BEIS ( UK Dept of Business Energy & Industry Strategy) is holding a public consultation to gather evidence to inform its renewable/low carbon energy policies for the next decade & beyond.
This is your chance to have your say!
The whole BEIS document can be see here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/956815/high-renewable-net-zero-electricity-system-cfe.pdf
It is important that it is not just the views of industry, but the views of the public that shape policy and this is one of the aims of SAS.
Although an aim of this consultation is to reduce costs to consumers, it is obvious that the questions being asked are largely framed around ensuring a stable investing environment to fund further renewable deployment.
There is little/no consideration of avoiding the adverse community and environmental impacts of industrialising vast tracts of rural land and marine areas to reach UK net zero carbon targets by 2050.
Considerations by BEIS include facilitating more hydrogen production and colocation of windfarms with battery storage, but also ‘repowering’ of existing windfarm assets.
There is emphasis on whether the CFD scheme (regarded as being very successful for investors) should be extended or changed and projections that CFD subsidies, paid by electricity consumers will fund more than 50% of generated electricity by 2030! (The CFD scheme provided only 4% of electricity demand in 2018/19 and cost nearly £1 billion)
Clearly windfarm generators will want CFD schemes to be extended and even more lucrative than they are currently.
SAS needs your views on the questions which are being asked by BEIS, so that it can provide an inclusive response! (Please email Graham Lang (contact details on the home page) or leave a comment on this post.))
The questions from the BEIS document are summarised below.
Please do take the time to have a look and give us your comments in the next week please! – You don’t have to answer every question!BEIS consultation Comment and Questions:
Why we are holding a call for evidence Through this call for evidence, we aim to gather evidence to inform how our policies should evolve throughout the next decade, focussing on three areas:
• Maintaining growth in renewable deployment to meet net zero targets – we are looking to understand more about how projects will derive revenue and the security of that revenue, what the impacts of increasing amounts of low marginal cost generation will be and how these will change over time.
• Ensuring overall system costs are minimised for electricity consumers – exploring how to minimise the whole system costs of renewable deployment, particularly looking at the balance between price stability and exposure to demand signals, as well as locational signals and the role of renewables in providing system services.
• Supporting and adapting to innovative technologies and business models – to learn more about the new types of project coming forward, such as those utilising multiple technologies, extensions of old projects or international projects that work across national borders.
Maintaining growth in renewable deployment to meet net zero targets
1. How is the industry currently approaching developing renewables projects without CfDs? In what ways might non-CfD backed projects obtain revenue from wholesale and other markets, and secure investment?
2. What do you consider to be the effects of increased low-carbon deployment on future wholesale power prices and renewable capture prices?
3. How viable will investment in new renewable projects based primarily on wholesale prices be in future? Could this investment case be supported if there was more extensive deployment of flexible assets such as storage?
4. How much longer after the 2021 allocation round should the current CfD be used? Is a price based on a short-run marginal cost market the most effective basis for a long-term renewables contract?
5. Are there any changes or alternatives to the wholesale market that might facilitate merchant deployment?
Ensuring overall system costs are minimised
6. How can market participants be encouraged to provide contracts to secure lowcost investment in renewables?
7. How could intermittent renewable generators change their operating or investment behaviour to respond to wholesale price signals?
8. What would be the impact on the cost of capital of introducing greater exposure to the market price for power?
9. In your view, which of the potential options for providing increased exposure to market signals offers the greatest benefit to the consumer? Are there any other options that we should be considering?
10. Should CfD generators be incentivised to account for flexibility and wider system impacts, and/or to provide balancing services to the system operator? How could this be achieved?
11. Should the CfD mechanism incentivise minimum grid stability requirements (in CfD plants) to minimise system costs and help ensure secure and stable operation? How could this be achieved and what are the barriers?
12. Do CfD projects receive the right incentives to locate in the optimum locations?
13. Are there actions which Government should consider, outside of Ofgem’s current electricity network charging reviews, to help incentivise efficient market behaviour regarding the location of renewable assets?
Supporting and adapting to innovative technologies and business models
14. Should the CfD do more to enable the sustainable growth, cost reduction and competitivity of UK supply chains and how could this be achieved?
15. What are the benefits of renewable projects using multiple low carbon generation technologies or being co-located with low-carbon flexible assets? Should the CfD support these projects and why?
16. What are the benefits of projects with assets in different locations, including projects paired with flexible assets? Should the CfD support these and why?
17. What changes would Government need to make to the Contracts for Difference regime to facilitate the coordination of offshore energy infrastructure, what would be the benefits and costs of making them, and could there be a similar case for other renewable technologies?
18. What changes would Government need to make for the Contracts for Difference to facilitate deployment of offshore wind as part of a multi-purpose hybrid offshore wind-interconnector project, and what would be the benefits and costs of making them?
19. What role could international renewable projects play in our future generation mix in GB? Are there benefits to supporting these projects with government schemes and how could this be achieved?
20. Should part-built project continue to be eligible to compete for CfDs after the fourth allocation round? Are we considering the right implications and what are your views on these?
21. Can cost savings be achieved by developing extensions to existing projects, if so, how great are these cost savings, and what is the justification for these projects being supported through CfDs or any other government mechanism?
22. Similarly, can cost savings be achieved by repowering older projects, if so, how great are these cost savings, and what is the justification for these projects being supported through CfDs or any other government mechanism?