A DECC spokesperson said:

“We respectfully disagree with the Court of Appeal’s decision on Feed-in Tariffs and we have today lodged an application with the Supreme Court seeking that court’s permission to appeal. We are now awaiting a decision of the Supreme Court on permission.

“We want to see the available funding spread as far and wide as possible making FITs a scheme for the many not a scheme for the few, supporting sustainable jobs in solar and in a whole range of small scale renewables.”

• 25 January 2012 Statement on Court of Appeal decision:
• 21 December 2011 Statement on High Court ruling:

There are four key challenges to address for UK energy security – in the medium to long term:

• Declining domestic production: The UK became a net importer of gas in 2004, making us increasingly exposed to risks from rising global demand.
• Global factors are driving wholesale fossil fuel price rises: international demand – such as from China.
• Power Station Closures: A quarter of existing power stations to close over the next decade, and;
• The need to decarbonise: Huge investments – up to £110bn in electricity sector by 2020 alone, to meet greenhouse gas emission reduction targets. And a potential doubling of electricity demand by 2050 for heating and transport.

The challenge is clear – but what is the correct path to choose?

Our 2050 Pathways Analysis – which is fully openly accessible on our website - presents a framework through which to explore a range of potential energy pathways from today to 2050.

It’s been used by the public with 20,000 people submitting their own vision and over 150 000 unique users trying their own pathways and joining debates online. Experts and NGOs submitted their views.

Government is listening to these views. In the medium term we are looking at becoming smarter with the energy we use. The Green Deal this year will focus on improving our energy efficiency, both at home and at our work places. Also, we need to move our electricity generation mix as well as our transport sector to low-carbon solutions. 

We are building a coalition for change – government, businesses, NGOs, academia and the public – to deliver this 2050 vision.

A key output of the 2050 Pathways work is that innovation and new business models are going to be key.

Globally, the low-carbon goods and services is worth £3.2 trillion, and employs 28 million people. It is growing by 4% a year, faster than developed world GDP, and will accelerate.

Private finance is already rushing in. In the first half of 2010, green technologies accounted for a quarter of all US venture capital investments. Globally, investment in renewables now outstrips investment in fossil fuels.

In the UK we have committed to significant investments in low carbon growth solutions.

Capitalised initially with £3bn, the UK Green Investment Bank will play a vital role in addressing market failures affecting green infrastructure projects in order to stimulate a step up in private investment. £1bn has also earmarked for commercial scale CCS demonstration in the UK.

It is also a sector driven by relentless innovation in business practices. To meet these challenges investment alone is not enough, but changing our behaviour towards the usage of energy will be at least as important. These are choices which will impact our daily lives, just for example:

• The investment associated with our reforms to the electricity market has the potential to generate around 250,000 jobs in low carbon electricity to 2030.
• We will roll-out a smart meter to every UK home by 2020.
• We aim to insulate between 2.5 to 5.2 million solid walls in the UK until 2030.
• By 2050, we expect to be using per capita a third less energy from today.

These goals together with other sector targets are described in our December 2011 publication ‘The Carbon Plan’. The document sets out the scale of investment and the opportunities for industry and business within the overall national low carbon challenge.

Of course one cannot look to the future and not address the issue dominating the present Scottish political horizon - independence.

In energy we have a united ambition –Scotland as a renewable energy powerhouse of Europe.

We are working closely with the Scottish Government to make sure Scotland fully benefits from its resources. Being a United Kingdom means we can attract the large investment necessary and spread the costs. I firmly believe that Scotland’s ambitions profit from being part of the union.

Huge investment is needed in the electricity sector in the coming years. For example from 2020 to 2030 30-40 GW of low carbon capacity needs to be added to the grid in order to meet our energy and climate change commitments. This will require an investment of around £100 billion.

Last week Scottish Power and National Grid announced a £1bn contract for the longest underwater connector in the world between Hunterston, in Ayrshire, and the Wirral peninsula, near Liverpool.

The 260 mile long cable is due to be operational by 2016 and improves grid connections by bringing power produced by remote wind farms to consumers.

These improvements are critical – and made easier because of the size of the market. By being a United Kingdom we can attract the large investment necessary and spread the costs.

