Going for growth means going for green

Newly-appointed Energy and Climate Change Secretary Edward Davey will hit the ground running today, joining Deputy Prime Minister Nick Clegg in sending a clear signal that green growth and green jobs will remain at the heart of the Coalition’s strategy for economic recovery.

Visiting the Building Research Establishment’s Innovation Park near Watford, a testing site for green homes, they will meet graduates considering moving into green construction jobs.

The Deputy Prime Minister will say:

“The race is on to lead the world in clean, green energy. Last year we saw record-breaking global investment in renewables - outstripping the cash piled into fossil fuels. The new economic powerhouses - China, India, Korea, Brazil - are now serious contenders for that capital.

“So the choice for the UK is simple: wake up, or end up playing catch up. In today’s world the savviest states understand that going for growth means going green. Low-carbon markets are the next frontier in the battle for global pre-eminence.

“We have every reason to be confident. The combination of enviable wind, wave and tidal power, a world-beating research base and a proud history of engineering give the UK a clear competitive edge. So we’re already in pole position. But the reality is: we need to sharpen our elbows if we want to stay ahead.

“I want the UK to be the number one destination for green investment. We’re in this race to win it.”

Mr Davey, who was appointed to the Cabinet by the Prime Minister on Friday, is a trained economist and an environmental campaigner since university. He will say today:

“I have long believed in the need to marry our economic and environmental agendas. Greening the economy isn't just good for the planet - it's good for the wallets, purses and pockets of every British citizen too.

“By focusing on the low carbon industries of the future we can rebalance our economy, reducing our dependence on the City of London on the one hand, and on oil and gas imports from unstable parts of the world on the other.

“My priorities are very simple: green jobs, green growth and getting the best deal for energy bill payers. My department is already implementing bold and ambitious reforms - like electricity market reform and the Green Deal - to unlock private investment, drive innovation and build a resilient, green, competitive economy. It's now my job to see those through.

“There may have been a change at the helm, but there'll be no change in direction or ambition.”

UK OFFSHORE WIND SUPPLY CHAIN

At today’s meeting of the Offshore Wind Developers’ Forum, co-chaired by DECC Minister Charles Hendry, the sector will confirm their vision that UK firms should provide more than 50% of the content of future windfarms. Having started from a low base, there is already growth in the proportion of UK content in offshore wind. For example, Robin Rigg windfarm has a UK content of 32%.

Today’s announcement reflects recent developments in the UK’s offshore wind supply chain. In December Siemens announced they are moving forward with a turbine manufacturing plant in Hull. In January the Port of Sheerness submitted a planning application for the development of the manufacturing facility proposed by Vestas. Gamesa have announced their intention to make the UK the main focus of their worldwide offshore wind business. And, just last week, David Brown, a prime example of British engineers at the cutting edge of new technology, announced a major new contract to build gearboxes for Samsung.

COMMUNITY GRANTS

The Energy and Climate Change Secretary also today announced that 155 community energy projects across the country have won a share of £5.1 million of funding from the Local Energy Assessment Fund. The winning bids include projects to demonstrate wall insulation to the public, schemes to check the energy efficiency of homes and events to promote energy efficiency in local communities.

The funding comes as the Government gears up for the launch of the Green Deal later this year, the first scheme of its kind in the world, aimed at radically overhauling the energy efficiency of millions of homes across the UK.

Mr Davey said:

“The big national challenges of keeping the lights on and emissions down can be tackled in small ways in our homes and local communities. These grants are designed to nurture the ideas and enthusiasm of communities up and down the country who want to cut energy use, cut emissions and save money.”

Notes for editors

1. The BRE Innovation Park is a world leading and ground breaking demonstration development designed to give a glimpse of how the future delivery of sustainable buildings and communities can be achieved not only in the UK but around the world. It features eight of the world's most sustainable houses.
2. The full list of Local Energy Assessment Fund grants being announced today will be available on the DECC Community Energy website. This is the second round of awards under the £10 million fund which was announced on 7 December.

Edward Davey appointed Secretary of State for Energy and Climate Change

Edward Davey MP has today been appointed Secretary of State for Energy and Climate Change.

Arriving at DECC’s headquarters in London, Mr Davey said:

“This is a sad day because Chris Huhne has had a real vision for a green economy and he’s done fabulous work as Secretary of State.

“I’ve now got to take up the challenges - the challenge of climate change, the challenge of energy security.

“And I’m particularly conscious of the impact on households across the country of high energy bills.

“I’m determined to work to follow on Chris’s priorities, the Coalition’s priorities and to make them my priorities.

“I want us to have a green economy, with the green jobs and investment we need to help grow our economy.”

