Department of Energy and Climate Change

15 March 2010 - Press Release - Hunt – Clean, green marine energy

Mon, 15 Mar 2010 00:00:00 GMT

Harnessing the full potential of marine energy could provide enough power for up to 15million homes and save up to 70million tonnes of C02 by 2050 according to the Government’s Marine Energy Action Plan, released today. The document also highlights the potential for the marine energy sector to provide up to 16,000 jobs, with a quarter of these in exports.

Launching the plan at Strangford Lough in Northern Ireland, home of the 1.2MW SeaGen turbine – the world’s first operating, commercial-scale tidal stream turbine, Lord Hunt of Kings Heath, Minister of State for Energy said:

“Harnessing the power of our seas will help us reduce our carbon emissions, provide clean, green, secure and reliable energy, create jobs and provide export opportunities.

“This Action Plan sets out our vision for what marine energy can do for the UK and what we need to do to make it happen. I look forward to working with industry and other partners to get the most out of our waters and build a new, world-leading energy generation sector in the UK.”

The Plan – which has been developed by Government jointly with industry – sets out the actions needed to drive the marine energy sector forward.

Key recommendations include:

Forming a UK-wide strategic coordination group to develop a planning and consenting roadmap for all types of marine renewables;
Consideration of support levels for marine technologies under the review of banding of the Renewables Obligation in Autumn;
Ensuring that the appropriate levels of targeted funding are available to bridge the technology market failures that exist in this developing sector, subject to the budgets in the next public spending round;
Leveraging private equity, and in the longer term, project capital into the sector;
Establishing guidelines and best practice in the development of new technologies; and
Building a UK marine energy supply chain and utilising the current skills base already established from the offshore wind, oil and gas, and maritime industries.

Lord Hunt also announced the establishment of a Ministerial Task Force on Marine Energy, which will bring together key players to oversee future work on the Marine Energy Action Plan.

Notes to editors:

The full Marine Energy Action plan is available to download at http://www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/renewable/explained/wave_tidal/funding/marine_action_/marine_action_.aspx
“Marine Energy” refers to wave, tidal stream and tidal range energy generation technologies.

10 March 2010 - Joan Ruddock speech - Energy Efficiency Partnership for Homes stakeholder workshop

Mon, 15 Mar 2010 00:00:00 GMT

Good morning,

Thank you for inviting me here today and for giving me the opportunity to discuss the vital role we see the private rented sector has in our transition to a low carbon economy.

I’d like to begin by stressing the importance of the sector in providing choice and flexibility at all levels across the housing market. There will always be individuals and families for whom home ownership is not the right option. For these people, having a choice of rented accommodation is vital and we in the government recognise this.

However, the sector also has an important role to play in helping us to reduce household carbon emissions. At present, about a quarter of the UK’s carbon emissions comes from energy used in our homes. If we are to be successful at meeting our ambitious targets of reducing housing emissions by 29% by 2020 - and our longer term target of near zero emissions from housing by 2050 - we will need to be fully engaged with and supported by all sectors, including the private rented sector.

So – our targets are ambitious but they are achievable as we demonstrated in last year’s Low Carbon Transition Plan. All households and home owners will need to play a part in making homes more energy efficient – there isn’t an option to do nothing.

Today, I’d like to address how our key policy measures can be applied to engage with, and reach out to, the private rented sector.

DECC’s household energy efficiency policy: setting the context

As you are aware, rented accommodation, particularly the private rented sector, has unique challenges when delivering energy efficiency. A key reason is that the person paying the energy bill is often not the person who makes decisions about investing in the energy efficiency of the property. As a result, the sector has the highest proportion of homes which fail to meet the Decent Homes Standard and the highest proportion of homes which pose an excess cold health hazard.

Our interest in improving energy efficiency in this sector is not just about climate change - it forms a pivotal part of our drive to keep people comfortably warm and at the same time reduce energy bills. Research from the housing and homelessness charity, Shelter, shows that energy bills are the most common source of financial difficulty for 35% of lower income tenants.

So there is a number of important reasons why we need to see a step change in the energy efficiency of the PRS. We need to save money for tenants and landlords, reduce our reliance on imported fossil fuels, and respond to the challenge of climate change.

So what are we doing to meet these aims?

CERT

Our largest current energy savings programme, The Carbon Emissions Reduction Target (CERT), obliges energy suppliers to meet ambitious household carbon reduction targets. Suppliers usually do this by promoting a range of measures, notably insulation – the end result being subsidies and discounts to fill lofts and cavity walls.

The landlord or tenant may need to contribute towards the cost of the measure, however, suppliers have typically offered insulation measures at a 50% subsidy or for free to a priority group of vulnerable households. This can mean landlords simply need to contact their tenants to alert them to this offer, and agree to the installation where the consumer qualifies.

I strongly encourage those of you in the audience today who have links to landlords, to make them aware that these deals exist, and to encourage them to engage with their tenants and take advantage. This will not only increase the energy efficiency of their properties but is also likely to increase their value.

CESP

Our new Community Energy Saving Programme (CESP) began in September last year. This innovative programme will deliver £350m worth of energy efficiency measures to around 90,000 households across the country over the next 3 years. CESP will deliver whole house solutions, including a range of measures, in specified low income areas delivering house by house and street by street in those communities.

CESP specifically includes incentives within its design to encourage maximum penetration across all households in the designated CESP communities regardless of their tenure. This should encourage energy companies to find new and innovative ways of engaging with the private rented sector.

For example, I had the pleasure of joining British Gas recently at the launch in Walsall of the first CESP scheme. This scheme originally targeted 136 public sector properties across 6 streets but this has now grown to around 180 properties, including 20 privately rented properties in the community who have requested the work. They have seen the benefits to the other properties, the degree of community engagement in the area, and the reduced costs of measures flowing from British Gas’ intensive work.

This is very encouraging and we expect CESP’s innovative approach to deliver further examples of energy companies engaging with all households in the targeted communities.

FITs and LESA

As I said, CERT supports low cost energy efficiency measures like loft and cavity wall insulation but it is clear that there is more to be done. In 2004, the Treasury introduced the Landlord Energy Saving Allowance, which allows up to £1,500 per dwelling for the cost of installing specified energy saving items as a deduction from taxable property income.

We in DECC have also been developing a framework of policies which aims to overcome the financial barriers of investing in more expensive energy saving measures.

The Feed-in Tariffs scheme, to be introduced this April, will provide a financial support mechanism for low carbon electricity generation technologies aimed at incentivising the uptake of small-scale installations. We believe that the simplicity and income-certainty of the FITs scheme will benefit all sectors of the housing stock, as well as businesses and communities.

When the scheme is launched it will support new hydro, solar and wind projects, by requiring electricity suppliers to make payments to generators based on the number of kilowatt hours they generate. Landlords who install small scale generation will benefit from the revenue stream from their electricity generation and export. Additionally, tenants would get the benefit of lower fuel bills.

It’s up to landlords and tenants to come to an arrangement about the installation of equipment - but we are committed to ensure that the subsequent benefits of FITs payments and on-site use will be worth the investment.

RHI

But we don’t intend to stop there. In April 2011, the Renewable Heat Incentive will offer further financial support for a range of technologies, including ground source heat pumps, biomass boilers and solar thermal.

Until now, the high costs of renewable or low carbon heat installations would have deterred many. However, the RHI support levels have been calculated so that there will be a financial return on any investment made. Where a private landlord decides to install renewable heating technology, they will be able to receive a return on their investment by claiming the RHI, making renewable heating a logical financial decision as well as an environmentally positive one.

We are currently consulting on the scheme specifics and I encourage you to respond to ensure its scheme structure can fully support landlords.

HEM

Our vision beyond 2012 is equally ambitious. In looking at the long term plan, the Household Energy Management Strategy, Warm Homes, Greener Homes, which was launched last week, aims to deliver a step change in the rate of emissions reductions from the domestic sector towards meeting our carbon budgets targets.

Given our commitment to insulate all practical lofts and cavity walls by 2015, and to move forward towards our long term objectives, we will need to encourage landlords to take much more significant action such as solid wall insulation. To do this the strategy sets out a suite of policies that aim to increase delivery of home energy improvements in the rented sector. In addition, we will consult on how to formulate regulation so that the installation of loft and cavity wall insulation, where feasible, would be a condition of renting out a property from a date in the future, at the earliest 2015.

We want all tenants to enjoy good standards at home, and these proposals will help to ensure this.

We will focus on improving communication with landlords and ensure they are aware of the financial assistance available and demonstrate the impact both on fuel bills and carbon emissions of insulation measures. We will work with suitable organisations to run a targeted campaign aimed at private landlords to ensure they are aware of the financial assistance they are entitled to. The strategy will lead to future consultations which will encourage and support landlords in our journey to achieving a near zero carbon housing stock.

PAYs

We also announced as part of Warm Homes, Greener Homes, that Green Finance will become an important way for people to pay for eco-upgrades. Green Finance would allow people to pay as they save, with no upfront cost for their eco-upgrade, which is instead repaid over time with savings on energy bills or income from FIT or RHI.

We are looking to develop the precise design with industry and this will include the applicability of green loans to all property tenures. It seems possible that a Pay As You Save scheme will be attractive to private landlords, given it overcomes the split incentive with the repayments being made by tenants alongside the bill savings they receive.

So - it is clear that successfully reducing household energy efficiency in the private rented sector is going to be challenging if we are to meet our ambitious carbon targets.

However, through the measures I have outlined here today, I hope I have shown that government are committed to support the PRS to improving the energy efficiency of their housing stock.

As a next step, I would strongly encourage landlords to engage with the current consultation (closing on the 14th March) on extending CERT to the end of 2012; to take advantage of the suite of new programmes and policies such as Feed in Tariffs; and, most importantly, to fully engage with their tenants on the opportunities available.

The Government-funded Act On CO2 advice line, operated by the Energy Savings Trust, should be the first port of call for landlords. It provides advice and support for consumers, by directing them to the latest offers, grants and services for assistance towards energy efficiency available from regional suppliers, installers and retail outlets.

I am grateful for this opportunity to address you and I know my officials will be happy to answer questions today and facilitate ongoing contact.

Every sector needs to become engaged in the transition to a low carbon economy. And I look forward to your continuing involvement in this vital process.

Thank you.

9 March 2010 - Joan Ruddock speech - launch of the joint Ministerial and Third Sector Taskforce Report on Climate Change, the Environment and Sustainable Development

Mon, 15 Mar 2010 00:00:00 GMT

Thank you for this opportunity to make a few remarks.

In his foreword to the report we are launching today, Stephen said that the third sector provides a voice for society’s ambitions about the kind of world we want to live in. He also said that the Sector continues to be an engine of progressive change. I endorse that wholeheartedly.

As we make the necessary transition to a low carbon future, this change is needed more than ever before; and it is needed now. The future is in many ways unknowable, but we can aim to shape it. Climate change is the most important challenge facing society. If we are to survive and prosper, the only viable future is a low carbon one. We are on a journey. And as we set out last summer in the Low Carbon Transition Plan, a low carbon future is one which will bring new economic opportunities; new and lasting jobs in sustainable, cleaner industries; and greater energy security.

Knowing where we want to go is one thing. But getting there can be so much more difficult. On our journey, the greatest resource we have is people. All of us in this room - and millions more. But as with all resources, we need to identify and unlock the potential and focus it in the right ways; in practical ways.

In recent years government has begun to engage and incentivise community action on climate change through small grants and challenge programmes such as Defra’s Climate Challenge Fund. A fund which gave £8 million to 83 projects – to find new and creative ways of raising awareness in communities and encouraging local action on climate change.

We’ve worked with faith groups, with the Women’s Institute and a raft of NGOs. But climate change needs to mainstreamed. And today’s report – our joint statement of intent and action aims to do just that. For my Department’s part, I am delighted to announce that a new Third Sector Champion for DECC will build on the success of this collaboration by bringing forward a third sector strategy. A strategy which will continue to ensure that your agenda and your interests are fully reflected across DECC’s work.

We look forward to continuing to work with you on the practical ways needed to turn the Report’s vision into reality. A flagship example of this partnership approach is the 22 communities that make up the Low Carbon Community Challenge. Steered by some of you here this evening, these pilot projects will between them receive £10 million. I was thrilled to read the details of the winning proposals with their plans for behaviour change, community engagement and new technologies from solar panel office roofs to school turbines and village micro-hydro power.

It is only by inspiring, motivating and persuading our citizens; by tapping into their ideas and energy, that we will shape and deliver the low carbon future that the planet needs and which will benefit us all.

12 March 2010 - Press Release - Funding for design studies in clean coal competition

Fri, 12 Mar 2010 00:00:00 GMT

Funding was today awarded to E.ON and ScottishPower for design and development studies as part of the competition to build one of the world’s first commercial scale carbon capture and storage demonstration plants.

The funding will support Front End Engineering and Design studies, which will enable the bidders to further their designs for the projects at Kingsnorth and Longannet respectively. These studies involve detailed engineering and design work and will be completed within twelve months, after which the final competition winner will be selected.

This is one of the first set of studies of end-to-end commercial scale CCS on coal power plant in the world and will be used by project developers to examine and refine initial plans and reduce technical risk, so that more detailed project plans can be drawn-up and costed.

Energy and Climate Change Secretary Ed Miliband said:

“These two promising projects are at the forefront of the UK’s efforts to build one of the first commercial-scale clean coal plants in the world.

“The award of design-stage funding demonstrates our commitment to this breakthrough technology. It has the potential to support tens of thousands of jobs and bring billions into the economy.

“CCS is the only technology that tackles carbon emissions from fossil fuel power stations, and given the world’s dependence on coal, is a vital technology to securing the world’s future energy needs and tackling climate change.”

ScottishPower’s Chief Executive, Nick Horler said:

“We are delighted to have been selected for the next critical stage of the government’s competition.

“The real work of finally making CCS a commercial reality begins today as this funding will now enable ScottishPower to take the technology from concept to design stage. It will tell us exactly what we need to know so that we can quickly build this new and essential technology.

“It also puts the UK back at the head of the pack when it comes to delivering full-scale commercial CCS on a global stage.”

E.ON UK’s Chief Executive Dr Paul Golby, said:

“This is excellent news for the development of clean coal in the UK coming as it does hard on the heels of our announcement about our scoping application for the Kingsnorth CO2 pipeline last week.

