Department of Climate Change, Energy, the Environment and Water’s Post

It's been a week since we published the Capacity Marker 2023: Phase 2 proposals and 10-year review. Today - I'm highlighting Section 6.3 which addresses "Projects with long build times". The government proposes the introduction of a declared additional (24-month) long stop date, as well as a declared (12-month) long stop date. "To maintain capacity and security of supply it is important to support low carbon refurbishing assets as well as new build assets. Extending the declared (additional) long stop mechanism to refurbishing assets could arguably support decarbonisation pathways, as more substantive refurbishments (linked to the proposed 9-year capex limit) could use the additional construction time to undergo more substantive re-powering work." Take a look at the proposals using the link below and please respond with your views by 8th December 2023. #netzero #energysecurity #energy #UKenergy #ldes #longdurationstorage #lowcarbontechnologies

🔋 Check out our response to the second #REMA consultation. Our key messages are: 📢 No consensus in support of a shift to zonal (more details needed) ✔Support shorter settlement periods and would like a review of the decision on gate closure ✘ Not supportive of a move to central dispatch 📊 More progress is needed on the Balancing Mechanism reforms, including the new dynamic parameters for limited-duration assets (GC0166). 👉More details and full response here - https://lnkd.in/eW95KwsK #RenewableEnergy #ElectricityStorage #EnergySector #REMAConsultation

April's Local Authority View, your round-up of local authority related news and views, is now live. This month, we look at: - The Procurement Act 2023 - Navigating the Impact of the Energy Act 2023: District Heating - MoJ to increase court fees by 10% from May 2024 and much more. Read more here > https://lnkd.in/eGfxwhyf #localauthority

Another article detailing the fact that Connecticut's electricity rates are among the highest in the U.S. This is why a competitive market based approach to procurement can produce the best results. Let me know if you'd like to learn more! https://lnkd.in/eDH2rB8k

Annual government report by the on the policy mechanisms implemented under the Electricity Market Reform programme launched in 2015. 📌The Contracts for Difference scheme (CfD) 📌The Capacity Market (CM) 📌The Electricity Demand Reduction scheme SystemsLink capture such charges as a part of our Non Commodity Costs Calculator application, providing historical, current and forecasted views of each TPC element. Read the reports into these below via or get in touch to find out how we can help you monitor these costs for your customers. #energysoftware #cfd #noncommodities #energymarkets https://lnkd.in/eKFstTkR

On 12th March 2024, the #UK Government’s ambitious Review of #ElectricityMarket Arrangements (#REMA) entered its second stage of consultation.  In our latest insight, we define the challenges the second phase of REMA aims to address, summarise the options available, and set out the decisions still to be made. Get our full report here. #powermarket #policy #regulation

On 12th March 2024, the UK Government’s ambitious Review of Electricity Market Arrangements (REMA) entered its second stage of consultation. So, what are the four key challenges the second phase of REMA aims to address? Read our latest insight to discover more. https://okt.to/MfYK3L #powermarkets

