Category: General

The call for increased investment in renewable energy was a central theme at the Global Renewables Summit held alongside the U.N. General Assembly, with world leaders emphasising the urgency of addressing climate change. Developing nations, particularly from Africa and small island states, highlighted the significant financial and structural challenges they face in transitioning to clean energy.

The International Energy Agency (IEA) has emphasised that while the global goal to triple renewable energy capacity by 2030 remains attainable, achieving this target will require substantial investments, particularly in power grids and energy storage systems. This ambition was reaffirmed at the COP28 climate summit in late 2023, where almost 200 countries committed to boosting renewable capacity and doubling energy efficiency rates to keep the Paris Agreement’s target of limiting global warming to 1.5°C within reach.

The issue of grid connections has emerged as a major hurdle for the growth of renewable energy in the UK, as highlighted by a recent survey from Cornwall Insight and Weightmans. According to the survey, nearly 75% of energy experts consider the lengthy wait times for grid connections to be the most significant challenge for renewable energy projects, with none of the surveyed sites expecting a connection date before 2033.

UK ENERGY MARKET SUMMARY TO FRIDAY 20TH SEPTEMBER 2024

Currently, Europe has 208 MW of floating offshore wind capacity, but by 2030, this figure is expected to rise significantly to 2,000 MW, with 1,471 MW located in the UK alone.

A major development in this sector is the UK government’s recent Contract for Difference (CFD) auction, which awarded 400 MW of capacity to the 560 MW Green Volt floating wind project. Set to be Europe’s largest commercial-scale floating offshore wind farm, Green Volt is expected to become operational in 2029. The wind farm will provide power to offshore oil and gas platforms as well as the UK grid, with the remaining 160 MW potentially being allocated to power purchase agreements (PPAs).

UK Energy Market Summary to Friday 13th September 2024

National Grid has agreed to sell the Electricity System Operator to the UK government for £630 million, with the transaction expected to be finalised by 1st October 2024.

The final payment will be subject to adjustments for standard closing factors, such as timing differences.

This sale marks an important milestone in the creation of the National Energy System Operator (NESO), a new independent public body.

Gas and power markets settle to the lowest price within over six weeks, influenced by the recent crash of the oil markets.