You (Students) are the generation which will shape and deliver this low carbon vision in the coming decades.
You can join this debate by developing your own 2050 Pathway for the UK on our website and:

• Submit your 2050 future by using the My2050 simulation on our website
• Join our discussion on 2050 on our DECC blog; or
• Contribute to our 2050 Pathways call for evidence on the issue of costs and air pollution impacts. In a wiki-like format we hope to ensure that all views are being heard and are part of the analysis.

It is by taking action now that we secure the low carbon jobs for Britain and keep prices affordable. Only with you can we make this happen.

Minister of State Charles Hendry saw the positive effects of Government support for Scottish renewable energy projects during an official visit to Edinburgh today.

He began his trip with a visit to Artemis Intelligent Power, an innovative green technology company based in the City.

Artemis was one of the first recipients of a DECC grant as part of the Low Carbon Energy Demonstration programme. The project, ‘Field proving of Digital Displacement® hydraulic wind-turbine transmission’ was intended to accelerate the development of Artemis technology as a means of bringing down the lifetime costs and improving the performance of large offshore wind-turbines.

DECC has continued to support the development of the Artemis wind-turbine transmission as part of the Environmental Transformation Fund.

The potential of the technology has been recognised by Mitsubishi Heavy Industries who acquired the company in 2010 and have announced that they intend to use the technology in a new 7MW offshore wind specific turbine that is currently under development. Artemis is also focussing on the development of drive-trains for the next generation of multi-megawatt offshore wind-turbines.

The visit continued with the Minister’s annual address to students at the University of Edinburgh Business School.

The Minister stressed that while oil and gas remain a key part of the energy mix, renewables are now also providing opportunities, including providing power for hundreds of thousands of homes and delivering as many as 70,000 jobs over the next decade.

• Read Charles Hendry's speech at the University of Edinburgh Business School

The UK and France today put the green economy and energy security at the heart of their relationship. This came as companies from both nations agreed a raft of commercial deals, and the two governments signed up to new agreements to cooperate on energy issues.

Deals signed today in the presence of Prime Minister Cameron and President Sarkozy include:

• A groundbreaking deal worth £400m on nuclear reactors between Rolls Royce and Areva, including the first EPR reactors at Hinkley Point, Somerset. This will underpin a new Rolls Royce factory in Rotherham and support 1,200 new jobs across the nuclear supply chain in Britain;
• A new engineering contract between EDF and Kier/BAM for the UK’s first proposed new nuclear project at Hinkley Point, Somerset, meaning another £100m for companies operating in the South West and 350 jobs;
• A £15m investment in a new world class training campus in Bridgwater, Somerset for EDF employees, new starters and the local community.

Welcoming the strength of the UK- France energy relationship and their joint commitment to the transition to a low carbon economy, the two Governments agreed:

• A call for further studies into electricity interconnection between the UK and France;
• A deal to extend cooperation on civil nuclear security and share best practice on security at nuclear sites;
• An agreement to cooperate closely on research and development in the nuclear industry;
• A commitment to work closely to ensure that both nations’ nuclear industries have the necessary skills in place.

Prime Minister David Cameron said: "Today's summit shows the strength and depth of Britain's ties with France. At our last summit, we signed a historic partnership on defence.

“Today, we are matching that ambition on nuclear energy. As two great civil nuclear nations, we will combine our expertise to strengthen industrial partnership, improve nuclear safety and create jobs at home.

“The deals signed today will create more than 1,500 jobs in the UK but they are just the beginning. My goal is clear. I want the vast majority of the content of our new nuclear plants to be constructed, manufactured and engineered by British companies. And we will choose the partners and technologies to maximise the economic benefits to the UK. Today marks an important first step towards that. A good deal for Britain and a good deal for France."

Edward Davey, Secretary of State for Energy and Climate Change, said: “We need hundreds billions of pounds of investment in clean energy projects in the UK. This will bring high-skilled job opportunities the length and breadth of the country. Construction workers, engineers, technicians – they will all have a role to play.

