Utility Week

8 | MAY 2021 | UTILITY WEEK The top stories… Emissions Electricity Water What has happened In mid-April the government announced a new commitment to reduce greenhouse gas emissions by 78 per cent by 2035, compared to 1990 levels. For the first time this includes emissions from shipping and aviation. The new target is in line with the recom- mendation of the Climate Change Committee (CCC) for the Sixth Carbon Budget, which covers the five years from 2033 to 2037. Until the 2019 adoption of the 2050 net zero target, the government's statutory com- mitment was to cut emissions to 80 per cent of 1990 levels by the middle of this century. What they said James Diggle, head of energy and climate What has happened Sewage being pumped into rivers is mak- ing too many headlines and causing public outrage at the state of UK waterways and questioning the legislation that allows com- panies to discharge from combined sewer overflows (CSOs). Now a charity campaigning for wild fish and their environment has threatened the Department for Environment, Food and Rural Affairs (Defra) with legal action for fail- ing to meet its obligations to ensure the water and sewerage companies "effectually deal What has happened Octopus and Ovo Energy have both made significant moves over the past month to burnish their claims as green suppliers. First, Octopus Energy acquired its sis- ter company Octopus Renewables, mean- ing it will manage £3.4 billion-worth of renewable energy projects. The portfolio, which spans six countries, has a combined capacity of 2,800MW and last year gener- ated enough energy to power more than 1.2 million homes. The retailer, which recently surpassed two million customers, is by 2027 planning to match its supply and gener- ate enough power for more than 50 million homes globally, in line with its ambitions for customer growth. Ovo, meanwhile, has entered into its first power purchase agreement (PPA) with Orsted, agreeing to buy all of the power generated by the 90MW Barrow wind farm located off the Cumbrian coast. It expects the arrangement to provide 13 per cent of its electricity. Ovo, which plans to become a net zero business by 2030, said that by the end of the year it is aiming to increase the amount of renewable electricity purchased from UK renewable generation via PPAs to "almost 40 per cent". UK ramps up its climate ambitions Challengers bolster green credentials A tough emissions cut target just got a whole lot tougher Sewer overflows provokes public outrage Defra threatened with legal action over CSOs What they said Greg Jackson, chief executive, Octopus Energy: "This move will allow us to create a business that is unrivalled on the global stage; by combining our tech and consumer- led approach with the fund management expertise of Octopus Renewables, we can change the entire energy life cycle, make every green electron matter, and deliver the green energy transition faster and cheaper for everyone." Ben Blake, chief executive, Ovo Energy, said: "In the future, we're committed to exploring how we can source more energy from renewable generation here in the UK, with sewers" as set out in the Water Indus- try Act 1991. In a letter to Rebecca Pow, the Salmon and Trout Conservation group said discharging into waterways breached that legal requirement and questioned why Defra and Ofwat had not regulated since privatisa- tion to ensure sewerage could keep apace with the needs of growing populations. The group said work promised by Defra would not go far enough meet the necessary commitments and that legal action would be required if CSOs were not addressed in plan- ning for AMP8. Blair Institute for Global Change: "The tar- get-setting strategy has run out of road; there are no more targets to legislate for. If the UK wants to maintain its reputation for lead- ership – and meet the targets it has set – it needs to act." change at the CBI: "This increases the need for this decade in particular to deliver. Investment can't wait, the sooner you invest, the cheaper it will be." Tim Lord, former director of clean growth at BEIS and now senior fellow at the Tony

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