Utility Week

10 | 2ND - 8TH NOVEMBER 2018 | UTILITY WEEK Policy & Regulation This week Restart onshore wind auctions, Clark urged Renewables developers implore energy secretary to let onshore wind compete in CfD auctions A group of 14 renewable energy companies have written a letter to business and energy secretary Greg Clark urging him to let onshore wind compete in future contracts for difference auctions. The signatories include renewable developers Scottish Power Renewables, SSE, Innogy, Statkra and Vattenfall, as well as turbine suppliers Siemens Gamesa and Vestas. The letter states that onshore wind is not only the "cheapest form of new power generation" but also that more than three-quarters of people surveyed expressed their support in the government's own opinion polls. It says new onshore windfarms could be built at a "subsidy-free price", but investors need the financial cer- tainty provided by a guaranteed price for electricity. The letter says that resuming auctions for more established technologies between 2019 and 2025 would provide a £1.6 billion "payback" for consumers through lower energy bills. Mature technologies have been unable to bid for the contracts since the first auction round in 2014/15. The second round in 2017 was for less established technologies and was dominated by offshore wind. Aer the 2015 general election, the government reformed planning regulations so onshore wind projects can be built only in areas deemed suitable by local authorities and only with their backing. The Conserva- tive party maintained its opposition to "more large-scale onshore wind power" in England in its 2017 manifesto, implicitly opening the door to new projects in other nations of the UK. TG WATER Sector plans to halve leakage by 2050 Water UK has told the govern- ment that the water industry aims to cut leakage by 50 per cent by 2050. In a letter to the environment secretary, Water UK chair Sir Brian Bender said the ambition is to cut total leakage in England to about 10 per cent. The move is in line with recommendations from the National Infrastruc- ture Commission and comes before Michael Gove's expected announcements on improved resilience of water supplies. Bender outlined collective efforts by water companies to engage with customers about their expectations of further material cuts in leakage. The letter said this com- mitment "reflects a significant departure from the traditional regulatory approach, under which companies have focused on achieving what has been known as the 'sustainable eco- nomic level of leakage'". ENERGY UK could mirror ETS after no-deal Brexit The government is consider- ing creating a "mirror" scheme linked to the EU Emissions Trading System (ETS) if the UK is forced to leave the mechanism aer a no-deal Brexit. Speaking before the House of Commons EU Energy and Climate Change sub-committee, energy and clean growth minister Claire Perry said that, should there be a no-deal Brexit, one of the long-term options being considered by the government is setting up a "mirror system that is linked to the ETS with current opera- tors in the UK having the same requirements to monitor, report and verify their emissions as per exit day". ENERGY Nuclear industry reveals Brexit fears The chief executive of the Nuclear Industry Association (NIA) has warned there is "serious concern" in the sector about the possible effects of a no-deal Brexit. Former shadow energy minister Tom Greatrex said the absence of a transition period could cause serious problems for the industry. He said although the UK and EU have already reached an agreement over what their future relationship should be in terms of the civil nuclear industry, these plans would be scuppered if the wider deal fell apart. With the free movement of workers and components at stake, Greatrex said a no-deal Brexit is a "serious concern" for the nuclear industry – as it is for many other sectors. Investors need a guaranteed price for electricity Political Agenda David Blackman "Budget does little to allay climate change concerns." Three weeks ago, the UN's IPCC set out the urgency of the challenge facing the world if runaway climate change is to be prevented. That stark message doesn't appear to have got past the door of 11 Downing Street, judging by Monday's Budget. Hopes quickened during Philip Hammond's set-piece speech when he said: "We can- not secure our children's future unless we secure our planet's future." played a key role in driving coal out of the generation mix, increasing the risk that this dirti- est form of fuel will linger longer than anticipated. Many believe the Treasury has never really "got" environ- mental issues and that its bean counters see such concerns as second order compared to what they see as the more pressing issues of getting and spending. This week's Budget will have just entrenched that view of Number 11's priorities. The IPCC recommended a rapid shi to a no-carbon economy. What we got from the chancellor instead is a tax on imported, non-recycled plastic packaging and £10 million to deal with abandoned waste. Worthy causes both, but as a response to the challenge the chancellor had just outlined they felt small beer. And the rest of this week's Budget was unu- sually light on detail on energy and climate change issues. What meat there was, including the latest halt in the level of fuel duty, could set back decarboni- sation efforts. A freeze was mooted too for the carbon price, which has

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