“There are plans for new nuclear in Somerset, Suffolk, Cumbria, North Wales and Gloucestershire. Supply chains will spring up too, and extend the reach of economic benefit across the country. This investment could be worth around £60billion and create up to 30,000 jobs.

“The deals signed today reflect our ongoing desire to work closely together with our French allies and the private sector on nuclear, and across the energy mix.”

Notes for editors:

• Read the full declaration
• Find out more about new nuclear in the UK

Energy Minister Charles Hendry said:

“This is excellent progress for Coryton refinery. It provides the business and its employees with a period of stability, keeps the facility operational and gives the administrators time to work on a long term solution for the site.

This has been an outstanding example of the whole local community working together to support the Administrator. My thanks to everyone concerned for the work done so far.”

• Price Waterhouse Coopers press release

13 February 2012

Press Ref: 12/011

A vital gas pipeline providing energy security to thousands of households in North Wales is to be replaced.

Energy Minister Charles Hendry has today given approval for Wales and West Utilities to construct a 22 kilometre gas pipeline from Llanwrin in Powys to Dolgellau in Gwynedd, north Wales.

The pipeline will replace an existing pipeline which has reached the end of its life. 

Charles Hendry said:

“The new pipeline will mean that thousands of residents in Gwynedd and Powys in north Wales will have a safe and secure supply of gas. Natural gas is the main source of heat for most households and so it is critical we have a modern network that provides supply on demand. 

“In approving this pipeline I have made sure the plans meet stringent and comprehensive environmental standards.”

The new buried steel pipeline will roughly follow the route of the existing pipeline, with a deviation at Corris approximately 11kms (7 miles) to the north of Llanwrin.  

Notes for editors

1. A comprehensive set of environmental conditions has been agreed with the Snowdonia National Park Authority, the Environment Agency for Wales and the Countryside Council for Wales to protect the integrity the Cadair Idris Special Area of Conservation and the Snowdonia National Park.
2. The pipeline will serve the administrative areas of Gwynedd and Powys. 2009 data shows that Gwynedd had 28,600 domestic consumers and Powys had 26,800. The population for Gwynedd was estimated at 119,000 in 2009 and for Powys 131,000 in 2010.
3. Wales and West Utilities anticipates that the pipeline will be completed and commissioned ready to operate in October 2012. 
    

Good morning.  I am honoured to have the chance to speak to such an influential audience. And I am delighted to be back in Norway.

Our countries share a tremendous amount of history. Every year, Oslo sends a Christmas tree to London; it stands just a short walk from my office, an annual reminder of joint endeavours in our past. We even shared part of our United Kingdom, the Shetland islands.

Today, Norway is a key ally in NATO, in Afghanistan – and in driving international climate change ambition. And when it comes to energy, the links between us are stronger still. These are as strong as they have ever been.

I am pleased to speak at this prestigious event, because of the close working relationship I have developed with the Norwegian Government and energy industries –and my profound admiration for all that Norway has achieved in this sector.

And I am particularly pleased to share a stage with Minister [Ola] Borten Moe, who is a great champion of Norwegian energy industry and with whom I was delighted the UK could recommit  our UK-Norway One North Sea statement a few months ago.  He is revitalising interest in this sector for a new generation of young people.

A strong relationship can bring real benefits for both our countries, especially when it comes to energy.  And so I welcome the chance to talk about our energy security challenge and our investment need, and how this ties in on an international basis.

Norway is the single most important energy ally for our energy security. It provides around 70% of our imported oil, and 50% of our imported gas.  Norwegian companies are a key source of investment in UK renewables and gas storage, and are majority shareholders in two of our largest offshore wind projects. Over the next few decades, this investment will become ever more important, particularly when it comes to gas.

Gas

We are looking again at the role of gas in the UK – when we came into Government nearly two years ago there was an assumption that gas would decline.  Now this is not the case.  Gas is a critical part of our energy mix today, as it will be in the future too. Our demand is set to rise over the next decade, as we switch off our old coal and nuclear power plants. Gas can provide flexible and reliable backup electricity to complement the next generation of renewables. It also provides most of our heat now, for homes and businesses, and will continue to do so through to 2030. 

