DECC published on 15 December a Technical Update regarding its Electricity Market Reform package.
The government confirmed its intention to bring in a new market-based mechanism that would see energy generators given money to provide back-up capacity. This is a move that many in the industry believe could result in smart grid and energy storage technologies playing a crucial role in the UK's future energy system.
Further details on contract for difference feed-in tariffs and emissions performance standards will be set out early next year. More updates are due in May and in the summer.
You can read out initial summary here.
On 29 November Chancellor George Osborne delivered his Autumn Statement to MPs in the Commons.
Although there were few surprises there was some welcome news for businesses. As expected incentives for start-ups in emerging sectors and financial support measures for energy-intensive industries have been announced.
Besides this the Statement focused on the UK's infrastructure, with Osborne vowing to "overhaul the physical infrastructure of our nation" and committing £5bn to future projects. Alongside the Statement the Treasury published its National Infrastructure Plan 2011. The Government will also increase the Regional Growth Fund for England and will consider centring new Enterprise Zones around energy infrastructure.
You can read our initial summary here.
Cornwall Energy's managing consultant Nigel Cornwall gave a presentation on the Government's Electricity Market Reform proposals to delegates at the first day of RenewableUK's annual conference on 25 October. You can download the slides here.
Later on the first day Nigel also spoke about network charges. This presentation can be downloaded here.
On 20 October the Government published the long-awaited results of its RO banding review. Read our initial coverage here.
Early indications suggest <30MW marine to be biggest winner (receiving 5Rocs/MWh) while onshore wind could struggle after being banded down to 0.9Rocs/MWh.
Responses are invited by 12 January.
You may well have heard that Prime Minister David Cameron and energy and climate change secretary Chris Huhne held an Energy Summit on 17 October to discuss what can be done to combat rising gas and electricity prices ahead of the Winter.
Before attending the meeting Nigel Cornwall, in his role as chairman of the independent Energy Suppliers Forum, wrote a letter published in the Guardian explaining that small independent suppliers supported moves to promote switching ahead of the Winter. But he warned that any new obligations on suppliers should be phased in for smaller market participants only after critical mass is achieved.
The Energy Suppliers Forum, which is managed and supported by Cornwall Energy, has been meeting since 2003 and recently held its 100th meeting on Wednesday 12 October.
To mark the occasion and to respond to recent ministerial moves to consider how barriers to independent entry and growth in the supply market can be addressed, we held an event to promote awareness of the group and its members. Various members of the 15-strong group gave short presentations on a range of practical measures we believe can help tackle barriers and support government policy. A key theme was how to ensure the Ofgem retail market review delivers meaningful change in appropriate timescales. Each presentation was followed by questions from the floor.
Contact Ed Reed on 07920 123181 if you would like further information.
In our response we suggest that, although a longer-term view will help with visibility of BSUoS costs, the current position is inadequate. We believe that National Grid should be obligated at all times to have a current year and year-ahead forecast of these costs and publish these on its website, and also to reconcile the implied IBC values to the forecasts.
Click here to read our full response.
Cornwall Energy's managing consultant Nigel Cornwall gave a presentation on the Government's Electricity Market Reform (EMR) proposals to delegates at the second day of Renewable UK's Offshore Wind conference on 30 June.
New applications will drive the energy sector towards machine-to-machine (M2M) enabled smart grids. This joint Cornwall Energy and Analysys Mason viewpoint identifies applications that present the highest overall value in the smart-grid ecosystem.
Cornwall Energy's senior consultant Ed Reed gave a presentation at the Falmouth Energy Week on 24 May. The theme of the event was "Frameworks for Low-Carbon Future", and our presentation featured in the new practices and institutions sessions. Ed Reed provided a summary of a relatively newly introduced option for developers of distributed generation to seek a slimmed down supply licence to enable them to sell their power directly to customers without having to directly interface with central industry codes--such as the BSC and CUSC. You can see Ed's presentation here.
The joint Cornwall Energy and EEE Limited workshop on the Electricity Market Reform (EMR) heard experts debate the possible future of the UK electricity market.
The 30 March event included presentations and panel sessions involving a variety of policy and industry experts, including past and present members of DECC, from Ofgem, academia, and a wide range of industry members and stakeholders. The morning session was chaired by Nigel Cornwall, with the afternoon events chaired by Alex Henney of EEE Limited.
Download the full report.
Cornwall Energy has published two primers to provide a high-level view of new significant policies introduced on 1 April 2010.
The first explains the Carbon Reduction Commitment (CRC) Energy Efficiency Scheme, an emissions cap and trade scheme that obliges large businesses to purchase permits to cover carbon emissions.
Click here to read the CRC primer.
The second gives an overview of Feed-in Tariffs (FiTs) and explains how they work, applicable rates and responsibilities of Ofgem and suppliers.
Click here to read the FiT primer.
In our response we suggest that any new gas emergency arrangements need to be thoroughly tested. Dynamic cash-out could have major credit implications for shippers, particularly smaller participants.
Further consideration should also be given to ensuring that any arrangements put in place for gas can co-ordinate with the arrangements for dealing with electricity emergencies.
Click here to read our response.
Our response welcomes the proposal to raise the supplier customer account threshold level for participation in the CERT (and other) programme from 50,000.
We argue that the level should be raised to 250,000 customer accounts. This should ensure that the competitive benefits new entrants bring to the wider market are not eroded by the relatively high compliance costs they would face if the threshold were set at a lower level.
Click here to read our response.