“It’s absolutely vital that we get CCS right and it’s especially heartening to see that we’re getting some real movement here in the UK now.

“We should always remember that the long game with CCS is not just about Kingsnorth, it’s about a worldwide battle against climate change.”

The funding is drawn from a pot of £90 million announced in the 2009 Budget. The precise amounts awarded to E.ON and ScottishPower are commercially confidential.

The UK has the most ambitious commitments on coal generation and CCS in the world. A Bill currently being considered by Parliament introduces a first-of-a-kind levy to support four CCS demonstrations in the UK. The Government will launch a competitive process for the three other projects by the end of 2010, provided the levy is passed.

Notes to editors

The CCS competition launched is for the design and construction of a commercial-scale post combustion CCS plant.
The UK Government’s ‘Framework for clean coal’ is unmatched both in ambition and commitment, delivering four commercial-scale demonstrations and ensuring that no new coal fired power stations are built without CCS.
More information about the UK’s CCS programme: http://www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/ccs/ccs.aspx

4 March 2010 - David Kidney speech - Renewable UK Conference

Thu, 11 Mar 2010 00:00:00 GMT

RenewableUK Wave & Tidal 2010, 4th March 2010, QEII Centre, Westminster, London

Good morning, it’s a real pleasure to be here to celebrate the success, and the future, of wave and tidal energy. And It’s also a pleasure to be here to be part of the official launch of ‘Renewable UK’. Our potential in renewable energy is so much broader than wind now, so it’s encouraging to see the sector adapting to the times.

Sir Arthur C. Clarke once said ‘How inappropriate to call this planet, Earth when it is quite clearly an ocean.’ And how fitting for today’s conference.

The potential of what we can do with natural resources at hand gives us a promising and diverse mix of our future energy supplies.

Harnessing electricity from our wave and tidal resource not only plays a crucial part in meeting our climate change targets; but also presents a significant economic opportunity for the UK.

We must reduce our emissions by 34 per cent by 2020 and up to 80 per cent by 2050. We face new challenges to our environment and our economy, we must adjust, in order to prepare for that low carbon future.

Because of the magnitude that ambition brings, wave and tidal energy will of course have a much bigger part to play in that move.

It’s a huge shift moving to low carbon which will in fact, become the sign of the 21st century.

Strategic Environmental Assessment

When my colleague, Lord Hunt, spoke at a similar conference to this last year, he told you that we would be carrying out a screening study, on wave and tidal energy in English and Welsh waters.

I am so pleased to announce that - we are now launching a full Strategic Environmental Assessment for wave and tidal energy - as part of an Offshore Energy SEA.

We have a number of plans in relation to energy including the development of offshore renewables generation – wind, wave and tidal stream. And not forgetting carbon capture and storage (CCS), and more rounds of offshore oil and gas licensing.

But before making a decision on these, we must carry out a Strategic Environmental Assessment.

The ‘scoping’ document will set out the draft plans and associated Strategic Environmental Assessment. So consultees can give us their views. The scope will be available on DECC’s offshore SEA website.

When that scope is agreed, my Department will carry out the assessment producing an environmental report for public consultation, hopefully by the end of this year.

I know how important the creation of an SEA is for the plans of each and every person in this room.

So I want this SEA to set the precedent for future developments and open the door to more commercial leasing rounds. For example, the one recently carried out by Crown Estate for the Pentland Firth.

We are reaching a stage where the ability to make firm plans, reaching out into the second half of this decade is more important than ever.

And a full SEA is the catalyst for turning those plans into a reality.

The Here and the Now

I’m proud to say we are seen as the leader in Marine Energy Technology.

But we also need to be the leader in developing that technology commercially too.

And we’re in the best position to do just that. Last summer my department published the UK Renewable Energy Strategy to help with this.

We dedicated a further £60 million to accelerate the development and deployment of wave and tidal energy devices and improve the UK’s, already, world beating testing and demonstration infrastructure.

As part of the additional £60 million we created, alongside the Carbon Trust, a £22 million Marine Renewables Proving Fund. And you all know that just last month the Carbon Trust announced the six projects which will benefit from that funding.

Because of that, some of the leading technologies should soon be at a point where they will be able to benefit from the existing £42 million Marine Renewables Deployment Fund.

The Technology Strategy Board (TSB) have also announced that it will be starting bidding rounds for research. With a total £12 million up for grabs.

It bolsters and compliments the different kinds of research being carried out under the Proving Fund.

This is the kind of practical and focused Research & Development (R&D) support which is important for this sector. And I applaud the TSB's plans to step up their support of wave and tidal R&D.

I know Renewable UK (and previously BWEA) has been working to identify and fill the funding gaps that wave and tidal technologies have experienced over the years. I’m pleased that your views are now being acted on.

And last September, I’m sure you’re all aware of the Marine Action Plan that my honourable colleague Lord Hunt, launched.

The Plan broke new ground because it’s an opportunity for you to sit down and work with us. We need you to help us set the agenda for this sector in the coming years - and explore how, together, we can ensure the success of the industry.

The UK being the world leader in wave and tidal technology, will continue to be seen by the world as a focus for research, development and deployment. We are determined to keep it that way.

For example, SeaGen, the world’s first megawatt scale tidal turbine has been operating successfully all year – recently clocking up 1000 operating hours. I understand that Marine Current Turbines hope to get permission to start 24 hour running soon.

Aquamarine’s Oyster prototype was successfully deployed at EMEC in the Orkneys last year. Pelamis and Rolls Royce/Tidal Generation Limited should have their new prototypes up and running by Autumn.

Construction is underway at Wave Hub in Cornwall with the expectation that it will be operating this time next year.

With the funding we announced in the summer last year, NaREC in the North East are building new onshore testing facilities and EMEC are extending their existing wave and tidal sites; and have plans underway for a new nursery site.

And I understand that ‘Peel Energy’ just this morning published their report on the ‘Mersey Tidal Power’. I welcome this study into the prospects for tidal power generation - from one of the estuaries with the best tidal resources in the country. And it learns from and complements the work we are doing on the Severn Tidal Power Feasibility Study and the Severn Embryonic Technologies Scheme.

These are the kind of developments that we need to see much more of in the coming years.
Of course, marine energy isn’t the only technology which we’re pursuing to secure our energy future.

Other Renewables - what the other half are doing

We expect that the majority of the UK’s renewable energy ambition will be delivered through wind power, and in particular through a huge expansion of our offshore wind industry.

The UK is already the world leader in offshore wind deployment, with nearly a gigawatt of generation already installed. We intend to stay in that lead position.

The Carbon Trust have estimated that the offshore wind industry could become a £75 billion industry and support up to 70,000 clean energy jobs by 2020.

We’ve just announced rights for companies to build a potential 32GW of additional capacity.
And we’ve nearly tripled renewable electricity consumption since 2000 and onshore wind grew almost 30 per cent from 2007 to 2008.

CCS

The geological structures beneath the North Sea offer some of the best opportunities for storing large volumes of carbon dioxide in Europe, if not the world.

The International Energy Agency (IEA) forecasts that CCS will be responsible for around 20 per cent of CO2 reductions by 2030. This is perhaps the most decisive act in achieving our climate change targets.

Developing and deploying CCS technology is a priority for us both.

Cooperation on Carbon Capture and Storage in the North Sea is urgently needed globally.
We have a unique asset in terms of depleted reservoirs and salt caverns in the North Sea. Which can be used to store away safely harmful CO2 emissions.

So even after the last drop of oil is recovered from beneath our waters, the North Sea has the potential to go on being very important asset to Britain or even Europe.

We will continue to provide support for the underpinning R & D that is so important to the ongoing development and success of technology like carbon capture and storage.

CCS may also bring other benefits to the UK. The AEA Group report suggested that Carbon Abatement Technologies, including CCS, could sustain between 30,000 and 60,000 jobs in the UK by 2030.

And on the recovery of the worst financial meltdown that I’ve certainly seen in my lifetime - I’m sure that’s welcome news.

On 10 December last year, the Pre-Budget Report contained a firm commitment to supporting four commercial scale demonstrations in the UK of CCS on coal power generation.

We made a start to address some of the major barriers to CO2 Enhanced Oil Recovery (EOR) in the Energy Act 2008.

This Act, together with changes we negotiated with the EU Directive on Carbon Capture and Storage, will mean CO2 that is permanently contained.

The estimated value to the UK from global markets for new advanced coal-fired power generation plant, including that fitted or retrofitted with CCS, could be up to £2 billion a year by 2020, which will double by 2030.

This equates to £20-40 billion in total between 2010 and 2030. And remember, almost 6,000 people are directly employed in the UK coal industry.

We must maintain our lead in the deployment of CCS as one of only five countries to have launched a competition to support a commercial scale CCS demonstration project.

Oil & Gas

Just a month ago, my colleague Lord Hunt also announced a new round of offshore licensing to give a further boost to the UK’s offshore oil and gas industries.

This record breaking 26th Round includes areas of the Continental Shelf not as yet explored, to boost activity in the basin.

And will help to secure also the future of the UK's oil and gas industry which right now provides three quarters of our energy needs and some 350,000 jobs.

Oil and gas will continue to have a major role in the British energy mix, for the foreseeable future. The evidence is clear however, that our oil and gas supply may not be able to meet our demand in the future.

Securing the necessary reductions through to 2050 - at an acceptable balance of cost, security and behavioural change has to be considered.

At the same time our electricity supply will most probably be some combination of thermal power stations - increasingly fitted with Carbon Capture Storage, nuclear, and renewable energy.

So in the long term, we need to make the transition from a system where we rely heavily on fossil fuels, to a system that includes nuclear, renewable and clean coal power.

Skills

The UK’s low carbon transition won’t add up to much if we don’t invest in our workforce. We have an ageing workforce and a depleting pool of young people in training.

And in order to remain competitive globally, British businesses will need ever more skilled employees to remain competitive.

No government has done more in closing skills gaps and creating opportunities for people who want them.

But we need people like you on board, leading the skills agenda in this country. You are the ones who will benefit from having a highly qualified and motivated staff who are in demand.

Skills and developing a healthy renewables supply chain, were two of the recurring themes raised during discussions in the Marine Action Plan.

Which is why I was pleased to see the Skills Accord that BWEA pulled together late last year. The commitment from Renewable UK - and all their partners - to train 60,000 entrants to the wind and marine energy industries by 2020, is a relief to see.

We need employers like you getting involved in the skills agenda. We all need to play our part because this sector needs highly skilled employees to bring the sector’s full potential to fruition.

So in the coming month, we will be publishing our consultation on our low carbon skills strategy. It will look at the main low carbon sectors to see what we can do to fill the gaps.

But it also looks at the ‘how’, not just the ‘what’ and the ‘who’.

By that I mean ‘how’ we can embed skills across all sectors for that rapid transformation that we need, to get to a low carbon economy.

Conclusion

We have the richest wave and tidal resources in Europe – and with our expertise in research and development, engineering, maritime operations and oil and gas exploration, we are world leaders in this field and we are determined to keep that lead.

We have some tough targets ahead of us with a lot of progress still to make.

An economic and technological revolution is taking place which is transforming the way we all live and work, setting profound challenges to governments, businesses and individuals across the world.

It’s a second industrial revolution of our culture so far. Britain was great in the original industrial revolution. It falls to us to grasp greatness this time round.

END

5 March 2010 - Press Release - Assessing English regional renewable potential

Fri, 5 Mar 2010 00:00:00 GMT

New guidelines published today will help regional authorities assess the potential for renewable and low-carbon energy in their area.

The guidelines, published by the Department of Energy and Climate Change (DECC) today will help English regions set themselves ambitious renewable targets in their new Regional Strategies, in line with the UK's overall target for 15% renewable energy by 2020.

The document provides regional authorities with guidance on how to calculate the potential their areas have for renewables . This might include what the wind speeds are in different areas, how many houses there are with roof space - and what constraints they should then apply.

The guidance provides detail on how to assess potential for large and small scale onshore wind, biomass, hydro power and solar energy.

Energy Minister Lord Hunt said:

"Our target for renewables is ambitious and we want to see that ambition reflected at regional and local levels. We must make the move to low carbon energy supplies and everyone needs to be involved in that. Nationally we’ve nearly tripled renewable electricity since 2002 but more needs to be done.

"Each region in England already has its own renewable energy target. These new guidelines will help to ensure that in reviewing these targets, each is setting a target based on similar methods and assumptions and that the targets are in line with the UK's overall renewable ambition."

Regional Development Agencies (RDAs) together with new local leader’s boards will be responsible for delivering ambitious renewable energy targets outlined in their regional strategies.

The methodology will ensure a more strategic approach to identifying, in general terms and at an early stage, which are likely to be the most appropriate areas for renewable energy projects.

Developers will be able use this information when working up project proposals.

Notes to Editors

The report, Renewable and low-carbon energy capacity methodology, can be found at: http://www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/renewable/ored/ored.aspx

Regional Strategies will be commenced on 1 April 2010 under Part 5 of the Local Democracy, Economic Development and Construction Act. The single Regional Strategy will replace existing Regional Spatial Strategies and Regional Economic Strategies. The purpose of the Strategy is to set out a long term (15-20 year timeframe) strategic, spatial and integrated framework for the regions which promotes sustainable economic growth, tackles challenges posed by climate change and contributes to sustainable development. The Strategy will be expected to contain ambitious targets for renewable and some forms of low-carbon energy, and must be approved by the Secretary of State CLG. Further information can be found at: http://www.communities.gov.uk/publications/planningandbuilding/regionalstrategiesresponses

The nine RDAs are: Advantage West Midlands, East of England Development Agency, East Midlands Development Agency, London Development Agency (this methodology does not cover London which has a different planning regime. However London proposes to use the methodology to review its evidence base for the London Plan) , Northwest Regional Development Agency, One NorthEast, South East England Development Agency, South West of England Regional Development Agency and Yorkshire Forward.

All English regions have existing renewable energy targets set out in their Regional Spatial Strategies. However these will need to be reviewed as part of the development of the single Regional Strategy which will replace the existing Regional Spatial Strategy and Regional Economic Strategy.