The UK is one of Europe’s largest gas consumers. But in recent years, for the first time ever, Britain imported more gas than it produced. As our production declines, we will need more imports; we have fundamentally reassessed the long-term role for gas and our analysis suggests we will import more gas in 2030 than we do now. That is why our policies are designed to ensure continuity and security. As Winston Churchill once said: ‘Security comes from diversity, and diversity alone.’

We have a wide range of supplies – piped from Norway, Liquid Natural Gas from Qatar and elsewhere, and pumped from our own Continental shelf. We have the capacity and infrastructure to support our import needs and we are working to increase storage. And we are working with our Regulator, Ofgem, to sharpen the incentives on gas suppliers, to ensure they can meet demand.  Regarding development of shale gas - we are looking at this, but such factors as density of population in the UK means this is a slower process than we have seen in the U.S.  But we recognise that it is a game changer, and the IEA reminds us that supply and demand is changing. 

For Britain, energy security is about security of supply. In energy terms we are no longer an island. For Norway, it is about security of demand. Our closeness means that we see Norway as our most critical supplier; and means Norway can rely on us for steady demand, now and in the years to come.

It is against this background that the major gas deal between Centrica and Statoil was signed in November last year. This benefits us both; I was delighted that it went ahead, and I hope it is the first of many to come.

And we have heard this week of Norway’s assessment of its vast hydrocarbon resources in the High North. We stand ready to work with Norway to bring them to market. The current severe winter in Russia and Europe has pushed up demand for gas, putting pressure on prices and causing shortages in some European countries.

This has underlined more than ever the importance of exploiting new resources, and ensuring secure supplies for all. Gas is vital to the EU’s energy security today, as it will be tomorrow and will continue to be in the future. But there is much to be done.

New opportunities present massive technical and environmental challenges.  While Britain and Norway will never be complacent, we can justifiably claim to have some of the most robust and effective safety standards in the world, and we will firmly resist any measures which could diminish these standards.

CCS

We face ambitious clean energy targets to help us cut carbon dioxide, and thus limit climate change. We can use significant volumes of unabated gas through to 2030 without compromising our emissions targets. But over the longer term, to 2050 and beyond, gas will be able to provide significant quantities of electricity provided it can be equipped with Carbon Capture and Storage.

So it is right then that our two countries are among the world leaders in developing that technology. The UK remains absolutely committed to CCS. We are working hard to demonstrate it at commercial scale, and to encourage CCS deployment internationally. There are a number of promising projects for our billion pound CCS programme and we expect to be launching our new competition in the Spring. We have critically changed the nature of this competition to include gas as well as coal, due to the importance of gas.

We recently released front end engineering and design studies for both Longannett and Kingsnorth projects.  The information released has been acknowledged as world leading in both extent and detail, and the studies have already been accessed by thousands.

I am delighted that Norway shares this commitment to making CCS a reality. We remain committed to working together to share knowledge and learning to support the deployment of CCS.

I look forward to the opening of the Technology Centre at Mongstad in May this year, where vital testing can take place. And we eagerly await the outcome of the Norwegian Government’s decision on a full scale demonstration project. I sincerely hope that with these projects we can achieve cost-competitive deployment of CCS in the 2020s, and I welcome further cooperation between our countries and other countries to develop this crucial technology.  The objective is not just a few pilots, but a commercially viable industry.

Our partnership on CCS is not just limited to domestic activity. The UK and Norway are working together to promote CCS internationally. Alongside the Carbon Sequestration Leadership Forum and Clean Energy Ministerial meetings, we are:

• promoting knowledge sharing through the One North Sea Basin Taskforce;
• working with the EU and China on the Near Zero Emissions Coal project, to develop and demonstrate CCS in China;
• and, as part of the 4 Kingdoms’ initiative, we are working with Netherlands and Saudi Arabia to promote increased understanding of CO2 utilisation.

Our joint legacy on CCS is strong. Our shared challenge now is to bring this critical technology to market, both at home and abroad, so that our domestic efforts can deliver real benefits. 

Renewables

Whilst clean fossil fuels will be vital for our emissions and climate change targets, we also need to see a big rise in renewable energy deployment.