Notes for editors:

1. In accordance with the requirements of the Ministerial Code, the Secretary of State has provided his Permanent Secretary with a full list of his interests, including details of his brother’s employment as a partner at Herbert Smith LLP which will be recorded and published in the List of Ministers’ Interests in the usual way.  Appropriate safeguards are being put in place to avoid any conflicts of interest. 
    

Statement by Charles Hendry on Coryton Refinery

Energy Minister Charles Hendry today chaired a meeting of interested parties to discuss the future of the Coryton refinery. The meeting took place at the Department of Energy and Climate Change in Central London.

This is the second time the Energy Minister has convened such a meeting since the refinery was placed in the control of the administrators. Local politicians, industry and unions were among those present.

Following the meeting, the Minister said: “We have had another positive meeting this afternoon at which the joint administrators updated those present on what they have achieved so far and their planned next steps.

“I welcome the progress that the administrators have made. The deal last week that allowed petrol and diesel to be delivered to forecourts from the refinery was a crucial boost, while the crude oil delivery acquired on Tuesday was important to maintaining refining operations.  The collaborative approach taken by the workforce and the refinery’s management has also been vital in making these things happen.

“There are critical issues to be resolved in the coming weeks. For the long term, I understand there have been over 40 expressions of interest in Coryton from companies around the world, which is extremely encouraging. Work will now focus on securing a sustainable long-term future for the refinery.”

Minister's Winter Warmth Appeal

As the big freeze grips the country, pensioners and the most vulnerable are being urged to take advantage of a government grant scheme to help make homes warmer.

Letters have just landed on 675,000 doormats across England to raise awareness about the Warm Front scheme.

The letters explain how pensioners and people on very low incomes can get money off having their heating repaired or replaced or having their lofts insulated through picking up the phone and contacting Warm Front.

So far the scheme has assisted 21,000 homes this financial year, but has the capacity to help at least 16,000 more before the end of March and at least 40,000 next year.

Energy and Climate Change Minister Greg Barker said: "The cold weather we’re experiencing at the moment reminds everyone how important it is to have a cosy home so I’m urging anyone who’s eligible for a Warm Front grant to pick up the phone. Getting a new boiler, fixing an old one, or even just topping up loft insulation can lead to a warmer home in the future. It’s easy to apply, all you have to do is call 0800 316 6004 and, if you’re eligible, the Warm Front team will do all the paperwork for you.”

The mailouts concentrated on areas where there are high levels of fuel poverty like Birmingham, Leeds, Bradford, Sheffield and County Durham.

The Government has also been working with National Energy Action, Consumer Focus and Citizens Advice to further promote the Warm Front scheme.

As forecasters predict freezing temperatures across the country this weekend, pensioners and the most vulnerable are being reminded what help is available to keep warm.

Warm Front

Provides grants to people in poorly heated or insulated homes to pay for boiler repairs, new central heating systems and insulation work. Those eligible can apply for up to £3,500 towards the cost of the work or up to £6,000 for homes not connected to mains gas.

Warm Home Discount

This scheme will help around two million low income and vulnerable households this year, including automatically giving £120 discount to about 600,000 of the most vulnerable pensioners this winter.

Cold Weather Payments

Cold Weather Payments  are  paid to pensioners who receive pension credit or people on income-related benefits who meet certain criteria, during periods of severely cold weather. Since the start of this winter’s Cold Weather Payment season, DWP has paid an estimated £27.8m to more than 1.1m customers across Great Britain through Cold Weather Payments.

Winter Fuel Payment

Annual payments for pensioners worth up to £300 have been paid out to an estimated 12.7 million people older people in more than 9 million homes.

The Government is also taking action this winter to help consumers help themselves and save money on bills by shopping around and switching. Consumers can log on to www.direct.gov.uk/homeenergy for advice on how to Check, Switch and Insulate to Save. 

Notes for editors:

1. Further details on the Warm Front scheme can be found on Directgov
2. The total budget of £143m consists of £110m allocated to Warm Front and associated activities secured through the Spending Review 2010. Of this, £108m was directly allocated to Warm Front. In addition DECC allocated £25m to support the completion of outstanding work from 2010/11 with a further £10m allocated to Warm Front in 2011/12 from the Department of Health.
3. The scheme is targeted at people on certain income-related benefits and living in properties that are poorly insulated and/or do not have a working central heating system. Applicants must own their home or rent it from a private landlord. The measures provided under the scheme are tailored to each property drawn from the measures listed below:

• Loft insulation (where suitable)
• Draught proofing
• Cavity-wall insulation (some cavity walls are unsuitable and approx one third of properties have solid walls)
• Hot-water-tank insulation
• Repairs to an existing heating systems
   
• A new gas or oil central heating system
• Electric storage heaters 
   
• Electric heaters for bathrooms where electricity is the main heating source*
   
• Conversion of  a solid-fuel open fire to a modern glass-fronted fire
   
• Timer controls for electric space and water heaters
   
• Liquid petroleum gas (LPG) heating systems

4. Through Warm Home Discount, a person may be eligible for a Core Group discount if, on 11 September 2011, they (or their partner) were receiving the guarantee credit element of Pension Credit but not the savings credit element, naed on the electricity bill where they live and getting their electricity from one of the energy companies taking part in the scheme.

