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tag:www.gov.uk,2005:/government/announcements Announcements on GOV.UK HM Government 2014-04-24T10:33:00+01:00 tag:www.gov.uk,2005:AnnouncementPresenter/232257 2014-04-24T10:33:00+01:00 2014-04-24T10:33:00+01:00 Press release: Getting ready for shale gas – supply chain estimated to be worth billions as new environmental measures announced A shale gas supply chain report showing huge potential economic benefits to the UK economy and measures to minimise the environmental impacts of shale gas have been announced by the Government.

A shale gas supply chain report showing huge potential economic benefits to the UK economy and measures to minimise the environmental impacts of shale gas have been announced by the Government.

Business and Energy Minister Michael Fallon has today:

welcomed an EY shale gas supply chain report that estimates a potential £33 billion benefit to the UK economy and over 64,000 jobs;

fully accepted the recommendations of the MacKay/Stone report to monitor the carbon footprint of domestic shale gas; and

announced £2 million competition by the Technology Strategy Board to support innovative ideas to produce or explore for shale gas, particularly focused on projects reducing environmental impact.

Shale gas supply chain

Shale gas could create a new onshore supply chain market for equipment, services and skills across a number of industry sectors worth up to £33 billion by 2032, creating over 64,000 jobs, according to the EY report published today by trade body United Kingdom Onshore Operators Group (UKOOG).

The UK could also lead the way in technology and skills across Europe, a significant and untapped market, adds the report, commissioned by UKOOG and part funded by the Department for Business Innovation and Skills.

The report sets out UK industry sectors that could benefit from UK shale development include:

Specialised equipment and skills for hydraulic fracturing operations worth £17bn;

Waste management, storage and transportation requirement of £4.1bn;

Steel requirement of £2.3bn; and

New rig manufacturing industry worth £1.6bn.

The report projects that a flourishing shale gas industry in the UK would lead to the employment of over 64,000 people at peak employment, most of them in the supply chain.

A key part of the Government's long-term economic plan to secure Britain's future is to back businesses with better infrastructure. That's why the Government is committed to shale - it will mean more jobs and opportunities for people, and economic security for our country.

Business and Energy Minister Michael Fallon said:

"This report shows the huge prize at stake for the UK in terms of jobs and manufacturing in the supply chain for our onshore oil and gas industry.

"Shale gas has the potential to kickstart a whole new industry, building on the world leading expertise the UK already has in the energy sector. There will be significant opportunities across the steel, manufacturing and engineering industries as shale develops.

"This government is fully committed to ensuring the UK not only benefits from the energy security shale gas could provide but also maximising the economic benefit across the country. It's time to get ready for shale."

MacKay/Stone GHG emissions report

The Government has also accepted all the recommendations in the report that assesses the potential greenhouse gas (GHG) emissions from production of shale gas in the UK by Professor David Mackay, DECC Chief Scientific Advisor, and Dr Timothy Stone CBE, the former Senior Advisor to the Secretary of State for Energy and Climate Change.

The Government has committed to:

Pursue a detailed scientific research programme to monitor emissions relating to shale gas exploration and production, to increase the evidence base and inform regulatory monitoring;

Require shale firms to use the best technologies available to capture emissions from operations; and

Research with industry new techniques to minimise GHG emissions, water demand and vehicle movements.

£2 million for new exploration/production techniques

DECC and the Technology Strategy Board are providing two million pounds funding for projects run by firms with innovative ideas for improved or new techniques to produce or explore for shale gas, including environmental management and reservoir monitoring.

These projects can attract up to 75% of public funding. This will open up opportunities for UK business to show their innovation and lead the way in producing green technologies.

Energy and Climate Change Secretary Ed Davey said:

"We must explore the benefits and investment shale gas may bring but that should not come at the expense of the environment.

"Over the past year the scientific evidence has allowed us to conclude that shale production can be managed effectively as long as best practices are implemented and enforced.

"Today, by fully accepting the recommendations of the Stone/MacKay report, we are setting out how we will regulate and monitor shale gas keeping our carbon emissions to a minimum.

"This £2 million funding we have announced shows our continuing commitment to remain at the forefront of new technology and techniques to efficiently and cleanly explore and produce shale gas."

Last week's publication of the 5th assessment by the UN Intergovernmental Panel on Climate Change highlighted that gas has a role to play in cutting carbon emissions to fight the effects of climate change. Co-chair of the report's working group Ottmar Edenhofer said it was "quite clear that shale gas can be very consistent with low carbon development and decarbonisation". Mr Edenhofer stressed that the shale gas revolution could be "very helpful" but only if the world committed to tackling climate change and did not simply burn more gas as well as coal.

Environmental Risk Assessment

DECC are requiring firms to assess the potential environmental risks from their projects at an early stage so that these can be addressed and communities can engage early, as recommended to us by the Royal Society and Royal Academy of Engineering. Today we launch guidance to industry on the Environmental Risk Assessment.

Notes for Editors

Read the EY report, "Getting ready for UK shale gas" on the UKOOG website

 The Government response to the MacKay/Stone report is on the GOV.UK website

Read the EY/UKOOG press notice

 tag:www.gov.uk,2005:AnnouncementPresenter/232029 2014-04-24T09:30:00+01:00 2014-04-24T09:30:00+01:00 News story: Energy trends and prices statistical release: 24 April 2014 The latest provisional monthly energy statistics produced by the Department of Energy and Climate Change were released on 24 April 2014 according to the arrangements approved by the UK Statistics Authority.

Highlights for the 3 month period December 2013 to February 2014, compared to the same period a year earlier include:

Primary energy consumption in the UK fell by 7.6%, on a temperature adjusted basis it fell by 2.6%. (table ET 1.2)

Indigenous energy production fell by 1.4% (table ET 1.1) with coal production down 23%, coal production in January 2014 was at a record low level. (table ET 2.5)

Crude oil & NGL production down 2.3% (table ET 3.10) but gas production up 1.3%. (table ET 4.2)

Coal provided 41.0% of electricity generation by Major Power Producers, with gas's share at 22.4% and nuclear at 20.0%.* (table ET 5.4)

Wind generation by Major Power Producers up 54%, with offshore wind up 39% and onshore wind up 68%.* (table ET 5.4)

Bioenergy generation up 9.4% due to the partial conversion to biomass of Drax. (table ET 5.4)

Low carbon share of electricity generation by Major Power Producers up 7 percentage points to 36.7%.* (table ET 5.4)

Statistics on monthly production and consumption of coal, electricity*, gas, oil and total energy include data for the UK for the period up to the end of February 2014.

Statistics on solar photovoltaics deployment and average temperatures, wind speeds, sun hours and rainfall include data for the UK for the period up to the end of March 2014.

Statistics on energy prices include retail price data for the UK for March 2014, and petrol & diesel data for April 2014, with EU comparative data for March 2014.

The latest release updates the statistics previously released on 27 March 2014.

The next release of provisional monthly energy statistics will take place on 29 May 2014.

The next release of provisional quarterly energy statistics for Q1 2014 (January to March), will take place on 26 June 2014.

*Major Power Producers (MPPs) data published monthly, all generating companies data published quarterly.

To access the latest data release click on the relevant subject link(s) below.

 Subject and table number	 Title

 Total Energy

 ET 1.1	 Indigenous production of primary fuels

 ET 1.2	 Inland energy consumption: primary fuel input basis

 Coal

 ET 2.5	 Coal production and foreign trade

 ET 2.6	 Coal consumption and coal stocks

 Oil

 ET 3.10	 Indigenous production, refinery receipts, imports and exports

 ET 3.11	 Stocks of petroleum

 ET 3.12	 Refinery throughput and output of petroleum products

 ET 3.13	 Deliveries of petroleum products for inland consumption

 Gas

 ET 4.2	 Natural gas production and supply

 ET 4.3	 Natural gas imports and exports

 ET 4.4	 Natural gas imports

 Electricity

 ET 5.3	 Fuel used in electricity generation by major producers

 ET 5.4	 Electricity production and availability from the public supply system

 ET 5.5	 Availability and consumption of electricity

 Renewables

 ET 6.4	 Solar photovoltaics deployment

 Weather

 ET 7.1	 Average temperatures and deviations from the long term mean

 ET 7.2	 Average wind speed and deviations from the long term mean

 ET 7.3	 Average daily sun hours and deviations from the long term mean

 ET 7.4	 Average monthly rainfall and deviations from the long term mean

 Domestic energy price indices

 QEP 2.1.1	 Retail prices index: fuel components

 QEP 2.1.2	 Retail prices index: fuel components, relative to GDP deflator

 QEP 2.1.3	 Retail prices index: fuels components monthly figures

 Monthly and annual prices of road fuels and petroleum product

 QEP 4.1.1	 Typical retail prices of petroleum products and a crude oil price index (monthly data)

 QEP 4.1.2	 Typical retail prices of petroleum products and a crude oil price index (annual data)

 International road fuel prices

 QEP 5.1.1	 Premium unleaded petrol prices in the EU

 QEP 5.2.1	 Diesel prices in the EU

Please note that the links above will always direct you to the latest data release. If you are interested in historical data please contact DECC (email@example.com)

 tag:www.gov.uk,2005:AnnouncementPresenter/230492 2014-04-23T14:09:03+01:00 2014-04-23T14:09:03+01:00 News story: The Energy Information Regulations - Domestic Ovens An NMO report has found that 25% of ovens on the UK market were enhancing performance capabilities through the misuse of tolerences

The National Measurement Office (NMO) has addressed misleading consumer information about the amount of energy used by domestic ovens. Companies were detected exploiting the market surveillance tolerance which is designed to be applied by enforcement authorities when assessing compliance.

The Energy Information Regulations 2011 require suppliers of ovens into the EU marketplace to provide accurate consumer information on energy labels detailing the supplier's name, model identifier, energy consumption and class and, where applicable, usable volume, size and noise. The information should be supported by technical data evidencing accuracy to ensure consumers are able to make an informed purchasing decision.

An NMO report highlighted that 25% of oven brand names on the UK market were misusing the market surveillance tolerance in order to enhance the apparent performance capabilities of their products. Therefore, further engagement was commissioned to target those businesses gaining a market advantage over their competitors.

Where possible, the NMO worked with individual companies to achieve an outcome that would remove the reliance on the tolerance across the market. Those manufacturers whose evidence provided in the first market surveillance project suggested accurate labelling of the oven were also contacted by letter to bring their attention to the NMO's view. This was to tackle any potential issue of the sample originally analysed not being representative of the manufacturer's entire oven range.

The engagements from this project resulted in all the businesses accepting the NMO's stance and forming agreements which would remove this misuse of the market surveillance tolerance.

The impact of the project can be assessed through examining the volume or value of ovens sold in the UK each year. Approximately 1.5m ovens are sold on the UK market annually. The commercial cost of this is estimated at almost £600m. Therefore, with 25% of the market previously exploiting the tolerance, the cost of goods affected by the project is in the region of £150m.

To quantify a saving to the consumer, UK consumers were spending £700,000 more per year on their utility bills than they might have done had they had access to accurate product information regarding their oven's performance and chosen the more efficient appliance. Consumers should now be completely confident the oven they are buying performs to the standard manufacturers are declaring on the energy label.

 tag:www.gov.uk,2005:AnnouncementPresenter/231996 2014-04-23T08:17:00+01:00 2014-04-23T08:17:00+01:00 Press release: Government unveils eight major new renewables projects, supporting 8,500 green jobs Eight major renewable electricity projects are unveiled as part of the government's world leading electricity reforms, giving a massive boost to green growth and green jobs.

Eight major renewable electricity projects are unveiled as part of the government's world leading electricity reforms, giving a massive boost to green growth and green jobs.

By 2020, the projects will provide up to £12 billion of private sector investment, supporting 8,500 jobs, and they could add a further 4.5GW of low-carbon electricity to Britain's energy mix (or around 4% of capacity), generating enough clean electricity to power over three million homes.

Once built, the successful projects will contribute around 15TWh or 14% of the renewable electricity we expect to come forward by 2020, helping to put the UK well on the way to meeting the UK's renewable energy target. They will also reduce emissions by 10 MtCO2 per year compared to fossil fuel power generation.

The projects have been offered under Contracts for Difference (CfD), which form part of Government's world leading Electricity Market Reform programme. They include offshore wind farms, coal to biomass conversions and a dedicated biomass plant with combined heat and power.

Energy and Climate Change Secretary Edward Davey said:

"These contracts for major renewable electricity projects mark a new stage in Britain's green energy investment boom.

"By themselves they will bring green jobs and growth across the UK, but they are a significant part of our efforts to give Britain cleaner and more secure energy.

"These are the first investments from our reforms to build the world's first low carbon electricity market - reforms which will see competition and markets attract tens of billions of pounds of vital energy investment whilst reducing the costs of clean energy to consumers.

"Record levels of energy investment are at the forefront of the Government's infrastructure programme and are filling the massive gap we inherited. It's practical reforms like these that will keep the lights on and tackle climate change, by giving investors more certainty."

There has been significant growth in renewable electricity sector with the renewables' share of total electricity generation more than doubling since 2010. We are supporting this growth to continue through Electricity Market Reform and expect to deliver over 30% renewable electricity in 2020.

Today's announcements, the first step in the new EMR Contracts for Difference regime, will make a significant contribution towards that ambition by, in 2020, delivering around 15TWh - that's 5% of total electricity generation - from today's 8 projects alone.

The eight successful projects have been awarded contracts under the Final Investment Decision (FID) Enabling for Renewables process, allocating the first CfDs that are being introduced through the Electricity Market Reform programme. Under CfDs, generators and developers receive a fixed strike price for the electricity they produce for 15 years.

These contracts are vital to give investors the confidence they need to pay the up-front costs of major new infrastructure projects.

The contracts are supported by the new legislative framework introduced through the Energy Act 2013. Further CfDs will be made available in the autumn and the Government intends to publish further details of the allocation process alongside the Government Response to the January Consultation on Competitive Allocation of CfDs shortly.

Together, the successful projects will help provide a secure, affordable supply of electricity and support skilled jobs, boosting growth, supply-chains and businesses across the country.

Notes for Editors

Final Investment Decision Enabling for Renewables

The Investment Contracts (or early Contracts for Difference) that have been awarded to projects today set out the contractual terms on which projects will benefit from financial support. They are based on the strike prices published on 4 December 2013.

The table below provides a summary, by technology, of the number and capacity of successful projects.

Successful Projects

 Project	 Developer	 Technology	 Size (MW)	 Location

 Beatrice	 Beatrice Offshore Windfarm Limited	 Offshore wind	 664	 Outer Moray Firth, Scotland

 Burbo Bank extension	 Dong Energy Wind Power A/S	 Offshore wind	 258	 Liverpool Bay, at the entrance to the River Mersey

 Drax Unit #1	 Drax	 Biomass conversion	 645	 Selby, North Yorkshire

 Dudgeon	 Dudgeon Offshore Wind Limited	 Offshore wind	 402	 The Wash north of Cromer, Norfolk

 Hornsea 1	 Dong Energy Wind Power A/S	 Offshore wind	 1200	 North Sea, off the Yorkshire coast

 Lynemouth	 Lynemouth Power Limited	 Biomass conversion	 420	 Ashington, Northumberland

 Teesside	 MGT Power Limited	 Dedicated biomass with combined heat and power	 299	 Middlesbrough

 Walney Extension	 Dong Energy Wind Power A/S	 Offshore wind	 660	 Irish Sea 19 km WSW off the Walney Island coast in Cumbria

Successful projects by technology

 Technology	 Successful Projects	 MW

 Biomass CHP	 1	 299

 Biomass Conversions	 2	 1,065

 Offshore wind	 5	 3,184

 Total	 8	 4,548

The Final Investment Decision (FID) Enabling for Renewables process was launched in March 2013. There were two phases:

Phase 1: Qualification for participation and

Phase 2: Investment Contract allocation.

More renewable electricity projects applied to the process than we can afford. We originally received 57 applications. In December, sixteen projects were told that they had provisionally scored above the Phase 2 minimum threshold evaluation criteria. These projects received a draft Investment Contract for consideration and were invited to submit a binding application, confirming that they wished to receive a contract, by 25 March 2014.

In December, these sixteen projects were also told their provisional ranking against all projects and those of the same technology, and whether they were provisionally within the available budget based on this ranking. Ten projects were told that they were provisionally within the available budget.

Since then, two projects have withdrawn from the process, fourteen projects submitted binding applications for Investment Contracts.

DECC completed a review of binding applications and carried out a final affordability assessment. This confirmed the successful projects based on their final score and rank position.

We expect the investment contracts for the successful projects to be signed and laid in Parliament in May 2014, which is when they will take legal effect.

Renewable energy stats:

There has been significant growth in renewable electricity sector with the share of total electricity generation from renewables more than doubling since 2010, and reaching a record 17.6 % in the fourth quarter of 2013.

4.2% of UK energy consumption (which is made up from electricity, heat and transport) came from renewable resources in 2012, up from 3.8% in 2011. This 2012 figure is greater than our first interim target of 4.0%. Across 2011 and 2012 the UK achieved an average of around 4.0% with a small shortfall against the precise target value being within the margin of error around the estimate.

That means the proportion of total UK energy from renewables has increased by a third under this Government, from 3.0% in 2009 to 4.2% in 2012.

Energy Act and EMR Secondary Legislation

The Energy Act, which set out the legislative framework for EMR, received Royal Assent on 18 December 2013 following completion of its parliamentary passage on 11 December.

The Government expects to lay final regulations in late spring of 2014. Subject to the will of Parliament and State Aid approval, this will allow Secondary Legislation to come into force in the summer.

Contracts for Difference

Further CfDs will be made available in the autumn

The Government intends to publish further details on CfD allocation alongside the Government Response to the January Consultation on Competitive Allocation of CfDs shortly.

Investment report

We have also published an updated overview of investment in renewables today.

Interactive map of renewables jobs and investment

The report shows the significant progress made against the energy investment challenge inherited in 2010 where energy projects accounted for nearly 60% of the UK National Infrastructure Plan (£218bn out of the £377bn).

Since 2010, investment worth more than £45 billion has been secured in electricity infrastructure alone – the majority of this investment has been in renewable technologies.

The Department's analysis previously identified a need for up to £110bn of electricity infrastructure investment between 2013 and 2020. We are delighted to see nearly £14bn invested against this £110bn target in 2013 with a consequent reduction in the future estimated spend requirement - which now stands at up to £100bn through to 2020

 tag:www.gov.uk,2005:AnnouncementPresenter/231992 2014-04-22T13:29:48+01:00 2014-04-22T13:29:48+01:00 Press release: Energy Minister sees development of Cygnus Gas Field in action Michael Fallon visits Nigg fabrication yard, a key construction site for one of the largest Southern gas fields in the North Sea

Energy Minister Michael Fallon today visits Nigg fabrication yard, a key construction site for the Cygnus project, the largest Southern gas field in the North Sea to be approved and developed in the past 25 years.

A partnership between GDF Suez, Centrica and Bayerngas, the Cygnus project was only made possible because of tax incentives introduced by the UK Government. The project is worth approximately £1.5 billion, and supports around 4,000 jobs. Around 95% of the expenditure associated with the development of this field will be spent with UK based businesses. It is expected to produce 85 billion cubic feet of gas per year, providing enough energy to heat millions of homes and pumping over £4 billion back into the UK economy.

Energy Minister Michael Fallon said:

It is great to see our support for North Sea oil and gas translating into real jobs for the people of Nigg. We are continuing to implement the recommendations of the Wood Review to maximise the potential of the North Sea and make sure the whole of the UK benefits.