2 March 2010 - Joan Ruddock speech - Ecobuild exhibition conference hosted by Kirsty Wark

Fri, 5 Mar 2010 00:00:00 GMT

Copenhagen consequences: how strong is the political will for a low carbon Britain

Opening remarks from session Chair – Kirsty Wark:

“The UK Government earlier this year launched its Low Carbon Transition Plan. At the time, it was described as requiring an “Herculean effort….in transforming technology, and in political, economic and industrial thinking." (Tom Delay, Chief Executive of the Carbon Trust). In the aftermath of the Copenhagen Summit how does the UK’s commitment to a low carbon Britain stand up? And which type of government will be best to deliver it?“

Minister’s speech – Check against delivery

Good afternoon and thank you for inviting me here today to talk to you about the aftermath of Copenhagen, and what that means to the UK.

No we did not get a legally binding agreement but what we have got is the Copenhagen Accord. 107 countries, and counting, signed up to action. Which includes a commitment to hold the increase in global temperatures below two degrees.

And finance from developed countries to help the least developing countries tackle and adapt to climate change - $30 billion for fast start between now and 2012, and a goal of $100billion a year by 2020.

The agreements include real scrutiny of targets with mandatory reporting every two years.

These commitments, put forward in the Accord, represent a turning point in the global battle against climate change - and a crucial first step to the peaking of emissions by around 2020. It is clearer than ever before that the trend towards a low carbon future is irreversible.

That is progress.

The global agreement we are supporting however is not in place of domestic action.

We are already the first country in the world to have set legally binding carbon budgets with an interim target of at least 34% of GHG reductions, on 1990 levels, by 2020.

Achieving that target requires a step change in the way we live – which is why this morning the Secretary of State launched our ‘Warm Homes; Greener Homes Strategy’.

This Strategy aims to cut emissions from UK homes by 29% by 2020. And we will do this by insulating 6million homes by 2011. By completing all practical loft and wall cavities by 2015; and by having offered up to 7 million eco upgrades by 2020.

Energy efficiency pays – but high upfront costs mean people can’t afford to take action, or just can’t be bothered.

So we want to make it easy for people by removing the deterrent of those upfront costs; and reducing the hassle to move to greener living.

We will help with the upfront costs of energy efficiency measures. We will legislate to pave the way for people to take out loans. And those loans will stay with the property if the householder moves.

We want to make this transition as easy and attractive as possible for householders. And to find out how, we have just started our pilot Pay As You Save projects involving partners such as local authorities, housing associations, B&Q and British Gas.

There will also be help for those who need it the most. A new ‘Warm Homes’ standard for social housing, will see their tenants receive free energy upgrades from energy companies including smart meters. And help for those in privately rented accommodation whose landlords have little incentive to take action.

There will also be a single one-stop shop for advice, a quality mark for products and trusted people to do the work. Show homes will open up across the country to educate and inform those who are interested.

We have already committed to having Smart Meters in every home by 2020, to help people manage their energy use.

And the new strategy will also be good for jobs, with up to 65,000 jobs created in the green homes industry. Jobs such as installing and manufacturing energy saving measures or providing home energy advice.

But that’s not all.

In September we launched The £350 million Community Energy Saving Programme which will deliver whole house, whole street energy makeovers for some of the most vulnerable people in the UK.

It aims to reduce carbon dioxide emissions by just under 3 million tonnes by December 2012. And it will permanently reduce fuel bills for around 90,000 households in low income areas across Great Britain. The average fuel bill savings for homes could be up to £300.

As part of our transition we need to introduce incentives for low carbon technologies which we think will engage the public.

Households and communities who install generating technologies such as small wind turbines and solar panels are entitled to claim payments for the low carbon electricity they produce for the grid.

But those householders who invest in electricity Microgeneration from 1 April 2010, when FITs commence, will enjoy more financial rewards. For example, a household installing a solar PV panel could receive up to £900 per year - above and beyond the savings they’ll get on their electricity bill.

Last month we published a consultation on our Renewable Heat Incentive (RHI) which will come into force in April next year, which will deliver a step change in the way that the country generates its heat for heating hot water and our homes, as well as heat that’s required for larger, industrial processes. Once again people will be entitled to claim payments for the renewable heat they use.

Taken together, the Feed In Tariffs and the Renewable Heat Incentives will deliver a significant change to the way we generate energy, and move us closer to a low carbon economy.

We are also incentivising low carbon goods. For example the Boiler Scrappage scheme which helps householders replace old inefficient G-rated boilers.

Over 76,500 vouchers worth £400 each have been snapped up since the scheme was launched in January.

I am also keen to see the development of a sustainable construction sector.

Which is why my department has provided up to £7 million for a pilot scheme to build affordable homes, using low carbon highly insulating renewable building materials. We are not only demonstrating the viability of these innovative materials, but also helping to engage the social housing sector in the low-carbon agenda

Implications for UK business

This transition to low carbon will have huge implications for our economy, including the creation of ‘green jobs’.

More than a million people in the UK could be employed in the low carbon sector by the middle of this decade in everything from manufacturing and construction; to environmental consultancy and low carbon venture capital.

The Low Carbon Transition Plan and an international deal will help that market grow even further, both at home and abroad over the coming years.

The UK has the sixth largest low carbon and environmental sector in the world. Right now, 880,000 people are employed in it and the sector is worth over £106 billion a year.

Business sectors in construction, finance, investment, and technology are crucial to the transition to a low-carbon economy.

There are many actions that government can take, but there must be a strong skills and knowledge base to underpin them.

This country’s low carbon future will only be built by people who have the skills demanded by new and dynamic industries in a globalised economy.

Skilled people who are more productive and who embrace the wider options.

We know that there are challenges for skills in the energy sector, not least due to an ageing workforce and a reducing number of young people in the recruitment pool.

We need to provide for the growing demand for workers with low carbon expertise. The global market is already worth £3 trillion – set to grow to £4.3 trillion by middle of this decade.

To date, we have announced six Low Carbon Economic Areas to provide regional leadership for the major industries, and help address issues of regional equity in the transition to a low carbon economy.

Energy efficiency is key for all businesses - helping save money and reducing carbon emissions.

Next month 4-5000 organisations including banks, supermarkets and government departments will come into the new Carbon Reduction Commitment Energy Efficiency Scheme which, within 3 years, will place a cap on emissions from these sectors.

Transport

Heating and powering our homes may account for around a quarter of our greenhouse gas emissions but another fifth arise from domestic transport.

So last November we launched the “Plugged-In Places” scheme, providing up to £30 million to help establish charging points for electric vehicles.

Electric car plug-in charging points will appear in car parks, major supermarkets, and leisure and retail centres.

The first “Plugged-In Places” are London, Milton Keynes and the whole of the North East including; Newcastle, Sunderland, Durham and Middlesbrough. Between them, they will be installing over 11,000 vehicle recharging points during the next three years.

The Low Carbon Transition Plan I’ve just outlined will be supplemented later this month by our vision of how we move beyond 2020 to achieve our goal of at least 80% GHG reductions by 2050.

Never has there been a greater need to engage all sectors of society, business and industry in addressing the challenge of moving to a low carbon economy. We know that we are using the planet’s resources faster than they can be renewed and it is imperative that we find more sustainable ways of living.

We have made a very determined start – we know there is much more to do but I believe our low carbon plans, offer new opportunities, new jobs, and a sustainable future which will benefit us all.

4 March 2010 - Press Release - Testing the water for Wave and Tidal potential

Thu, 4 Mar 2010 00:00:00 GMT

Wave and tidal energy in England and Wales today received a boost as plans for the first full Strategic Environmental Assessment for wave and tidal energy were outlined.

The SEA - which will also pave the way for storage of carbon dioxide, and further offshore wind and oil and gas activities - will ensure that environmental concerns are addressed as the UK’s offshore energy resources are developed further.

Speaking at the Renewable UK Wave and Tidal Conference 2010, Energy and Climate Change Minister David Kidney said:

“I am keen that we get as much of our energy as we can from home-grown sources, and our seas are a fantastic asset that can help us do this - in a number of ways. The exercise I’m launching today will help us identify opportunities for new development, whilst taking into account any possible impacts on the marine environment.

“And by including wave and tidal in this assessment for the first time, we’re laying the foundations for commercial deployment of these technologies. This SEA and our forthcoming Marine Action Plan, alongside our other support measures, will create the kind of investor certainty that will help us maintain our position as world leaders in marine energy technology.”

The Welsh Environment Minister, Jane Davidson said:

"This is great news for Wales. The Welsh Assembly Government has big marine energy aspirations, and anticipates utilising many gigawatts of power from wave and tidal stream by 2025.

“Today’s announcement marks a significant step forward, moving us closer towards harnessing the vast potential energy from our seas and securing a renewable and low carbon energy supply for Wales and the UK.”

Maria McCaffery, RenewableUK's Chief Executive, said:

"This is excellent news for the UK's green energy sector, especially the wave and tidal power industry. RenewableUK's analysis shows that up to 2 gigawatts of Wave and Tidal capacity could be installed by 2020 - enough to power 1.4 million UK homes."

Notes for editors:

The scoping document is available at http://www.offshore-sea.org.uk/site/scripts/news_article.php
David Kidney’s speech will be available on the DECC website or from the DECC press office.
When the scope of the assessment is agreed the Department of Energy and Climate Change will carry out the full Strategic Environmental Assessment, producing an environmental report for public consultation. This will enable The Crown Estate to then look at the scope for commercial leasing opportunities in England & Wales.
Renewable UK is the new name for the British Wind Energy Association
The Department of Energy and Climate Change is central to the UK Government’s leadership on climate change. We are pushing hard internationally for ambitious effective and fair action to avert the most dangerous impacts. Through our UK Low Carbon Transition Plan we are giving householders and businesses the incentives and advice they need to cut their emissions, we are enabling the energy sector’s shift to the trinity of renewables, new nuclear and clean coal, and we are stepping up the fight against fuel poverty.

2 March 2010 - David Kidney speech - Launch of The Wildlife Trusts Severn Estuary Report - Energy at any price?

Wed, 3 Mar 2010 00:00:00 GMT

I would like to begin by thanking The Wildlife Trust for inviting me to speak at this launch event.

We all know that combating climate change is the biggest long – term challenge that we face. As such, harnessing the power of 14m tidal range of the Severn Estuary, with the potential to generate some 5% of all the UK electricity from a renewable, indigenous resource, is a hugely important option to consider.

The 450million litres of water which pass through the estuary every second when it’s in full flow, if used to generate power could save some 7MT of carbon dioxide a year – equivalent to turning off two medium-sized coal-fired power stations.

It is therefore right that we are taking the time to look at this option - and considering it raises a number of complex issues that need to be addressed. Not least, how we ensure a fair balance between the value of the unique natural environment of the estuary, against the value of stopping the threat of global climate change.

Strategic Environmental Assessment

The report that The Wildlife Trusts are launching today is a reminder to us all of the importance of this unique and dynamic estuary. I myself was there this Autumn, looking across the banks of the estuary.

Furthermore, the Severn and its tributaries are an area of international conservation significance – with many of the birds and fish that make their home in the estuary protected.

We are therefore committed to understanding in full the environmental and socio-economic effects of a tidal power scheme. That is why we are carrying out a Feasibility Study and why a Strategic Environmental Assessment is a central part of the study. No decision on Severn tidal power will be taken until all the evidence has been gathered, analysed and considered, and only after we have consulted the public on our own conclusions.

Severn Embryonic Technologies Scheme (SETS)

Such is the value of the estuary that we are seriously interested in considering ways to minimise the environmental impacts of a tidal power scheme – both through mitigation of effects of the short-listed options but also through our support for the development of the more embryonic technologies.

There are some exciting ideas here. But these new technologies are not sufficiently developed to be evaluated in detail alongside the other scheme options.

That is why we, along with the Welsh Assembly Government, Defra and the South West RDA, have invested over half a million pounds to aid the development of three schemes using embryonic technologies.

The Severn Embryonic Technologies Scheme will give us a clearer idea of the outputs, costs, impacts and route-map to deployment of these schemes. We will consider the information gathered through this programme before we take a final decision on whether we want to go ahead with Severn tidal power and if so, with which option.

Wider marine work

And that programme is just a part of the support we are providing to develop new technologies.

Outside of the Severn, the £22 million Marine Renewables Proving Fund which has just been awarded to 6 leading companies will help take the most promising marine energy devices through to early stage commercial generation. Whilst Government investment in the European Marine Energy Centre (EMEC) on Orkney, the New and Renewable Energy Centre (NAREC) at Blyth and the planned Wave Hub in Cornwall will provide the UK with an unparalleled marine energy testing, development and demonstration sector. The best suite of testing facilities in the world.

Feasibility studies are also underway, supported by the NWDA and others, into the potential for tidal range projects in other estuaries and bays, like the Mersey, the Solway Firth, Morecambe Bay and along the North Wales coast.

Finally, the Marine Action Plan which we are shortly to launch will set out the key steps which will need to be taken by both Government and Industry to help make the mass deployment of marine energy technologies a reality, cementing our current position as a global leader in this sector.

Conclusion

So the eventual decision on Severn tidal power will be a challenging one.

It will be a question of which of all our alternative low carbon options on offer is the best, fairest and most sustainable way to meet our climate change goals. And if the answer is “none of the above”, then our challenge is clearly even greater.

I would like to thank you all, and in particular The Wildlife Trusts, for your continued contribution to this debate. Your input is ensuring we reach the right decision, make the most of our natural resources, but protect the wildlife here in Britain.

3 March 2010 - Press Release - Government clears away grid connection uncertainty for new generators

Wed, 3 Mar 2010 00:00:00 GMT

The final plans for changing the way new electricity generation is connected to the UK’s power grid were published for consultation today by Energy and Climate Change Minister David Kidney.

The plans, called Connect and Manage, will clear the way for renewable energy projects such as wind farms to connect to the grid in time to meet the 2020 renewable energy targets.

David Kidney said:

“Access to the electricity grid has been one of the key barriers to the generation of renewable energy in this country. There is currently around 78 gigawatts of prospective new generation capacity – some 160 projects – that are waiting to be connected to the grid, including over 19 gigawatts from renewable sources.

“The new rules will help these projects get hooked up to the grid as soon as they are ready – helping in the shift to low carbon, secure energy supplies.”

Connect and Manage will enable new generators to connect to the electricity transmission network and start generating as soon as their local connection has been built, without having to wait for wider network reinforcement to be completed.

National Grid then manages the increased constraints on the network as more generation is connected before the completion of wider reinforcement work. Under the proposals, these additional constraint costs are socialised equally across all generators and suppliers in a way that supports new generators.

