Utility Week

UTILITY WEEK | 6TH - 12TH DECEMBER 2019 | 11 Policy & Regulation This week Call for party leaders to make climate pact Businesses, trade bodies, academics and policy specialists sign open letter to main party leaders A group of more than 40 busi- nesses, trade bodies, academics and policy specialists have signed an open letter to the lead- ers of the UK's main political parties, urging them to agree to a cross-party climate pact follow- ing the general election. The letter credits co-operation between parties for the introduc- tion of the country's new net zero target and says this must continue as they strive to fulfil the commitment. "If the past few years have taught us anything, it is that taking a divided approach to policy-making is ineffective," the letter states. "In this current political environment, we need to ensure that high-priority issues such as achieving net zero and the wider climate change objectives do not fall into the trap of partisan ideology." The letter warns that "time is not on our side" and says the next government will need to be "ambitious, co-ordinated and accountable" if the UK is to meet its targets. "From the outset, the government and the oppo- sition parties, whoever they may be, must work together to forge a path to net zero that is rooted in compromise and goes beyond party politics," it adds. "In light of this, we are calling for all parties to capture the spirit of co-operation they've successfully demonstrated in this sphere previously, and agree to a post-election pact on climate change, agreeing to work collaboratively, whether they are in government or opposition, to implement legislation and policy that achieves net zero by the agreed timescales, in a fair and inclusive way." TG ELECTRICITY ESO allowed to delay entry to European balancing platform Ofgem has granted a derogation to National Grid Electricity System Operator (ESO) from an EU regulation requiring the body to start using a new European balancing platform by 15 January 2020. The Trans-European Replace- ment Reserves Exchange (TERRE) will allow transmission system operators (TSOs) to pro- cure replacement reserves from interconnected neighbours. The platform is officially due to launch this month. However, all but one of the initial partici- pants have decided to delay entry to the market a–er RTE – the TSO in France – requested a 12-month derogation from the January deadline. The request was granted by the French energy regulator CRE in September. Britain has three operational electricity interconnectors to continental Europe – to France, Belgium and the Netherlands. But neither Belgium nor the Netherlands will be among the first countries to join. This means Britain will initially only be able to access the exchange through France. With this in mind, the ESO requested a matching dero- gation from Ofgem in June. The regulator has now granted the derogation, but not for the full 12 months the ESO requested. Ofgem noted that, despite securing a year-long delay, RTE expects to be ready to use the platform by June 2020. It also cited CRE's decision that RTE should connect the plat- form by June 2020 so neighbour- ing TSOs can carry out trades passing through France, even if it is not able to participate itself. Ofgem has therefore granted derogation until the earliest date of either 30 June 2020; the date when RTE starts using the platform; or the date when RTE connects to the platform. ELECTRICITY Renewables to debut in capacity market Renewables are poised to make their first foray into the capac- ity market a–er a number of onshore wind projects prequali- fied for the upcoming auctions. They include the replacement for the cancelled T-4 auction that was due to take place earlier this year but will instead be held as a T-3 auction in January. The register for the auction for deliv- ery starting in 2022/23 shows 11 new onshore wind farms, with a combined nameplate capacity of 496MW, have prequalified. However, participants bid and are paid according to their de-rated capacity. The low de- rating factors for renewables – a reflection of their intermittency – means the windfarms can provide just 41MW. Path to net zero: must go 'beyond party politics' Political Agenda David Blackman "Only the Lib Dems have a coherent energy policy" If energy utilities had a vote in next week's election, the chances are they might cast it for the Liberal Democrats. There are problems, albeit highly contrasting ones, with the stances taken by the two major contestants in this year's election. The big fly in the ointment with Labour's policy package is nationalisation. But the Tories' plans, while less fundamentally challenging, are sketchy, given the level of energy system trans- formation that will have to kick 80 per cent by 2030, the kind of short-term, concrete action industry has called for. However, as must be glar- ingly obvious even to the party's leader, Jo Swinson, the Lib Dems will not be forming the next government. Current polling indicates they will be lucky to pick up more than a handful of constituencies. However, in a hung parliament, maybe the Lib Dems may be able to knock the rough edges off the energy plans of whoever forms the next government. in during the next parliament. The Lib Dem manifesto contains a better thought out and more coherent package of measures, which are ambitious yet deliverable. It is a vision that appears to bear the thumb prints of Sir Ed Davey, the party's deputy leader, who was energy secretary during the coalition years. The Lib Dems have resisted the temptation to join in what their manifesto described as a "Dutch auction of fantasy dates" on decarbonisation. Its date – 2045 – is the soonest that the Committee on Climate Change suggested was feasible. And they pledge to increase the proportion of electricity generated from renewables to

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