector, funding is actually delivered through a number of routes that DECC does not control.

Potential developers of renewable energy projects have said they could delay projects until it is clear what level of funding the different technologies – from offshore wind to solar and wave power – will get.

The report says some 40 percent of renewable schemes in England do not get planning approval, while others fail to get adequate funding.