Energy Minister Claire Coutinho states that the approval of new North Sea drilling licences will contribute to the reduction of the UK’s energy import dependence.

The North Sea Transition Authority (NSTA) has approved 27 new licences for oil and gas exploration in the North Sea.

The licences, awarded from a pool of 115 applications, represent the highest number granted since the 2016/17 29th Licensing Round.

These licences have been allocated to specific areas in the Central and Northern North Sea, as well as the West of Shetland, known for their potential to expedite production compared to other regions.

In addition to the 27 primary licences, six additional blocks, ready for allocation, have been consolidated into five existing licenses, streamlining the licensing process.

Currently, the UK North Sea boasts 284 offshore fields in production and it is estimated that a total of 5.25 billion barrels of oil equivalent will be produced in the region until 2050.

Energy Security Secretary Claire Coutinho said: “As recognised by the independent Climate Change Committee, we will continue to require oil and gas in the coming decades as we work toward achieving net zero.

“It is pragmatic to reduce our dependence on foreign imports and utilise our domestic supply, benefiting our economy, the environment and energy security.

“These new licences are a positive development for the UK industry, supporting approximately 200,000 jobs and contributing £16 billion to the economy annually while advancing our transition to low carbon technologies, on which our future prosperity depends.”

The UK’s declining and volatile carbon prices have raised concerns about their impact on clean energy investment, lost Treasury revenue and potential carbon taxes.

The UK is experiencing the consequences of its declining and unpredictable carbon prices, which have the potential to deter investments in clean energy, result in significant revenue losses for the Treasury and lead to substantial tax bills for UK companies exporting to Europe by 2026.

Energy UK has released an analysis that underscores the impact of plummeting carbon prices in the UK during 2023.

It highlights the potential repercussions if this issue remains unaddressed, particularly as the EU prepares to introduce a carbon border adjustment mechanism next year.

Over the past six months, the UK’s Emissions Trading Scheme has generated over £1 billion less in carbon prices compared to the previous year’s levels.

If low carbon prices persist, the Treasury could face a loss of £3 billion in annual revenue, Energy UK estimates.

Additionally, from 2026 onwards, UK companies exporting to the EU may be subject to approximately half a billion pounds in carbon taxes as a result of the CBAM, even for energy exported from carbon-free sources like wind, solar and nuclear.

Adam Berman, Energy UK’s Deputy Director, said: “A falling and volatile domestic carbon price threatens to deter clean investment at the very moment we need it most and could end up costing British companies billions of pounds simply for trading with their largest export market.

“Linking our carbon pricing regime with the EU’s would exempt UK companies from these costs and remove the problems caused by the disparity between the two schemes.

“It would also stabilise and strengthen our carbon price, sending a powerful signal to bring forward investments in homegrown clean energy that can cut bills, reduce emissions and bolster our energy security.”

Europe’s LNG supply faces challenges, especially due to surging Chinese demand, potentially leaving Europe vulnerable to shortages this winter and beyond, according to a new report.

Europe’s liquefied natural gas (LNG) supply faces challenges due to increased competition from China and rising prices in the gas market.

That’s according to a new report from Cornwall Insight, which suggests China’s growing gas demand, linked to its post-Covid-19 economic recovery, could intensify the battle for LNG resources.

The report indicates that global LNG supplies are expected to see only minimal growth until 2025.

This, combined with global events causing wholesale price spikes, raises concerns about Europe’s vulnerability to gas shortages in the coming winter and beyond.

Europe’s efforts to diversify away from Russian pipeline gas, particularly after the Russian invasion of Ukraine, saw LNG imports bridging a substantial part of the gap.

Last winter‘s milder weather and high gas prices reduced demand across the continent, helping to maintain gas supply security.

However, China’s 6% growth in gas demand in 2023, though currently met by domestic production and increased pipeline imports from Russia, might lead to greater LNG imports during the winter, increasing global competition, according to the energy consultancy.

AtkinsRéalis has secured a design contract for the Sizewell C nuclear power station in Suffolk, encompassing key elements of the project.

AtkinsRéalis has been awarded a design contract for key components of the Sizewell C nuclear power station in Suffolk, in support of the project’s development.

The contract covers the design of critical elements of the proposed nuclear power station, including the Conventional Island, Balance of Plant, Heat Sink, and concept design for permanent roads and networks to facilitate construction and long term operation.

AtkinsRéalis has been involved in various aspects of the Sizewell C project since 2014, contributing to site establishment, enabling works, detailed earthwork design and concept designs for various aspects of the facility.

They are also responsible for the overarching design and engineering management of civil works at the proposed plant.

Upon its completion, the planned Sizewell C nuclear power station is predicted to produce sufficient electricity to meet the energy needs of six million homes for 60 years.

Image: Sizewell C

Renewable energy generation hit a Q3 record in Europe, driven by wind and solar power, according to a new report

Renewable energy generation achieved a record high in the European electricity market for the third quarter, according to a report by EnAppSys, an energy data analyst.

The report analysed trends in the European electricity market from 1st July to 30th September.

Renewable power generation during this period increased by 12% compared to Q3 2022, driven largely by substantial wind generation, which reached 95TWh, exceeding the 84TWh recorded in the same quarter of the previous year.

The report highlighted a sustained decline in wholesale prices, primarily driven by lower gas prices, abundant wind power and reduced electricity demand.

Negative prices were observed, especially in the early part of the quarter.

While prices remained generally stable from July onwards, a surge in electricity prices occurred in late August due to rising gas prices linked to an announced strike by Australian LNG workers.

Notably, total power demand in Europe continued to decline from Q1 2023, reaching 7% lower than in Q3 2022.