Ian Conacher, Cygnus Asset Manager GDF SUEZ E&P UK, said:

Cygnus is a flagship for the UK's excellence in offshore design, engineering and construction. As operator, and on behalf of project partners Centrica Energy and Bayerngas, we are delighted to welcome the Minister to the Isleburn yard today where he is able to view the completed subsea structures as they await the journey to the Cygnus field.

This is a great example of the positive impact of investment in UK offshore construction and how it secures direct and indirect jobs and expertise in local areas.

Nigg yard, which is operated by Global Energy Group, is currently producing the subsea infrastructure for the Cygnus project and is one of three construction sites in the UK. The project started in June 2013 and will complete in the second quarter of 2015.

Roy MacGregor, Chairman, Global Energy Group, said:

We are delighted the Energy Minister has taken the time to come north to see our world class facilities. He will be informed of our ambitious plans for expansion and our capabilities to support the energy industry in its many forms.

We are delighted to be part of the Cygnus project given its importance to gas field development in the North Sea. It is vital the UK government continues to support projects of this nature and good to hear about their support on the views contained in the Wood Review.

I think everyone in the industry appreciates the importance of implementing the findings contained within this positive and important report for the oil and gas industry.

Scottish energy projects like this one benefit from access to UK-wide financial incentives, which provide a stable environment for the industry to plan and invest with confidence.

Today's visit is part of a number of Ministerial visits across the country to highlight more than 200 projects in energy, rail, road, broadband and flood defence builds due to start this year.

In 2014/2015, £36 billion of public and private investment on infrastructure will support up to 150,000 jobs in construction and tens of thousands more in installation, maintenance and operational support following completion.

There will be further additional investment of up to £15 billion in oil and gas this year and £38 billion in rail starting this year for the next five years.

Note to Editors

Construction of the Cygnus project is currently taking place in 3 main locations in the UK; Hartlepool in Teesside, Methill in Fife, and Nigg in the Highlands.

Scottish Analysis Paper on Energy

The £36 billion of public and private investment is the projected infrastructure investment for 2014-15 in the published infrastructure pipeline, which is in 2012-13 prices and can be found on the DECC website

The £15 billion of projected oil and gas investment is based on the OBR forecast of capital expenditure on onshore and offshore oil and gas production in 2014-15 (primarily in the UK Continental Shelf), in 2013 prices.

Plans for £38 billion of rail investment were set out in the 5-year plan for Network Rail's new funding period, which started on 1 April 2014 and includes operation, maintenance, renewal and enhancements spend. The renewal and enhancements spend for 14/15 is included in the £36bn figure.

The figure of 150,000 jobs is estimated using the relationship between aggregate employment costs and average costs per employee in the UK construction industry, based on ONS data. This gives an estimate of the number of jobs created per £1 million of construction spend, which has been applied to the projects and programmes within the published infrastructure pipeline that are anticipated to be in construction or active by 2014/15.

 tag:www.gov.uk,2005:AnnouncementPresenter/231942 2014-04-22T10:03:28+01:00 2014-04-22T10:03:28+01:00 Press release: New co-chair of the Offshore Wind Industry Council appointed Benj Sykes announced as new co-chair of the Offshore Wind Industry Council

DONG Energy Wind Power's Country manager, Benj Sykes, was today announced as the new co-chair of the Offshore Wind Industry Council (OWIC) by Business and Energy Minister, the Rt. Hon Michael Fallon MP, who also co-chairs the group.

The Offshore Wind Industry Council (OWIC) is the strategic partnership forum between Government and the offshore wind industry. OWIC's role is to drive offshore wind deployment, bring down costs and build a successful, competitive UK-based industry. It oversees delivery of the Offshore Wind Industrial Strategy, which sets out how the industry and Government work together to deliver growth in the sector.

Mr. Sykes replaces Keith Anderson, the Chief Corporate Officer of ScottishPower, who has held this role since 2010, and will remain a member of OWIC.

Michael Fallon said:

The skills and experience that Benj brings are a real boost to the Offshore Wind Industry Council following the excellent work of the previous co-chair, Keith Anderson.

The UK is currently the best country in the world to invest in offshore wind. I'm looking forward to working closely with Benj to continue to build a competitive and innovative UK offshore wind sector that brings jobs, exports and economic benefits for the UK.

Benj Sykes is UK Country Manager, DONG Energy Wind Power and before working with DONG he held a number of positions with The Carbon Trust, including the Director of Innovation role.

Before working in the low carbon sector he gained significant experience in the oil and gas sector, mainly with Hess Corporation.

Benj Sykes said:

OWIC has an important job in helping to drive the UK's offshore wind industry forward. I'm looking forward to taking on this exciting and challenging role, and working closely with Government and the members of OWIC to drive down the cost of offshore wind and deliver a competitive and diversified supply chain, ensuring that offshore wind delivers on its potential to play a vital role in the UK's energy mix for many years to come.

Notes to editors

The UK is the world leader in offshore wind, with more installed capacity than any other country as at March 2014.

The Offshore Wind Industry Council is a stakeholder advisory group which is co-chaired by Business and Energy Minister the Rt. Hon Michael Fallon MP and a senior industry representative. Industry membership is drawn from offshore wind developers taking forward projects in UK waters, UK supply chain representatives covering all major areas of the supply chain including ports and turbine manufacturers, Government representatives and key stakeholders such as The Crown Estate. OWIC was established in May 2013, as part of the Government's wider Industrial Strategy programme. It replaced the Offshore Wind Developers Forum (OWDF) which was established in 2010.

OWIC is responsible for overseeing delivery of the Offshore Wind Industrial Strategy, which was published in August 2013, and which sets out how the industry & Government will work to deliver growth in the sector, including actions to build a thriving UK supply chain and seize commercial opportunities in the UK and abroad. The Offshore Wind Programme Board reports to the Offshore Wind Industry Council.

Benj Sykes became the industry side co-chair with effect from 31 March 2014 for a two year period.

All appointments, including that of the co-chair, are on a voluntary basis and are unpaid.

Further information about the Offshore Wind Industry Council is available on the Crown Estate website

 tag:www.gov.uk,2005:AnnouncementPresenter/231916 2014-04-21T09:01:00+01:00 2014-04-21T09:01:00+01:00 Press release: Energy switching times to halve by end of year Switching energy supplier is set to become much quicker, with energy companies committing to slashing switching times by the end of the year.

Switching energy supplier is set to become much quicker, with energy companies confirming they are committed to slashing switching times by 50 per cent by the end of the year. This will reduce the time it takes to switch energy supplier from five weeks to around two and a half weeks.

Energy and Climate Change Secretary Ed Davey challenged energy suppliers back in October 2013 to reduce switching times dramatically, as part of the Government's work to help energy customers get the benefits of increased competition, and called on the industry to work collaboratively to bring about major change as soon as possible. This is the first key result from that work.

Ed Davey said:

"Faster switching is the latest in the many steps we've taken to improve the poorly performing energy markets we inherited from Ed Miliband in 2010. With more suppliers, simpler bills and less complex tariffs than in 2010, switching can now save some people hundreds of pounds off their energy bills. So we wanted to make it faster to switch, as well as easier, and now we know we can.

"I'm pleased the industry has responded to my challenge and will now cut in half the time it takes to switch energy supplier. Delivering this by the end of this year is a challenge in itself but with the technical code changes with Ofgem for final approval, firms now have the time to change their IT systems and I'm reassured they can manage the remaining practical issues.

"While it's great news we are making energy switching twice as fast, my long term ambition remains to get to 24 hour switching. Our ambitious programme to roll out 53 million smart meters by the end of this decade can unlock this and next month Ofgem will consult on the most effective and quickest ways to introduce next day switching.

"But I would urge people who want a better deal on their energy bills to switch now – don't wait for these latest improvements to happen. Over 2 million people switched energy supplier between October last year and March this year, as competition is now hotting up. Some of the new smaller suppliers are cutting prices and forcing bigger players to respond, so check out today's deals."

Energy UK, energy companies and relevant industry bodies have now completed the work on proposals to modify electricity and gas codes which will allow faster switching. Switching hub changes are expected in November, with the industry on track to start offering customers faster switching by the end of 2014.

24 hour switching will be supported by the roll-out of Smart Meters, the majority of which are expected to be installed by energy suppliers between 2015 and 2020.

Ofgem's "Be an energy shopper" video

Be an energy shopper

Note to editors

The proposed changes to electricity and gas code modifications have been referred to Ofgem, who will now make a decision on whether to approve the plans as soon as possible.

Once testing is successfully completed from November, the industry will be able to start offering faster switching by the end of the year.

The industry codes and systems which enable the gas and electricity market to function are governed and administered by a number of industry bodies. These include Elxon in the electricity market and Xoxerve in gas market.

Ofgem launched their 'Be an energy shopper' campaign on 23 April 2014.

 tag:www.gov.uk,2005:AnnouncementPresenter/231633 2014-04-17T10:02:47+01:00 2014-04-17T10:02:47+01:00 Press release: Small businesses given boost to generate bioenergy from wetlands British companies get innovation funding to demonstrate new ways of turning plant-based material into renewable heat and electricity

Three British companies have been awarded a share of over £1.3 million to spur on innovation in turning reeds and rushes from wetlands into bioenergy, Energy and Climate Change Minister Greg Barker announced today.

Contracts have been awarded to AMW IBERS, Natural Synergies and AB Systems, as part of a Department of Energy and Climate Change competition to help entrepreneurs demonstrate new ways of turning plant-based material derived from harvesting wetlands into renewable heat and electricity.

Sustainably sourced bioenergy has an important part to play in the UK's future energy mix, with the potential to contribute around 11% of the UK's energy demand by 2020. The winning companies will use the funding to test their project designs in three wetland areas in the UK, including Somerset, Suffolk and Inverness.

Energy and Climate Change Minister Greg Barker said:

The ability to turn plant material – that would otherwise have been burned or left to decompose – into a sustainable energy source is an important part of the move towards a low carbon economy.

I wish the winning organisations every success with their projects. These valuable initiatives will help to bring down the costs of this clean, green technology.

Dr Faisal Salam and Victoria Melchor, Directors of Natural Synergies Ltd, said:

We are very excited and delighted at being selected by DECC as one of the companies chosen to progress towards Phase 3 of the Wetland Biomass to Bioenergy competition.

The funding from DECC will enable Natural Synergies to establish a demonstration plant utilising wetland-based biomass as feedstock for developing a sustainable distributed energy system.

Jonathan Walker, Director of AMW IBERS, said:

I am really excited to be able to trial the innovative technology in Scotland, in particular Speyside with DECC funding. The project will help deliver positive conservation benefits to wetland sites, in particular Insh Marshes.

David A.T. Wynne, Director of AB Systems (UK) Ltd, said:

The funding received from DECC will enable us to build on existing technologies through the purchase and development of specialist low ground pressure harvesters and of a mobile briquetting plant.

It will provide us with the opportunity to undertake development trials and establish techniques for the conversion of a currently underutilized material produced from conservation management.

Notes for editors

Wetland areas are currently maintained in several parts of Britain to provide habitats for a range of wildlife including wading birds, water voles and warblers and the harvested material from these sites can be used to produce energy.

This is the third round of funding issued as part of the Wetland Biomass to Bioenergy competition, which was launched in October 2012 and is scheduled to finish in March 2015. The scheme aims to use plants already being grown and harvested in wetland areas and use them for generating power. As these plants are already being grown for conservation purposes new land is not being used up, nor is this resource competing with land for food crops or houses.

For Phase 3, AB Systems, based in Exeter, have been awarded £92,189; AMW-IBERS, based in Uddington in Glasgow have been awarded £147,407; and Natural Syneries, based in Redcar, have been awarded £187,570.

The UK bioenergy strategy sets out Government's framework for bioenergy policy.

DECC's Wetland Biomass to Bioenergy competition

 tag:www.gov.uk,2005:AnnouncementPresenter/231543 2014-04-17T10:02:38+01:00 2014-04-17T10:02:38+01:00 News story: Chair of the CFD Counterparty Company appointed Dr Martin Read CBE appointed as Chair of the CFD Counterparty Company

Dr Martin Read CBE has been appointed as Chair of the CFD Counterparty Company by Energy and Climate Change Secretary of State, Edward Davey.

The CFD Counterparty Company is a new Government-owned company being established as part of Government's Electricity Market Reform.

Dr Martin Read will be supported in this three year role by Jim Keohane, as the Senior Independent Director (SID). The two appointees will also take on the Chair and SID positions of the Electricity Settlements Company when it is established.

Electricity Market Reform is delivering ambitious reforms to bring forward unprecedented investment in electricity generation and encourage a diverse energy mix. The CFD Counterparty Company will be a key institution, managing long-term Contracts for Difference (CfDs) with electricity generators to incentivise investment in low-carbon generation. The company is expected to be operational from 1 August 2014 and it is expected that the first CfDs under the new regime will be allocated by the end of the year.

The Electricity Settlements Company will facilitate payments under Capacity Market agreements. The Capacity Market is designed to deliver sufficient investment in the overall level of reliable capacity needed to ensure secure electricity supplies. The first Capacity Market auction is expected to run by the end of 2014, for delivery of the necessary capacity by the winter of 2018/19.

The combination of the Chair and SID roles across the two companies reflects the fact that the companies will share a number of features and services, and should minimise their cost to industry.

Secretary of State Edward Davey said:

The new Contracts for Difference Counterparty Company is crucial to make sure we have the right conditions to attract funding for low-carbon generation, helping to reduce our emissions and give the best deal to bill-payers. It's never been more important to drive investment in home grown energy to increase our energy security and reduce our reliance on foreign imports.

Martin Read and Jim Keohane will provide expert leadership driving through the successful implementation of the Contracts for Difference (CfD) regime. Over the next year we can expect to see the CFD Counterparty Company working with industry to ensure suppliers' settlements are ready as well as signing and managing the first CfDs.

Dr Martin Read said:

I am pleased to take on this important role. As Chair of the CFD Counterparty Company, I look forward to using my private sector experience to contribute directly to this essential reform of the electricity market.

The CFD Counterparty Company is key to successfully establishing the CfD regime and delivering a secure, low-carbon electricity system.

Dr Martin Read has a strong track record in non-executive roles in major private sector companies and a range of other organisations. From his fourteen years as Chief Executive Officer of Logica (1993 to 2007), he also has extensive experience of managing large contracts and settlement systems, which will be invaluable in his new role.

Dr Martin Read is currently a non-executive director at Lloyds of London and the UK Government Efficiency and Reform Board, Chair of the Remuneration Consultants Group and Chair designate of Laird plc. He has previously served as a non-executive director on the Boards of Invensys plc, Aegis Group, British Airways, Siemens Holdings, Boots Group and Asda Group. He led UK Government reviews on back office operations and IT across the public sector (2009) and management information (2012).

Jim Keohane is also an experienced non-executive. He served an eight-year term as a non-executive director of the Civil Aviation Authority and was its Deputy Chairman from 2007 to 2008.

He has also been a non-executive member of the Gas and Electricity Market Authority since 2009. Jim Keohane has 30 years' experience in the energy industry, including serving as a director of East Midlands Electricity and, later, Eastern Group. From his experience in the electricity sector he will bring an excellent knowledge of the industry to the Senior Independent Director role.

Further information

Electricity Market Reform (policy)

 tag:www.gov.uk,2005:AnnouncementPresenter/228562 2014-03-31T08:56:00+01:00 2014-04-13T10:14:28+01:00 News story: United Nations Intergovernmental Panel on Climate Change report published The United Nations' Intergovernmental Panel on Climate Change (IPCC) has released the third part of its latest report on climate change.
Updated: UN Intergovernmental Panel on Climate Change Working Group 3 report published.

The United Nation's Inter-Governmental Panel on Climate Change (IPCC) published the third volume of its 5th Assessment Report on Climate Change: Mitigation of Climate Change in Berlin, Germany on 12 April 2014. The report was finalised after a six day meeting attended by delegates from over 100 countries and a number of the Report's expert authors.

Find out more:

The Department of Energy and Climate Change Q&A covering the key points of the report.

Climate Secretary Edward Davey's statement in response to the Working Group 3 report.

The full report is published on the IPCC website

More information on UK action on tackling climate change

Reducing carbon emissions through innovation: David MacKay's Blog

This third report looks at how to address the issues and risks identified in the first two reports by reducing those activities that contribute to human-induced climate change. It looks at current greenhouse gas emissions, the levels they will need to fall to in future, and how this can be achieved. The report recognises that climate change is a global problem and looks at the contribution all regions can make in tackling the problem.

This is the most significant report on the topic since the IPCC's 4th Assessment Report in 2007. It has been prepared over the last four years by 235 experts from across the world who reached their conclusions by reviewing thousands of published research papers. It has undergone peer review by many other scientists, experts and by IPCC member governments. The thoroughness of the process is without parallel in terms of scope, rigour, transparency and level of government engagement.

The key findings of the report are:

Greenhouse gas emissions are still rising, and the rate of increase has itself been increasing – most of this increase is being driven by increasing global prosperity.

On a business-as-usual pathway, global mean temperatures will increase by 3 to 5 degrees over pre-industrial levels by the end of the century.

Staying under the 2 degree limit is possible but increasingly difficult – it will require a wide range of changes, including changes in technology, institutions and behaviours.

Efforts to reduce emissions needs to take place across all sectors (e.g. energy, transport, agriculture) and all regions – reductions in demand for energy (through, for example, energy efficiency measures) can play a big part.

Many countries already have policies in place to reduce emissions, but much more needs to be done – investment in clean technology needs to be massively scaled-up and mitigation policies need to be integrated into broader political considerations, such as growth, jobs and the environment.

Dealing with climate change needs international action and international cooperation to solve the problem.

The "Working Group 2, Fifth Assessment Report

The "Working Group 2, Fifth Assessment Report" covers the likely impacts of climate change and our capacity to adapt to future climate risks. From the last major review of almost six years ago, it provides a strengthened body of evidence on observed impacts and future risks of climate change.

The report is the work of over 310 scientific experts drawn from universities and research institutes in 73 different countries around the world.

Although the IPCC didn't focus on individual countries, the 'impacts, vulnerability and adaptation' report did identify three key risks from climate change for Europe:

Increased economic losses and more people affected by flooding in river basins and coasts, as urbanisation continues, sea levels rise and peak river flows increase;

Increased water restrictions. Significant reduction in water availability from river abstraction and from groundwater resources combined with increased water demand (eg for irrigation, energy and industry and domestic use);

Increased economic losses and people affected by extreme heat events: impacts on health and well-being, labour productivity, crop production and air quality

The UK will also be impacted by global issues such as rising food prices. High levels of adaptation can significantly reduce but not remove these risks.

These findings align well with the UK's own Climate Change Risk Assessment (CCRA) published in 2012.

In response to the report, UK Secretary of State for Energy and Climate Change, Edward Davey said:

"The science has spoken. Left unchecked, climate change will have far reaching consequences for our society.

"The UK is leading from the front and working with our European partners. We've adopted some of the most ambitious climate change targets and are investing in low carbon and energy efficiency technologies.

"This evidence builds the case for early action in the UK and around the world to lessen the risks posed by climate change. We cannot afford to wait."

Edward Davey's full statement is available on GOV.UK

The full report is published on the IPCC website

DECC's Question and Answer publication offers some analysis of the findings and is available on GOV.UK

Sir Mark Walport's, Chief Scientific Adviser to HM Government and Head of the Government Office for Science, blog on the WorkingGroup 2 report.