Historically, the UK has underperformed when it comes to renewables, despite our abundant resources. Sadly, we don’t have Norway’s striking fjords; but we have strong winds, shallow seas and big tidal flows. We could so much more, and our policies are designed to bring on renewable energy at scale; to harness the technology and bring it to market.

We are committed to achieving our legally binding renewables target – to deliver 15% of our energy from renewables by 2020, which means 30% of our electricity – in the most cost effective way.  In July, my department published the UK’s Renewable Energy Roadmap, a plan of action to increase renewables deployment and drive down costs. The Roadmap sets out our work to overcome the financial and non-financial barriers we face.

Norwegian industry is already a significant investor in the UK renewables sector, notably Statkraft’s and Statoil’s joint ventures in offshore wind. The Sheringham Shoal windfarm is already producing electricity, and will be fully commissioned in the summer.  We are keen to see the success of this project contribute to positive investment decisions on the larger Dogger Bank wind farm.  At up to 13 GW this would be the largest in the world.

The UK is already considered the most attractive market in the world for offshore wind investment, according to Ernst & Young’s renewables attractiveness index. We lead the world in terms of offshore wind deployment, with 1.6 GW of installed capacity. Just yesterday, the world’s largest wind farm opened in Cumbria, off the Northern English coast. Our large and growing industry presents significant commercial opportunities, and we welcome investment from our Norwegian partners.

Developing our North Sea Grid interconnections is also a key aspect of our renewables work.  We are working closely on plans for a two-way electricity interconnector between our two countries, and I hope that we will see a decision this year.  The extent to which we can transfer green energy from nation to nation, and continent to continent, is one of the most important issues for us.  This will be of great benefit to us both: allowing us to share renewable resources and meet our low-carbon targets, while enhancing security of energy supply and benefiting consumers in both countries.

EMR

Our objective is reliable, affordable, low-carbon energy. We must encourage competition between all forms of energy in a liberalised market, so that we get the best deal for our consumers and investment in infrastructure. That is why we are reforming the electricity market, with new long-term, legally-binding contracts for suppliers, to provide certainty for investors.  Without reform, we will simply not attract the level of investment we need.

Electricity market reform is the biggest change to the electricity market since privatisation and will transform the UK’s electricity sector.  There are four key reforms: support for the carbon price; low-carbon generation revenue support; an emissions performance standard; and a capacity mechanism to ensure security of supply.

Together, these measures will provide the support and stable revenues to decarbonise electricity generation at the least cost to consumers. The package will create an enduring framework for future investment, and will secure our electricity supplies for the future.  This opens up significant commercial opportunities for state and institutional investors.  

Conclusion

I am aware that time is short, so let me offer you one final thought by way of conclusion.

There may have been a change at the top of my Department, but the agenda remains the same. Norway is, and will remain, a close ally. The relationship between our countries has never been stronger. This doesn’t change our commitment to developing our ties with Norway, and other countries, to work together to develop our energy relationship.

And that closeness, built on centuries of goodwill and trust means that we can work together to develop our resources and to ensure that the UK’s desire for security of supply is truly matched by Norway’s desire for security of demand.

Thank you very much.

Secretary of State for Energy and Climate Change Edward Davey has today opened the world’s biggest offshore windfarm.

The new site, located near Walney in Cumbria, comprises 102 turbines, enough to power 320,000 homes.

It sits alongside 60 other turbines generating off the Cumbrian coast, with more planned.

Opening the new windfarm, Secretary of State Edward Davey, said: "Britain has a lot to be proud of in our growing offshore wind sector.  Our island’s tremendous natural resource, our research base and a proud history of engineering make this the number one destination for investment in offshore wind. 

"And Walney is the newest, biggest and fastest-built jewel in that crown, providing clean power for hundreds of thousands of households. 

"Opening Walney during my first week in office lets me underline my commitment to continuing the Coalition’s work to make this sector a success story for the British economy, not least with the innovation it is driving and the employment it is creating."

Forecasts suggest as many as 70,000 people could be employed in the UK offshore wind industry by the start of the next decade.

Siemens, who made the turbines for Walney, is planning a manufacturing plant in Hull, while Gamesa and Vestas also have plans. 