Notes to editors

The consultation “Improving Grid Access – Technical consultation on the model for improving grid access” starts today (03 March 2010) and will close on 31 March 2010.
Connect and Manage was selected as the best way to reform grid access following a consultation on four options last year: http://www.decc.gov.uk/en/content/cms/consultations/improving_grid/improving_grid.aspx
The consultation can be found at:
http://www.decc.gov.uk/en/content/cms/consultations/improving_grid/improving_grid.aspx
Ofgem wrote to the Secretary of State in June recommending that he use his powers. See http://www.ofgem.gov.uk/Networks/Trans/ElecTransPolicy/tar/Documents1/Miliband%20-%20250609.PDF.
Section 84 of the Energy Act 2008 gives the Secretary of State powers to amend licence conditions and codes for the purpose of facilitating access to, or the efficient use of, a transmission system in Great Britainor offshore waters. The Secretary of State will commence his powers when we implement the new enduring regime, expected by June 2010. The powers will last for two years from that date.
The new rules also include an increase in the commitment all power plants must give to National Grid that they will remain connected and generating. This will help the network companies plan what new network build is needed, which in turn will help support new renewable projects and meet our renewable targets.

2 March 2010 - Press release - New Green Strategy will overhaul Britain's Homes

Tue, 2 Mar 2010 00:00:00 GMT

Paving the way for ‘pay as you save’ green finance to make energy efficiency pay from day one
Up to 7 million British households to benefit from eco upgrades by 2020
Up to 65,000 jobs in the green home industry
Energy companies and local authorities to join forces to help consumers
New standards for social and rented accommodation to be proposed

A green transformation of Britain’s homes will take place over the next decade – making them more comfortable, warmer and cheaper to run – under new plans set out by the Government today.

With around one quarter of UK emissions coming from energy used in homes the Warm Homes, Greener Homes Strategy is aimed at cutting emissions from the UK’s homes by 29% by 2020.

The new strategy will help people make smarter use of energy in homes, making it easier to take action and reduce bills. Installing some technologies, such as solid wall insulation, could see energy bills cut by £380 a year (average between 2013 and 2020).

The new strategy will also be good for jobs, with up to 65,000 jobs required in the green homes industry as a result, for example installing and manufacturing energy saving measures or providing home energy advice.

The strategy will be implemented in a three stage plan:

To insulate 6 million homes by the end of 2011
To have insulated all practical lofts and cavity walls by 2015
To have offered up to 7 million eco upgrades by 2020; all homes to have smart meters.

Ed Miliband, Energy and Climate Secretary, said:

“This shows we can meet the national interest of tackling climate change and reducing our dependence on foreign energy at the same time as we help people save money.

“The Warm Homes, Greener Homes Strategy will remove the deterrent of upfront costs and reduce the hassle of the move to greener living.

“Making homes more energy efficient will help protect people from upward pressure on bills, tackle climate change, and make us less reliant on imported energy.

“New ‘pay as you save’ green finance, a new alliance between energy companies and local authorities to help people in their communities, as well as moves to encourage landlords to stop ignoring energy wastage in their properties, will help deliver the radical transformation that’s necessary.”

Communities Secretary, John Denham, said:

"Local authorities are uniquely positioned to drive and shape a low carbon economy, low carbon living and influence the kind of behaviour change that will be needed to meet the UK commitment to the 34 percent cut in emissions on 1990 levels by 2020.

"Councils are already making huge advances on this agenda. We want all local authorities to take the lead on reducing emissions in their area. There are obvious benefits for local people both financially and in terms of quality of life and it is crucial that local authorities maximise these and involve local people every step of the way."

John Healey, Housing Minister, said:

“The new measures announced today put the consumer in control of greening up their homes. More than a quarter of carbon emissions come from our homes, so it is vital people are able to make the improvements that will lead to smarter use of energy. It also puts social housing centre stage of efforts to reduce bills and carbon emissions to help the poorest first, with council and Housing Association landlords linking up with energy companies to get efficiency work done, and tenants getting the benefits of warmer, greener homes with lower bills.

“Today I have also announced an additional £2.5m to provide a network of Green Show Homes across England, lived in by ordinary people and open to the public. People will be able to see first hand what a refurbished green home is like to live in, and the new technologies they can use to improve the energy efficiency of their own homes and save money on bills.

“There’s a driving force behind the green homes movement with homeowners, developers and local authorities lining up to get on board. There is a lot of momentum to change and radically re-think how we track our energy use and refurbish our homes and buildings for the future. People in their own homes will get help with costs, and there will be help for private landlords and tenants, but we’re also ready to regulate in the future if landlords will not do the green refurbishment needed.”

The main elements of the Warm Homes, Greener Homes Strategy include:

Action to dismantle the financial barriers to energy efficiency

Legislating to allow new ‘pay as you save’ green loans to be tied to the property, which will avoid the up-front cost of eco upgrades
Help those in private rented accommodation whose landlords have little incentive to take action and who endure poorly insulated and cold accommodation.

New local approach

Energy companies and local authorities teaming up to make homes more energy efficient – with energy companies required to help householders become more energy efficient. The new local partnership approach will take over from 2013, once the current Carbon Emissions Reduction Target ends
Building on the Local Carbon Framework pilots announced by Communities Secretary John Denham in December, which are a new approach for local authorities to set targets and put in place plans to reduce carbon emissions.

Help to those who need it most

Direct help to those that need it most with energy companies targeting work towards lower income groups
A new ‘Warm Homes’ standard for social housing will see all social tenants receive free energy upgrades for their homes from energy companies, including fitted smart meters, leading to savings of up to £300 a year on bills
Consult on setting minimum energy efficiency standards for rented property to help tenants left in poorly insulated, cold and energy wasting properties – and ensuring standards are met before they are rented out

Better information and standards for consumers

One stop shop energy helpline for people to access trust-worthy information about how to benefit from energy efficiency measures
New set of standards for workmanship and products to protect consumers from the threat of cowboy eco-builders and dodgy products
A new network of eco show homes to demonstrate the range of money saving and money generating technology available
Proposals to overhaul the scope of Energy Performance Certificates, to give householders a better understanding of what they can do to improve the energy efficiency of their homes, including an online modelling system so homeowners can do a virtual green makeover before taking action.

As part of our work with the corporate sector to promote behaviour change, DECC is funding a new initiative collaborating with a small group of leading employers to mobilise their employees to insulate their homes. Later this month, the ‘Insulate Today’ pilot programme will be launched by Aviva, HSBC and Sainsbury’s reaching around 250,000 staff members, making it easier, cheaper and more appealing for them to insulate their homes and saving them money and energy.

Today’s new strategy builds on the progress already made in making the UK’s homes more energy efficient. Between 2002 and April 2008, the Government has helped 5 million homes become more energy efficient. Government support has already been aimed at vulnerable groups including the fuel poor. Warm Front – the Government scheme for the fuel poor - has helped over 2 million vulnerable households, across England, since its inception in June 2000, including half a million households in the last two years alone.

Notes for editors:

The ‘Green Homes, Warmer Homes Home Energy Management Strategy’ can be found on the Household Energy Management Strategy page of the DECC website ( http://www.decc.gov.uk/en/content/cms/what_we_do/consumers/saving_energy/hem/hem.aspx )
Note that the 29% reduction is in non-traded emissions, i.e. emissions outside the EU ETS. Primarily, this means emissions from gas use in the home.
CLG will shortly be announcing new planning guidance for councils to tackle climate change through local plans. This will refresh planning policy to reflect the latest climate change predictions and ensure councils are planning for low carbon energy, low carbon living and the low carbon economy. CLG will also soon publish its own climate change strategy, putting the department’s work to support local government at centre stage.
Insulate Today is managed by Behaviour Change. The Energy Saving Trust will be providing expert advice and support to the project. ( www.behaviourchange.org.uk ).

2 March 2010 - David Kidney speech - Nuclear Industry Association

Tue, 2 Mar 2010 00:00:00 GMT

Speech to the Nuclear Industry Association, QEII Conference Centre, London

Good morning and thank you for inviting me here today. The Secretary of State is sorry he couldn’t be here today. But I’m delighted to have the opportunity to speak to you about the momentum that the UK’s nuclear renaissance is gathering.

We have set some tough targets. We have committed to cutting our emissions by 34 per cent by 2020, and up to 80 per cent by 2050.

My department has published a number of documents in the last year and half, that clearly set out how we are going to achieve those reductions. Through transport, through industries and our future jobs.

But more importantly through inspiring a change in behaviour, not just in the UK but throughout the world. That’s started to happen, through the Copenhagen talks. There is a lot more to be done however, but the will and the determination is there.

The vision

One thing I want to be clear is that we have the right vision. The Low Carbon Transition Plan sets out our ambition clearly so energy investors, businesses and the consumer know what we need, to make our reductions a reality.

By 2050 we may need to produce more electricity than we do today but must do so largely without emitting greenhouse gases.

We will need to transform our electricity system, so that electricity is generated from clean sources such as renewables, nuclear and fossil fuel plants fitted with carbon capture and storage.

An energy mix I affectionately call ‘the trinity.’

Because we have no option but to plan for a low carbon future.

We know the trinity mix is the way in which we will get to a low carbon future. But this is important too - keeping the mix diverse gives us energy security and price stability as well.

The energy sector faces some steep challenges over the coming decade. We must maintain our security of supply and make sure that the UK is shielded from volatile fuel prices and that costs to consumers are minimised.

We need a lot of low carbon energy from a variety of sources. And we will not halt the ambitions of energy companies to produce low carbon electricity through nuclear power.

Which is why we have set neither a target or cap, on the amount of nuclear power that could come forward.

Energy companies have already announced intentions to build up to 16GW of new nuclear by the end of 2025.

And the draft nuclear National Policy Statement (NPS)identifies the potential for approximately 25GW of new low carbon capacity.

This is an ambitious vision for a nation which has not built a new nuclear power station for a long time.

But high ambitions have never deterred us from reaching our goals in the past. And with the work that I know my department is doing, and the work I see you doing. That is a tangible vision.

What we have achieved

But let’s look at what we’ve achieved already. Two thirds of the world’s carbon dioxide comes from energy use, so to me, it is clear as to why our energy policy is critical to a climate change solution.

Nuclear energy already provides 15 per cent of our electricity but, as I’m sure you’re all aware, some are due to close.

So the current rate is set to drop dramatically. By 2025, all but one of our existing power stations will have closed. But these closures are an opportunity.

The existing capacity not only needs to be replaced but expanded upon. We estimate that at least £21 billion will need to be invested to make this happen.

That investment means jobs, a stronger economy and a low carbon future.

And no government has done more to make this country worth investing in. What we need now is a second industrial revolution across the UK, and embrace what a low carbon transition can do for us financially.

NPS

The National Policy Statements which Lord Hunt is taking through Parliament, are making groundbreaking progress.

I’ve already mentioned the potential for 25GW. And the NPSs are a major part of the planning reforms introduced in the Planning Act 2008.

They will guide the Infrastructure Planning Commission (IPC) considering applications for new power stations. And the process will be faster and more transparent, than the current planning regime.

The Nuclear NPS is site specific and identifies ten sites, that are considered potentially suitable for new nuclear power stations.

It also explains the our assessment for the management and disposal of radioactive waste.

We carried out a comprehensive consultation. Not forgetting the national events and public meetings, at the locations of the potentially suitable nuclear sites.

We also held informal workshops for statutory consultees and our stakeholders; and I’m pleased to say they were well attended. So many important issues have been raised that we will consider carefully and reflect in the final NPSs.

Funded Decommissioning

We have thought well into the long term and legislated to ensure developers put money aside from day one for eventual clean up and decommissioning.

Let me be clear. We take the issue of waste very seriously, and that is why it is our policy - that before consents for new nuclear power stations are granted - we will need to know that effective arrangements will exist to manage and dispose of the waste produced.

The Nuclear Liabilities Financing Assurance Board (NLFAB) will scrutinise the financing plans for the decommissioning and clean up of nuclear waste. We are determined that the taxpayer will not bear any costs for clean up.

Regulatory Reform

We are working with the recommendations made by Dr. Tim Stone on the nuclear regulatory regime.

And we have, an almost, full complement of highly trained and experienced inspectors.
We have consulted to make sure our nuclear regulatory arrangements remain world class. Our forthcoming ‘Legislative Reform Order’ will make sure there is transparency and accountability of nuclear regulation.

Nuclear Centre for Excellence

The Prime Minister has announced the Nuclear Centre of Excellence. This will be a unique partnership between industry, government, academia and our international partners.
Putting the benefits of civil nuclear power aside for a moment, for many countries in the world there has always been the worry that some could try to use it as a cover to develop a weapons programme.

The centre will promote proliferation-resistant safe nuclear power around the world.

This work is crucial and I’m pleased to see that the centre will be working on this; and I look forward to seeing their progress in the coming months.

Generic Design Assessment

The Generic Design Assessment process is a high priority for us because it is vital in making nuclear new build happen. The GDA allows the Regulators to identify any potential issues early in the process where it’s easier to “design them out”. As a result, we should see shorter timescales for site licensing and authorisations.

Supply Chain

Our energy policy is about developing low carbon, secure, reliable sources of electricity generation. Nuclear power is all of these.

And it will be for energy companies and the supply chain like you to develop and build new nuclear power stations.

This government, led by the Office for Nuclear Development (OND) in my department, will see to it, that any “pinch points” in the global supply chain, do not lead to delays in new nuclear build.

We will help UK based companies to become an integral part of the domestic civil nuclear supply chain. And also giving those companies a fair chance in competing in the rapidly expanding global market for civil nuclear power.

That includes asking the Nuclear Industry Association (NIA) to establish a nuclear supply chain development programme.

And providing investment for the creation of the Nuclear Advanced Manufacturing Research Centre which will be based in Sheffield.

With an investment for the Manufacturing Advisory Service to provide tailored advice to manufacturers, on how to generate opportunities in this sector.

New build brings a massive multi million pound opportunity for the UK supply chain.
I fully welcome the work that is already well underway by energy companies like EDF and reactor vendors like Areva and Westinghouse to work with UK supply chain companies. I want to see more of this work going on in this sector.

We are well positioned to seize these opportunities, because companies operating here having been active in the development of civil nuclear power in the past.

Each new power station has the potential to offer up to 9000 jobs with an estimated cost per reactor of at least £3 billion.