The replay of the IPCC press conference is available on the ustream website

More information on UK action on tackling climate change

A short film by Working Group 2 documents the making of the report:

Working Group 2 report

The "Working Group 1, Fifth Assessment Report

The UN's Inter-Governmental Panel on Climate Change (IPCC) published the first volume of its 5th Assessment Report on The Physical Science Basis of Climate Change in Stockholm on 27 September 2013. The report was finalised after a four day meeting attended by delegates from 110 countries and involving a number of the Report's leading scientific authors. The UK was represented by officials from DECC and 11 leading authors from the UK.

 DECC's question and answer note on the report findings is available on GOV.UK

 tag:www.gov.uk,2005:AnnouncementPresenter/230788 2014-04-13T10:00:00+01:00 2014-04-13T10:00:00+01:00 News story: Edward Davey statement Edward Davey statement on UN Intergovernmental Panel on Climate Change Working Group 3 report on mitigating climate change.

Secretary of State for Energy, Edward Davey said:

"Last year, the world's leading climate scientists told us that the Earth's climate is indisputably changing due to human activity.

"Last month, we learnt that the effects of climate change will be widespread and pose very serious consequences if left unchecked.

"Today's report reaffirms these messages. The tools we need to tackle climate change are available but international efforts need to significantly increase if dangerous temperature rise is to be avoided. The longer we leave it, the more expensive it will be to avoid the worst effects of climate change.

"Unmitigated climate change will bring great risks to human health, global food security, and economic development.

"The UK is leading from the front. We are investing in low carbon and energy efficiency technologies, with an increased focus on home-grown renewables, to reduce our reliance of foreign imports and create a sustainable supply of affordable energy for consumers and businesses alike. We are also pushing for an ambitious EU energy and climate change package that will lead to a 40% reduction in greenhouse gas emissions by 2030 and will take us on the next step to tackling climate change.

"But the risk is too great to stop here. We need a worldwide, large-scale change to our energy system if we are to limit the effects of climate change.

"I call for international leaders to work together with enforced vigour to reduce carbon emissions and secure an ambitious legally binding global agreement in 2015".

Intergovernmental Panel on Climate Change website

DECC Working Group 3 report "Key points and questions" document

News page on Working Group reports

 tag:www.gov.uk,2005:AnnouncementPresenter/230305 2014-04-09T14:42:40+01:00 2014-04-09T14:42:40+01:00 Speech: Edward Davey launches the Scotland Analysis Energy Paper As the UK Government publishes its analysis of the implications in energy of Scottish independence, Ed Davey speaks about Scotland's energy future within the United Kingdom.

Check against delivery

Introduction

I am here in Edinburgh today to make the case for the United Kingdom.

And to make the case for Scotland's place in the United Kingdom.

And today, as the UK Government publishes its analysis of the implications in energy of Scottish independence, I want to talk specifically about Scotland's energy future within the United Kingdom.

Before I go into detail, let me first address the wider debate on whether we are better off together or apart.

You know, as the UK Energy and Climate Change Secretary I'm regularly here in Scotland.

This is business as usual for me.

The Department of Energy and Climate Change is co-located in Aberdeen.

And as I have said here in Scotland many times before, I have no doubt that with the talents of the people, and the natural resources of the land, Scotland could make a go of it alone.

But to do this, the people of Scotland will have to give up being part of family of nations that make up the United Kingdom.

Not a holiday, not a sabbatical.

But an irrevocable, irreversible act of divorce.

That closes the book on three hundred years of shared history, shared fortunes, shared fates.

The decision that the people of Scotland will take in September is monumental.

Not just for the people here but for the people of England, Northern Ireland and Wales too.

Because if Scotland chooses to go it alone, it will have a huge and lasting impact on all of us.

Because the United Kingdom is more secure and richer with Scotland in it.

And Scotland is more secure and richer as part of that family.

Families stick together

Yes, we can split up and be small countries making our way in the world.

But such a decision would leave all of us, all of us, poorer than we are today.

Not just in an economic sense – but emotionally too.

Together we are a great country.

Greater than the sum of our parts.

People always say that you never really miss something until it is gone.

And I think that if we wake up on 19th of September to find that our United Kingdom has been sundered forever, we will regret it for the rest of our lives.

And that is why, although this is a decision being taken by the Scottish people alone, all of us in the United Kingdom have a stake in the outcome.

All of us have the right to be heard.

Not bullied into silence, or scared off, or told we have no part in this, or our views don't matter.

Just think about what would never be the same again.

Just think about what we would have to do to unpick the ties that have bound us together.

Things that affect all of us in the United Kingdom.

Our economy - the money we use, the taxes we pay.

The debts, pensions and liabilities we have built up together for better or for worse.

Our welfare state.

One of the crowning achievements of the post-war generation.

That supports every citizen of the United Kingdom in sickness and in health.

The Armed Forces that protect us and our way of life

The historic units that trace their history back centuries.

Who have fought for us and died for us in good times and in bad.

This United Kingdom is so much more than a marriage of convenience.

Just a body of law and regulations.

It is a Union of the heart and the mind and the soul.

We are a family and we should stick together.

Better together, poorer apart.

Energy powerhouse

And in no area is that more true than in energy.

The industries and networks that generate and deliver power around this United Kingdom.

Keeping our houses warm, our lights burning, our businesses working.

As part of the United Kingdom, Scotland is fast becoming an energy powerhouse.

One of the world's energy hubs.

And this is being achieved precisely because Scotland is part of the United Kingdom.

Supported by the integrated energy market across Scotland, Wales and England of 30 million homes and businesses.

Supported by the pull and weight of the UK economy with the scale of the financial support it can provide.

Scotland's energy future is booming.

Oil and gas

The UK is providing substantial help to industry to maximise output and revenues from the North Sea oil and gas as the challenges of extraction are increasing.

And, in the process, supporting the 225,000 Scottish jobs that directly rely on the oil and gas industry.

We are also investing heavily in decommissioning and cleaning up those areas that are becoming depleted.

Can Scotland do this alone?

It would be far more difficult.

North Sea Oil revenues fluctuate.

Since devolution anywhere between £2bn a year and £12bn a year.

The weight of the UK economy can soak up this uncertainty as it amounts to only 1.5% of income.

But for Scotland, North Sea revenues would have been almost 14% of income.

In the UK, Scottish tax payers are shielded from over-reliance on a single uncertain strand of income.

In Scotland alone, they would be exposed.

Take decommissioning.

An independent Scotland would have to invest around £3,800 per head to match the £20bn the UK has committed to decommissioning

That is over ten times more than when the costs are spread across the UK.

Scotland's Oil and Gas industry prospers in the UK and Scottish taxpayers are protected from volatility and uncertainty.

Better together, poorer apart.

Renewables

But it is not just the traditional oil and gas industry that makes Scotland's energy future within the UK so bright.

It's the new green energy industries too.

A third of all renewable generation in the UK is now in Scotland.

This is a fantastic story bringing jobs and investment to local communities.

And the pipeline is looking very healthy.

My Department's planning database shows that Scottish renewables projects set to power a further 4.3 million homes (5GW), have been approved.

Worth around £4bn, supporting over 4,000 jobs.

And further Scottish renewables projects are currently in the planning system have the potential to serve up enough electricity to power another 8 million homes (9.7GW).

Worth over £10bn, supporting almost 8,000 jobs.

This success is being mirrored in other parts of the UK too.

I've been able to boast with my European colleagues about how the UK has become Europe's renewable investment hotspot.

Many on the continent are casting envious glances our way.

By working together as the United Kingdom, with our integrated systems and markets, we share the risks and costs.

And share the benefits too.

I am convinced that we can meet the ambition of the Scottish Government, one that I fervently share, for renewables sources to meet 100% of Scottish electricity consumption by 2020.

So let's get down to the heart of why this green future, this green ambition, the interests of both Scotland's new green energy industry and Scotland's households are better served within our United Kingdom.

Better off together

These new industries need support to compete as technology matures and costs are reduced.

And because of the success of Scottish renewables, although Scotland accounts for some 10% of electricity sales in the UK, it receives 28% of the support paid by all UK consumers to renewable generators.

And then there are the networks.

£6bn has also been earmarked over the next seven years to upgrade and improve the electricity transmission network in Scotland to support this green boom.

Reaching out to the remotest islands.

Within the United Kingdom, Scotland's people are protected from the full costs of this necessary transmission work and support for renewables.

All 30 million UK consumers pay an equal share.

Because we are part of an integrated market place.

If Scotland became an independent state, the current integrated energy system could not survive it is current state.

Both the independent Scottish state and the continuing UK would be focussed on serving the best interests of their citizens.

For the continuing United Kingdom, the energy relationship with and independent Scotland would become purely commercial.

The future of European energy is a single competitive market, where we trade our home grown energy and boost our collective energy security.

The UK has interconnectors that transport electricity to and from a number of countries in the rest of Europe and is developing more.

In fact, we already input on average more electricity to England and Wales from France and Belgium, than we do for Scotland.

The current connections to France, Ireland and the Netherlands have the capacity to provide electricity for almost 3.5 million homes (4GW).

And there are new advanced interconnector projects where other European countires could potentially provide electricity for 5 million more (6GW).

These include:

NEMO to Belgium.

NSN to Norway.

And ElecLink to France - through the Channel Tunnel .

All to be operational well before 2020.

The market price is paid for power traded in this way.

The UK does not currently provide financial support for network infrastructure or support generation in these other countries.

Why would we pay over and above the market price for Scottish power?

Poorer apart

In an independent Scotland, only Scottish households and businesses would bear the extra burden of upgrading the Scottish grid and supporting Scottish renewables.

And the analysis we are publishing today sets out how this would add at least £38 to the averages household's yearly bill.

And £110,000 a year to the bills of a medium sized manufacturing firm.

I say at least.

Because our analysis shows that in some scenarios, where the full costs of supporting large scale Scottish renewables falls to Scottish bill payers alone, it could be as much as £189 extra per year per household, or over £600,000 for a medium sized manufacturing firm.

The SNP insist that the integrated market will continue in its current form.

They insist that England and Wales will continue to need and pay for Scottish renewables regardless of the cost and there would be no taxation issues at all.

They have even gone so far as to claim the continuing UK would face blackouts if it doesn't play the ball their way.

If that isn't the negative politics of fear and bullying, I don't know what is.

And if that is the way the SNP would conduct negotiations on behalf of an independent Scotland, I would seriously fear for the future.

So let me be crystal clear.

As the analysis in the paper published today proves, in the event of independence there would be no need for the continuing UK to support an independent Scottish state's energy costs to ensure its own security of supply.

The lights will stay on, with or without Scotland as part of the UK.

The SNP insists that the continuing UK will have to buy Scottish electricity to meet our renewables targets.

But why would the continuing UK not instead invest in burgeoning renewables within its own borders?

English and Welsh offshore wind is booming.

England and Wales have huge tidal powers reserves.

And we have more hours of sun in the average year than Scotland.

And with the interconnectors being built to Europe, renewable credits can be sourced from wherever they are cheapest.

There can be no guarantees about how much or at what price the UK will trade energy with an independent Scotland.

Because there are no guarantees about how much electricity from an independent Scotland will actually cost.

And bills in Scotland are likely to rise as a result – by as much as £189 per household.

Despite all this, the SNP insists that bills would go down in an independent Scotland.

They have said they would pay for some social policy costs through general taxation rather than through bills – for things like energy efficiency and supporting the most vulnerable.

But that is just robbing Peter to pay Paul.

Putting these costs into taxation would mean either higher taxes or £175m that can't be spent in other areas.

Conclusion

The whole point is this.

As the UK we are a family.

Those who need more, get more, supported by the whole.

This is business as usual in the United Kingdom.

It's the way we do things.

It's natural.

We don't tot it all up on a per capita basis.

Instead everyone across the UK pays their fair share.

And the money goes where the money is needed.

Where it will be used best on behalf of all the citizens of the UK.

The United Kingdom provides security and economies of scale that cannot be matched by Scotland alone.

The United Kingdom supports Scotland's bright energy future – and benefits from it in equal measure.

But its more than just economics.

The United Kingdom is our way of life, our identity, our comfort.

It's what we built together.

For better and for worse.

We are integrated precisely because we choose to be governed jointly.

And I would urge the people of Scotland not to walk away from our future together.

 tag:www.gov.uk,2005:AnnouncementPresenter/230168 2014-04-09T10:18:38+01:00 2014-04-09T10:18:38+01:00 Statement to Parliament: UK Downstream Oil Sector Written Ministerial Statement by Michael Fallon on the Downstream UK Oil sector

Today, the Department of Energy and Climate Change (DECC) is publishing the conclusions of its review of the role of UK's refining and fuel import sectors. I am grateful to all those who contributed to this review.

As we progress toward a low carbon economy in the UK, oil products are, and will continue to be, crucial to our economy and to consumers in the UK for some years to come. The review was designed to assess the respective contributions that domestic production and imports make to resilient fuel supplies. It sought to understand better the global context and challenges facing the oil supply sector, and the impact that market distortions and the regulatory framework have on competitiveness. It also considered what role the government should play in supporting the sector.

Given the recent closures of refineries in the UK, the review had a particular focus on the refining sector in the UK but it also considered the midstream sector more broadly, including the role of the imports sector and the benefits it brings.

The review concluded that resilience and security of supply in the UK is supported by retaining a mix of domestic refining and imported product. This is in line with the government's energy security of supply strategy which recognises the benefits of supply diversity. Global commercial factors will continue to affect the refining market in the UK and the EU more broadly, and further closures across the continent are likely in future. A package of actions has been developed by government, which taken together, could help improve the operating environment for the refining and import sectors.

These measures include the setting up of a new joint government and industry Midstream Oil Task Force. This will provide a strategic and collaborative way of working and will deliver a number of the actions from the review. The task force will be independently chaired and draw its members from across the midstream oil sector.

DECC is also today publishing the government response to our consultation on the future management of the compulsory oil stocking mechanism in the UK. In this the government sets out its support for the establishment of an industry-owned and operated central stocking entity in the UK which will encourage a more efficient system that incentivises the development of UK oil storage capacity. There are still important issues to address before the government can agree to move to legislation, and so we are now asking obligated companies to prepare a roadmap towards legislation, addressing these issues.

The review and the government response to the consultation are available on the DECC website.

Copies of both publications have been placed in the Library of the House.

 tag:www.gov.uk,2005:AnnouncementPresenter/230260 2014-04-09T10:18:08+01:00 2014-04-09T10:18:08+01:00 Statement to Parliament: Scotland Analysis: Energy Statement by the Secretary of State, Edward Davey.

The Government has today published the 12th paper in the Scotland Analysis Programme series to inform the debate on Scotland's future within the United Kingdom.

"Scotland Analysis: Energy" (Cm 8826) examines the benefits of the current single energy market across Great Britain (GB) for managing energy policy and examines the potential implications of independence.

The paper concludes that the current single market has underpinned the success of the Scottish energy industry, has helped to keep Scottish energy bills down and is the most effective way of managing energy liabilities, but were Scotland to become a separate independent state, the current integrated GB energy system could not continue as it is now.

Scottish consumers and businesses currently benefit from spreading the cost of supporting Scottish energy network investment, renewables and programmes to support remote consumers over 30 million households and businesses as part of the GB energy market. In the event of independence, Scotland's 3 million households and businesses would have to meet these costs alone. Scottish consumers would end up paying more, possibly considerably more, for energy infrastructure in an independent Scottish state than they do as part of the UK.

The paper also sets out that only a small proportion of electricity demand in England and Wales (4.59 per cent) is provided by Scotland. In the event of independence, England and Wales would not be reliant on Scotland to keep the lights on nor would the UK be reliant on Scotland to meet its renewables targets.

Future papers from the Scotland analysis programme will be published over the course of 2014 to ensure that people in Scotland have access to the facts and information ahead of the referendum.

 tag:www.gov.uk,2005:AnnouncementPresenter/230259 2014-04-09T10:18:00+01:00 2014-04-09T10:18:00+01:00 Press release: "Energy bills will go up with independence" - Davey Edward Davey made the positive case for the UK's single energy market, showing how independence would increase people's energy bills.

Launching the UK Government's Energy Paper analysing the potential impact of independence on Scotland's energy, Edward Davey MP, Secretary of State for Energy and Climate Change, made the positive case for the UK's single energy market, showing how independence would increase people's energy bills.

Speaking to a conference of energy industry stakeholders in Edinburgh, Edward Davey argued that because the single UK energy market is ten times the size of Scotland's energy market, Scottish energy bills are lower. He listed a range of reasons, including the way investment in transmission and distribution networks are currently shared across the whole of the UK, to the way the subsidies for energy distribution in remote rural areas like the Scottish Highlands and Islands are currently paid for by all British consumers not just Scottish bill payers.

The UK Government's analysis shows that energy bills in an independent Scotland would be higher by at least £38 a year and perhaps by up to £189, once the full cost of supporting renewables are included.

In addition, if the full costs of supporting large scale Scottish renewables fell to Scottish bill payers the total potential increase would rise considerably for businesses as well to around £110,000 for energy costs for a medium-sized manufacturer in 2020 and £608,000 for a medium sized manufacturer in 2020.

These figures do not include the costs an independent Scotland would face for its share of decommissioning and legacy costs for old coal and nuclear industries and oil and gas infrastructure. Nor do they include the likely increased costs for consumers of reduced competition.

Secretary of State Edward Davey said:

"The UK works better together, and our single energy market shows why. As a United Kingdom, we keep energy bills down for all consumers, regardless of where they live, and this works well, especially for people in Scotland.

"Without unrestricted access to the integrated GB market, the costs of supporting Scottish energy network investment, small-scale renewables and programmes to support remote consumers would fall on Scottish bill payers alone – this would add at least £38 to annual household energy bills and around £110,000 to energy costs for a medium-sized manufacturer in 2020.

"In addition, if the full costs of supporting large scale Scottish renewables fell to Scottish bill payers the total potential increase would rise considerably up to £189 for households and £608,000 for a medium sized manufacturer in 2020".

"Right across the energy mix, Scotland benefits from being part of the UK's strong, stable consumer and tax base – supporting thousands of jobs, creating new supply chains and cementing the energy sector as the engine room of the economy."

The Secretary of State for Scotland Alistair Carmichael said:

"This paper shows how the broad shoulders of the UK benefit Scotland – and how the rest of the UK benefits from Scotland being part of it.

"Sharing the cost of research and infrastructure keeps fuel bills down in every part of Scotland, from the big cities to the most remote communities.

"Scottish ingenuity and innovation helps the UK lead the way in developing a new energy mix for the future."

Notes to editors:

The analysis breaks down the costs as follows:

up to £6 billion from UK investment in electricity transmission and distribution networks (almost 30 per cent of total GB upgrades over the next seven years);

some £560 million (28 per cent of the total) of GB's support for the renewables sector in FY12/13; and

around £92 million (2009/10 prices) of approved spending between 2014/15-2020/21 for supplying gas to remote Scottish communities under the Statutory Independent Undertaking arrangements;

around £54 million in 2013/14 (2013/14 prices) to support the infrastructure needed to distribute electricity over remote and sparsely populated areas in the north of Scotland under the Hydro Benefit Replacement Scheme.

The Scotland Analysis: Energy paper is available on GOV.UK

Written Ministerial Statement by Edward Davey

Infographic showing the impact of independence on Scottish energy bills

 tag:www.gov.uk,2005:AnnouncementPresenter/230185 2014-04-09T09:09:00+01:00 2014-04-09T09:09:00+01:00 News story: New scheme offers cash incentive to households using renewable heating systems in their homes The domestic Renewable Heat Incentive (RHI) launched, offering homeowners payments to offset the cost of installing low carbon systems

A new and innovative Government scheme launched today will pay people for the green heat they generate for their homes.