Just this week the industry as a whole announced a vision for 50 per cent of content being British sourced in future.

Energy Minister Charles Hendry today chaired a third 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. Local politicians, industry, unions and regulators were among those present.

Following the meeting, the Minister said: “The administrator updated those present on their work to keep refining operations going as the effort continues to find a buyer for the refinery.

“The strong levels of interest in investing in Coryton reaffirms our belief that there is every chance that a sustainable long-term commercial solution can be found.

“I want to emphasize my ongoing appreciation for the collaborative approach taken by the Unions, the refinery’s management, the administrator and others involved.”

This Government is committed to promoting decentralised energy and the take-up of small-scale low-carbon technologies by the public and by communities. 

The Feed-in Tariffs (FITs) scheme is an important instrument in meeting that commitment, but it needs to be reformed as we want as many people as possible to be able to benefit from the scheme. For too long it has been limited to the lucky few.

So today I am publishing a series of documents which mark a crucial turning point for the FITs scheme. Taken as a whole, this reform package will put the scheme on a predictable, certain and sustainable footing for consumers, and for the businesses delivering these exciting renewable technologies.

It is no secret that the uncontrolled surge of solar photovoltaic (PV) installations in the latter part of last year, driven by rapidly falling costs, placed a huge strain on the FITs budget, threatening the Government’s ability to roll out those small scale low carbon technologies in the numbers we wanted over the next few years. We acted as swiftly as possible to respond to the threat this posed both to the future of the FITs scheme and to the bills of hard pressed consumers, through the changes we are now making to the tariffs for solar PV.

But that is by no means the end of the story on FITs. We are now taking the opportunity of the review to put right the many limitations of the scheme we inherited. We have looked hard at the FITs budget and made the most of the flexibility available under the Levy Control Framework to ensure that we can keep the scheme going. The reforms I am announcing today are designed to make that budget go as far as possible to maximise the number of people able to benefit from FITs; to provide greater certainty to the industries concerned; and to ensure value for money to consumers who pay the bills.  

FITs reform package

The documents we are publishing today are as follows:-

(i) Government response to the consultation on FITs for solar PV. This supplements our announcement of 19 January 2012 which confirmed the new tariffs for solar PV that will continue to provide a competitive return on investment for householders, communities and others.  The new tariffs are designed to apply to all installations with an eligibility date from 3 March onwards.

We are now also announcing  the details of the new energy efficiency requirement, and of the new multi-installation tariff rates. We have listened carefully to concerns raised in last autumn’s consultation and have decided that the energy efficiency requirement should be based on an Energy Performance Certificate (EPC) rating of level D or above, not level C or any other option as previously mooted.  We have also decided that the threshold at which the multi-installation tariff rates would apply should be increased from more than one PV installations to more than twenty five. This will help community groups, small businesses and councils who do not benefit from the economies of scale that larger aggregators can obtain.

We are also today laying before Parliament draft licence modifications which, subject to the Parliamentary process set out in the Energy Act 2008, make provision for these new requirements to come into effect for new PV installations with an eligibility date on or after 1 April 2012.  

(ii) A consultation on solar PV cost controls. In line with the encouraging evidence we have seen of the reduction in costs associated with solar PV, this document sets out proposals for an ambitious programme of six monthly degression for solar PV tariffs, with an added deployment trigger to ensure that subsidy levels keep in step with the market. This builds on the best of the German system and will remove the need for emergency reviews, consistent with our commitment to a stable, predictable future for solar PV and for the whole FITs scheme. It will also help to keep the long-term costs of supporting solar PV down, increasing the number of people able to benefit from FITs over time. The consultation closes on 3 April.

(iii) A consultation on tariffs for FIT technologies other than PV, and other scheme administration issues. This includes proposals to carve out special arrangements for community projects, including greater tariff stability. It also proposes an increase in the rate of return available for micro-combined heat and power, in recognition of the benefits this technology could bring, and potential tariff guarantees for wind, anaerobic digestion and hydro projects, so that those technologies can have greater certainty about what rates of return they will receive. The consultation closes on 26 April.

All these documents, together with the supporting Impact Assessments, are available from the Department’s website.