PES Energy News – 06 March 2023 

Table of contents:

01 – IEA: ‘Renewable deployment helped limit rise in carbon emissions’ – Without clean energy, the growth in carbon emissions would have been three times higher

02 – Ofgem proposes to build ‘world’s first’ distributed energy ‘super’ marketplace – The regulator is looking at a platform that will facilitate the buying and selling of surplus electricity from low carbon energy storage, generation and smart devices

03 –  ‘For net zero’s success, public sector must take charge’ – Confidence will be critical to its achievement by 2050, an ADE report claims

04 – ‘Half of the UK’s farmland would be needed for Jet Zero’ – Or the country would need double its renewable electricity capacity, a report claims

05 – Wind firm to sue government over windfall tax – It claims the tax goes against what the Net Zero Strategy stands for

01 – IEA: ‘Renewable deployment helped limit rise in carbon emissions’

Carbon emissions in 2022 rose less than was originally feared, the International Energy Agency (IEA) has said.

In its latest report, the agency found that emissions saw an uptick of less than 1% last year – as an increase in renewables, electric vehicles (EVs) and heat pumps helped to balance an increase in coal and oil.

In 2021, emissions jumped by 6% – but the IEA states that although last year’s increase was far less, the trajectory is still not right if worldwide climate goals are to remain achievable.

There was a 321 million tonne rise in carbon emissions last year, taking the total to 36.8 billion tonnes.

The deployment of clean energy and technologies did see 550 million tonnes of emissions avoided, however.

Coal emissions saw a 1.6% spike, as a result of the energy crisis; with Asia the main continent switching from gas to coal to keep the lights on for an affordable price.

Despite the fall in gas use after the Ukraine invasion, the increase in coal saw this drop in emissions cancelled out.
Record deployment of renewables saw the European Union’s emissions drop by 2.5% – but the US saw a 0.8% increase, with energy use in buildings increasing to cope with extreme temperatures.

02 – Ofgem proposes to build ‘world’s first’ distributed energy ‘super’ marketplace

Ofgem has launched a consultation on ways to boost the grid’s flexibility in a bid to build what is described as the world’s first distributed energy super marketplace.

The energy regulator has proposed a common digital energy infrastructure that could help eliminate wasted renewable energy.

Britain could soon see a common platform that will help unite existing markets by facilitating the buying and selling of surplus electricity from batteries, power generation and smart devices, like electric vehicles (EVs).

Akshay Kaul, Interim Director of Infrastructure and Security of Supply said: “Currently, energy markets are complicated, fragmented and difficult to navigate, making it difficult for small assets like EVs and heat pumps to join in and putting off potential sellers and investors, “We are setting out plans for how we can standardise open markets – specifically by creating an ambitious vision for distributed flexibility involving a common ‘digital energy infrastructure’ which will allow more communities, businesses and organisations to buy and sell surplus renewable electricity and services when and where they need it.

“A single digital platform will allow users to access multiple markets transparently and simply. The more energy consumers can help and participate and be rewarded for doing so, the more renewable energy we can successfully accommodate and the more secure our energy supplies.”

03 – ‘For net zero’s success, public sector must take charge’

Public institutions need to be leaders in the net zero transition.

That’s according to a report by the Association for Decentralised Energy (ADE), arguing that confidence will be critical to its success – and this can be created by the government and public sector.

Local authorities are key in this process, the ADE claims – as they can help people understand the importance of implementing net zero and how this will impact their future.

The report, however, caveats this by stating the government will need to provide more resources to local authorities to make this happen. Openly sharing the benefits experienced by reducing emissions, the steps taken to achieve this and lessons that can be used from past experiences in the coming years is also important.

The analysis also calls for it to be a requirement for public spending that suppliers demonstrate that they are transitioning to net zero in line with the UK’s circled date of 2050.

Author of the report, Joanne Wade, said: “There is an opportunity here for the public sector to drive change. A successful transition to net zero is one that involves everyone and the public sector has many roles to play, both to show that everyone can be involved and also to show that everyone must play their part.”

04 – ‘Half of the UK’s farmland would be needed for Jet Zero’

In order to make enough sustainable aviation fuel (SAF) for ‘Jet Zero’ to be achieved, half the UK’s farmland would have to be devoted to the cause.

That’s according to a report by the Royal Society, which claims that if farmland wasn’t sacrificed, more than double its entire renewable electricity supply would be required.

An aim has been set by the government for net zero by 2050 – but the researchers claim aside from the production of SAF needing to increase, new planes and infrastructure will also need to be built to accommodate this change.

Biofuels, green hydrogen, e-fuels and ammonia are being considered as fuels that would create a dip in aviation’s carbon footprint.

Biofuels are made from crops and waste; producing enough to power the Jet Zero vision would require half of all agriculture in the UK, the report reveals.

The other fuels mentioned require double the renewable electricity capacity currently in place.

British aviation caused 8% of the nation’s greenhouse gas emissions in 2019 – and the Royal Society argues much more research will need to be done to understand how to truly decarbonise the industry.

The Department for Transport responded: “Our Jet Zero strategy sets out how we can achieve net zero emissions from UK aviation by 2050, without directly limiting demand for aviation. SAFs and hydrogen are key elements of this and we will ensure that there is no impact on food crops.”

05 – Wind firm to sue government over windfall tax 

Community Windpower has told ministers it intends to sue the government, after the Electricity Generator Levy (EGL) was
implemented on 1st January.

The EGL is a windfall tax on the renewable energy sector – which green energy companies claim is seeing them treated worse than oil and gas firms.

The wind company is a £2 billion investor in more than 1.5GW of British wind energy – and has informed government lawyers of its intention to sue.

Community Windpower states that the levy is “unfairly disproportionate, discriminatory and adverse to the government’s Net Zero Strategy.”

Explaining the company’s decision to sue, Managing Director, Rod Wood, said: “This measure not only leaves Ministers’ green credentials in shreds, it will also suck hundreds of millions of pounds out of investment in green energy, hammering renewable industries and costing high quality jobs.

“The levy proposals are at loggerheads with the government’s obligation to cut carbon emissions, abide by fair subsidy rules and foster investor confidence. We are now left with no option but to seek the court’s intervention.”

A spokesperson from the Treasury said: “This temporary measure is not designed to penalise electricity generators, it is a response to the fact that, as a result of exceptional and unforeseen geopolitical events, some electricity generators are realising extraordinary returns from higher electricity prices.

“These higher prices have imposed substantial costs on households and businesses which is why the government took unprecedented action with £55 billion to directly help people with their energy bills.

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