The domestic Renewable Heat Incentive (RHI) is the world's first long-term financial support programme for renewable heat, offering homeowners payments to offset the cost of installing low carbon systems in their properties.

The scheme is open to everyone – home owners, social and private landlords, and people who build their own homes. It is available to households both on and off the gas grid.

Minister for Energy Greg Barker said:

This is the first scheme of its kind in the world – showing yet again that the UK is leading the way in the clean energy sector.

Not only will people have warmer homes and cheaper fuel bills, they will reduce their carbon emissions, and will also get cash payments for installing these new technologies.

It opens up a market for the supply chain, engineers and installers – generating growth and supporting jobs as part of our long-term economic plan.

The technologies currently covered by the scheme are:

Biomass heating systems, which burn fuel such as wood pellets, chips or logs to provide central heating and hot water in a home. Biomass-only boilers are designed to provide heating using a 'wet system' (eg through radiators) and provide hot water. Pellet stoves with integrated boilers are designed to burn only wood pellets and can heat the room they are in directly, as well as provide heat to the rest of the home using a 'wet system' (eg through radiators) and provide hot water.

Ground or water source heat pumps, which extract heat from the ground or water. This heat can then be used to provide heating and/or hot water in a home.

Air to water heat pumps, which absorb heat from the outside air. This heat can then be used to provide heating and/or hot water in a home.

Solar thermal panels, which collect heat from the sun and use it to heat up water which is stored in a hot water cylinder. The two types of panels that are eligible are evacuated tube panels and liquid-filled flat plate panels.

 Technology	 Tariff

 Air-source heat pumps	 7.3p/kWh

 Ground and water-source heat pumps	 18.8p/kWh

 Biomass-only boilers and biomass pellet stoves with integrated boilers	 12.2p/kWh

 Solar thermal panels (flat plate and evacuated tube for hot water only)	 19.2 p/kWh

Only one space heating system is allowed per property but homeowners can apply for solar thermal for hot water and a space heating system.

The guaranteed payments are made quarterly over seven years for households in England, Wales and Scotland. (Northern Ireland has its own RHI scheme). The scheme is designed to bridge the gap between the cost of fossil fuel heat sources and renewable heat alternatives.

The Renewable Energy Association (REA) has already backed the scheme, and says its introduction could make 2014 a breakthrough year for renewable heating.

Mike Landy, head of on-site renewables at the REA, said:

Domestic RHI is set to be one of the highlights of the Government's green agenda in 2014. It will mean that renewable home heating is not just environmentally sensible, but also financially attractive.

To find out more about the Domestic Renewable Heat Incentive, to book a Green Deal Assessment or to receive free and impartial advice, call the Energy Saving Advice Service on 0300 123 1234 (England and Wales) or Home Energy Scotland on 0808 808 2282 (Scotland), or visit www.energysavingtrust.org.uk

For further details about the scheme including eligibility criteria and how to apply visit www.ofgem.gov.uk/domestic-rhi.

For more details on the non-domestic scheme and free information on how to apply, visit the Ofgem website or call 0845 200 2122 (non-domestic RHI enquiry line open Monday to Thursday 9 am to 5 pm and to 4.30 pm on Fridays).

Greg Barker MP welcomes the domestic Renewable Heat Incentive (RHI)

Domestic RHI case study

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 tag:www.gov.uk,2005:AnnouncementPresenter/229572 2014-04-04T10:31:30+01:00 2014-04-04T10:31:30+01:00 Press release: The UK's rooftops to become power stations Plans to turn the Government estate as well as factories, supermarkets and car parks into "solar hubs" have been outlined in a new strategy by Greg Barker today.

Plans to turn the Government estate as well as factories, supermarkets and car parks into "solar hubs" have been outlined in a new strategy by Energy Minister Greg Barker today.

The Solar Strategy, the first of its kind in the UK, sets out the Governments ambition to see solar rolled out more widely and with it the potential to support tens of thousands of jobs.

Launching the Solar Strategy at SunSolar Energy in Birmingham, Energy Minister Greg Barker said:

"We have put ourselves among the world leaders on solar and this ambitious Strategy will place us right at the cutting edge.

"There is massive potential to turn our large buildings into power stations and we must seize the opportunity this offers to boost our economy as part of our long term economic plan.

"Solar not only benefits the environment, it will see British job creation and deliver the clean and reliable energy supplies that the country needs at the lowest possible cost to consumers."

We want to move the emphasis for growth away from large solar farms and instead focus on opening up the solar market for the UK's estimated 250,000 hectares of south facing commercial rooftops. Solar increasingly offers efficient and cost effective onsite generation opportunities to both businesses and domestic consumers, and our strategy makes a step change in our ambition for both. as a means to generate renewable energy.

Widespread solar will ensure a better deal for hard pressed consumers and help move towards a greener, more local energy sector.

Minister for Energy and Climate Change Rt. Hon. Greg Barker has worked closely with his Ministerial colleague from the Cabinet Office, Rt. Hon. Francis Maude, and his team – who are leading on an element of the Strategy, implementing the Solar PV Strategy across the Government estate. This will allow the Government to lead by example in this important area.

In a further initiative, the Department for Education is working on ways to improve energy efficiency across the 22,000 schools in England, to reduce their annual energy spend of £500 million. The initiative will encourage the deployment of PV on schools alongside promoting energy efficiency.

Education Secretary Michael Gove said:

"Solar panels are a sensible choice for schools, particularly in terms of the financial benefits they can bring. It is also a great way for pupils to engage with environmental issues and think about where energy comes from."

Notes to editors

Over half a million buildings already use solar and with the cost of solar falling it is becoming more attractive for households, communities, and businesses to invest.

The Government is leading by example and aims to turn its buildings and brownfield sites into power stations by installing solar PV on its estate.

The Strategy follows the "Roadmap to a Brighter Future" which was published last October. It looks to showcase how the UK is at the forefront of innovation in solar PV and its importance in driving further cost reduction, meeting the challenges of balancing the electricity system, securing carbon lifecycle benefits, and identifying new financial models to help households invest.

The Roadmap confirmed that new solar installations will need to be appropriately sited, give proper weight to environmental considerations such as landscape, heritage and local amenity, and provide opportunities for communities to influence decisions that affect them.

The strategy can be found on the GOV.UK website.

Guidance for schools can be found in the "Power to the Pupils" pamphlet

 tag:www.gov.uk,2005:AnnouncementPresenter/229302 2014-04-02T15:07:08+01:00 2014-04-02T15:07:08+01:00 Speech: Office for Nuclear Regulation vesting event Speech by Baroness Verma at the ONR vesting event

Thank you for allowing me to share this important day with you and for the opportunity to say a few words. I was hoping to stay for the entire event, but unfortunately I have to be in the House of Lords this afternoon so I will have to leave earlier than planned.

And I'm particularly pleased to be here in Liverpool; a city that has been at the forefront of so many technical and social innovations.

Ferries, railways, steamships, and trams were all pioneered here in Liverpool. The city introduced the first lending library, the first high school for girls and the first school for the blind.

And of course the people of Liverpool are known throughout the world for their hospitality, creativity, sense of humour.

And so it seems fitting that we mark the creation of the ONR as a new Public Corporation and a modern, forward looking, independent nuclear regulator here in Liverpool.

ONR Change Programme

The nuclear sector is changing and we need to respond to those changes if we are to remain world class. That's why we have taken steps to reshape and restructure our nuclear regulatory framework.

The Energy Act has set the legal position of the ONR as a fully independent statutory body and this provides the foundation on which you can continue to build a modern, flexible, dynamic, and fully integrated organisation.

I was responsible for taking the Energy Act through the Lords and was struck by the level of cross party support for creating the statutory ONR. And this support didn't just come from Parliament and the Government, but from the nuclear industry too.

I know that you've seen a lot of change, and I know that this can be unsettling. But I do believe that, over the past 18 months, you have turned a corner and you should all be very proud of what you have achieved.

You now have a strong, substantive leadership team in place, which will provide much needed stability. The recent IRRS mission was a great success, demonstrating that ONR is on the right track. And now that you have been established as a Public Corporation you have the flexibility you need to meet the challenges ahead.

Challenges and opportunities

Having a secure and diverse supply of low carbon electricity is vital to the UK economy, and nuclear power therefore plays an important role as part of our overall energy mix. But nuclear can only play a role if it is safe and it is secure. The work that all of you do on a daily basis to ensure that nuclear safety and security is regulated effectively and efficiently is therefore critical.

The UK new build programme is ambitious and will require significant effort from ONR if it is to succeed. But, while this will be challenging, it also presents opportunities - opportunities for you to understand new technologies, opportunities for you to share good practice with other regulators, and opportunities for you to demonstrate to the outside world what you can achieve.

New nuclear is breathing new life into the nuclear industry. As well as providing new jobs, both for nuclear specialists and non-nuclear specialists alike, it is also providing long term confidence and stability in the sector.

Of course interesting opportunities are not confined to new build. Tackling Sellafield is a national priority, but it does not just present a challenge; it also provides opportunities for people to come forward with new ideas that could make a real difference.

In addition, our plans to develop a Geological Disposal Facility to deal legacy as well as future nuclear waste safely and securely, is a major project that will provide unique challenges and opportunities.

What an exciting time to be involved in the nuclear industry.

But where there are opportunities, there are threats. An expanding sector brings with it increased competition for suitably qualified and experienced people. I'm aware that competition in the labour market is already fierce and ONR will need to rise to this challenge if it is maintain and increase its workforce.

As I have already mentioned, the nuclear renaissance is creating a level of confidence in UK nuclear that we haven't seen for a long time. This confidence will encourage young people into the nuclear industry, and this will help secure future generations of nuclear specialists. ONR needs to make sure that it is well placed to benefit from that.

Being open and transparent about the good work that you do and on the opportunities that exist at ONR; as well as embracing diversity, will all help. But this is an important challenge and I will therefore continue to take a keen interest.

Maintaining Parliamentary confidence

One of the reasons overseas companies are keen to invest in the UK nuclear industry is that we have world class regulators.

However, at the end of the day, it is the Government that is accountable to Parliament for nuclear safety and security. While we have every confidence in you as regulators, if we are to deliver our accountability to Parliament in a way that inspires confidence, then we cannot simply rely on the expert judgements of others…however good they are!

We need to understand how priorities are decided and how decisions are made. In short, we need the appropriate levels of assurance, supported by sound evidence. ONR is therefore putting in place an assurance reporting process that is underpinned by appropriate evidence. This includes the reporting of incidents that occur on nuclear sites.

The early outputs from this work are already helping us to provide Parliament with assurance that UK nuclear safety and security is being managed effectively. But it also shines a light on the good work that all of you do on a daily basis. That not only helps build public confidence in ONR as an open, responsive, independent regulator, but wider confidence that the industry is being properly managed.

I greatly appreciate the good working relationship that we have and I want that to continue. Ultimately we have a shared interest in wanting a nuclear industry in the UK that is safe and secure and we will achieve that best if we are open and transparent, respect our individual roles and responsibilities, and communicate effectively.

Conclusion

So let me conclude by saying three things:

Firstly: You have done an amazing job to ensure that ONR has vested – true, it's been a long time coming, it's been a lot of hard work, but it's now happened.

Secondly, while there are still challenges ahead, there are also great opportunities. These are opportunities that you at ONR are uniquely placed to benefit from.

And finally, the work that we're all doing to address Sellafield, to facilitate new nuclear build, and to find a sustainable solution to our nuclear waste are all vitally important to the UK economy. We cannot meet those challenges without the dedication, ingenuity and professionalism of ONR. Each and every one of us – each and every one of you - has a role to play and an opportunity to make a real difference.

Thank you again for inviting me to speak at your event and I look forward to speaking to as many of you as I can during the lunch break.

 tag:www.gov.uk,2005:AnnouncementPresenter/229232 2014-04-02T10:28:00+01:00 2014-04-02T10:28:00+01:00 News story: Support for Local Authorities to keep homes warm and lower energy bills Local Authorities get £88 million to deliver Green Deal Communities

Local Authorities across the country are to receive a share of £88 million to help deliver the Government's Green Deal home energy efficiency improvement programme.

The scheme will be rolled out on a street-by-street basis and will aim to help around 32,000 households install energy efficiency home improvements like solid wall insulation and hew heating systems so that they have warm, more energy efficient homes and better control of their energy bills.

Minister for Energy, Greg Barker said:

"Properties across the country are leaking hundreds of pounds every year through faulty boilers, draughty windows and insufficient insulation.

"By installing energy saving improvements we can help thousands of hard pressed consumers save energy and lower their bills.

"This is why we've quadrupled the Green Deal Communities funding, so that Local Authorities can help many more people benefit from these improvements."

The 24 Local Authorities to be offered a share of £88 million from the Government under the Green Deal Communities scheme are:

East Hampshire District Council

Dartford Borough Council

Leeds City Council

Bristol City Council

Nottingham City Council

Broadland District Council (S. Norfolk & Norwich City Council)

London Borough of Hillingdon

Telford & Wrekin Council

Worcestershire County Council

London Borough of Lewisham

Surrey Coalition

Plymouth City Council

South Buckinghamshire District Council

Manchester (Oldham Metropolitan Borough Council)

Ashfield District Council

Suffolk County Council

Cambridge City Council (Cambridgeshire wide consortium)

Peterborough

London Borough of Haringey

Bracknell Forest

Eastleigh Borough Council

Nuneaton & Bedworth Borough Council

London Borough of Harrow

Bath & North East Somerset Council

The Green Deal is an ambitious and long-term Government initiative designed to upgrade the energy efficiency of our homes in Great Britain. It can help people understand the energy saving improvements they can make to their home and decide how to pay for them.

Local Authorities will roll the scheme out on a street-by-street basis. They know their areas best and which streets and properties could most benefit from Green Deal to upgrade their energy efficiency.

Further information

Local authorities and the Green Deal

 tag:www.gov.uk,2005:AnnouncementPresenter/229181 2014-04-01T17:19:00+01:00 2014-04-01T17:19:00+01:00 Press release: Wales Office Minister highlights government boost to community energy Baroness Randerson hosts meeting on local energy projects

Experts from community energy groups met with Wales Office Minister, Baroness Jenny Randerson earlier this week (31 March) to discuss how local communities in Wales can take control of their energy bills by setting up their own local energy projects.

In January this year, the UK government published its Community Energy Strategy which sets out the role that communities can play in helping to meet the UK's energy and climate change challenges, including supporting a sustainable and secure energy system; reducing UK greenhouse gas emissions; and lowering consumer bills.

As part of her commitment to promote the Big Society in Wales, Baroness Randerson welcomed the group of experts to the University of South Wales in Newport, to examine the opportunities and challenges local groups face when setting up community energy projects.

Baroness Randerson said:

"Community led action, such as collective switching and local energy generation projects, gives people the power to bring down bills and encourages competition within the energy market. That is why I wanted to bring this group together to better understand what work is already being undertaken to support community energy projects, to highlight successful projects, and to determine what more can be done to encourage more communities to become involved in community energy.

"Wales is perfect for small scale renewable energy cooperation between companies and the local community. I want to encourage groups of people across the country to participate in a community energy movement and take real control of their energy bills, which will in turn help to address important issues such as fuel poverty in Wales."

The Department for Energy and Climate Change provided the group with an overview of the UK government's Community Energy Strategy and an update on implementation and next steps.

A Welsh Government Official also attended to talk about Ynni'r Fro, the Welsh Government's scheme to support community scale renewable energy.

The group also heard from Andrew Rowland who highlighted his own personal experiences of setting up a community energy project, and the work of Ecodyfi which has helped a number of other projects in the Dyfi Valley. Of the event he said:

"I was pleased with the event, it was a frank discussion and the Minister was keen to understand the reality of what is needed to grow the community energy sector."

Baroness Randerson added:

"The key aim of the Big Society is to help people to come together within their communities to improve their lives.

"There are already a number of existing community energy projects in Wales and there is clearly an appetite for more to be set up. I want to make sure the UK government and Welsh Government work more closely together to provide communities with the assistance and advice necessary to enable them to bring local energy projects to fruition."

Further Information

The Community Energy Strategy set out the UK Government's vision for scaling up the community energy sector.

Plans include:

Setting up a new Community Energy Unit, to act as the Department's lead on community energy and coordinate the work on implementing the Strategy

Launching a £100,000 UK-wide community energy saving competition

Setting up a UK industry-led taskforce to achieve greater shared ownership of new onshore renewables developments

Establishing a £10 million Urban Community Energy Fund (for England)

Providing seed funding for a one stop shop information resource(primarily for England)

Establishing new working groups to examine the regulatory issues and recommend ways in which to address the barriers to growth.

We now have working groups on finance, grid connection, hydropower and planning. They will report to the Secretary of State of Energy and Climate Change later this year.

Learn more about the UK government's Community Energy Strategy

Guests in attendance at the meeting included:

Professor Alan Guwy, University of South Wales

Lucy Morgans, Department of Energy and Climate Change

Andrew Rowland, Ecodyfi

Charlotte Gibson, Welsh Government

Robert Proctor, Renew Wales

David Fitzpatrick, Cynnal Cymru/Sustain Wales

Grenville Ham, The Green Valleys

Duncan McCombie, Energy Saving Trust

Dr David Clubb, Renewable UK Cymru

Jon d'Estre-Hoare, the FSE Group

Tomos Davies, Community Housing Cymru Group

Anna Rees, The Waterloo Foundation

Nick Wood, The Waterloo Foundation

Huw Smallwood, Tegni Cymru

 tag:www.gov.uk,2005:AnnouncementPresenter/228786 2014-03-31T12:16:21+01:00 2014-03-31T12:16:21+01:00 Speech: The role of energy innovation in helping the UK to meet its low carbon and energy security goals Speech by Greg Barker at the Low Carbon Innovation Coordination Group Strategic Framework Briefing and Networking Event.

Thank you Paul.

Innovation is absolutely crucial to achieve this Coalition Government's energy goals. But innovation isn't just at the heart of my department's agenda.

Driving innovation throughout the UK economy is at the very heart of the Coalition's Long Term Economic Plan.

The UK has many strength's in this area and we are delivering some very exciting projects.

So it is a pleasure to be here today to open this Briefing and Networking Event on the LCICGs Strategic Framework: "Coordinating Low Carbon Technology Innovation Support."

You will hear about some of the detail of this Strategic Framework from Rob later on but I'd like to make 3 key points here today:

Firstly, innovation is critical to achieving both our energy goals and sustained UK growth… And we are making significant investments to support this;

Secondly, genuine partnership is crucial.

We in Government, industry and academia need to work together to achieve these goals.

Government is helping this happen through the LCICG.

We have a coordinated programme of energy innovation funding that is providing over £1 billion of support in this Spending Review period;

Thirdly, the choices we make now on priorities, funding and strategy will be critically important.

I am keen to work with you in identifying the technologies that will make a real difference to the UKs energy system and our economic prosperity.

To my first point:

The Coalition very much recognises the important role innovation will play in the long-term future of the UK economy.

Innovation will lead to new technologies, new jobs and new opportunities.

Around 70% of our future economic growth is expected to come from innovation and the low carbon sector is set to make a major contribution to this.

New and improved low carbon technologies are essential to reduce the cost of energy for hard-pressed consumers.

And innovation here in the UK could help our companies secure a large share of the global market.

And that market for low carbon goods and services is potentially huge.

By targeting our innovation support and fulfilling our innovation goals we could save the UK over £100 billion in energy costs to 2050.

For example, targeted innovation in energy efficiency alone could lead to savings worth up to £2,500 for each UK household and business up to 2050. That's enough to build 14,000 community hospitals or over 5,000 new schools.