And our plans to build up to 16 GW of new nuclear capacity has a market value of roughly £30billion.

Together with the OND and BIS, we will help deliver a strong, successful and profitable domestic nuclear supply chain, supplying global markets and providing high value careers for people in the UK.

Skills

So I want to come to the issue of skills. All our goals depend on acting on our ageing workforce and depleting pools of students in training.

In 2008 we launched a National Skills Academy for Nuclear and we have invested over £3 million so far. The Academy was set up jointly with employers to address the gap in skills on challenges like; fuel cycle, waste management and decommissioning.

The skills gap is closing, but the stakes are rising. And to achieve world class skills that are up to the challenge, we need to shut that skills gap in order to prepare for the transition into a low carbon society.

There are now 13 National Skills Academies in operation - two of those are in the planning phase in major areas of the economy.

As employer led, independent organisations, they have attracted significant employer investment in skills over the last three years.

And that’s the beauty behind academies. You set the agenda and you reap the benefits.
The National Skills Academy for Nuclear is led by employers from across the nuclear sector, with over 55 employer members after 20 months of operation so far. It’s success largely depends on the development of structured career progression.

And the Certificate of Nuclear Professionalism, which is now being developed to ensure graduate entrants have the right skills and competencies to work in the industry.

At Sizewell B, I understand applying the average earning to the local workforce, amounts to an injection of £64 million per annum in salaries into the local economy.

I know EDF have started to engage with local colleges to help tackle the skills shortage. And this is exactly the right approach, I want to see more of this.

It reassures me to see such commitment from employers and companies. Because let’s make no mistake that the sector’s success relies heavily on skills. But we need to see this commitment deepen. For example I want to see active support continue for the Nuclear Skills Passport and the Energy Foresight scheme.

We now need to ensure that the UK has a workforce which is, skilled, experienced and can compete in this global economy.

So they can take full advantage of the opportunities available across the sector, both now and in the future.

That is the responsibility of all of us here in the room today. No one body on their own can deliver what is required.

That is why we have committed £5 million to develop new Apprenticeship frameworks at levels three and four - four being equivalent to a university degree. And for technicians, too.

We commissioned the ‘UK Commission for Employment and Skills’ to report on the range of Apprenticeships and to identify, with Sector Skills Councils, our priorities for developing frameworks to meet future skills needs.

And in the coming month, we will be publishing our consultation on our low carbon skills strategy. It will look at the main low carbon sectors to see what we can do to fill the gaps.

But it also looks at the ‘how’, not just the ‘what’ and the ‘who’.

By that I mean ‘how’ we can embed skills across all sectors for that rapid transformation we need, to get to a low carbon economy.

It will draw out the skills needs and set out our actions. My department and BIS are leading this cross Government effort. The strategy will follow a full public consultation, which we expect to launch in the spring.

And Cogent, with our support, will shortly be releasing a new report, which looks at the skills and capability needs specifically behind nuclear new build in the UK.

The report has been developed with many of you here today. It will identify specific roles where a skills gap poses a significant risk to the new build programme – roles like high integrity welders, or project managers with sufficient nuclear experience.

Conclusion

So to conclude, two thirds of the world’s carbon dioxide come from energy use, so it is clear why our energy policy is critical to a climate change solution.

It’s an exciting time to be part of the nuclear renaissance because so much is yet to happen, that will transform our country.

New nuclear will continue to be an important part of an affordable climate change policy for the UK. We are committed to working with you and will carry on doing so.

END

1 March 2010 - Press Release - One month until Energy Efficiency Scheme starts

Mon, 1 Mar 2010 00:00:00 GMT

Government scheme to save organisations £1billion and more than 4MtCO2 each year by 2020

Today marks the one month countdown to the start of the Government’s new scheme to save organisations money on fuel bills and to reduce carbon emissions.

The CRC Energy Efficiency Scheme will require large public and private sector organisations like supermarkets, hotels, hospitals, local authorities and central government departments, to improve the energy efficiency of their estate. They will be required to take part in the scheme from 1st April.

The aim of the scheme is to help change behaviour and make organisations more energy efficient – to reduce carbon emissions and save money. The financial savings should be significantly greater than any costs arising from participation, and importantly will make carbon a boardroom issue for many large organisations.

Energy and Climate Change Minister Joan Ruddock said:

“There’s just one month to go until the start of the CRC which will see large public and private sector organisations cutting emissions as well as saving money on fuel bills. This is a real opportunity for business and industry to take a leadership role in tackling climate change and gain reputational advantage as a result.”

The Department of Energy and Climate Change and the Environment Agency, which will be running the scheme, have hosted more than 115 events to raise awareness about the scheme as well as running regional workshops and speaking events.

The CRC will help to ensure that organisations play their full role in contributing to the UK’s emissions reductions of at least 34% on 1990 levels by 2020 through improved energy efficiency.

The scheme is mandatory and will save participants around £1billion per year by 2020 through cost effective energy efficiency measures that are not yet being taken up.

By 2020 the scheme is expected to have delivered emissions savings of at least 4.4 Mt CO2 per year.

The scheme will target organisations whose annual half hourly metered (HHM) electricity use is at least 6,000 Megawatt hours (MWh) – typically those that spend £500,000 a year on electricity although all organisation who have a half hourly meter will be required to participate in some way.

Case Studies

The below organisations fall within the remit for CRC and would be happy to be contacted for media purposes;

GUY'S AND ST THOMAS' NHS FOUNDATION TRUST
Press Office contacts 020 7188 5577 or email: press@gstt.nhs.uk
THE NATIONAL THEATRE
Press Office contact details: 020 7452 3235 or email: press@nationaltheatre.org.uk
LONDON FIRE BRIGADE
Press Office contacts: 020 8536 5922 or email: robert.mctaggart@london-fire.gov.uk

Notes for editors

CRC is a UK wide scheme and the policy has been developed by the Department of Energy and Climate Change, the Scottish Government, the Welsh Assembly Government and the Department of the Environment Northern Ireland.
Analysis of the large private and public organisation sector by the Carbon Trust found significant potential for cost-effective emissions reductions through energy efficiency. Their recent analysis of the non-domestic building sector suggests 70-75% reductions could be made by 2050 at no net cost using options which exist today.
All organisations that had at least one half hourly meter settled on the half hourly market in 2008 will be required to do something under the CRC. Government estimates indicate that around 20,000 public and private sector organisations will be required to participate in some way. The majority of these will simply be required to make an information disclosure once every few years about their electricity usage.
Around 5,000 organisations will be required to participate fully. This means they must not only record and monitor their CO2 emissions, but also purchase allowances equivalent to their emissions each year.
The registration window for CRC will begin in April 2010, and last until the end of September 2010. Participating organisations will have to register with the Environment Agency who will administer the scheme.
The Carbon Trust provides information and advice to businesses and public sector organisations about making energy efficiency changes and can advise on what financial help is available.
You can find further information at www.decc.gov.uk/crc Guidance for scheme participants has been published by the Environment Agency. You can visit the Environment Agency website at http://www.environment-agency.gov.uk/crc or contact crchelp@environment-agency.gov.uk for more information.
The Department of Energy and Climate Change is central to the UK Government’s leadership on climate change. We are pushing hard internationally for ambitious effective and fair action to avert the most dangerous impacts. Through our UK Low Carbon Transition Plan we are giving householders and businesses the incentives and advice they need to cut their emissions, we are enabling the energy sector’s shift to the trinity of renewables, new nuclear and clean coal, and we are stepping up the fight against fuel poverty.

1 March 2010 - Press Release - New non-executive directors appointed to the Coal Authority

Mon, 1 Mar 2010 00:00:00 GMT

Energy and Climate Change Minister, David Kidney, today announced the appointment of Tricia Henton and Stephen Redmond as Non-Executive Directors to the Coal Authority.

The Minister said:

"I am delighted that the Coal Authority will benefit from the extensive experience that both Ms Henton and Mr Redmond have. Ms Henton has a wealth of experience at the Environment Agency which will benefit the Authority's minewater treatment and environmental programmes, and Mr Redmond's extensive experience in relation to Human Resources and Change Management will allow the Authority to take forward its evolution as an organisation.”

Notes to editiors:

1. These appointments have been made in accordance with the requirements of the Code published by the Commissioner for Public Appointments.

2. Mr Redmond's appointment will commence on 1 March 2010 and Ms Henton's on 1 October 2010. Both are appointed to 30 September 2013. Remuneration is currently £11,666 per annum.

3. Ms Henton is currently Director of Environment and Business at the Environment Agency (EA) with responsibility for water resources and quality, regulation, climate change and conservation. Her EA responsibilities already bring her into contact with the Coal Authority in relation to its minewater treatment programme. Ms Henton is due to retire from the EA in October 2010.

4. Mr Redmond has a track record in central and devolved government, and was one of only 4 national HR Directors for the NHS in the UK. His current portfolio includes Independent Panel Chair at the Judicial Appointments Commission, Independent Chair of the Doctor’s and Dentist’s Disciplinary Appeals Panel, and Non Executive Director at the Crown Prosecutions Service.

5. Ms Henton has no other Ministerial appointments. Mr Redmond’s other Ministerial appointments are:

Organisation and position	Appointed by	Time commitment	Period of appointment	Fee received
Department of Health Independent Chair, Doctors and Dentists Disciplinary Appeals Panel	Secretary of State for Health	6 days per annum	Dec 2006 to Dec 2010	£400 per day
Crown Prosecutions Service Non Executive Director	Attorney General	24 days per annum	Sep 2009 to Jan 2011	£650 per day
Judicial Appointments Commission Independent Panel Chair	Lord Chancellor	30 days per annum	Dec 2007 to Dec 2010	£310 per day

6. The Coal Authority was established by Parliament in 1994 with specific statutory responsibilities associated with:

licensing coal mining operations in Britain
handling coal mining subsidence damage claims
property and historic liability issues, such as treatment of minewater discharges
providing public access to information on past and present coal mining operations
the provision of emergency call-out service for reported surface hazards

7. Further details can be obtained at www.coal.gov.uk.

8. All appointments are made on merit and political activity plays no part in the selection process. However, in accordance with Nolan recommendations, there is a requirement for appointees’ political activity (if any declared) to be made public. No such activity was declared.

9. The Department of Energy and Climate Change is central to the UK Government’s leadership on climate change. We are pushing hard internationally for ambitious effective and fair action to avert the most dangerous impacts. Through our UK Low Carbon Transition Plan we are giving householders and businesses the incentives and advice they need to cut their emissions, we are enabling the energy sector’s shift to the trinity of renewables, new nuclear and clean coal, and we are stepping up the fight against fuel poverty.

25 February 2010 - David Kidney speech - Carbon Connect

Fri, 26 Feb 2010 00:00:00 GMT

Thank you. Good afternoon everybody. Many thanks to Carbon Connect for inviting me to today’s reception and giving me the opportunity to talk to you about our priorities and what we are doing to create a greener future.

In November 2008 the UK was the first country in the world to legislate, through the Climate Change Act, for carbon budgets for each UK Government Department.

Last summer we published the world-leading Low Carbon Transition Plan, outlining how the UK will meet the challenges and opportunities of climate change.

Put together, these steps represent a dramatic change in approach.

We have set out the Government’s long term strategy for achieving radical cuts in the nation’s carbon emissions by 2020 and meeting our first three carbon budgets.

We aim to cut UK emissions by 18 per cent below 2008 levels - over one third below 1990 levels - and we will go further if other countries agree to take action.

Already we have achieved more than a 20 per cent reduction – double our Kyoto target. But we have committed to cut emissions by 80 per cent by 2050.

The Low Carbon Transition Plan contains a comprehensive set of actions to reduce emissions, maintain energy security, and maximise economic opportunities, growth and jobs.

It sets out a strong policy framework that provides clear signals to the market on our long-term priorities, and provides greater investor confidence about the future prospects for UK business sectors.

The plan talks about the ‘trinity’ of clean coal, nuclear power and renewables, without which we cannot succeed in becoming a low carbon society. We have announced substantial increases in funding for key technologies, for example: up to £120million from the Low Carbon Investment Fund to bring on significantly the offshore wind industry in the UK;

up to £6million to explore areas of potential ‘hot rocks’ to be used for geothermal energy. For the marine sector, up to an additional £60million for a suite of measures which will help secure the UK’s position as a global leader in wave and tidal energy.

The Plan also included initiatives to improve the energy efficiency of our homes such as the boiler scrappage scheme; and an injection of venture capital funds through the Carbon Trust and the UK Innovation Investment Fund to ensure that finance for innovative low carbon businesses is available while markets remain fragile.

We are bringing the benefits of renewable electricity to the wider public, by incentivising low carbon energy choices. Feed in Tariffs will allow people to invest in small scale low carbon electricity, in return for a guaranteed payment for the power they generate. And we are now consulting on the possibility of a Renewable Heat Incentive scheme, to provide financial support for those who install qualifying renewable heating.

Innovation will be vital if we are to achieve the challenging carbon emission targets we have set ourselves.

Innovation is also essential to drive the UK forward in a competitive global economy, so mitigating climate change also represents major business opportunities for the UK, with new markets bring created in low carbon technologies and other goods and services. The UK already holds a 3.5% share of the global market for low carbon and environmental goods and services, worth around £107billion and employing 880,000 people in this country. And by 2015 it’s estimated that this sector in the UK alone could be worth as much as £150billion.

To deliver the UK’s low carbon innovation goals we have enhanced collaboration and knowledge sharing between developers, academics and investors. The Technology Strategy Board, the Carbon Trust and the Energy Technologies Institute have been working closely to ensure that funding is coordinated and effectively supports a portfolio of technologies across the low carbon energy sector. This group has been expanded to included DECC’s Environmental Transformation Fund and the Research Councils. We are adding the new players to give us Coverage of coordinated support for the full life cycle of emerging technologies, ensuring that all activities are complementary to get the best outcomes.

We are working with external stakeholders such as the Energy Research Partnership, which brings together key funders of energy innovation from industry, government and academia. This high level forum gives strategic direction to UK energy research, development and deployment aiming to increase the level of coherence and effectiveness of public and private investment in energy innovation.

We know for some innovators it’s not always been easy to know who to approach. We want to help innovators to find the range of support available for technology development.

In October I launched the Energy Generation and Supply Knowledge Transfer Network (KTN), hosted by the Technology Strategy Board. This acts as a gateway for innovators seeking grant funding and I very much encourage all innovators, investors and academics to engage with this network.