Ministry of Power released the #Operational #Guidelines for "Scheme for #ViabilityGapFunding for development of #BESS. Post notification, SECI shared 1st #standalone BESS NIT of 250 MW/ 500 MWh under the scheme. The salient points of the guideline are given below: #Duration: 3 years from '23-24 to '25-26. Projects under the scheme will be approved during this period and fund will be disbursed till 2031-32 Proposed #Outlay: INR 9,400 Crores including budgetary support of INR 3,760 Crores #VGF: Upto 40% of CAPEX for BESS, provided by Central Government. It will be a non-recurring expenditure and shall be fully funded from central grant. Total BESS #capacity under scheme: 4000 MWh (#standalone storage projects only) The capacity will be #bid out in tranches. Max bidding capacity in a single tranche by a bidder will be 50% of bid capacity (min 100 MWh). A single #developer will not allowed to bid more than 1000 MWh across tranches. Both #public and #private sectors will participate in bids. In each bid at least one private sector participation is mandatory or else the bid will be cancelled. #Contract period: 10 – 12 years. #BusinessModel: BOO #Commissioning Period: 24 months from signing of BESPA BESS projects under the scheme will #fulfill #system requirements during periods of high demand and high stress. This requirement has been assessed to be 572 #cycles per year.  The same can be increased by NLDC, if required. NLDC will declare such stress hours involving morning and evening #peaks on a quarter ahead basis and update on weekly basis. Bidding to be conducted through tariff based #competitivebidding process by BESS Implementing Agency (BIA) as selected by MoP for #implementation of scheme. The BIA will be responsible for bidding process, bid award, act as purchaser of energy storage services, and enter into BESPA with developer. It shall also provide #charging current to developer and secure discharge as per requirement. A committee has been designated by MoP to determine VGF based on realistic assessment. The #VGF will be stated in the RfS document and will not exceed INR 96 lacs/ MWh. The amount shall be guided by tariff discoveries in previous BESS bids. An upper cap on #tariff will be specified. The committee will also indicate #locations of ISTS #solar pooling stations for connecting the BESS under each tranche. VGF #Disbursement Schedule: 5 tranches: (1) on FC subject to submission of BG and possession of 90% of total land – 10%, (2) on #COD – 45%, (3) 1 yr from COD – 15%, (4) 2 yrs from COD – 15%, (5) 3 yrs from COD – 15% BIA shall secure #charging power for BESS project through fixed term contracts with #RE sources and meet remaining through #market purchase. BESS #discharge management by BIA through 3 avenues: power exchange sales, bilateral tie ups, ancillary services. BIA #trading margin: 4 paisa/kWh A BESS Balancing Pool (BBP) will address #revenue shortfalls and surpluses arising from BESS operations

✅ The Council has formally adopted the new Electricity Market Design today! We were following the discussions around it very closely in the past 1.5 years, and we think the outcome is an important step into the right direction. 💡 While the reform was primarily conceived against the backdrop of rapidly rising electricity prices in 2022, it contains some relevant market design elements outside the "affordability cluster". 1️⃣ Capacity mechanisms are no longer last resort measures, but structural elements of the Internal market for electricity. 2️⃣ The proposed sweeping reform of forward markets was not adopted in primary law, but the EC is to perform an impact assessment on the adaptation of forward markets within 18 months after entry into force including virtual hubs. 3️⃣ The Intraday Cross Zonal Gate Closure Time shall not be more than 30 minutes ahead of delivery from 1 January 2026, subject to possible derogation granted by NRAs. 4️⃣ Regular national flexibility assessments led by the NRAs will be established based on a methodology to be developed by ENTSOE and the EU DSO entity. The package goes well beyond these adaptations, but we want to highlight topics that have received less attention in the public debate. https://lnkd.in/dREqXayp

The U.S. Department of Energy is offering up to $300 million for states, tribes and local governments to bolster transmission siting and permitting processes while supporting economic development. Applicants applying for support for siting and permitting can propose activities such as studies and analyses of the effects of a transmission project, the study of up to three possible corridors for a project and increased staffing and hiring of consultants. DOE expects to make up to 40 awards ranging from $100,000 to $10 million for siting and permitting initiatives. The awards require an up to 50% cost share. On the economic development side, the office said funding could support local energy democratization and resilience projects, including microgrids, distributed generation, energy storage, and electric vehicle charging infrastructure. It could also be used for affordable and sustainable housing, among other things. The department anticipates making up to 40 awards ranging from $100,000 to $50 million for economic development projects. Applicants face a 5% cost share for any awards. Transmission systems will need to expand by 60% by 2030 and may need to triple by 2050 to meet clean electricity and resiliency demands, DOE said, citing independent estimates. To save energy & cost for your business, contact me at https://buff.ly/2EjAMbu. #Reliability #EnergyStorage #EnergyEfficiency #Renewables #EnergyAudit #Procurement #Resilience https://buff.ly/3LaVWdD