That same investment could generate UK-based business activity contributing tens of billions of pounds to GDP over the same period.

This Government has recognised the huge potential of this sector.

Despite the challenging economic climate over the past few years, we have continued to invest in supporting businesses and academics delivering energy innovation.

In this parliament, the members of the LCICG are expected to invest in excess of £1 billion in support for low carbon innovation. And we continue to provide additional funding where appropriate.

Just last week the Chancellor announced an additional £60 million investment in low carbon innovation.

That funding will support advanced carbon capture and storage technologies that show significant potential to reduce the cost of low-carbon generation in the UK. This will capitalise on the most promising CCS technologies coming out of the Government's current £125 million CCS Innovation Programme.

Now to my second point:

The Government supports low carbon technology innovation in different ways through a range of public-sector backed organisations.

This means we can provide the range of support that this diverse sector needs. But it's important that this support is complimentary and well-coordinated. That's why, 4 years ago, David Willets and I supported the establishment of the Low Carbon Innovation Coordination Group. And we have overseen the Group's work since.

The LCICG brings together the major public-sector backed funders of low carbon innovation in the UK.

The Group aims to enhance the focus, coordination and delivery of government backed innovation support.

Working together, the Group has supported innovators in universities, SMEs and industry, in delivering many transformational projects and programmes.

For example:

DECC's £5 million support to Net Power's novel power generation process, aims to help develop a technology that has the potential to generate electricity substantially cheaper than existing CCS technologies.

This could be really significant for our long term low carbon energy objectives.

The Off Shore Wind Accelerator is a great example of industry pooling its resources and working together, with government support, to address common challenges.

This £45 million programme is 2 thirds funded by industry and 1 third funded by DECC, and managed by the Carbon Trust.

It brings together 9 major off-shore wind developers to identify and support projects that can drive down the cost of off-shore wind.

These projects have the potential to reduce the cost of off-shore wind by up to 10%.

The Engineering and Physical Sciences Research Council EPSRC is training the engineers and scientists that are critical to our future success.

In Energy, they are currently funding 12 Centres for Doctoral Training, involving over 100 industrial partners. And a further 12 centres have recently been announced and will start taking students in October this year.

Industry-Industry and Industry-Government partnerships are key to our collective success.

The Energy Technologies Institute shows what can be achieved if companies work in partnership with each other and with government.

ETI's 6 private sector members and the government are together investing up to £60 million a year. And are delivering major projects that will have a real impact across a range of energy technology sectors.

Take, for example, the Marine ReDAPT project.

This technology initially received Research Council and Technology Strategy Board support at a smaller scale. ETI funding built on that in developing into a full scale 1MW tidal turbine project. The technology is now owned by Alstom who have an MOU to deliver the first four machines to Scottish Power Renewables in the next couple of years.

To support industry the Technology Strategy Board has recently established a number of Catapult Centres.

Catapults will provide expertise and support structures, such as testing facilities, will foster collaborations and will help companies prove and exploit their innovations.

For example, the Off-Shore Renewables Catapult is working very closely with Narec, the Carbon Trust and industry to set up testing and demonstration programmes.

A new Energy Systems Catapult is being developed for launch in 2015 - 16.

These are just some of the many exciting projects that the LCICG, industry and academia have supported.

Working together we have achieved a lot in recent years but we still need to do more.

This brings me to my third and final point;

Looking forward I am keen to ensure we build on these effective collaborations and that we target government support to maximum effect.

So, I was pleased last month to announce the publication of the LCICG's Strategic Framework. For the first time, the Framework sets out a coherent, shared, cross-government strategy and our long-term energy innovation ambitions.

However, the Framework also makes clear a key challenge that we face.

Although our economy is on the up, the UK government alone cannot afford to develop all of the low carbon technologies that we might need.

To address this, we need industry to step-up your activities and find innovative ways to partner and burden share. As we are successfully doing in the Off-shore Wind Accelerator and the Energy Technologies Institute.

We also need to work more closely with other countries who share the same challenges.

As we prepare for the next spending round in 2015 we in government will need to make some tough choices. We will need to target our public-sector investments.

We need to focus where we can have the most impact on achieving our energy and emissions targets and our economic growth objectives.

The LCICG members have developed the evidence base and the Strategic Framework to help make those choices.

But we cannot do it alone; we need industry, investors and academics to work with us to shape the future of energy innovation in the UK.

In conclusion, I am thrilled that the LCICG is delivering a clear framework to support investment for the remainder of the decade.

I'm confident that by working together we can make the right choices. And ensure we support the innovations necessary to deliver the cost reductions and business growth opportunities that our energy system and our country need.

Thank you.

 tag:www.gov.uk,2005:AnnouncementPresenter/228694 2014-03-31T10:10:11+01:00 2014-03-31T10:10:11+01:00 News story: Edward Davey statement Response to UK Green Investment Bank announcement regarding their investment in UK offshore wind sector.

The UK Green Investment Bank (GIB) has today announced two equity investments in the UK offshore wind sector.

Secretary of State for Energy and Climate Change, Edward Davey said:

"The UK is number one in the world for investment in offshore wind. This news is proof of the strength of investment in British energy infrastructure - and proof that the Government's strategy is working - supporting green jobs across the country and delivering secure energy supplies for the future. £34 billion worth of investment has been announced since 2010 thanks to our electricity market reforms which give investors long-term certainty."

The Green Investment Bank website

 tag:www.gov.uk,2005:AnnouncementPresenter/228684 2014-03-31T10:05:00+01:00 2014-03-31T10:05:00+01:00 Statement to Parliament: Triennial review report: Nuclear Liabilities Financing Assurance Board (NLFAB) Michael Fallon on the completion of Triennial review report.

On 10th October 2013, I announced through a written ministerial statement, the commencement of the triennial review of the Nuclear Liabilities Financing Assurance Board (NLFAB). I am now pleased to announce the completion of the review.

NLFAB plays an important role providing independent and expert advice to Ministers on the financing arrangements in the Funded Decommissioning Programme (FDP). Under the Energy Act 2008 the operator must submit the FDP to the Secretary of State. Nuclear related construction can only take place once the FDP has been approved by the Secretary of State.

The review concludes that the functions performed by NLFAB are still required and that it should be retained as an advisory non-departmental public body (NDPB). The review also looked at the governance arrangements for the body in line with guidance on good corporate governance set out by the Cabinet Office. The report makes some recommendations in this respect; these will start to be implemented shortly.

The full report of the NLFAB review of can be found on the GOV.UK website and copies have been placed in the Libraries of both Houses.

 tag:www.gov.uk,2005:AnnouncementPresenter/228687 2014-03-31T09:52:00+01:00 2014-03-31T09:52:00+01:00 Statement to Parliament: Thermal analysis review Written statement by Edward Davey.

In November 2013, the Nuclear Decommissioning Authority's Radioactive Waste Management Directorate (RWMD) informed my Department of a modelling error in their assessments of the on-site cooling time required for spent fuel from new nuclear reactors before it could be placed in an off-site Geological Disposal Facility (GDF).

RWMD subsequently corrected the error and published revisions of two disposability assessments and a feasibility study that included data from the model. These can be found on the NDA website and I have placed copies of these reports in the libraries.

There is no impact on safety at any existing site, as the corrections only increase the estimated length of time for which spent fuel from any new reactors would need to be kept in interim storage.

All other aspects of the corrected reports remain unchanged and RWMD has confirmed that the error does not affect future planning for a GDF.

My department has thoroughly assessed RWMD's corrected figures in relation to a number of previous decisions and policy areas, some of which were debated by Parliament. We have concluded that the corrected figures have no substantive impact on policy or previous decisions, including the Hinkley Point C deal.

I set out below our consideration and findings.

Regulatory Justification of the EPR and AP1000 reactor designs

My predecessor published decisions in October 2010 that the EPR and AP1000 nuclear reactor designs were Justified in accordance with the Justification of Practices Involving Ionising Radiation Regulations 2004 ('the Justification Regulations'). These decisions took the form of Statutory Instruments which were approved by both Houses of Parliament in November 2010.

Justification decisions involve assessing the benefits of proposed new radioactive practices against their potential detriment to health. The published decisions took account of RWMD's modelling of interim storage times.

The Justification Regulations make provision for the circumstances in which a review may be undertaken. My assessment is that the revised modelling does not create any new health detriments that were not considered during the Justification process and does not raise any new issues about the ability to manage interim storage that may impact on the benefits of the EPR or AP1000 reactors.

I have therefore concluded that the revised modelling does not meet the "new and important" criteria needed to consider reviewing the Justification Decisions and that I do not need to review my predecessor's decisions.

Nuclear National Policy Statement and Hinkley Point Development Consent

The Nuclear National Policy Statement sets the framework for Development Consent decisions under the Planning Act 2008. It was approved by Parliament and designated in July 2011. It included a statement on waste disposal, based on RWMD's assessments, which made clear that interim storage would be needed on a range of timescales, during which facilities would continue to be effectively regulated.

The material in the NPS was referred to by the Planning Inspectorate in its advice to me on the application for development consent for the new nuclear power station at Hinkley Point and referred to by me in my decision.

There are no reasons to believe that the regulatory regime could not effectively regulate the increase in interim storage times under RWMD's revised assessments and I have therefore concluded that there are no grounds for a review of the Nuclear NPS or any of the decisions taken with reference to it.

Funded Decommissioning Programmes (FDP) and Waste Transfer Contracts

No decisions have yet been taken on whether or not to approve the Funded Decomissioning Programme for Hinkley Point C. Further to the publication of the corrected reports, the developer has been asked to update their respective FDP submission for the site and this information will be taken into account in any decision.

Euratom Article 37

General data was provided to the Commission in relation to the planned spent fuel storage facilities at Hinkley Point C. This data focused on the overall plans for storage, rather than the storage period, and already takes into account a margin of error that includes the corrected figures.

We have drawn the attention of the European Commission to the re-published reports, as they provide an opinion on Article 37 applications, but do not believe that any further action is necessary.

Generic Design Assessment (GDA) and Site licensing & permitting

The original disposability reports written by RWMD were used as evidence in the GDA process and cited in the Regulators' technical findings. Further to the corrected disposability reports being published, the Regulators are working with EDF (the recipient of the GDA design acceptances for the EPR design) to assess if there are any impacts to their GDA decision and findings.

Should any changes be required these will be addressed as part of the wider, on-going site licensing and permitting process. Similarly any impact to the findings for the AP1000 design would be addressed in any subsequent assessment or site licensing and permitting process.

 tag:www.gov.uk,2005:AnnouncementPresenter/228627 2014-03-31T01:31:00+01:00 2014-03-31T01:31:00+01:00 Government response: Statement in response to IPCC report on climate change Secretary of State Edward Davey's statement in response to the IPCC Working Group 2 report on climate change, published on 31 March 2014.

In response to the IPCC 5th Assessment Report, (Working Group 2) , Secretary of State for Energy and Climate Change, Edward Davey said:

"This report represents the most comprehensive look at the impacts of climate change ever written – involving a huge amount of work by over 310 scientific experts drawn from universities and research institutes in 73 different countries around the world.

"The science has clearly spoken. Left unchecked, climate change will impact on many aspects of our society, with far reaching consequences to human health, global food security and economic development.

"The recent flooding in the UK is a testament to the devastation that climate change could bring to our daily lives.

"The UK is leading from the front and working with our European partners. We've adopted some of the most ambitious climate change targets in the world. We are investing in low carbon and energy efficiency technologies, with an increased focus on home-grown renewables, to reduce our reliance of foreign imports and create a sustainable supply of affordable energy for consumers and businesses alike. We are also pushing for an ambitious EU energy and climate change package that will lead to a 40% reduction in greenhouse gas emissions by 2030 and will take us on the next step to tackling climate change.

"This evidence strengthens the case for early action in the UK and around the world to lessen the significant risks posed by climate change. We cannot afford to wait."

 tag:www.gov.uk,2005:AnnouncementPresenter/228104 2014-03-27T11:25:44+00:00 2014-03-27T11:25:44+00:00 Statement to Parliament: Competition in the energy markets Statement by Edward Davey on the first Annual Assessment of Competition in the energy markets.

[Check against delivery]

With your permission Mr Speaker, I would like to make a statement on competition in the energy markets.

Today, Ofgem, the Office of Fair Trading and the Competition and Markets Authority have published the first Annual Assessment of Competition in the energy markets, and I have made copies available to the House.

Efficient, open markets made up of diverse businesses competing for trade are the best way to ensure that consumers get the best deal on price and service.

Strong and independent regulation of competition helps consumers too, because constant political interference for short-term gain can add to long-term risk and costs.

Mr Speaker, when this Coalition Government took power, we inherited energy markets that were not working in the best interests of the people of Britain.

The supplier base had shrunk from 15 majors in 2000 to just six in 2010 - Labour's 'Big 6'.

Many people found it difficult to switch.

The profusion of over 350 complex tariffs and complicated bills, for example, made it difficult for people to work out how to get on the right tariff for their circumstances.

The wholesale market was also dominated by the Big 6 where they either supplied themselves or opted for over the counter deals, with no transparency.

So this Coalition Government, working with the regulator Ofgem, has set about the long task of improving the energy markets, to make them work for consumers.

We have opened up the markets to new suppliers and generators.

Labour's Big 6 now face 18 new retail competitors whose market share has more than doubled since 2010.

The best buy energy tables are now dominated by the independent suppliers.

Tariffs are simpler, bill formats clearer, and the process for switching suppliers is being speeded up.

According to the latest statistics, compiled by Electralink and Energy UK, almost 3.5 million people switched electricity suppliers last year.

And independent suppliers gained over 700,000 new customers – about 20% of switchers.

In January and February this year, almost 500,000 people switched suppliers, with independents gaining over 200,000 new customers – over 40% of switchers.

The wholesale markets are also being opened up with liquidity in the day ahead market transformed.

And the forward markets are set to follow suit under OFGEM's Market Maker reforms to be introduced from next week.

So the energy markets have improved since 2010.

Yet despite all these reforms, the Government is determined to do more.

And that's why in October last year, we announced that Ofgem, working closely with the Office of Fair Trading and the Competition and Markets Authority, would undertake annual reviews of the state of competition in the energy markets.

This first annual assessment and its recommendations back our decision to turn to the independent competition authorities.

This expert review has found five areas in Britain's energy markets of real concern which need further investigation.

First, a low level of trust and lack of engagement in the energy market by consumers which are not compatible with healthy competition.

Second, evidence that the markets retain the geographical pattern which existed before privatisation and can mean higher prices for customers who don't switch from their home supplier.

Third, evidence of possible tacit co-ordination between energy companies that includes a strong alignment of pricing announcements in timing and extent.

Fourth, barriers to entry and expansion for new companies that make it difficult for them to challenge the Big 6.

And finally, evidence that the Big 6 have seen increasing profits that don't appear to reflect increasing efficiency, which is indicative of a possible lack of competition.

While the assessment notes there has been real progress in improving competition in recent years – especially in the growth of the number of independent suppliers - the Big 6 are still dominant, with a 95% share of the domestic energy supply market

In the electricity markets, the Big 6 operate a model of vertical integration that is not transparent, with forward markets that are not currently liquid, as I have argued from this Despatch Box.

While Ofgem's new Market Maker reforms may assist this, the assessment rightly wants to dig deeper.

Yet as the assessment today shows, it may be that vertical integration is in the consumer's best interests and can ultimately save people money.

The assessment cautions against rushing to judgement and rushing to solutions as some have sought to do.

But it is not just the electricity markets we need to address.

On average, people spend £150 more per year on their gas bills than they do on their electricity.

The gas market does not have a vertically integrated structure.

Britain's gas wholesale market is one of the most liquid in Europe, with large volumes of gas bought and sold openly between suppliers and producers.

But the assessment shares my concern that parts of the gas market, particularly the domestic gas supply market, may not be delivering for consumers.

The latest analysis suggests profit margins for gas supply are around three times higher that of electricity, with some companies making 5 times the profit supplying gas compared to the profit margin on electricity.

Mr Speaker, in light of this assessment, Ofgem is now proposing a tough but sensible course of action – a full Market Investigation Reference.

This would be undertaken by the new Competition and Markets Authority which has the robust powers required to investigate the market and take the action that is needed to strengthen competition.

As the Competition Minister responsible for the decision to create this new powerful competition body, I am particularly pleased that Ofgem are proposing to make energy markets their first major task.

A Market Investigation Reference is a course of action that should not be lightly undertaken, particularly at a time when the energy market is going through radical changes to introduce new low carbon generation while ensuring security of supply.

But tackling these issues through the independent competition authorities provides companies and investors with the confidence that this process will be evidence-based, fair and just, and free from political interference.

Ofgem have today published the legally required consultation on their proposed Market Investigation Reference which will run until 23 May and will make a final decision on referral by the summer.

If a reference is made, the Competition and Markets Authority must complete its work within 18 months, which means we can expect their report and recommendations before the end of 2015.

While the competition authorities take forward this work, the Government will continue to support families, individuals and businesses and will be bringing forward policy packages throughout the year to put consumers in control of their energy bills, help the fuel poor and further support competition.

This will include:

Halving switching times; Customers off dead tariffs; The first Fuel Poverty Strategy in over a decade; Smart Meters being installed; Help for those on pre-payment meters; Boosting the Green Deal; Criminalising market manipulation; And boosting independent suppliers.

Mr Speaker, this is a course of action that consumer and business groups such as the Federation of Small Businesses, Which?, Consumer Futures and the Citizen's Advice have been calling for.

Energy companies such as Npower, EoN and EDF have also argued that a Market Investigation Reference would be the best way to restore consumer trust and decide what changes are needed on the basis of the evidence.

On the basis of the evidence provided by the regulators published today, this is the right course of action to take now.

This is not a quick fix, but it is the right way to restore people's trust that the energy markets are working for their benefit.

It is the right way to create long-term certainty for investment.

The Government strongly supports this process.

I urge the whole House now to join us in that.

 tag:www.gov.uk,2005:AnnouncementPresenter/226765 2014-03-27T09:32:00+00:00 2014-03-27T09:32:00+00:00 Press release: UK energy statistics: statistical press release - March 2014 Energy Trends and Quarterly Energy Prices published.

Energy Trends and Quarterly Energy Prices publications are published today 27 March 2014 by the Department of Energy and Climate Change. The publications cover new data for the fourth quarter of 2013 and thus provisional annual data for 2013. This press release focuses on the 2013 annual data.

Energy Trends covers statistics on energy production and consumption, in total and by fuel, and provides an analysis of the year on year changes. Quarterly Energy Prices covers prices to domestic and industrial consumers, prices of oil products and comparisons of international fuel prices.

UK energy statistics: statistical press release - March 2014

 PDF, 159KB, 15 pages

This file may not be suitable for users of assistive technology. Request a different format.

 If you use assistive technology and need a version of this document in a more accessible format please email firstname.lastname@example.com quoting your address, telephone number along with the title of the publication ("UK energy statistics: statistical press release - March 2014").

 tag:www.gov.uk,2005:AnnouncementPresenter/226715 2014-03-27T09:32:00+00:00 2014-03-27T09:32:00+00:00 News story: Energy trends and prices statistical release: 27 March 2014 The latest provisional monthly energy statistics produced by the Department of Energy and Climate Change were released on 27 March 2014 according to the arrangements approved by the UK Statistics Authority.

