Low-carbon generation

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Jeremy Hunt has announced that new electricity generation will be exempted from the government’s windfall levy on the sector, while unveiling a wide-ranging package of energy infrastructure planning changes in his Autumn Statement. The statement, widely reckoned to be the last before the next general election, contains a series of announcements on reforming the planning system and speeding up electricity grid connection timetables.
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Experts on long duration energy storage (LDES) are split on the necessary target needed to deliver the UK's decarbonisation goal. While some experts have urged the government to set a long-term target of up to 100TWh, others have suggested that a smaller “no regrets” target should be set to “get the ball rolling” on LDES. However, government officials have refused to be pushed on the possible size of a target.
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The government must not slip back into the complacency that ultimately led to the failure of the latest Contracts for Difference (CfDs) auctions to attract any bids from offshore wind projects, an industry expert has warned. Earlier this week, the government announced hikes to the strike price caps for next year’s auctions but Adam Bell, director of policy at Stonehaven, said further changes are needed to prevent a repeat of the problems that emerged during allocation round five (AR5).
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Latest in Low-carbon generation

The next four-year-ahead (T-4) Capacity Market auction is expected to clear at a record high price for the third year running after the margin between prequalifying capacity and the procurement target fell to its lowest level since the auctions began in 2014. Although the target has been raised slightly to 43GW, according to analysis by EnAppSys, 45.2GW of de-rated capacity has prequalified for the auction in February next year, leaving a margin of less than 2.2GW – or 5%.
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Total Energies has acquired a minority stake in an ambitious project to link the UK grid with wind and solar farms in Morocco via subsea cables running along the west coasts of Europe and Africa. The French oil supermajor’s £20 million investment comes after Octopus Energy Group took a stake in the project last year as part of a partnership that could eventually see Octopus’ retail arm obtain offtake rights for the power imported to the UK.
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Plans to offer energy bill discounts to householders living near new grid infrastructure will require legislation to avoid falling foul of the Supreme Court, a leading environmental lawyer has warned. The government unveiled plans to compensate homeowners living near to grid infrastructure projects last week alongside its Autumn Statement announcements. However, Estelle Dehon, a barrister at Cornerstone chambers, told the House of Commons energy security and net zero committee that introducing the scheme cannot be done through policy alone.
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Octopus Energy has acquired a 12.5% stake in the Walney Extension windfarm site in the Irish Sea. It is the first deal made through its dedicated £3bn wind fund to grow its portfolio of renewably generated energy
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The government will manage a “triage” process for prioritising the connection of strategically important energy projects as part of its joint action plan with Ofgem for speeding up grid connections. Working with the regulator, the Department for Energy Security and Net Zero (DESNZ) will establish a Connections Delivery Board to oversee the implementation of the six-point plan, which aims to cut the average wait for a connection from 5 years to 6 months.  
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The government has been urged by one of its own MPs to ensure that the upcoming Contracts for Difference (CfD) auction pot for floating offshore wind (FLOW) is big enough to avoid it being swallowed up by a single project. Last week, the government announced an increase in strike price caps for a range of renewable technologies in the CfD Auction Round (AR) 6. This included a 52% uplift for the FLOW strike price to £176 per megawatt hour.
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The upcoming autumn statement by chancellor of the exchequer Jeremy Hunt is being billed as one of the government’s last opportunities to restore its flagging political fortunes. So what does the energy sector want from the Treasury’s showpiece end of year event and what is it likely to see?
Analysis
Octopus Energy’s generation arm has launched its first ever offshore wind fund worth £3 billion. Octopus said that the fund will specifically focus on European projects and will look at both traditional offshore wind and floating offshore wind turbines. 
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The government could have avoided setting such a high offshore wind strike price for its upcoming contracts for difference (CfD) auction if it had heeded industry warnings during the last round, energy analysts have suggested. It comes after the government announced a 66% increase in the offshore wind administrative strike price cap for the next CfD auction, after the last round attracted no bids.
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EDF won’t make a “massive fortune” out of its Hinkley Point C nuclear power plant due to returns being eroded by delays to the project and escalating costs, a director has admitted. Giving evidence to the House of Commons energy security and net zero committee, EDF Energy’s director of strategy and regulation Paul Spence was grilled on how much constructing the first new nuclear power station in a generation would cost the consumer.
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Confidence in the UK’s offshore wind sector will be restored by the increase in the Contracts for Difference (CfD) strike price. That is the reaction to the UK government's 66% increase in the offshore wind strike price cap in the next CfD auction, which will rise to £73/MWh for the sixth allocation round.
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