As we move out of recession, we have a historic opportunity to green the economy and build a cleaner future. I am committed to ensuring that, across a full range of Government action, we are doing everything we can to support innovation and to accelerate the deployment of low carbon technologies.

25 February 2010 - Press Release - New player in UK offshore wind market

Thu, 25 Feb 2010 00:00:00 GMT

Mitsubishi Power Systems Europe signs MOU signalling intention to invest up to £100 million in UK wind turbine R&D project
Up to 200 highly skilled jobs to be created by 2014
Government announces further £18.5 million grant to fund offshore wind test site at Narec in Blyth

Business Secretary Lord Mandelson and Energy and Climate Change Secretary Ed Miliband today signed a non binding memorandum of understanding (MoU) with Mitsubishi Power Systems Europe Ltd (MPSE). The company intends to invest up to £100 million in an offshore wind turbine project in the UK. This will create up to 200 highly skilled jobs.

The Government is working with MPSE, and is intending to provide grants of up to £30 million to support the project. This follows on from extensive work with MPSE and discussions that the company had with Lord Mandelson and Ed Miliband at the Global Investors conference hosted by the Prime Minister in London on Monday arranged by UK Trade and Investment (UKTI).

This project will be the first step towards the production of turbines for the next generation of offshore wind farms. By working closely with Mitsubishi, the UK is a strong contender to be a manufacturing base for Mitsubishi in the future, which could create up to 1,500 new jobs.

The UK is leading the way in offshore wind. Today's announcement demonstrates both the Government and private sector commitment to developing the industry in the UK. Mitsubishi will be working closely with UK based companies and organisations to develop the turbines needed for the next generation of offshore wind farms.

Today Lord Mandelson and Ed Miliband also announced new funding of £18.5 million for an offshore wind test site in the North East of England.

The site, off the coast near the New and Renewable Energy Centre (Narec) in Blyth, will act as a technology demonstration and development platform for the next generation of large multi-megawatt offshore wind turbines. It also complements Government support for a blade test facility in the North East that will enable the testing of blades up to 100m in length. These world-leading testing facilities will make the UK a prime location for companies such as Mitsubishi.

Business Secretary Lord Mandelson said:

"Mitsubishi's investment in wind turbine R&D and the creation of 200 highly skilled jobs is great news for our future plans in low carbon, high technology industries. The UK is now well placed to manufacture the turbines needed for the next generation of offshore wind farms. We will continue to work with Mitsubishi to secure production in the UK.

“I’m delighted that we are also supporting the wind test site in the North East. Coming on top of funding for Narec announced in the Pre-Budget Report, it further strengthens the North East’s position as a leader in the offshore wind farm sector.”

Energy and Climate Change Secretary Ed Miliband said:

"This decision by Mitsubishi is a sign that the UK is starting to turn its leadership in offshore wind generation into leadership in manufacturing. We have the wind resource and we now have an industry that is really starting to grow. This is possible because of our domestic market and our commitment to support companies that locate here. It is another step to turning Britain into a leading green manufacturing centre.”

Senior Executive Vice President Mr Ichiro Fukue and MPSE CEO Mr Akio Fukui said:

“Mitsubishi Power Systems Europe is delighted to be working in partnership with the UK Government to create this exciting opportunity for the development of world-class offshore wind technology in the UK. MHI’s Ship Building division is interested in entering the offshore wind installation and operation and maintenance vessel market. We have been working with UKTI for some time and we look forward to further growing our offshore wind business with UK-based partner and supply chain businesses from 2010, bringing much needed competition into the offshore wind turbine supply market, and economic benefit to the UK”

Notes for editors:

1. The project will have three phases:

Prototype assembly, onshore and offshore testing of Mitsubishi's 6MW second generation technology;
Development of third generation offshore wind technology with the establishment of a UK-based Mitsubishi Offshore Wind Centre for Advanced Technology; and
The design and development of large composite offshore wind turbine blades, and associated production techniques.

2. Funding is coming from the £950 million Government's Strategic Investment Fund (SIF). It was created to invest in the UK's basic capabilities for industrial innovation, job creation and growth in a highly competitive global economy.

3. Any grants from HMG to Mitsubishi will be subject to European Commission approval.

4. The Offshore test facility at Narec will comprise 20 pre-consented "pods", at which users can deploy prototype or demonstration turbines and foundations. The pods will be in four rows, increasing in distance offshore and with water depths of 15, 35, 45 and 55 metres to allow testing of alternative installation and foundation types. The Strategic Investment Fund will provide the primary infrastructure for the facility and will fast track the near shore development (first row of “pods”) to meet demand from manufacturers. The site will provide conditions representative of typical Round 3 offshore wind projects. Developers will be expected to pay a lease to use the site. The development of the site is subject to further planning consents and the site being granted a lease by the Crown Estate.

5. Narec is working closely with Regional Development Agency One North East to implement an investment programme of up to £80 million by the public and private sectors to develop the national innovation assets to support UK industrial growth in the offshore wind and marine renewable markets. These include a new facility being developed with the Energy Technologies Institute to test the world’s biggest turbines and enhanced marine and blade testing facilities.

6. About Mitsubishi Power Systems Europe Ltd (MPSE). In October 2007 Mitsubishi Power Systems Europe Ltd was established by Mitsubishi Heavy Industries to drive forward MHI’s power business in Europe, Middle East, and Africa. MPSE is a UK company headquartered in London with offices in Leeds, Hamburg, Madrid, Vienna, Turin, Dublin and Istanbul, and is testimony to MHI’s desire to localise their power systems capability outside of Japan. MPSE has seen significant growth from a core of 5 power systems experts in early 2008 to a multi-disciplinary team of currently over 100 staff (72 UK-based). In early 2009 MPSE acquired Maintenance Partners Ltd, a Belgium-based service and maintenance specialist company with 400 staff and a significant presence in Europe and the Middle East.

Mr Ichiro Fukue – Senior Executive Vice President, Mitsubishi Heavy Industries. Tokyo based, Senior Executive Vice President and board member of Mitsubishi Heavy Industries with responsibility across MHI’s business areas including power and related products. As Senior Executive Vice President Mr Fukue also leads MHI’s Sustainable Energy and Environmental Strategy division, with interests including offshore wind, wind, photovoltaics, CCS, smart grid, energy storage and electric vehicles. Trained as a mechanical engineer and began working for MHI Power Systems 39 years ago, Mr Fukue has been General Manager of MHI’s Takasago Machinery Works and Managing Director of MHI’s Power Systems Headquarters. Married and lives in Tokyo.

Mr Akio Fukui – Chief Executive Officer, Mitsubishi Power Systems Europe. London based, CEO of MPSE with responsibility for the expansion of MHI’s Power Systems business across Europe, Middle East, and North Africa. Began working in MHI’s headquarters 38 years ago as a project manager, before becoming General Manager of MHI’s London liaison office in 1986. Mr Fukui was responsible for supplying Mitsubishi Wind Turbines to at the time the UK’s and one of Europe’s largest wind farms in Wales with 103 Mitsubishi 300KW machines. Mr Fukui has also previously been Senior Executive at MHI’s headquarters, and General Manager of MHI’s Overseas Business Promotion. Studied Economic Science at university, lives in central London, married with family.

7. The Department of Energy and Climate Change is central to the UK Government’s leadership on climate change. We are pushing hard internationally for ambitious effective and fair action to avert the most dangerous impacts. Through our UK Low Carbon Transition Plan we are giving householders and businesses the incentives and advice they need to cut their emissions, we are enabling the energy sector’s shift to the trinity of renewables, new nuclear and clean coal, and we are stepping up the fight against fuel poverty.

22 February 2010 - Lord Hunt speech - Coal UK Conference

Wed, 24 Feb 2010 00:00:00 GMT

Good morning. Thank you for inviting me here today to give me the opportunity to speak about the UK’s Energy Policy & the role of coal in that.

Coal fuelled the industrial revolution. That brought about huge change in peoples working lives both socially and culturally.

Now we are engaged in a ‘green revolution’ and the same shift in attitudes and behaviours are starting to spread. The coal sector cannot expect to escape the consequences of this second revolution: but it can be one of the essential pillars of a low carbon world.

The ambition

The 2008 Climate Change Act will see the UK cutting our emission by 80 per cent by 2050.

We have also supported the EU level agreement of a 20 per cent reduction in carbon dioxide emissions by 2020, rising to 30 per cent if wider international agreement is reached.

The Low Carbon Transition Plan, published in July last year, sets out how we will do this. Each Government Department has been allocated a carbon budget and every department is producing its own plan to show how it will stay within its carbon budget – a budget based on the emissions coming from the sector.

Trinity

We believe nuclear power has an important role to play in our low carbon future. The first nuclear power station is hoped for by 2018 and developers have already announced intention of building up to 16 GW of capacity.

By 2020, renewables will increase from six per cent to over 30 per cent. We’ve nearly tripled renewable electricity consumption since 2000 recently we announced; over six GW of onshore wind is in planning today across the UK; and the Crown Estate has just announced rights for companies to build a potential 32GW of additional capacity off shore.

On coal, we have embarked on a programme of 4 commercial scale CCS demonstrations funded by a new CCS incentive. Our ambition is to see CCS ready for wider deployment from 2020 and a long term transition to clean coal.

Energy market assessment

In July last year, we said in the Low Carbon Transition Plan (LCTP) that the scale and pace of change needed, would test the energy market.

Since then, a growing evidence base has built up of certain risks under the current arrangements. Such as, the scale of the investment challenge could create a financing gap. And uncertainties created by the current market structures make it difficult for the sector to invest in high fixed costs.

And there is increasing pressure on energy affordability, which could be affected by the efficiency of the energy market. So we have been working on an energy market assessment that will set out clear objectives for the energy market – based on carbon reduction, security of supply and fairness for consumers.

We need to assess if the current arrangements will deliver the necessary investment to meet our renewable targets, carbon budgets and ensure we can maintain the appropriate trajectory to meet our emissions goals for 2050.

We will know what the initial findings are in time for the Budget this year.
I would expect these findings to show us a preliminary view on the ability of the current arrangements to deliver our energy goals and mix. And if necessary a short list of possible further interventions later this year.

UK coal production and demand

So what is the role of coal in this mix? Today, coal represents under 20 per cent of the UK’s total energy supplies. But with most of that used for generation, its contribution to our electricity supplies is double that. Take the 3 week cold spell after Christmas and over New Year as an example, coal generation accounted for a weekly average of nearly 40% and a daily average of 36%.

And around a third of the coal used for generation in the UK is home produced.

In 2009, UK coal output was just over 17 million tonnes.

The total continues to be split about 55:45 between surface mined and deep mined coal.

We know the advantages of keeping up access to our supplies of indigenous coal.

During 2009, the Government was pleased to see several major generators demonstrating that they also appreciate the advantages of continuing supplies of locally produced coal.

Because for all practical purposes, the future of the UK coal industry is in the hands of its customers. They are the people who decide what coal to buy – indigenous or imported.

This Government’s framework envisages a continuing role for coal, particularly in the generating sector, for the foreseeable future, provided that its potential environmental effects can be managed.

Clean coal / CCS

Coal has been fundamental to UK energy needs for more than two centuries, and will continue to be so. Providing that its carbon by-products can be managed. Fossil fuels are abundant and relatively cheap, are able to respond flexibly to variations in demand, and are likely to remain an important part of our energy supply for some time to come. Successful demonstration and roll-out of commercial carbon capture technologies will be the key to their continued use.

That is why Carbon Capture and Storage is crucial for the UK and for the global community.
We are a global leader in developing CCS and one of a handful of countries committed to supporting commercial scale demonstration of the technology. And one of the first to put in place a national regulatory regime for carbon dioxide storage.

In early November, we confirmed policies on the new regulatory and financial framework to drive the development of clean coal. Any new coal power station will have to comply with the new system.

A month later the Pre-Budget Report contained a firm commitment to supporting four commercial scale demonstrations in the UK of CCS on coal power generation.

Our ambition is to see CCS ready for wider deployment from 2020 and for any new coal plant constructed from then to be fully CCS from day one. We expect demonstration plant will retrofit CCS to their full capacity by 2025, with the CCS incentive able to provide financial support.

A rolling review process, which is planned to report by 2018, will consider the appropriate regulatory and financial framework to further drive the move to clean coal. In the event that CCS is not on track to become technically or economically viable, an appropriate regulatory approach for managing emissions from coal power stations will be needed.

There’s huge potential here, for the industry & UK.

A report last year by the AEA Group suggested that Carbon Abatement Technologies, including CCS, could sustain a total of about 30,000 - 60,000 jobs in the UK by 2030.

They also estimated that the value to the UK from global markets for new advanced coal fired power generation plant, including that fitted or retrofitted with CCS, could be £1-2 billion a year by 2020 – and double that by 2030. This equates to £20-40 billion in total between 2010 and 2030.

International hard coal trade

Coal is the most abundant fossil fuel in terms of reserves and according the IEA World Outlook, fossil fuels are the main dominant sources of energy worldwide, accounting for 60 per cent of demand increase in 2007-30 and in the same period demand for coal grows by 53 per cent.

Global coal reserves at the end of 2005 were estimated to be sufficient for almost 150 years at current rates of production.

These reserves are geographically well dispersed, with recoverable reserves of coal available in more than 70 countries worldwide, and in each major world region.

World coal consumption grew by over three per cent in 2008, the first below average increase since 2002. Coal nonetheless remains the fastest-growing primary energy source for the sixth consecutive year.

In the Atlantic market the main importers are the UK, Germany and the United States while the main suppliers are Russia, Colombia and South Africa.

Most of the world’s coal demand continues to be met by indigenous production with around 15 per cent of production being traded internationally.

International seaborne trade for steam coal is mainly considered in terms of two main demand areas - the Asia Pacific market and the Atlantic market.

The IEA projections for 2030 show that, based on reserves estimates, increased world coal demand can be met by traditional supplying nations, with exports from Australia, Russia and South Africa expected to increase.

Factors which could depress coal demand and prices include more robust and effective climate change policies - until carbon capture and storage can be deployed cheaply.

A switch to gas or other alternative forms of electricity generation would be likely to depress international prices.

Economic growth rates of rapidly developing nations have been consistently under-estimated. This applies particularly to China, but is also relevant to India, Russia, Brazil and parts of South-East Asia.