Highlights for the 3 month period November 2013 to January 2014, compared to the same period a year earlier include:

Primary energy consumption in the UK fell by 5.2%, on a temperature adjusted basis it fell by 2.3%. (table ET 1.2)

Indigenous energy production fell by 2.7%. (table ET 1.1), with crude oil & NGL production down 3.2% (table ET 3.10), and gas production down 2.3%. (table ET 4.2)

Coal production down 26.6%, with production in January 2014 at a record low level. (table ET 2.5)

Coal provided 40.6% of electricity generation by Major Power Producers, with gas's share at 24.4% and nuclear at 20.3%.* (table ET 5.4)

Wind generation by Major Power Producers up 36%, with offshore wind up 20% and onshore wind up 49%.* (table ET 5.4)

Bioenergy generation up 8.9% due to the partial conversion to biomass of Drax and the fall in coal generation. (table ET 5.4)

Low carbon share of electricity generation by Major Power Producers up 5 percentage points to 35.1%.* (table ET 5.4)

Average petrol and diesel prices both fell in March 2014. (table QEP 4.1.1)

Statistics on monthly production and consumption of coal, electricity*, gas, oil and total energy include data for the UK for the period up to the end of January 2014.

Statistics on solar photovoltaics deployment and average temperatures, wind speeds, sun hours and rainfall include data for the UK for the period up to the end of February 2014.

Statistics on energy prices include retail price data for the UK for February 2014, and petrol & diesel data for March 2014, with EU comparative data for February 2014.

The latest release updates the statistics previously released on 27 February 2014.

The next release of provisional monthly energy statistics will take place on 24 April 2014.

Provisional quarterly energy statistics for Q4 2013 (October to December), have also been released today in the statistical publications Energy Trends and Quarterly Energy Prices.

*Major Power Producers (MPPs) data published monthly, all generating companies data published quarterly.

To access the latest data release click on the relevant subject link(s) below.

 Subject and table number	 Title

 Total Energy

 ET 1.1	 Indigenous production of primary fuels

 ET 1.2	 Inland energy consumption: primary fuel input basis

 Coal

 ET 2.5	 Coal production and foreign trade

 ET 2.6	 Coal consumption and coal stocks

 Oil

 ET 3.10	 Indigenous production, refinery receipts, imports and exports

 ET 3.11	 Stocks of petroleum

 ET 3.12	 Refinery throughput and output of petroleum products

 ET 3.13	 Deliveries of petroleum products for inland consumption

 Gas

 ET 4.2	 Natural gas production and supply

 ET 4.3	 Natural gas imports and exports

 ET 4.4	 Natural gas imports

 Electricity

 ET 5.3	 Fuel used in electricity generation by major producers

 ET 5.4	 Electricity production and availability from the public supply system

 ET 5.5	 Availability and consumption of electricity

 Renewables

 ET 6.4	 Solar photovoltaics deployment

 Weather

 ET 7.1	 Average temperatures and deviations from the long term mean

 ET 7.2	 Average wind speed and deviations from the long term mean

 ET 7.3	 Average daily sun hours and deviations from the long term mean

 ET 7.4	 Average monthly rainfall and deviations from the long term mean

 Domestic energy price indices

 QEP 2.1.1	 Retail prices index: fuel components

 QEP 2.1.2	 Retail prices index: fuel components, relative to GDP deflator

 QEP 2.1.3	 Retail prices index: fuels components monthly figures

 Monthly and annual prices of road fuels and petroleum product

 QEP 4.1.1	 Typical retail prices of petroleum products and a crude oil price index (monthly data)

 QEP 4.1.2	 Typical retail prices of petroleum products and a crude oil price index (annual data)

 International road fuel prices

 QEP 5.1.1	 Premium unleaded petrol prices in the EU

 QEP 5.2.1	 Diesel prices in the EU

Please note that the links above will always direct you to the latest data release. If you are interested in historical data please contact DECC (firstname.lastname@example.com)

 tag:www.gov.uk,2005:AnnouncementPresenter/228068 2014-03-27T08:18:37+00:00 2014-03-27T08:18:37+00:00 News story: Statement by Edward Davey on the Ofgem and CMA report The Secretary of State comments on the report by Ofgem and the Competition and Markets Authority.

Secretary of State for Energy and Climate Change, Ed Davey said:

"This is tough action based on a detailed, independent expert assessment of the state of competition in Britain's energy markets - leading to the first ever market reference for the energy markets.

"This is just too important for people to rely on guesses about how to fix the energy markets. If we get it wrong, consumers will pay the price.

"We will give Ofgem and the Competition and Markets Authority whatever support they need to get this done as quickly as possible.

"In the meantime, we'll keep working to help people pay less for the energy they use - continuing to drive the competition that has seen people switching supplier in record numbers, simpler tariffs and bills, getting energy companies to give back direct debit balances, taking £50 off the average bill and making switching faster and easier than it's ever been."

 tag:www.gov.uk,2005:AnnouncementPresenter/226783 2014-03-26T00:01:48+00:00 2014-03-26T00:01:48+00:00 Press release: Funding boost for low carbon heating 24 local authorities across England and Wales have been awarded more than £2.1 million to support the development of heat network projects

Minister for Energy and Climate Change Greg Barker today announced the latest round of successful projects through the Heat Networks Delivery Unit that will provide heating to local homes and businesses through new projects using a range of low carbon technologies, including energy from waste or recovered heat taken from industry.

Each project is designed to provide more efficient heating to buildings which can help to drive down consumers' heating bills and reduce emissions.

Energy and Climate Change Minister Greg Barker said:

This is another step the Coalition Government is taking to help drive down the long term cost of energy bills. Heat networks are a defining part of our smarter, cleaner energy future.

Local authorities are looking at innovative ways to supply low carbon heat to a range of buildings such as multi-storey apartments, office buildings and social housing.

Since the first round of funding at the end of January 2014, interest from local communities has grown with more than 50 local authorities so far receiving grants ranging from £15,000 to £250,000 each.

As part of the funding, councils will be given commercial and technical support and guidance, including assistance in developing robust business plans to help attract commercial investment to supply heat efficiently and cost-effectively to homes and businesses.

All bids were reviewed by a panel of engineering, financial and commercial experts with significant experience in heat networks development. Bids were assessed against a range of criteria including technical feasibility, commercial viability, future carbon saving and social benefits.

The remaining pot of grant funding, worth £7m in total, will be allocated through subsequent funding rounds, running to March 2015. Round 3 opens on 12 May 2014 and closes on 27 June 2014. The successful third round of local authorities will be announced by in August-September 2014.

Notes for Editors:

Heat networks supply heat to a number of buildings or dwellings from a heat generated at a central source and supplied through a system of insulated pipes. Heat production at this communal, rather than individual scale, is more energy efficient, delivers carbon savings, and can reduce consumer bills. Modern heat networks allow individual properties to control their own temperatures just as they would with other heating sources.

The Government's Heat Network Delivery Unit was established in September last year with a £7 million fund to promote heat networks. Grant funding is accompanied by support from experts in the Unit to assist local authorities develop investment grade proposals for heat networks.

The winning 24 local authorities for Round 2 are:

Allerdale Borough Council

Bath and North East Somerset Council

Blaenau Gwent County Borough Council

Bridgend County Borough Council

Copeland Borough Council

Cornwall Council

Devon County Council

East Riding of Yorkshire Council

Hull City Council

Knowsley Metropolitan Borough Council

Leeds City Council

London Borough of Camden

London Borough of Hackney

London Borough of Merton

Manchester City Council

Neath Port Talbot County Borough Council

Newcastle City Council

Sefton Metropolitan Borough Council

Sheffield City Council

Staffordshire County Council

Stoke-on-Trent City Council

Warrington Borough Council

Westminster City Council

Wiltshire County Council

Details of how to apply for funding under the heat networks funding stream can be found here. Along with the successful Local Authorities from Rounds 1 and 2.

An estimated 15% of UK heat demand could be cost effectively met by heat networks by 2030 and around 40% by 2050. The recent report by the Committee on Climate Change agreed with DECC that heat networks can play an important part of the overall plan for lower carbon heating in the decades ahead. There are currently approximately 2,000 heat networks in the UK, supplying heat to 200,000 dwellings and 1,500 commercial and public buildings. A further 150 schemes are known to be under development by local authorities across the UK.

 tag:www.gov.uk,2005:AnnouncementPresenter/226385 2014-03-25T11:49:00+00:00 2014-03-25T11:49:00+00:00 News story: Domestic RHI roadshows To help businesses, installers and consumers to find out more about the domestic RHI scheme, DECC will be attending a series of property and renewable energy roadshows this spring.

The domestic RHI scheme is for home-owners and private and social landlords who want to install renewable heating systems in their homes in England, Wales and Scotland.

It will provide long term financial support for property owners who install renewable heating systems and is due to be launched in the spring. It will mark a milestone in energy efficiency as it will be the first time every building in the country will be able to take advantage of financial incentives to install renewable heat technologies.

In order to help businesses, installers and consumers to find out more about the domestic RHI scheme, the Department of Energy and Climate Change will be attending a series of property and renewable energy roadshows this spring.

Property owners will receive quarterly payments for seven years to help cover the cost of installing a renewable heating system. The scheme applies to certain types of hot water and heating systems including air source heat pumps, biomass boilers, ground source heat pumps and solar thermal systems.

At the roadshows, attendees will also be able to find out how the domestic RHI and the Green Deal will work together to ensure that all participants benefit from having a smarter, warmer home.

The events DECC will be attending include:

27, 28, 29 & 30 March: National Homebuilding & Renovating Show, NEC, Birmingham

8 April: Renewable Energy Marketplace, Westpoint Arena, Exeter,

30 April: RHI Roadshow North Wales, Venue Cymru, Llandudno

1 May: RHI Roadshow West Wales, Park Hotel, Aberystwyth

2 May: RHI Roadshow South Wales, Village Hotel, Swansea

7 & 8 May: Greenbuild Expo, Manchester Central

17 & 18 May: Scottish Homebuilding & Renovating Show, SECC, Glasgow

21 & 22 May: All Energy Expo, Aberdeen Exhibition Centre

17, 18 & 19 June: Energy Environment Expo, ExCel, London

26 & 27 June: Eco Technology Show, The Brighton Centre

28 & 29 June: Southern Homebuilding & Renovating Show, Sandown Park, Surrey

New tariffs and technologies have also been announced for the non-domestic RHI, so DECC will also cover the opportunities on offer to commercial and public buildings at these events.

The non-domestic RHI scheme is aimed at industry, commercial, public sector and not-for-profit organisations which would receive regular financial payments as an incentive for installing renewable heat systems into their buildings. 'District heating' schemes where one boiler serves multiple homes can also apply to receive financial payments. Scheme applicants will receive quarterly payments for 20 years.

More information about the domestic RHI schemes is available on the Ofgem website, or for free and impartial advice call:

pre-application enquiries by Energy Saving Advice Service in England & Wales: 0300 123 1234

for Scotland contact Home Energy Scotland: 0808 808 2282

For more information about the non-domestic RHI scheme contact:

Ofgem e-serve: 0845 200 2122

 tag:www.gov.uk,2005:AnnouncementPresenter/226613 2014-03-25T11:32:09+00:00 2014-03-25T11:32:09+00:00 News story: Siemens to build major offshore wind manufacturing site in the UK Siemens has announced its decision to invest £160 million in wind turbine production and installation facilities in Yorkshire creating more than 1,000 new jobs in the Hull area.

Siemens has announced its decision to invest £160 million in wind turbine production and installation facilities in Yorkshire creating more than 1,000 new jobs in the Hull area.

The revised plan will be spread across two sites comprising the previously announced Green Port Hull project construction, assembly and service facility and a new rotor blade manufacturing facility in nearby Paull, in East Riding.

Siemens is investing £160 million across the two locations and its port partner Associated British Ports (ABP) is investing a further £150 million in the Green Port Hull development. The investment will provide a huge boost to the UK's offshore wind industry and the Humber region. The combined investments of £310 million will create up to 1,000 jobs directly, with additional jobs during construction and indirectly in the supply chain. The much anticipated investment is a landmark moment for the UK offshore wind industry.

Energy Secretary Ed Davey said:

"This deal is excellent news for the people of Hull and the Humber, the UK, the wind industry, and our energy security. We are attracting investment by backing enterprise with better infrastructure and lower taxes. As well as helping to keep the lights on and putting more than 1,000 people in work, this deal means we will help to keep consumer bills down as we invest in home-grown green energy and reduce our reliance on foreign imports. This deal shows our strategy for offshore wind is working; bringing investment, green jobs and growth, and helping keep Britain the number one country in the world for offshore wind."

Michael Suess, member of the managing board of Siemens AG and CEO of the Energy Sector said:

"Our decision to construct a production facility for offshore wind turbines in England is part of our global strategy: we invest in markets with reliable conditions that can ensure that factories can work to capacity. The British energy policy creates a favourable framework for the expansion of offshore wind energy. In particular, it recognizes the potential of offshore wind energy within the overall portfolio of energy production. The offshore wind market in Great Britain has high growth rates, with an even greater potential for the future".

How offshore wind measures up (infographic courtesy of Siemens)

 tag:www.gov.uk,2005:AnnouncementPresenter/226540 2014-03-25T00:16:00+00:00 2014-03-25T00:16:00+00:00 News story: Budget helps secure manufacturing in Britain The Prime Minister and Chancellor are highlighting government support to keep and increase manufacturing in Britain.

The Prime Minister is welcoming the decision by Siemens and Associated British Ports today to invest £310 million in wind turbine production and installation facilities in Yorkshire. Providing a huge boost to the UK's offshore wind industry and the local area, this investment will create up to 1,000 jobs directly, with additional jobs during construction and indirectly in the supply chain.

Welcoming the decision, Prime Minister David Cameron said:

This is a massive vote of confidence in our long-term economic plan. This investment is going to create lots of new jobs and opportunities, meaning more financial security and peace of mind for families and a more resilient economy for our country.

The Chancellor is today visiting the UK's largest steel plant as the owners welcomed the support for energy intensive manufacturing announced in last week's Budget. Tata Steel will be among the biggest beneficiaries of the package of support worth £7 billion. The Port Talbot plant visited by the Chancellor produces 5 million tonnes of steel annually and employs over 4,000 people.

How offshore wind measures up (infographic courtesy of Siemens)

Further information

The Siemens / Associated British Ports investment will be spread across 2 sites comprising the previously announced Green Port Hull project construction, assembly and service facility and a new rotor blade manufacturing facility in nearby Paull, in East Riding. Siemens is investing £160 million across the 2 locations and Associated British Ports is investing a further £150 million in the Green Port Hull development.

Measures announced in last week's Budget to support energy intensive manufacturing included capping the Carbon Price Floor from 2016 to 2017 until the end of the decade, which will cut energy bills for British manufacturers and also compensating energy intensive industries for the support costs of the Renewables Obligation and Feed-in Tariffs. The compensation package alone is expected to save the average energy intensive business at least £6.25 million in 2018 to 2019.

 tag:www.gov.uk,2005:AnnouncementPresenter/225985 2014-03-20T16:52:29+00:00 2014-03-20T16:52:29+00:00 News story: More than half a million british homes are warmer, greener and cheaper to heat 517,000 households have been helped to improve their homes to make them more energy efficient through the Green Deal or Energy Company Obligation (ECO) since the schemes started last year.

517,000 households have been helped to improve their homes to make them more energy efficient through the Green Deal or Energy Company Obligation (ECO) since the schemes started last year.

The Green Deal and ECO were introduced by the government to help people take control of their energy use and reduce their bills. By offering tailored advice about how to improve properties and ways to make this affordable, the Green Deal helps households to buy less energy while making it easier to keep their homes warm at the same time.

Up to the end of February this year,163,000 Green Deal assessments have taken place. The statistics also show 517,000 households had work done up to the end of January. This is over half way to the government's target of one million homes being upgraded through ECO and the Green Deal by April 2015.

Secretary of State for Energy and Climate Change Ed Davey, said:

"This government is taking action to help people and businesses control their energy bills now. Last December we announced that we were reducing the cost of government policies, saving households an average of £50 each.

"Yesterday, this government announced measures in the Budget to ensure continued investment in low carbon technology, retain our competitiveness and continue to guarantee energy security. The Budget measures will lower households electricity bills by an estimated £15 in 2020.

"With regards to the Green Deal and ECO, making it easier for people to have more energy efficient homes is the best way to put consumers in control so they can keep bills down permanently.

"It's clear there is a real appetite for more energy efficient homes, which also helps to reduce carbon emissions as well as creating jobs and economic growth in the energy efficiency sector."

Two research projects looking at awareness of the Green Deal and customer experiences have also been published which show around 80 per cent of households that had a Green Deal assessment between January 2013 and October 2013 have installed, are in the process of installing, or intend to install, at least one measure.

The research also shows 89 per cent of those that have installed an energy efficiency measure after a Green Deal assessment said they have or would recommend it to friends and family.

Tim Proctor, lives with his partner and baby son in North London. The temperature inside their new-build home fluctuated and as a result needed to be heated constantly to maintain a stable temperature.

He had a Green Deal assessment to understand more about what he could do to make his home warmer and more energy efficient, and then went ahead and had external wall insulation installed.

"We had to keep the heating on for long periods of time to keep our house stable and warm. We were concerned, along with everyone, at the rising rate of energy bills and were keen to do something to lessen the burden," he explained.

"Our Green Deal assessment was quick and straightforward and provided us with all the information on the costs of the work and the different finance options available to us. We financed the work ourselves having decided it was a worthwhile investment, and received a 20 per cent subsidy through our Green Deal provider, which was a great help.

"Straight away I noticed that the walls were retaining heat. The temperature now remains at a constant level and our bills dropped by 20 per cent in the first month. I would definitely recommend friends go through the Green Deal as the difference it's made to my property has been instant and really worthwhile."

Notes to editors:

The Household Tracker survey spoke to 3,000 households to gather information about awareness of Green Deal, attitudes towards energy efficiency, as well as confidence and trust in the Green Deal and the supply chain. The customer journey survey looked at the experience of those who have had a Green Deal assessment.

The research reveals that of those that have installed energy efficiency measures after having a Green Deal assessment:

88 per cent were satisfied with the quality of the work

91 per cent were happy with the professionalism of the installer

86 per cent were satisfied with the quality of the measure installed; and

89 per cent would recommend having the measure installed to friends and family.

The research also showed that recognition of the Green Deal quality mark amongst those surveyed has risen and is now at its highest level since it was launched – up from 12 per cent in November 2012 to 20 per cent in November 2013. The quality mark is a logo Green Deal providers and assessors can use when they become certified.

Awareness of the Green Deal increased to 23 per cent in November 2013, from 19% per cent in March last year.

 tag:www.gov.uk,2005:AnnouncementPresenter/225611 2014-03-19T14:14:15+00:00 2014-03-19T14:14:15+00:00 News story: Electricity Market Reform: Capacity Market design The final aspects of the Capacity Market design have been confirmed, ahead of the first auction being held later this year

DECC has today confirmed final aspects of the Capacity Market design ahead of the first auction being held later this year. The Capacity Market will help keep the lights on by driving new investment in gas and demand side capacity, as well as getting the best out of our existing generation fleet as we transition to a low carbon electricity future.

The Capacity Market is part of the Electricity Market Reform programme, which is being introduced to deliver green, reliable electricity for the future, at the lowest possible cost. New Contracts for Difference will incentivise investment in a diverse range of low carbon electricity, including new nuclear, wind, solar and biomass.

The Capacity Market will ensure the future security of our electricity supply by ensuring that sufficient reliable capacity is in place to meet demand. This will include the new gas capacity which DECC's Gas Generation Strategy identified as critical for ensuring future security of supply.

The Capacity Market works by offering all capacity providers (new and existing power stations, electricity storage and capacity provided by voluntary demand reductions) a steady, predictable revenue stream on which they can base their future investments. In return for this revenue (capacity payments) they must deliver energy when needed to keep the lights on, or face penalties. The cost to consumers for this capacity will be minimised due to the competitive nature of the auction process which will set the level of capacity payments.