5. There are also other energy advice lines such as the Home Heat Helpline for advice on the help from energy suppliers available at the moment on 0800 336699. 

Written ministerial statement by Charles Hendry on the 27th offshore oil and gas licensing round and the strategic environmental assessment (sea) post adoption process

I am pleased to inform the House that I am today inviting applications for petroleum licences for unlicensed seaward blocks which will form the 27th round of offshore petroleum licensing.  

Supporting around 350,000 jobs and spending around £14 billion a year, the UK oil and gas industry plays a vital role in the UK economy and in meeting our energy needs.  Indigenous oil and gas production supplies the equivalent of about one half of the UK’s primary energy demand. It is vital that we continue to do all we can to maximise economic recovery of indigenous hydrocarbon reserves.  The licensing of new areas forms an essential part of this process enabling the exploration necessary to ensure we tap into, and fully realise, our remaining reserves – which could equate to around 20 billion barrels or perhaps more.

DECC's draft plan to offer licences for offshore oil and gas exploration and production through a 27th licensing round was the subject of a Strategic Environmental Assessment (SEA) completed in October 2011. 

The Assessment can be viewed on the Offshore Sea Strategic Environmental Assessment website.

The SEA includes commissioned reports on various components of the natural environment and effects of previous activities.

The potential implications of the exploration and production activities that could follow if the draft plan was adopted were considered at an expert assessment workshop and a series of stakeholder workshops. The results of these workshops were assessed further and documented in an Environmental Report that then formed the basis for consultation with consultation bodies and the public. The three-month consultation period on DECC's draft plan and the Environmental Report was advertised in a number of local and national newspapers and emailed to a wide range of individuals and organisations.

DECC has considered all responses and a post consultation report for the latest Offshore Energy SEA was prepared and in August 2011 placed on the SEA website.

The post-consultation report can be viewed on the Offshore Sea Strategic Environmental Assessment website.

This summarises consultee comments and DECC responses to them.  In the 12th October 2011 Statement to Parliament on the assessment  we announced our intention to make preparations to proceed with this 27th offshore licensing round.

Outcomes

In deciding to proceed with a 27th offshore licensing round, DECC has had regard to the conclusions and recommendations of the Environmental Report and consultation feedback. As a result of the SEA process, blocks in the deepest waters of the South West approaches  are currently not being offered as part of the 27th round of offshore petroleum licensing because of inadequacy of data  including data on potentially vulnerable
components of the marine environment. 

A number of blocks excluded from earlier licensing rounds on the basis of recommendations of previous SEAs, or currently in the process of appropriate assessment consultation, are currently not being offered as part of the 27th round of offshore petroleum licensing.

The Environmental Report recommended the blocks in or overlapping with the boundaries of the Moray Firth and Cardigan Bay SACs should also be withheld from this licensing round for the present pending conclusion of the further assessments initiated following the 24th Licensing Round applications. We have therefore excluded at present 14 blocks in the Cardigan Bay area and 12 in the Moray Firth from this round of offshore petroleum licensing.

In addition some blocks are currently withheld from this round of offshore petroleum licensing at the request of The Crown Estate as they overlie the Cleveland potash mine, and some at the request of the Ministry of Defence due to them being used for intense military testing and training.

Licensing of the blocks not currently included in this round may be revisited in the future, as more information on those blocks becomes available.

In addition, a number of blocks may be licensed but with conditions attached restricting or prohibiting certain marine activities. It should be noted that the Offshore Petroleum Production and Pipe-lines (Assessment of Environmental Effects) Regulations 1999 (as amended) and the Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001 (as amended) variously require that all major activities undertaken in connection with UK offshore hydrocarbon exploration and production are subject to environmental assessment before consent can be given for these activities.

Before any licence awards are made, DECC will assess whether the grant of licences applied for in the 27th Round is likely to have a significant effect on the management of any protected conservation sites. Where such effects cannot be excluded, a further detailed assessment will be needed to determine whether there are any adverse effects on the integrity of these protected conservation sites. This is required under Council Directive 92/43/EEC on “the conservation of natural habitats and wild fauna and flora”, and UK implementing regulations.