How they emerge from the current economic downturn will have an impact.

Conclusion

I don’t underestimate the challenge ahead of us. And I know that this industry is no stranger to change. We need your time and efforts concentrated on planning ahead to mitigate the potential threat of climate change.

Investing in a low carbon future is the smarter strategy.

Thank you

END

22 February 2010 - Press Release - New energy proposals generate interest

Mon, 22 Feb 2010 00:00:00 GMT

Energy Minister Lord Hunt today welcomed the level of public engagement around the consultation on National Policy Statements on Energy.

The consultation, which closes today, gives the public the opportunity to influence and comment on the draft NPSs at a national and local level.

Statistics showed that:

More than 3,300 people attended 23 events in England and Wales to learn more about the draft energy NPSs and how they could respond to the consultation;
Almost 20,000 people have visited the consultation website to find out more about what is being proposed; and
More than 1,000 organisations and individuals have so far responded to the consultation online, via email or in writing.

Lord Hunt of Kings Heath, Minister of State for Energy said:

“We are undertaking fundamental reform of the planning system which will result in a more efficient, transparent and accessible process. National Policy Statements are a vital part of these reforms, setting out the national need for new energy infrastructure.

“Listening to people’s views and helping them find out more is vital to getting this process right. I’m pleased that so many people and organisations have taken part and given their views on how future decisions on where we locate power plants will be made.”

The National Policy Statements on Energy will inform decisions made by the new Infrastructure Planning Commission, an independent body which makes decisions on applications for nationally significant infrastructure projects, such as large wind farms and power stations.

Following the end of the consultation on the NPS’s, proposals will continue to undergo parliamentary scrutiny. The Government intends to respond to issues raised both in the consultation, and through parliamentary scrutiny, later this year.

Notes for editors:

The Energy National Policy Statements have been subject to an extensive 15 week consultation since 9th November, closing today on 22nd February. For more information on the draft energy NPSs and its associated consultation programme please visit: www.energynpsconsultation.decc.gov.uk
The House of Commons Select Committee on Energy and Climate Change issued a call for evidence in November 2009. Their report will be received after the end of the consultation (it is expected by Easter Recess). The Committee may recommend a further debate in the full House of Commons. The NPSs are also to be the subject of three debates in the Grand Committee of the House of Lords between 23 February and 11 March.
The Department of Energy and Climate Change is central to the UK Government’s leadership on climate change. We are pushing hard internationally for ambitious effective and fair action to avert the most dangerous impacts. Through our UK Low Carbon Transition Plan we are giving householders and businesses the incentives and advice they need to cut their emissions, we are enabling the energy sector’s shift to the trinity of renewables, new nuclear and clean coal, and we are stepping up the fight against fuel poverty.

28 January 2010 - David Kidney speech - Rushlight Conference

Fri, 19 Feb 2010 00:00:00 GMT

Good afternoon and thank you for inviting me here, it’s a privilege to be part of today’s event.

I would like to take the opportunity to talk to you about our priorities what we’re doing to create a greener future.

The world watched Copenhagen late last year. And no, we did not have get an expected result. What we did get, is international backing for a two degree limit. We got an agreement that all countries need to take action on climate change. With the provision of immediate and longer term financial help to those countries most at risk of climate change.

That doesn’t sound short on substance to me.

The Copenhagen Accord is another movement towards a low carbon economy, and in the months ahead we will continue our campaign for a legally binding treaty.

Unlike previous agreements - not just developed - but all leading developing countries have agreed to make specific commitments to tackle emissions, to be lodged in the agreement in three days time.

We now have hope for a legally binding agreement and that’s what we are propelling towards.

The frustrations we did have were almost inevitable because so many countries were involved, but we must focus on the next steps. Focusing on the past is just that, it’s the past.

The Copenhagen Accord - agreed by major developed and developing country leaders and backed by a large majority of countries - will reinforce the need for strong domestic action on climate change across the world, as the UK is itself doing through the Low Carbon Transition Plan.

In July, we launched our Low Carbon Transition Plan. It sets out the Government’s long term strategy to radically cut the nation’s carbon emissions by 2020 and meet our first three carbon budgets.

We must cut greenhouse gas emissions by 80 per cent by 2050.

Already we have achieved over 20 per cent reduction – double our Kyoto target.
In November 2008, the UK was the first country in the world to legislate, through the Climate Change Act, for carbon budgets, establish the independent Climate Change Committee and publish a plan for meeting the budgets.

These are legal limits on how much the UK can emit. It explains how the UK will cut emissions 18 per cent below 2008 levels - over one third below 1990 levels and go further if other countries agree to take action.

The plan also talks about the ‘ trinity’ of clean coal, nuclear power and renewables. Without which, we cannot succeed in becoming a low carbon society.

It also includes a commitment invest up to £450million over two years to support development and take-up of low carbon technologies. For example the recently announced boiler scrappage scheme.

It also provides an injection of venture capital funds through the Carbon Trust and UK Innovation Investment Fund which ensures finance for innovative low carbon businesses remains available while financial markets remain fragile.

The plan includes how we will increase renewable energy seven-fold so 15 per cent of all our energy – electricity, heat for homes, workplaces and transport comes from renewable sources by 2020.

In itself, this will bring many new green jobs. By 2015 over a 1 million people will be employed in green industries.

In preparing for a lower carbon future we are in fact securing our energy supply, supporting our economy and protecting those most vulnerable.

Some of you may have attended the various workshops this morning, hearing first hand how the public sector recognises low carbon energy technologies as a priority.

You would have also heard how government is working and supporting the industry. For example is the Energy Technologies Institute (ETI), a private public partnership, taking an innovative approach to the UK Government’s collaboration with industry to address the UK’s CO2 targets.

The science is stark.

The sea levels we have seen rising this century is related to global warming. The last eleven years have been some of the warmest on record. And our climate models predict a global temperature increase of up to six degrees by 2100 – depending on our emissions.

The science is clear - if we don’t act the UK’s climate could change drastically. We could be subject to more freak weather events like droughts, heat waves and floods.

As Lord Stern showed, in the long run it is less costly to tackle climate change than to fail to do so, there are significant upfront costs.

But there are other advantages too. The value of the UK low carbon sector was over £106 billion in 2007/8. Think what it could be in 2020.

In terms of size, this puts the low carbon and environmental economy somewhere between the UK’s healthcare and construction sectors.

There is the opportunity to become a world leader in low carbon technology, and that’s something worth investing in.

In July we announced substantial increases in funding for low carbon technology. In fact, this government is investing over £400 million over two years into low carbon technology.

For example, up to £120m from the low carbon investment funding to significantly advance the offshore wind industry in the UK.

And up to £6m of funding to explore areas of potential “hot rocks” to be used for geothermal energy.

For the marine sector, up to an additional £60 million for a suite of measures which will help cement the UK’s position as a global leader in wave and tidal energy.

The investment includes expanding the testing facilities at the European Marine Energy Centre and the New and Renewable Energy Centre, alongside the planned Wave Hub, will bolster the UK's marine energy testing.

And that’s not all. We know for some innovators it’s not always been easy to know who to approach. We want to help innovators find the range of support available for technology development.

So last October, I launched the Energy Generation and Supply Knowledge Transfer Network (KTN), hosted by the Technology Strategy Board. It acts as a one-stop shop for innovators seeking grant funding and I very much encourage you to engage with this network, whether you are academics, innovators or investors.

There is a lot of work to be done on getting a really responsive skills system, but actions already being taken will make a difference.

And employers are taking action themselves, with skills partners, on identifying skills gaps and the need for new qualifications. Our National Skills Strategy will be a critical component in preparing for a low carbon workforce. The Strategy, published at the end of last year , will sharpen our focus on supporting skills development.

To be more specific, in the East Midlands, a development agency has provided over £600,000 investment in further education colleges to install low carbon equipment.

With hybrid vehicles, wind turbines, solar heating systems - it’s a pilot to generate low carbon courses, at qualification levels three and four. Four being the equivalent to university degree.

These colleges have already reported over 2,000 enrolments.

Skills provisions today is evolving towards a more convenient and personalised way of learning.

Quite simply, we must adapt. Change happens that’s for sure. And it is not made without inconvenience. But the opportunities that will arise must not be overlooked.

We look forward to doing our part in finding the solutions we need for future security. To do this we will need ingenuity, creativity and dexterity - and from what I can see, these are definitely not in short supply.

08 February 2010 - David Kidney speech - Schott UK

Fri, 19 Feb 2010 00:00:00 GMT

The Material Lab, 10 Great Titchfield Street, London

Good afternoon,

To begin with please let me express my thanks and pleasure in being invited to speak here today.

I am grateful for the opportunity to show my support for the important work that companies like Schott are doing and talk a little about how it complements Government policy, particularly in the area of energy and climate change. I’d also like to say something about the challenges and opportunities that the move to the low carbon economy will bring and how companies like Schott can help us meet them.

First let me stress how important the solar PV industry is to us. As you are all aware, we have set very ambitious targets to reduce emissions in the UK. Meeting these targets will require lots of low carbon energy.

Over the past few months there’s been a lot of attention on the run up to, and fall-out from, the talks in Copenhagen. Making progress internationally is crucially important. And one of the strongest cards we can play at the negotiating table is to show that we are taking action at home and achieving substantial emissions reductions.

Having a strong renewable energy industry in the UK producing low carbon electricity from our buildings and reducing our emissions is crucial. This will also play a big part in showing other countries that they too can reduce their emissions and that they shouldn’t be afraid of agreeing tough targets.

Renewable energy technologies, including solar photovoltaics, form a pivotal part of our drive to widen access to low carbon electricity generation to households, to businesses and to communities. We envisage that domestic solar PV installations will provide a real contribution to this goal. And of course, increasing renewable electricity generation helps lower our reliance on fossils fuels.

The move to a truly low carbon economy will change every aspect of our society: the way we live and work, the skills we need and the jobs we do. And it will mean a complete transformation of our economy.

Alongside last year’s financial budget, the Chancellor set the first ever legally binding carbon budgets. So at a national government level we have already written into law an 80% reduction in greenhouse gas emissions by 2050 and an interim 34% reduction by 2020.

To meet these budgets we need no less than a second industrial revolution across the UK.
Schott’s success proves we’re not starting from scratch.

The UK currently gets around 5.5% of its electricity from renewable sources. That will need to increase to around 30% by 2020 in order to meet our renewable energy target. Since its introduction in 2002, the Renewables Obligation has done much to move us towards this by tripling renewable electricity generation. We obviously have much further to go, and we need engagement from a wider cross section of the economy: frankly we want households and communities to be able to take part.

This brings me on to our new scheme, Feed-In Tariffs, or FITs, which will be introduced on 1 April 2010. This will provide financial support for low carbon electricity technologies and incentivise the deployment of small-scale installations, and we set out our decisions following last year’s consultation in the response document we published this time last week.

When the scheme is launched it will support new anaerobic digestion, hydro, wind, microCHP and, of course, solar PV installations.

Electricity generation is something that historically has been the domain of large industry players: through the certainty that FITs provides and the increased level of support that they bring, we will help more businesses, more communities and more individuals take steps to join the climate change fight and produce their own, low carbon electricity.

But it’s important to remember that FITs are only part of our armoury. The renewable heat incentive, the consultation for which launched alongside our FITs decision document, is another important mechanism. We think our proposition is the first of its kind in the world. We are expecting the RHI to bring forward 1.7 million domestic installations. Putting this with the expectations of the FITs scheme, we could see up to 10% of homes in the UK generating their own energy, which would be a tremendous achievement.

Alongside these two important developments we intend to roll out smart meters to every home and business in the UK. We are on the threshold of enabling energy consumers to be much more active and much more in control of their energy management.

Key decisions that we have taken to guarantee the success of feed-in tariffs have included ensuring household FITs income is tax free and index-linking payments to RPI, two issues that were raised very strongly by respondents to our consultation. We listened throughout the process and we’ve been able to design a better final package as a result of the input we received. We fully expect the decisions we have taken to drive growth in your sector.

We’ve also decided to delay degression – or reduction - of the tariffs for a year. This holiday will ensure that industry has the right conditions to hire and train new staff and still obtain the maximum boost from the FIT. Now we are looking to companies like Schott to get the Feed-in Tariff off to a flying start.

If I can remind you of where we were 12 months ago, we’ve come a long way. A year ago a domestic scale PV installation would have probably obtained a grant through the Low Carbon Buildings Programme and could have access to roughly 9 pence per kilowatt hour support through the RO. The same equipment installed today will get 41.3 pence per kilowatt hour. This is a huge leap forward and a great incentive to all those involved.
Initial reactions from the media and the renewables industry have been encouraging, and I’ve even seen a few complimentary comments posted on twitter.

If I may quote Jeremy Leggett, Executive Chairman of Solarcentury, who’s said: “Home energy generation and associated jobs have been given a huge boost today. The Government's financial incentives for homes, communities and businesses to generate clean electricity marks the start of a solar revolution in the UK. For the UK to reach its carbon reduction targets, people have to be given the opportunity to generate their electricity in a rewarding and accessible way, this makes it possible.”

That’s certainly a quote that’s going in my scrapbook, and I suspect it will be going in the scrapbooks of my fellow ministers as well.

I hope the feed-in tariffs we’re implementing will trigger a small scale electricity revolution, bringing the direct benefits of renewable electricity to the wider general public. Engaging more people in directly tackling climate change this way should help bring about greater acceptance of the behavioural changes that we need to make. I also believe that those who generate their own electricity, are likely to value it more and use it more responsibly and efficiently.

Driving customer demand and spreading the FITs message is also crucial and we look to companies like Schott and Schott’s customers to help us meet these aims. Your commitment to social and ecological responsibility allied to your products’ reputation for quality and reliability can really help the success of the Feed-in Tariff scheme.

It is imperative that we see that the quality of products and installations is at the highest level. This will ensure that those who have invested heavily in training their installers and in developing quality products will have the most to gain. We do not want to open the market to poor quality products and installations. It will be vital to maintain consumer confidence in the renewable energy industry - both in terms of the quality of the products and the quality of the installation. We will therefore work with the industry and consumer groups to achieve this goal.

We have said we are committed to developing a world leading low carbon energy sector. I simply point out that we therefore need a UK workforce equipped to compete at the forefront of the future global marketplace. This country’s low carbon future can only be built by people who have the skills demanded by new and dynamic industries operating in a globalised economy. Companies like Schott epitomise this type of company and we therefore ask the company and its competitors to work with us in building this future.