Government consulted on the final design of the Capacity Market in October 2013. DECC can now confirm that:

15 year capacity agreements will be available to new capacity. This will provide sufficient certainty to unlock investment in new gas plant, which we expect will include a range of new independent providers;

Existing capacity will be able to access rolling one year agreements – although three year agreements will also be on offer to plant which needs to undertake significant refurbishment. This will ensure we get the best out of our existing assets for the consumer;

Penalties for unreliable capacity will be capped at 200% of a provider's monthly income and 100% of their annual income. This will provide a strong incentive for capacity to be there when we need it; and

The capacity auction will be capped at £75/kW to protect consumers from excessive costs.

The first capacity auction will take place in December 2014, subject to state aid clearance being received. Capacity will be in place by the winter of 2018. In advance of this, the Government has already announced that it will also run two transitional auctions for demand side capacity in 2015 and 2016. This will help grow the demand side industry and ensure effective competition between traditional power plants and new forms of capacity; driving down future costs for consumers.

National Grid and Ofgem have also already taken action to make certain the lights stay on before the Capacity Market begins to deliver the investment we need. National Grid is in the process of contracting new balancing services – either reserve power plants or capacity provided by voluntary demand reductions – to ensure there is enough supply to meet demand at any given point. These services will, if needed, be in place by the winter of 2014.

Full details of the Government's response to the consultation on Electricity Market Reform, including Capacity Market design, will be published in late Spring, as secondary legislation is put before Parliament.

Further information

Electricity Market Reform (EMR) is the programme that will deliver the Government's commitment to transform the UK's electricity system and ensure that our future electricity supply is secure, sustainable and affordable.

A major component of EMR, the Capacity Market is an intervention to ensure the lights stay on in an electricity system that will be increasingly dependent on intermittent wind and inflexible nuclear generation.

The Capacity Market is intended to ensure sufficient investment in the overall level of reliable capacity (both supply and demand side) needed to provide secure electricity supplies. It will bring forward new investment and get the best out of existing assets by competitively setting a price for capacity through annual auctions. Capacity agreements will be offered to investors in existing and new capacity four years ahead of the year capacity must be delivered, giving them certainty over part of the future revenues they will receive. The Capacity Market will operate alongside the electricity market.

The consultation on draft Capacity Market legislation and design proposals, closed on 24 December 2013.

On 23 December 2013 Government published the first EMR Delivery Plan, alongside an impact assessment and analysis on the potential costs to consumers of EMR and the Capacity Market. This suggested domestic consumers would pay an additional £15 annually on average to 2030 for the security of supply benefits that the Capacity Market will deliver, although costs could be lower as a result of competition in the auction driving capacity prices down, and the true costs, taking into account the dampening impact of the capacity mechanism on electricity prices, could be lower still. As a whole, Electricity Market Reform is expected to reduce annual household electricity bills by an average of £41 (6%) over the period 2014 to 2030 (real 2012 prices), relative to achieving the same level of renewables and decarbonisation using existing policy instruments.

Electricity Market Reform delivery plan and impact assessment.

National Grid has is developing two new balancing services, Supplemental Balancing Reserve (SBR) and Demand Side Balancing Reserve (DSBR). These will be used if necessary to procure additional capacity to ensure the grid can be balanced over the coming winters. National Grid plans to run a tender process in May so that further capacity can be procured, if needed, in time for winter 2014/15. Ofgem is currently consulting on the funding arrangements that will be used to support these services. Further information can be found on the National Grid and Ofgem websites.

 tag:www.gov.uk,2005:AnnouncementPresenter/225546 2014-03-19T09:45:37+00:00 2014-03-19T09:45:37+00:00 Speech: Address to the Scottish Renewable Conference 2014 Edward Davey speech to the annual Scottish Renewable Conference.

Introduction

It's great to be back here at the Scottish Renewables Conference.

It feels like I've never really been away.

Since we last met my Ministerial team and I have been getting around Scotland.

Visiting new energy projects.

Seeing the incredible progress being made in Scottish renewables.

Generating electricity for the grid, powering people's homes.

I had the great pleasure of opening the Natural Power Wind Control Centre in Dumfries and turning on the Burnhead Hydro scheme.

Greg Barker has been here helping you pursue the goal of opening up marine energy in all its forms.

And just last week Michael Fallon was flown over Whitelee so he could appreciate the sheer scale of what you are achieving.

Scotland is fast becoming a world energy hub – not just in oil & gas, but in renewables too.

Being here with you is business as usual for me.

And for Scottish Renewables, business as usual means investment and progress.

And I want to celebrate that today.

But I know that some of you are nervous about the regulatory change that is coming with the move from the Renewable Obligation to Contracts for Difference.

So I want to talk about the stability the new regime will bring.

And the Scottish people are also facing a historic choice on independence in September.

This has the potential to fundamentally change the integrated energy system our United Kingdom has enjoyed for so long.

So I want to make the positive case in energy for Scotland to remain part of our family of nations.

But let me start with the progress being made.

Progress

Last year when I spoke here, the latest figures showed Scottish renewables were providing enough electricity to meet roughly 35% of Scotland's consumption.

That has now increased to 40%.

A third of all renewable generation in the UK is now in Scotland.

As a whole the United Kingdom is making phenomenal progress.

The latest figures show that between the third quarter of 2012 and the third quarter of 2013, renewable electricity generation is up 20% on the previous 12 months.

Together we are now around half way to our ambition of meeting 30% of the UK's electricity needs from renewables by 2020.

And my prediction is, that with the framework we are putting in place, we'll do even better than 30%.

Bloomberg figures show average annual investment in renewables has doubled since 2010 compared to the previous 5 years.

And last year almost £8bn was invested in renewables – a record high.

This record is in stark contrast with the rest of Europe, where renewables investment halved between 2012 and 2013.

I've been able to boast with my European colleagues about how the UK has become Europe's renewable investment hotspot.

Many on the continent are casting envious glances our way.

And the pipeline is looking very healthy.

My Department's planning database shows that Scottish renewables projects set to generate 5GW have been consented, worth around £4bn, supporting over 4,000 jobs.

These include the Dorenell Wind Farm in Moray which is estimated will generate at least £93m in direct benefits for the Scottish economy.

And the Speyside Biomass Combined Heat and Power Plant at the MaCallan Distillery, which would represent an inward investment of £60 million to the local area.

A further 9.7 GW of Scottish renewables projects are currently in the planning system worth over £10bn, supporting almost 8,000 jobs.

These include the Inch Cape Offshore Wind Farm set to support up to 1,600 Scottish jobs during construction.

And the Kype Muir Wind Farm that would see contracts worth up to £20 million placed with local businesses.

This whole positive picture is down to your hard work - our hard work together.

So the challenge is to maintain this momentum as the regulatory picture moves from the Renewables Obligation to Contracts for Difference.

So let me turn to the stability and certainty we are bringing under the new regime.

Energy Act 2013

When I was with you here in Edinburgh last year, the Energy Bill was just starting its passage through Parliament.

Now it is law.

It passed through the Westminster Parliament with the active support of the Labour opposition.

And all six SNP MPs voted in favour at its crucial third reading.

This sends out a strong message.

There is a consensus on the continued deployment of renewables across the UK.

This legal, financial and political framework is designed to last.

Not just for the next few years, but it reaches out ten, twenty, thirty years into the future.

Certainty, stability, predictability.

By creating, the world's first low carbon electricity market, we are going green at the lowest cost.

Demonstrating that carbon reduction and economic growth can go hand in hand.

We estimate that the new framework has the potential to support investments up to 2020 of at least £40 billion in renewable electricity generation projects alone.

I know that the CfD auction process is of particular interest to you.

Following formal and informal consultations over the last 6 months, we have developed a CfD allocation approach based on confidential sealed-bids.

Auction design is now being developed.

We intend to publish further detail in the Spring and the allocation framework will be published in advance of the first round.

So, our design will prevent so called bed-blocking and ensure confidentiality - and as we have done throughout EMR design, we will listen to you

Public support for renewables remains high with only 1 in 20 voicing opposition.

But to maintain public support we must continue to show that this vision of a competitive low-carbon market will keeps bills as low as possible as we decarbonise.

We need to provide certainty, stability and fair returns for investors, generators and suppliers.

But we also need to provide affordability and value for money for consumers.

Ultimately, you know as well as I do, that renewables must reach grid parity.

In a world where carbon is properly priced.

Within a reformed EU ETS, Europe's carbon market, subject of this month's European Council.

Costs are already reducing.

By three-quarters in raw solar PV costs over recent years.

Support rates needed for onshore wind dropped 10% last year.

And the offshore wind industry has set out a clear pathway for cost reduction.

But to see further cost reductions we continue to need a real commitment to innovation.

The affordability of existing technologies needs to improve and new technologies need to become commercially deployable in the future.

That is why I am pleased to announce today a £2.7m grant award to 2-B Energy to take forward their two-bladed turbine design that has the potential to reduce offshore wind costs by up to 35%.

I will do everything I can to help you with the process of cost reduction.

Because I recognise the huge and complex issues you face.

And we continue to work closely with the Scottish Government and others to explore where we can make a difference.

For instance, we have recognised the particular challenges of harnessing renewable resources on the Scottish Islands.

That is why we announced a higher strike price for the islands.

And I will do everything I can to continue to drive investment into renewables.

To help Scotland's renewable industry, along with industry in other parts of the UK, to realise its potential.

To maintain energy security as we transition to a low-carbon economy.

And to help the household across the whole of the UK by using competition to keep prices as low as possible.

And that brings me to my final point today.

Scotland in the United Kingdom

In September, people in Scotland will take one of the most important decisions in our shared history.

Whether to stay within the United Kingdom family.

Or whether to divorce and go it alone as an independent state.

I don't have a vote in this.

But it is right, that as a UK Government Minister, I continue to set out the case for our United Kingdom.

I have no doubt, that with the talents of its people, and its natural resources, Scotland could make a go of it, alone.

But the United Kingdom is greater than the sum of its parts.

When it comes to energy, the positive case for Scotland in the United Kingdom is simple.

The size of the United Kingdom protects Scottish consumers from the full costs of Scottish power generation.

In the United Kingdom, Scotland's households pay less than they would in Scotland alone.

Why?

Because, the UK's integrated energy market is ten times larger than that of Scotland's alone.

Scotland has a tenth of the households in the UK as a whole.

But over a quarter of all UK support for renewable generation goes to Scotland.

These costs and subsidies are spread out over all 27 million households, not just Scotland's 2.5 million.

If Scotland were to choose to go it alone, maintaining this level of support would take up a greater proportion of national finances.

Meaning either higher taxes, higher energy bills or cuts in other areas.

Welfare, housing, education, health, defence - maybe losing out.

As a United Kingdom, we act as a family.

Those who need more, get more, supported by the whole.

For instance, in recognition of the lack of transmission infrastructure particularly in remote parts, almost 30% of the investment earmarked for upgrades to the British transmission grid over the next 7 years is to be spent in Scotland – over £6bn.

This is business as usual in the United Kingdom.

It's the way we do things.

It's natural.

We don't tot it all up on a per capita basis.

Instead everyone across the UK pays their fair share.

And the money goes where the money is needed.

Where it will be used best on behalf of all the citizens of the UK.

So the positive case for Scotland's energy future in the UK is the protection of the integrated market.

Sharing support, sharing benefits and sharing costs.

Scotland alone

But this positive case also leads to the negative.

We are an integrated, border-blind, market.

What happens if there is a border?

Look, I have no doubt that we would continue to trade energy with an independent Scotland.

But net electricity imports from Scotland make up only about one twentieth of demand in England and Wales.

Around 4.5%. A very small proportion.

With a border in place, the integrated market will not be sustained in the same form.

We would have to strike a new deal.

I have experience in negotiating cross-border energy deals.

And believe you me, it is incredibly complex and difficult.

And throughout the whole process I keep foremost in my mind the interests of the UK taxpayer and UK consumer.

And where the UK benefits in terms of jobs and economic and industrial growth.

Negotiating post-independence energy contracts would be no different.

I would put the interests of the UK first – a UK then without Scotland.

The Scottish Government asserted in today's Scotsman that "England and Wales will continue to need and pay" for Scottish renewables regardless of the cost and there would be no taxation issues at all.

But let me be frank.

There can be no guarantees about how much or at what price the UK will trade energy with an independent Scotland.

Because there are no guarantees about how much electricity from an independent Scotland will actually cost.

Scotland alone would need to find the £6bn required to upgrade Scotland's transmission grid.

Scotland alone would need to subsidise its remoter parts.

Scotland alone would need to pay for the Scottish Government's ambition to meet 100% of Scotland's domestic electricity consumption from renewable sources by 2020.

All of these costs would fall to the Scottish consumer or Scottish taxpayer without being shared across the whole of the current UK base.

It will be much harder for a nation having to spread these costs of across the small Scottish base to keep green energy prices competitive.

And it is at this point that our trade would begin.

When looking to import electricity, the UK would consider rationally which sources provide the cheapest and most reliable options for our people.

Scotland will go onto a list of all the places in the open market the UK can buy power from – wind from Ireland, geo-thermal from Iceland, Hydro from Norway.

And don't underestimate the renewable potential yet to be tapped in England, Wales and Northern Ireland, including offshore wind and tidal.

The Scottish Government can assert that UK consumer would continue to subsidise the costs of Scottish renewables and buy Scottish electricity to meet renewables targets no matter what the cost.

But this goes against all commercial logic.

At some point they are going to have to face up to the fact.

Independence means independence – not a continuation of business as usual.

Conclusion

You know, I was up in Peterhead last month to celebrate the funding for the next stage of the Carbon Capture and Storage project there.

If we can develop CCS as a viable commercial proposition, our energy future, the world's energy future and the future of our climate, becomes that little bit more secure.

These things should not be trivialised.

But Alex Salmond's response was to accuse me of trying to 'bribe' the Scottish people ahead of the referendum.

But I don't see everything through the lens of independence.

I see success and I celebrate it.

Whether it is in Scotland, England, Wales or Northern Ireland.

That is why I'm here today to celebrate your success.

Scottish renewables, just like renewables in other parts of the United Kingdom, are an integral part of our vision for a low-carbon future.

The wide cross-party agreement we have reached through the 2013 Energy Act puts in place the legal and fiscal framework that supports this vision for the decades ahead.

I am confident, that as we work through the process of implementation, we can maintain the momentum.

Investment, consent, construction and generation.

Scotland – a world-leading renewables energy hub.

The United Kingdom – the best place to do business.

Our citizens – reaping the benefits of the home-grown green energy revolution that you are driving forward.

ENDS

 tag:www.gov.uk,2005:AnnouncementPresenter/225009 2014-03-18T10:01:49+00:00 2014-03-18T10:01:49+00:00 Press release: Offshore wind industry given helping hand to lower costs Four businesses have been awarded over £4million to spur on innovation in lowering the costs of generating offshore wind energy.

Four businesses have been awarded over £4million to spur on innovation in lowering the costs of generating offshore wind energy, Energy and Climate Change Minister Greg Barker announced today.

The grants have been awarded to 2-B Energy, High Voltage Partial Discharge Ltd, SgurrControl Ltd and Ocean Resource Ltd as part of the Department of Energy and Climate Change's innovation competition to support research and development into offshore wind power.

The winning projects will use the funding to steam-line the design and installation of offshore wind turbines, which could lead to significant reductions in the cost of offshore wind. For example, the 2-B Energy project has the potential to bring down the cost of offshore wind by as much as 35%.

Energy and Climate Change Minister Greg Barker said:

"The UK is already the world leader in offshore wind - with more deployed than any other country.

"The benefits that offshore wind can bring are clear – from enhancing our energy security, reducing our dependence on imports and helping reduce our carbon emissions.

"Innovation is critical to cutting the cost of this low-carbon power source, which could in turn lead to lower bills for hardworking consumers. I wish the winners every success with their projects."

Notes for editors:

The four winning businesses all received funding under DECC's Offshore Component Technologies Scheme. The aim of the Scheme is to enable and promote the development of innovative technologies that can reduce the cost of offshore wind energy and support economic growth. The funding is expected to leverage substantial amounts of private sector investment for each winning offshore wind technology and to enable them to move to commercial deployment.

Below is a detailed breakdown of each winning project:

2-B Energy has been awarded £2,792,280 to develop a novel two-bladed turbine supported by a full truss steel foundation for offshore wind applications. This approach has the potential to reduce the levelised cost of offshore wind energy by up to 35%. The pilot will be trialled onshore in the Netherlands initially, then the technology is expected to be tested at an offshore site near Methil, Fife. 2-B Energy has secured an overall investment package of €26.5 million to help commercialise its innovative offshore wind technology. The funding consortium comprises a collaborative, multi-national group of private and public sector partners, including 2-B's current majority shareholder and lead investor Truffle Capital; and minority partners PPM Oost and Shell, Rabobank, Agentchap, and Scottish Enterprise as well as DECC.

High Voltage Partial Discharge Ltd has been awarded £900,370 to develop and trial a new type of monitoring technology that will provide early warning of faults in HVDC cables and direct preventative maintenance to help improve operating efficiency. The project will be led by HVPD of Manchester in partnership with Alstom Grid, The University of Strathclyde and a number of European HVDC cable operators.

SgurrControl Ltd, based in Glasgow, has been awarded £667,000 to develop a control system that will reduce the stress placed on turbine blades. The aim is to increase the lifetime of wind turbines and reduce the cost of energy. The system will be operated to test and validate the concept and demonstrate its advantages to industry. The project will be led by SgurrControl in partnership with Romax Technology Ltd and Blaaster Wind Technologies AS.

Ocean Resource Ltd, based in South Wales, has been awarded £216,442 to develop an offshore wind turbine that is assembled and commissioned on-shore and towed fully assembled for site installation using tugs. Onshore commissioning and the elimination of heavy lift installation vessels offer the potential for the design to reduce the levelised cost of offshore wind energy for the UK and overseas markets by up to 15%.

Media contacts:

2-B Energy: Mikael Jakobsson; firstname.lastname@example.com

HVPD: Othmane El Mountassir; +44(0) 161 877 6142; firstname.lastname@example.com

SgurrControl: Johanna Clarkson; firstname.lastname@example.com

Ocean Resource: Dr Lewis Lack; +44(0) 1292 430 841; email@example.com

 tag:www.gov.uk,2005:AnnouncementPresenter/223149 2014-03-12T16:17:13+00:00 2014-03-12T16:17:13+00:00 Press release: New £500,000 government fund to help community groups reduce energy bills and manage energy 12 community energy projects are set to receive up to £500,000 as a boost from the Cabinet Office and the Department for Energy and Climate Change.

The government is keen to support the development of community energy projects to show how social action can help people reduce their energy bills. The community energy sector is growing, with increasing numbers of new projects being developed. However, smaller energy groups often work in isolation, with no formal networks for skills sharing or mentoring with larger more established organisations.

That's why, today, the government has awarded groups between £10,000 and £50,000 so they can form consortia, giving larger groups the resources to mentor others.

The chosen projects range from:

a community forum that provides workshops and assistance to communities to generate power using hydro energy

a social enterprise that sets up study visits and seminars for local community groups so they can reduce their fossil fuel energy use by using sustainable wood sources

training volunteers in reducing energy usage so they can make home visits to older people and audit their home energy use and make improvements

training volunteers in Birmingham to help the Somali community switch to solar energy and use energy-saving light bulbs to reduce levels of fuel poverty

visiting mosques to help Muslim communities become more energy efficient

Minster for Civil Society Nick Hurd said:

We want to support community energy groups to help each other. That's why we are investing £500,000 so that larger projects can help smaller groups get off the ground and more people can learn how to make energy cost savings.