DECC has, with industry and statutory environmental advisors, established an offshore oil and gas environmental monitoring committee charged with coordinating the strategic monitoring of potentially significant environmental effects of the industry, including those that could arise from the implementation of the plan to hold a 27th round of offshore licensing.
 

New opportunity for North Sea oil and gas exploration

01 February 2012

Press ref: 12/004

Energy Minister Charles Hendry today announced new opportunities for UK oil and gas exploration with the launch of the 27th offshore licensing round.

2,800 blocks are being offered as the Government ensures the UK gets maximum benefit from our resources.

This offer follows on from the successful 26th round in 2010, which resulted in the largest number of licences issued 190 since offshore licensing began in 1964.

Energy Minister Charles Hendry said:

“I am very pleased to launch the 27th offshore oil and gas licensing round. This is shaping up to be a very prosperous year for the North Sea as we expect a substantial increase in field approvals. With around 20 billion barrels of oil still to be extracted, the UK Continental Shelf has many years of productivity left.

“The industry supports nearly half a million jobs and today’s announcement will ensure a wealth of outstanding long-term career opportunities for people of all ages from North East Scotland right across the UK.”

The Round closes for applications on the 1st May 2012.

Notes for editors

1. For further information on the 27th Oil and Gas Offshore Licensing round, see http://og.decc.gov.uk/.
2. The UK’s Oil and gas sector currently provides around 60% of the country’s energy and is by far the largest single industrial UK investor and directly and indirectly supports over 450,000 jobs though out the economy.
3. Before any licences are awarded, DECC will carry out a screening exercise on the areas applied for, to assess whether the activities likely to result from the issue of oil and gas licences will have significant effects on any protected nature conservation sites (called “Natura 2000 sites”).  Where such significant effects are likely, an “Appropriate Assessment” will be necessary and, unless the relevant derogation applies, these licences can only be awarded where we can be certain that there will be no adverse effects on the integrity of any Natura 2000 sites.  This is required under the provisions of the Offshore Petroleum Activities (Conservation of Habitats) Regulations, 2001 which implement the “Habitats Directive”.
4. Any licences that are awarded in the round will contain conditions to protect environmental interests, and the interests of other sea users. In addition, activities carried out under the licences will be subject to a range of legislation which is designed to protect the marine environment, including regulations which apply the Environmental Impact Assessment and Habitats Directives to offshore oil and gas activities.

Written ministerial statement by Charles Hendry on the cost of installing underground power cables

31 JANUARY 2012

The Institution of Engineering and Technology (IET) has today published a comprehensive study on the whole life costs of installing new high voltage transmission lines under the ground, under the sea and over ground.

This study has been undertaken at the Government’s request in order to provide an authoritative and independent point of reference for the Infrastructure Planning Commission in evaluating planning applications for new transmission connections and reinforcements.

Research and production of the study has been carried out by international engineering consultancy Parsons Brinckerhoff, in association with Cable Consulting International.  It draws on a broad range of data from manufacturers, installers, operators and other parties.  National Grid has funded the work, and the IET has provided independent quality assurance. 

Main findings are as follows:

• the cost of new power infrastructure varies considerably but installing new power circuits underground is always more expensive than installing overhead lines
• the study also identifies factors that have an impact on costs - such as terrain, distances and energy loss
• the study’s remit purely relates to engineering costs, although it does acknowledge the aesthetic, human and environmental impacts, it makes no analysis of these areas

Over the coming years major transmission reinforcements will be needed to connect Britain’s new power stations.  Many people are concerned about the impact that new transmission lines can have on the landscape and on local communities, and it is therefore essential that these reinforcements are taken forward on the basis of informed discussion and the best available knowledge.  The Government welcomes this authoritative study which will provide a well-informed and objective baseline when considering the costs and impacts of different transmission line solutions. 

Copies of the study have been placed in Libraries of the House and can be obtained from the IET website.

MEDIA STATEMENT

The Institution of Engineering and Technology (IET) has today published a comprehensive study on the whole life costs of installing new high voltage transmission lines under the ground, under the sea and over ground. The study has been published on the IET website.

Responding to the study, Charles Hendry, Minister of State for Energy, said: "Over the coming years major transmission reinforcements will be needed to connect Britain’s new power stations. 

"I know that many people are concerned about the impact that new transmission lines can have on the landscape and on local communities.

"It is essential that these reinforcements are taken forward on the basis of the best available evidence. While the costs of individual proposals will differ on a case by case basis, the IET’s report is a vital contribution."