As we move out of recession, we have a historic opportunity to green the economy and build a cleaner future. We are putting the financial framework in place to unlock the considerable interest and dynamism around this agenda. As my colleague Lord Hunt put so eloquently in his foreword to the consultation response, we’re confident that these measures will mean that small is not only beautiful but also worthwhile.

This low carbon vision presents us with many challenges, but more importantly, many opportunities. Solutions that companies such as Schott provide will be more valuable than ever as we strive to overcome the barriers we face.

Companies like Schott are committed to widening access to renewable electricity – so am I.

They are committed to the highest standards of quality and skills – so am I.

They’re committed to sustainable improvement in living and working conditions – so am I.

Clearly we already feed in to the same ambitions.

I look forward to working with such companies to ensure we meet these challenges.

Thank you.

18 February 2010 - Press Release - Newcastle factory to make world's biggest wind turbine blades

Thu, 18 Feb 2010 00:00:00 GMT

The latest £8m funding for offshore wind technology was made available today as the Prime Minister hailed the UK as a 'global leader' in the offshore wind market.

The announcement came as Clipper Windpower confirmed that it is to start construction of a factory in Newcastle to build the biggest wind turbine blades in the world.

Visiting the site where Clipper today confirmed it will employ up to 500 people by 2020 to manufacture blades for the massive 10 megawatt ‘Britannia’ offshore wind turbine, the Prime Minister said:

“I welcome Clipper’s ground-breaking announcement to build the largest wind turbine blade in the world on the banks of the Tyne. The UK is a global leader in offshore wind power, and the North East is at the forefront in providing the skills, expertise and enterprise to capitalise on this rapidly expanding market, which has the potential to create thousands of future green jobs.

"The combination of our strong natural wind resource and the substantial backing we’ve given the industry mean the investment conditions in the UK are unrivalled."

Energy and Climate Change Secretary Ed Miliband, also visiting the Clipper site, called for proposals for the latest allocation of government funding for offshore wind technology development:

“Government support can help make the difference between Britain leading in the new offshore wind industry or simply being a follower. The UK already has more offshore wind installed than any other country in the world and our plan is to build on that position.

“The £8 million being made available today will be invested in projects to support the development of a new generation of turbines. This is in addition to the £18 million already awarded, and the recent decision to issue rights for 32 gigwatts of capacity– the biggest expansion of offshore wind of any country in the world.”

Notes for editors:

1. The Department of Energy and Climate Change today launched a third call for proposals for capital grant funding for component/technology development in the offshore wind sector, following the success of the first two calls under the Environmental Transformation Fund (ETF).

2. The Third Call has a potential value of up to £8 million to support the deployment of next generation offshore wind. Projects must employ technology that is significantly different from that currently available. Any grants awarded under this scheme must be claimed in full by 31 March 2011.

3. Under the previous two ETF calls, about £18m of grants were awarded to:

Siemens – to develop a new power convertor for their next generation offshore turbine
Vestas – to design and develop advanced manufacturing processes, testing and certification for a large multi-megawatt offshore blade.
Clipper – to develop their 72m offshore blade for a 10MW offshore turbine and to develop a new gearbox design for use in 10MW offshore turbines.
Artemis – to develop a new hydraulic transmission system for larger offshore turbines.
Mitsubishi– to develop design and supply chain capability for a new design of offshore turbine.
Burntisland Fabrications– to develop advanced manufacturing for a jacket foundation.
Teeside Alliance Group – to develop advanced manufacturing processes for monopile foundations

4. Clipper Windpower today announced that its subsidiary Clipper Windpower Marine Limited is to open a manufacturing facility for wind turbine blades at the Shepherd Offshore Renewable Energy Park in Walker, Newcastle.

5. The new factory is expected to be completed in the third quarter of 2010 and by 2020 it could employ a local workforce of over 500 people. It is expected that the UK wind industry overall will support up to 70,000 jobs by 2020.

6. The factory will be used to develop and build blades for the ‘Britannia Project’, a 10MW offshore wind turbine prototype under development by Clipper.

18 February 2010 - Statement - Ed Miliband responds to Yvo de Boer’s resignation

Thu, 18 Feb 2010 00:00:00 GMT

Commenting on today’s (18 February) announcement that Mr Yvo de Boer will resign his position as Executive Secretary of the United Nations Framework Convention on Climate Change as of 1 July 2010, the UK’s Energy and Climate Change Secretary Ed Miliband said:

“Yvo de Boer's patient work helped produce the Copenhagen Accord which contains commitments covering 80 percent of global emissions, something never previously achieved.

“We must quickly find a suitable successor, who can oversee the negotiations and reform the UNFCCC to ensure it is up to the massive task of dealing with what are some of the most complex negotiations ever."

10 February 2010 - David Kidney Speech - Subsea Delivery, Aberdeen

Wed, 17 Feb 2010 00:00:00 GMT

Good afternoon. I would like to thank our hosts for inviting me here to talk to you about the important part, companies like yours, will play in the next chapter of the basin (UK continental shelf).

A lot happened in 2009. The meltdown of the world’s financial services caused the greatest global recession in my lifetime. The consequences for the world’s energy industries were severe.

We had the Copenhagen climate change conference and left without a legally binding agreement.

And at the end the year, we had the longest sustained period of cold weather for many years.

Surviving the recent financial climate brings new challenges and new opportunities.

The governments of 67 countries, accounting for more than 80 per cent of emissions, have signed up to cutting carbon. So the Copenhagen Accord is having some positive effects.

Of course being fortunate enough to have the North Sea and our operators responding well to that cold spell - we were able to keep Britain working.

This year we have a general election coming to a ballot box near you. Although I cannot predict its outcome - I can tell you that this industry will continue to be critical to the success of our country for many years to come.

The only future facing us all is a low carbon one, and we must prepare to make the transition to that future.

That transition presents valuable opportunities for us and not reaping the benefits from them, could be disastrous for us in the long term.

The history of our world is hydrocarbon. Our success in the industrial revolution depended on it. Our dependency remains and will help us through the transition. Let me give a specific example from the energy sector. As we rely more and more on variable supplies from Wind, say, a reliable flexible base load will be all the more necessary.

And coal, gas and oil are capable of fulfilling this role. But future fossil fuels must be clean, and this means making a success of Carbon Capture and Storage (CCS).

I expect much of the expertise necessary, will already exist in the oil and gas sector. This is invaluable to help us reduce CO2 emissions and step up to the challenge of becoming a low carbon economy.

What the science says

Climate change science came under attack in the run up to Copenhagen. Some recent news reports have been critical of individuals and institutions.

What I see is a focus on very specific issues, spun to suggest that the underlying science of climate change is in some way unsound.

For all the furore, the fact remains that the Climatic Research Unit (CRU) temperature records are corroborated by two independent analyses, confirming the increase in global temperature.

The IPCC remains the most authoritative and comprehensive assessment process for information about climate change science. Their summary texts have been agreed by every country in the world.

I think it would be wrong that when a mistake is made, it's somehow used to undermine the overwhelming picture that's there.

The Low Carbon Transition Plan

My departments Low Carbon Transition Plan sets out our ambitions clearly.

And the measures in the Plan add up – on emissions, on cost and on energy security. It guards our progress towards our domestic carbon budgets as well as our international commitments.

And through our carbon budgets, the trajectory to our 2020 and 2050 targets, gives clear direction to businesses’s and individuals to play their part.

And by setting out our ambitions clearly - the Low Carbon Transition Plan provides energy investors and developers with unequivocal certainty about our energy needs.

Subsea Industry – why it’s important

Allow me to pause for a moment and say how much I appreciate the courage, of those of you who risk yourselves everyday for the sake of our oil and gas production. For that, I would like to say ‘thank you’.

I don’t think anyone needs a reminder of that tragic day in the North Sea last April, but I would also like to pay my tribute to the 16 people who lost their lives. Our thoughts remain with their families.

We’ve now had forty years of real success from the Basin and we have a good forty to go if we get things right.

And I’d like to take some time to acknowledge what Subsea UK has achieved.

We have an ever growing skills set flourishing within Subsea technologies.

The UK subsea sector has developed the reputation as being the best on the global stage with UK subsea companies, now working in every hydrocarbon basin in the world. There are the right technologies in place to get the remaining ‘hard to reach’ oil and gas into production.

This expertise also helps the Basin remain competitive and continue to attract investment funding, which has become extremely competitive, with the North Sea having to compete against other global opportunities that operators have.

Over 40 per cent of the Basin’s production is now Subsea and 70 per cent of new projects are Subsea. And up and coming technologies are more and more adept. 20 odd years ago, no one would have considered what you do now, as being possible.

These are no small steps in my book because the UK Subsea sector is now worth £5 billion per year.

What we’re doing

Fossil fuels will remain an important element in the plan for providing energy supply security.

But we need to reap the benefits from existing fields and also keep up the pace of new development.

The Chancellor last week announced plans to extend tax relief, for the development of deep water gas fields, found in the area west of the Shetland Islands.

An area estimated to contain around 20 per cent of the UK’s remaining oil and gas reserves.

And also, just a couple of weeks ago, my colleague Lord Hunt announced a new round of offshore licensing to give a further boost to the UK’s offshore oil and gas industries.

This record breaking 26th Round includes areas of the Continental Shelf not as yet explored, and will boost activity in the basin.

And will help to secure also the future of the UK's oil and gas industry which still provides three quarters of our energy needs and some 350,000 jobs.

The evidence is clear that our oil and gas supply may not be able to meet our demands in the future in full. So in the long term we need to make the transition from a system where we rely heavily on fossil fuels, to a system that includes nuclear, renewable and clean coal power.

By 2050 our electricity supply will most probably be some combination of thermal power stations - increasingly fitted with Carbon Capture Storage, nuclear, and various forms of renewable energy.

Securing the necessary reductions through to 2050 - at an acceptable balance of cost, security and behavioural change must be considered by us all.

But I can assure you here today that I have no doubt that oil and gas will continue to have a major role in the British energy mix, for the foreseeable future.

In addition to bolstering our supply security, North Sea oil and gas is the bridge by which we can pass to a low carbon future.

Where do we go from here

UK Subsea companies now have 20 per cent market share of the global subsea market - real market leaders in this sector

50 per cent of this value is exports and they’re likely to double in the next five years.

The Shetland islands have prospered greatly from the exploration of North Sea oil.

The Sullom Voe Terminal which opened in 1978 is Britain’s biggest oil exporting port, handling around 25 million tonnes of oil a year, with 600 jobs depending on the terminal.

Of course Shetland is in the enviable position of being able to teach us a lesson in negotiating. When the terminal at Sullom Voe was first talked about the Shetland Islands Council stood their ground and negotiated the special oil fund.

This has provided millions of pounds in funds supporting the public trusts which provide social welfare, arts, sports and environmental improvements and economic development.

But we still must reduce our emissions by 34 per cent by 2020 and by 80 per cent by 2050.

So what do the next forty years hold in store for us?

Because we face unprecedented challenges to our environment and our economy, we must adjust, in order to prepare for that future.

The North Sea has and will continue to play a huge role in that transition. Since the early days of exploration, the North Sea has been a huge success story for the UK - providing a huge input to our economy and energy needs.

And for our security of supply, it’s crucial to utilise the full potential of our indigenous resources. 40 billion barrels of oil equivalent (boe) have been produced in the UK with potential remaining reserves of 20 billion boe. Possibly more.

But there is a further role for the North Sea namely in Carbon Capture Storage (CCS).

Cooperation on Carbon Capture and Storage in the North Sea is urgently needed globally.

We have a unique asset in terms of depleted reservoirs and salt caverns in the North Sea. Which can be used to store away safely harmful CO2 emissions.

So even after the last drop of oil is recovered from beneath our waters, the North Sea has the potential to continue to be a very important asset to Britain or even Europe.

The geological structures beneath the North Sea offer some of the best opportunities for storing large volumes of carbon dioxide in Europe, if not the world.

I think this is a further area of growth for the subsea industry. It has the unrivalled skills and experience to be instrumental in developing the technology to store carbon safely offshore.

Skills

I mentioned earlier a flourishing skills set. I cannot emphasis enough, the importance of having an ever present focus on our workforce and continually motivating, shaping and moulding their skills.

And the oil and gas sector was indeed fortunate and foresighted enough to develop its own industry funded Skills Academy – the first of its kind and the envy of most other industrial sectors.

I’m also pleased to learn that the Subsea sector also has world renowned skills and technology which are keenly sought around the globe.

But currently, despite that, we face a big skills gap. Without the right skills, keeping up with the transition that will inevitably happen towards a low carbon future, we will be left behind.

I know Subsea UK are already active in to helping to combat that risk of a skills gap.

For example:

The skills forum - a group of individuals brought together by Subsea UK to help develop a technician apprenticeship.

A Subsea skills website provides Careers information, recruitment links and online learning modules developed with RGU.

Aquatheatre - a scheme promoting the industry to school pupils at events and pupils invited to Subsea exhibitions and involved in an education day at Offshore Europe.

But we must continue to invest time and money in our workforce. However these schemes, although impressive and progressive, are not enough alone to carry us through to 2020 and beyond.

An example

I met with OPITO this morning and was extremely impressed with what they have achieved with their Oil and Gas Academy and even more impressed to hear their ambitions to extend their model into the wider energy arena.

The OPITO Academy has grown internationally to help connect with the Global supply chain and increase the safety and emergency response standards.

In 2007, 96,000 people were trained to the OPITO industry standards. As I mentioned earlier this is an industry owned and funded organisation who have directly invested £52 million over six years in its flagship Modern Apprentice scheme.

Their goal is actively building up the efforts and resources, needed to address employers’ demand for skilled people.

That’s the beauty of academies. You are in control. You take command of your own sector’s needs and you reap the benefits.

Each year’s intake is determined through a demand forecasting exercise to ensure employment for all those who finish their training. This is followed by two years practical training. With a 96 per cent completion rate after three and a half years.

Conclusion

The success of the Subsea sector is a proud fact. But we know what must be done to continue that success.

The vision of a low carbon future is a palpable possibility but we, the Department for Energy of Climate Change, cannot do all that needs to be done by ourselves. You are our partners and that future cannot happen without your help.

Thank you.

END