Utility Week

Utility Week 8 July issue

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Page 16 of 31

Finance & Investment This week Government confirms fifth carbon budget Renewable UK chief urges industry to focus on economic benefits of "cheap, homegrown" power The government has confirmed the fih carbon budget for 2028- 2032, agreeing to cut emissions to an average of 57 per cent of 1990 levels. It has accepted the recom- mendation made by the Commit- tee on Climate Change in a report published in November to limit emissions during the period to the equivalent of 1.725 billion tonnes of carbon dioxide. The committee said reaching the target will require power generation to reach an average carbon intensity of less than 100g CO2/kWh by 2030. It said the limit will put the UK on course to meet the target of reducing emissions by 80 per cent of 1990 levels by 2050. The fourth carbon budget for 2023-2027 was previously set at 1.95 billion tonnes of CO2 equivalent. So far the UK has reduced emissions by 38 per cent of 1990 levels. Energy secretary Amber Rudd said: "Setting long- term targets to reduce our emissions is a fundamental part of building a secure, affordable and clean energy infrastructure system that our families and businesses can rely on and that is fit for the 21st century. "The UK remains committed to playing its part in tackling climate change to ensure our long-term economic security and prosperity." Committee on Climate Change chair Lord Deben said: "The government's commitment to reduce UK emissions by 57 per cent by 2030 will open up opportunities for UK businesses both at home and abroad. It also demon- strates the continued broad political consensus to tackle the serious risks posed by climate change." TG ENERGY Edinburgh project wins £820k funding A new green energy scheme in Edinburgh will receive £821,200 of funding to help bring down energy bills for residents. The funding is part of the Scottish government's initiative to support nine large-scale, low- carbon energy projects across the country via the Local Energy Challenge Fund of £10 million. Residents of the Dumbie- dykes estate will benefit from the Tower Power scheme – which is partnered with Com- munity Energy Scotland and community development agency Comas – and aims to secure a better deal for energy users by negotiating collective deals and maximising local options for power generation. ENERGY £42m loan agreed to refinance solar farm Primrose Solar has secured a £42 million debt financing loan with Deutsche Bank for its Eve- ley solar farm in Hampshire. The 49MW farm is one of the largest privately owned solar farms in the UK and expects to save around 21,500 tonnes of carbon dioxide a year. Primrose acquired full project rights from PS Renewables last year and the solar farm was one of the last large projects to be granted planning permission under the Renewables Obligation grace period rule. The project is now fully accredited and con- nected to the grid in March 2016. ELECTRICITY Call to back onshore wind investment RenewableUK chief executive Hugh McNeal has urged the energy industry to "focus on new opportunities" and back onshore wind at a time of economic uncertainty follow- ing Britain's vote to leave the European Union. Speaking at Scottish Renewa- bles' Onshore Wind conference in Glasgow late last month, McNeal said: "It is tempting in these unprecedented times, in the period of uncertainty and market volatility since the vote, to focus only on the challenges ahead. It is precisely now… that I believe we should reflect on what we can offer: cheap, home-grown electricity able to deliver hundreds of millions of pounds of capital investment for our economy over the next few years, helping companies all over Britain just at a time when we need it most." His comments follow the prime minister and chancellor warning of the effects of a period of prolonged economic adjust- ment and the need for a clear plan for immediate financial stability. Emissions limited to 1.725 billion tonnes of CO2 UTILITY WEEK | 8TH - 14TH JULY 2016 | 17 Stock watch 1150 1100 1050 1000 950 NATIONAL GRID SHARE PRICE, 4 JUNE - 4 JULY 13 Jun 20 Jun 27 Jun 4 Jul 3600 3500 3400 3300 3200 FTSE ALL-SHARE INDEX, 4 JUNE - 4 JULY 13 Jun 20 Jun 27 Jun 4 Jul Utilities have outperformed the rest of the market in the wake of the Brexit vote. Aer closing the day of the referendum (23 June) at 979.5p, National Grid shares rose slightly the next day and are up by almost 13 per cent, reaching 1103p at the time of going to press. Meanwhile, the FTSE all-share index closed the day of the vote at 3,481 before falling 7 per cent to 3,237 over the following two days. It has since recovered to 3,519, an overall rise of more than 1 per cent.

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