Secretary of State for Energy and Climate Change Ed Davey said:

This new fund will give aspiring communities access to the cash they need to help kick start hundreds of clean, green energy projects.

Not only can community energy projects boost local economies and drive forward green growth, they can also help save money on energy bills too.

The groups receiving funding are:

Youth Community Energy Catalysts

National Association for Areas of Outstanding Natural Beauty

My Green Investment C.I.C.

BioRegional Development Group

London Sustainability Exchange

Repowering Limited

Wiltshire Community Land Trust Ltd

Northfield Ecocentre (part of Central England Quakers)

Sheffield Renewables Limited

The Thornbury Centre

Ouse Valley Energy Services Co Ltd

Middleport Environment Centre (MEC)

The Cabinet Office's Centre for Social Action supports the most effective non-profit projects that tackle persistent community issues. It will commit £36 million to addressing local problems which can benefit from community participation such as volunteering, mentoring or peer-to-peer support.

EDF Energy are supporting this initiative and are looking to provide the groups with mentoring support in business management on a pro bono basis.

 tag:www.gov.uk,2005:AnnouncementPresenter/223166 2014-03-12T15:33:41+00:00 2014-03-12T15:33:41+00:00 Speech: DECC's celebration of International Women's Day Speech by Baroness Verma to launch DECC's celebration of International Women's Day

Thank you all for being here today at the start of DECC's celebration of International Women's Day.

I would like to congratulate the DECC Women's Network on the fantastic work they have carried out since they were established. The network has come a long way and faced many challenges during its establishment. I believe it now holds a strong and respected ground within the department where it is able to successfully influence and inform key decisions affecting women within the department and I am glad to see so many of you here today.

The Network offers a great forum to discuss the issues face by women within the department and the wider energy sector. It is proactive in its approach and seeks new ways to reach out and challenge the status quo. I have been very impressed with the range of events put on by the network including talks from senior colleagues within the department and tailored workshops such as the Maternity and Paternity forum put on at the beginning of this month.

I would like to congratulate the founders of the group (Becca and Rebecca) and the newly created steering group for all their hard work to date. In order for the network to build on its work and its continued success, is dependent upon your support.

I would like to tell you a little bit about:

International Women's Day

The importance of encouraging more women to consider a career in the energy sector

My experience as a business woman and politician.

So turning to International Womens Day.

International Women's day was held this Saturday 8th March and thousands of events are being held throughout the world this week to mark the 103rd year of this celebration.

This year's theme is inspiring change. Whether that's at work, at home or in life in general, it focuses on how women have inspired change.

International Women's Day is a great example of how, collectively, we are able to not only inspire but also deliver change.

We have come some way since the founding years of International Women's Day. Female rights and equality for women now have a global stage, the day is now a public holiday in 27 countries and this year over 1,200 official events have been arranged across the globe. Women's equality has made positive gains. However, there is still much more work needed in the fight for gender equality, the various areas of abuse; domestic, sexual, psychological, forced marriage, dowry, land rites, the list goes on.

International Women's day encourages advocacy for women's advancement everywhere, in every way. It calls for challenging the status quo for women's equality and inspiring positive change.

However, for these issues to be addressed, we need the support of all in society - with change, will and leadership coming from the top – the confidence and trust coming from the bottom.

Which brings me to my second point:

The work you do in DECC transforming the energy landscape and acting on global climate change is vitally important to us all. Women are increasingly playing a more active role in the energy and green sectors.

We need to ensure the benefits of stronger female representation within the energy sector, particularly at board and senior management levels. Which is one of the sub themes of this year's international women's day.

As the recent PWC report, prepared in association with the Women's Oil Council, found:

13% of non-executive roles are female, whereas only 1% of executive roles can say the same.

Only six oil and gas companies in the survey had a board that was 30% or more female.

It is crucial for companies, along with Government, to ensure that we all are provided with the support to pursue those career paths to reach senior levels that become available.

Or if the impact of energy usage in the home of developing countries- I have seen for myself the positive impact a clean cook stove can have on the day to day lives of women in rural towns and villages – their life quality improving – the impact on time management to pursue other activities to ensure that they can become economically more secure – ensuring their position in society changes.

If we are to ensure we tackle carbon emissions globally- then this work towards our climate change goal is vital- severe weather effects globally are a reminder of the impacts of continuing to exploit our planet. So whether it is in our collective thinking globally- women have a major role to play at work or at home.

I believe that there is an important role here for inspiring female role models and mentorship, along with visionary and innovative employers.

Looking at this room- reflects how the purchasing power of goods/ services relating to energy and households impacts upon women and the real need to engage and involve women in the sector.

This is why, over the coming months, along with a number of excellent women in the energy sector, I will be working to establish a group to encourage more women to consider a career in energy, to showcase those successful women already and to interact and connect globally with women in the energy sector across the world.

Finally, I was asked to say a few words about my own personal experience…

I still often find there are moments when I wake up in the morning and have to remind myself that I have actually broken through a great many barriers and often against the backdrops of the almost impossible.

It is good to remind yourself, not to over analyse things that may not have gone to plan but to take advantage of any opportunity that comes your way.

Growing up in Great Britain, I faced a battle of wills with my father; trying to live a life that satisfied my family's cultural values and those that met my own expectations as an ordinary young person. This experience provided me with an armoury of tools that equipped me to take on and challenge anything that prohibited or blocked my way to progress.

At 19, married, with a small baby in tow and a mortgage, I took the decision to start a business with my husband, in high fashion manufacturing. I became very much involved in local activities, especially supporting victims of domestic violence, speaking up on gender issues, etc.

The overt and covert prejudices that I have experienced throughout my life whether on the grounds of colour or gender, have always strengthened my resolve to ensure that others are supported in fighting the challenges that sadly we still have to address.

As with all things that have arisen in my life, along with the challenges have come excellent opportunities and some absolutely brilliantly supportive people.

I have 2 major strengths, one - I am very good at networking, not shy to ask the stupid question and secondly I don't beat myself up with over analysing when things don't go my way and I look at learning from the experience and moving on.

My own life experiences and challenges have shaped what I set myself to do in areas in which I have influence or authority.

And whilst the demands of being a minister are huge, from the onset ( and with the support of the Secretary of State and other DECC ministers), I have ensured that how we shape our policies, the messages we wish to convey and predominantly how we engage with those that are the biggest purchasers of our goods and services are properly incorporated in those policies.

The energy sector is one where there is huge opportunity going forward for us all to shape. I do hope you will help, by playing your part in ensuring that the sector is fit and representative for this incredibly exciting decade of innovation and change.

So turning to this week, I am very proud to lend my support to the Women's Network and I encourage you all to attend the fantastic programme of events, starting tomorrow with some of our female colleagues at Grade 7 who will talk about their progression through the civil service.

On Wednesday The Department of Health has organised an all-day conference on inspiring women, inspiring change and features high profile speakers from across the public service.

On Thursday, Jane Cunningham, who runs her own marketing business, will speak about marketing specifically to women – providing useful consumer insights for DECC no doubt!

And finally the week finishes with a panel debate on women in science, including various women in science related jobs in both the public and private sector.

Thank you again for coming today. I'd like to end by reiterating my support for International Women's Day, the DECC Women's Network and what looks like a very exciting and inspirational series of events. I encourage you all to pop into the sessions, to support your network and most importantly, promote equality for women.

 tag:www.gov.uk,2005:AnnouncementPresenter/222838 2014-03-11T13:57:26+00:00 2014-03-11T13:57:26+00:00 Speech: Green social change: building an Energy Saving Society Edward Davey speech to the London School of Economics.

It's great to be here supporting the LSE's Energy Society.

The LSE was founded on a belief in collective action and social change.

And that's exactly what we need in the decades ahead if we are to meet the energy challenge before us.

Maintaining energy security while we decarbonise, at a cost our people can afford.

The work of the LSE's Grantham Research Institute, chaired by Lord Stern, has been absolutely invaluable in helping to set out the scale of what we face with a changing climate – and the imperative to act.

On the basis of any normal risk assessment – weighing probability against impact, the cost of acting against the costs of inaction, bringing the science together with the economics – taking a gamble on climate change would be incredibly unwise.

Yet for those of us ready and committed to act on the science and the economics, the challenges are still great.

To move from what some have labelled "carbon capitalism" through to a low carbon future will be tough politically and tough socially.

Making this huge transition in the way we live, in the way our world operates, won't be easy as the old order clings on and is forced to adapt.

And the urgency with which we need to act, doesn't make it any easier.

Yet what needs to happen for the transition has been clear for some time.

Science, technology and engineering will of course be critical – from the innovations, to the development through to the deployment and operation.

To generate abundant low carbon electricity.

To unlock affordable low carbon transport.

All so obviously possible and beneficial.

The alchemy of solar power and the promises of energy storage.

I'm confident we can rely on the scientists and the technicians not to let us down.

Indeed, they can help unlock the crucial international climate change diplomacy which has proven so tough.

For that diplomacy - both political and commercial - will be essential for the transition.

For the self-evident reason that we can't solve global warming alone.

Yet that diplomatic challenge is daunting, with our world so complex - developed and developing - North/South - democratic/authoritarian.

Escaping climate chaos has to be done together, despite all the imperfections and frustrations of finding multi-national solutions.

Yet even a combination of good technology and lucky international politics won't be sufficient, if people don't think differently about energy, if we don't change how we use energy.

And it's this I want to focus on today. The bottom up climate challenge, if you like.

Not a solution just handed over by scientists or imposed by Governments, vital though their role is.

But a way forward that involves changing the very culture of energy.

Exploring how people can make a difference – exploring how we maximise the potential of individuals to make a difference.

And that takes us, quite simply, to using less energy - energy efficiency.

Green social change

One of my very first engagements as Secretary of State was to launch DECC's Energy Efficiency Deployment Office.

I said then, I wanted EEDO to have a key role in changing the "way we think about energy…… to make energy efficiency real and relevant to people's everyday lives".

Because if we are to meet the energy challenge, we will need a great movement of social and behavioural change.

This is, in many ways, one of the toughest challenges we face.

How do we alter our own society – indeed the societies of the developed and emerging economies – so people change their behaviour - willingly.

Now we do have many tools to help change behaviour.

Information – from smart meters to remote controls.

Regulation – for less wasteful electrical appliances to more fuel efficient cars.

Markets – for new green finance and innovation.

And I want today to convince you that we're using all these tools and more – whilst also setting you the challenge of working out how to effect behaviour change across a society over time.

How do we meet our ambition to build one of the least wasteful, most energy efficient, most climate friendly societies in the developed world?

More simply, how do we build an Energy Saving Society?

An Energy Saving Society

Frankly, even if it wasn't for climate change, we should be doing all this anyway.

Because, an Energy Saving Society is one whose energy efficient businesses are better placed to compete in the global market.

Energy efficiency makes sound commercial sense.

Using less energy costs less - providing room for higher productivity, higher growth, more jobs, more exports.

And we should be doing this anyway, because an Energy Saving Society is a fairer society.

The link between bad health and living in a cold home is undeniable.

The link between social mobility and fuel poverty is increasingly clear.

And no-one should have to choose between heating and eating.

So energy efficiency is a tool for social justice – where the poorest and most vulnerable stand to benefit the most.

That is why taxpayer funded schemes like the Winter Fuel Payment and Cold Weather Payments are so important – as well as social schemes like Affordable Warmth and the Warm Homes Discount paid through energy bills.

And in our forthcoming new Fuel Poverty Strategy – the first for over 13 years - energy efficiency will play a starring role.

But the case for energy efficiency is even stronger.

For it brings not just a stronger economy and a fairer society – it also brings a more secure economy and society.

An Energy Saving Society is a safer one – with increased energy security and reduced import bills.

You don't need the current live example of the Crimea to prove that point.

Of course, the need to maintain and improve our energy security will mean building more power stations, not just demand side measures.

Indeed, the transition from a fossil fuel economy to a low carbon one will mean building different power stations than in the past.

We have to innovate around energy supply because we will still need huge amounts of energy – however successful we are in cutting wasted energy.

New nuclear power, new offshore and onshore wind farms, new cleaner gas-fired power stations and more.

But building new supply is expensive and if we focus too much on it, we miss the massive demand side opportunity.

For by tapping the potential of energy efficiency, we estimate we can save ourselves in the UK the need to consume 196 TWh by 2020, the equivalent output of 22 new power stations.

So the long and short of it is that energy efficiency is central to meeting the energy challenge and central to the Governments energy policy.

That's why, two years ago, we published our Energy Efficiency Strategy, the first of its kind.

It fleshed out why we think people and firms don't exploit the energy efficiency opportunity more.

And how we might change those behaviours.

Part of the answer will require central commands – in the form of laws, regulations and standards.

But part of the answer will require the softer, bottom up approach I referred to before, of information, incentives and insights.

But first let me start with regulations.

Regulations

For I think we continually fail to recognise that regulations are often the cheapest, most effective way of achieving a society's goals.

How regulations can help people make better choices.

This statement on regulations ought to surprise you – Coalition Minister praising the role of regulation?

Well, for me, regulation isn't an ideological issue, it's simply a pragmatic one.

It is right that the Coalition Government has stressed deregulation in many areas of our lives.

When I was a Business Minister before, I led successful efforts at the EU level to drive a more deregulatory culture in Brussels.

Yet economists showed decades ago that smart regulations can drive economic growth, stimulate innovation and achieve our ends in the most efficient way.

And energy efficiency is one of the classic areas where regulation should play a larger role in the future.

Take Products Policy for instance – the regulations around the electricity-powered appliances that dominate modern life.

Goods like washing machines, fridges and televisions form an integral part of our lives – and our energy use and costs.

Recent development in terms of the efficiency of these appliances has been impressive.

Ecodesign standards and energy labelling are driving products to become more energy efficient.

And new cars must be more fuel efficient and less carbon emitting.

New homes will soon have to be zero carbon homes – at last.

But the question is – have we done enough? Are we missing cheap, easy wins?

Can we persuade industry, Parliament, the EU and our global competitors that we should do more?

I am utterly convinced that we need to do far more.

It's why I fought a quiet behind-the-scenes battle to win ministerial responsibility for energy products and their efficiency.

Labour had left these with DEFRA, the Department for the Environment, Food and Rural Affairs.

As of last week, they've been transferred to my department, the Department of Energy and Climate Change.

And DECC's Energy Efficiency Deployment Office is now taking work forward on this.

Partly it will be a domestic challenge – speeding up the take-up of energy efficient products.

I was pleased, for example, to be able to launch, with John Lewis, an innovative retail trial to see whether giving people lifetime electricity running costs on white goods results in higher sales for energy efficient models.

So consumers considering energy efficiency not just from the A to G ratings – or even the A+, A++, or A+++.

But having the price information – the purchase price and the lifetime operating price.

This full trial is running now and will complete in June.

I hope it will show that our new approach to labelling will drive greater take-up of the most energy efficient appliances.

And we need to do more of this – from driving the take-up of LED lighting to ending the energy waste of the stand-by status.

But this regulatory challenge has an even greater international challenge.

President Obama's former Energy Secretary – Professor Steven Chu – argued that if the world adopted super energy efficiency standards for all consumer appliances, it would save the energy that 600 medium power stations can generate.

So regulations have a role.

Information - smart meters

And with these regulations we need to give people more information – and easier to use information – about their energy usage.

That's where our policy of smart meters will be critical.

The Smart Meters programme aims to replace 53 million meters - with smart gas and electricity meters - by 2020.

Most households and small businesses will have smart meters installed by their energy company between autumn 2015 and 2020, although some energy companies are starting to install them now.

This important change will put people in control of their energy use, bringing an end to estimated billing and help people understand what energy they are using.

Consumers will only be billed for the energy they actually use, helping them to better manage their budget.

Through an in-home display people will be able to track their energy usage in near real time.

They will be able to see what in their homes is making up their energy costs and experiment with lifestyle changes to bring bills down.

The behaviour changes that smart meters have the potential to unlock could be profound – in industry as well as in the home.

Putting people in control - competition

And smart meters will help drive choice and competition too.

Making it faster to switch suppliers, and offering tariffs that better suits individual needs.

24-hour switching is my ambition, and I think smart meters will help us achieve that.

But I believe we can cut switching times in half by the end of this year, way ahead of the smart meter roll out.

And by making it easier for people to understand energy, to engage with the market, to choose, we can not only help people save money, but help them cut their energy usage.

So we need to experiment with multiple ways to make it easier for people to get information they need to choose.

That's why yesterday I announced we are consulting on embedding Quick Response Codes [QR Codes] into energy bills.

These could contain the consumption details required for people to quickly scan and upload to switching sites - to see quickly where the best deals are for them.

Of course for information to be useful and for competition to be meaningful, our energy market needs to be dynamic.

And I'm delighted that we've seen so many new firms entering the UK market in the last three years.

And one of the reasons I am so supportive of new entrants in the supply market, is because they are challenging the old business models.

Especially the model where the people who sold you energy were also responsible for helping you save energy.

That has never made sense to me.

For energy generators and suppliers to help their customers save energy, has required a complex system of regulations and incentives to deal with the inherent contradictions – and it's not been efficient or compelling.

Frankly – we have had to drag the big energy companies kicking and screaming along the path of energy efficiency.

That is why I have asked OFGEM and the competition authorities in their current competition assessment to look specifically at different business models that would encourage saving energy rather than simply consuming it.

For this government has been focused on facilitating driving new business models already.

The Energy Act 2013, to create the world's first ever low carbon electricity market.

Our pilots for Electricity Demand Reduction start later this year.

And of course the Green Deal.

The Green Deal is different from anything that has gone before; a world first.

And working alongside the Energy Company Obligation - which helps the poorest and most vulnerable in society - the Green Deal is designed to enable at least 1 million homes become more energy efficient by the end of the next financial year.

But you will have read, if you take interest in these things, that the Green Deal isn't working and even that it won't work.

Such comment normally fails to understand what we are trying to do with the Green Deal and what the Green Deal actually is.

The Green Deal is not just a finance package.

First and foremost, the Green Deal is a way of helping people understand how they can save energy, how they can change their behaviour and how they can reduce their bills.

It is about the availability of good information on home improvements and access to trusted companies to do the recommended work.

Like any new model there have been teething problems, and last week at the Ecobuild conference I set out to the green building and energy efficiency industry how we are improving the way the Green Deal works.

So we are updating the Green Deal to provide simplicity for consumers, stability for businesses and incentives packages that make sense for both.

For the Green Deal is unlike any normal government programme.

It's about creating a new market – it will have to develop and evolve like any emerging market, over the next two decades.

New business models will be challenging to develop – because they are designed to be disruptive to the old order.

Conclusion

To conclude.

Energy efficiency will be central to the transition to a low carbon world.

Governments will need to lead – with regulations and with incentives.

But a critical challenge is changing the behaviour of investors, firms, individuals and communities.

Information. Technology. Competition. New ways of doing business.

Addressing climate change, meeting the energy challenge, working out how we power the country and protect the planet in a sustainable way is, in my view, the defining task of my generation.

And future generations. Because this transition is going to take many decades.

We are going to need a sustained intergenerational and international effort.

That means we are going to need the best efforts of the students here today - the best scientists, the best economists, the best engineers, and yes, the best politicians – to drive this change through.

The LSE has a reputation for cultivating some of the best and brightest the country has to offer.

So my last word is for you.

Please grasp this opportunity.

I'm delighted you are a member of this society.

Because your generation will soon be at the front-line of the energy and climate change challenge.