Gas-fired generation fell by 27% to 103TWh, marking the lowest level in recent quarters.

Nuclear generation slightly increased compared to Q3 2022, but coal and lignite generation saw a significant decline of approximately 38% compared to the same period.

The Dogger Bank Wind Farm has generated its first power, with the installation of the initial turbine among the 277 turbines located 130 kilometres off the UK coast

The Dogger Bank Wind Farm, set to become the world’s largest offshore wind farm, has achieved a significant milestone by producing its first power.

Located 130 kilometres off the coast of Yorkshire in UK waters, the Dogger Bank Wind Farm consists of 277 turbines with a combined capacity of 3.6GW, spread across three phases named Dogger Bank A, B, and C.

The project is being hailed for its potential to bolster energy security, create jobs, reduce electricity costs, and contribute to achieving net zero emissions.

The inauguration of the project’s first offshore wind turbine at Dogger Bank A has enabled the transmission of power to the UK’s national grid, utilising high-voltage direct current (HVDC) technology, a UK wind farm first.

Each rotation of the massive 107-metre-long blades on Dogger Bank’s operational turbine can generate enough clean energy to power an average British home for two days.

Once fully operational, Dogger Bank is projected to provide clean energy equivalent to powering six million homes annually.

Dogger Bank is being developed and built by the UK’s SSE Renewables in a joint venture with Norway’s Equinor and Vårgrønn (a joint venture of Eni Plenitude and HitecVision).

UK Prime Minister Rishi Sunak said: “Offshore wind is critical to generating renewable, efficient energy that can power British homes from British seas.”

Alistair Phillips-Davies, Chief Executive of SSE, said: “There’s been lots of talk about the need to build homegrown energy supplies, but we are taking action on a massive scale.

“Dogger Bank will provide a significant boost to UK energy security, affordability and leadership in tackling climate change. This is exactly how we should be responding to the energy crisis.

“But it is also a landmark moment for the global offshore wind industry, with Dogger Bank demonstrating just what can be achieved when policymakers, investors, industry and communities work together to achieve something truly remarkable.”

Image: Dogger Bank

Ofgem has launched a consultation to address the rising issue of energy debt, with potential measures including a temporary adjustment to the price cap to mitigate energy company insolvency risk

Ofgem has initiated a consultation in response to the alarming rise in consumer energy debt.

Figures obtained by Ofgem this summer reveal that energy debt has reached a record high of £2.6 billion.

This concerning escalation is attributed to surging wholesale energy prices and broader cost of living challenges.

Under the current price cap regulations, energy suppliers can recover their efficient costs, including unrecoverable debt, through their service pricing.

However, as bad debt levels continue to rise, Ofgem is now considering introducing a one-time adjustment to the price cap.

This adjustment aims to mitigate the risk of energy companies going bankrupt or exiting the market due to insurmountable debt.

Analysis within the consultation suggests that such an adjustment could result in an average temporary increase of up to £17 per year (approximately £1.50 per month) in consumer bills.

This move is intended to offset the potential consequence of higher costs and deteriorating service standards for customers if energy suppliers find themselves in financial peril.

This was evident during the recent energy crisis when nearly 30 suppliers went out of business, leading to an additional charge of £82 for every energy customer to ensure households remained connected.

Tim Jarvis, Director General for Markets at Ofgem, said: “The scale of unrecoverable debt and the potential risk of suppliers leaving the market or going bust, which passes on even greater costs to households, means we must look at all the regulatory options available to us.

“Ofgem cannot subsidise energy or force businesses to sell it at a loss and suppliers must be in a position to offer high quality services to customers.

“We must consider the fairest way to maintain a stable energy market and we will do this in consultation with all our partners to ensure we are protecting the most vulnerable households.”

The energy market has become increasingly volatile, prompting energy experts to advise businesses to stay alert and consider greener energy options.

Businesses have been urged to remain watchful and explore greener technologies as the energy market continues to experience turbulence.

That’s according to commercial energy and sustainability consultancy Advantage Utilities which attributes this volatility to unforeseen outages and ongoing summer maintenance.

According to the consultancy’s latest quarterly analysis from commercial energy and sustainability consultancy Advantage Utilities, volatility has become the new norm in the energy sector.

While much of 2023 has seen a gradual easing of energy prices, the market has exhibited a saw-tooth pattern since early June.

Negative news has driven market prices sharply upwards despite bearish fundamentals, according to the report.

Commenting on the latest report, Advantage Utilities Chief Executive Officer, Andrew Grover, said: “Businesses must stay on top of the current energy market which remains extremely precarious.

“We’ve already witnessed volatile energy price changes in response to ongoing disruptions and that’s in spite of healthy gas storage levels. We also believe that energy prices will remain at current levels for a few years to come.”

Oil prices surged by 4% – experts have raised concerns that Middle East tensions stemming from the Israel-Gaza conflict could disrupt global oil supply chains

Oil prices experienced a significant jump, rising by 4% on Monday, as concerns emerged about the potential impact of the ongoing conflict in Israel and Gaza on oil production in the Middle East.

The West Texas Intermediate, a key benchmark for US oil, surged to more than $86 (£70.5) per barrel, while the price of Brent crude also saw a notable increase in early Asian trading.

Neither Israel nor the Palestinian territories are major oil producers themselves – however, the Middle East region plays a crucial role in global oil supply, accounting for nearly a third of the world’s oil production.

The recent escalation of tensions began with a wave of attacks initiated by the Hamas militant group on Saturday.

Gas boiler usage witnessed a substantial winter decline, notably in rented households, falling from 72% in winter 2021 to 54% in winter 2022.

Gas central heating usage showed a notable decrease, especially in rented households, dropping from 72% in winter 2021 to 54% in winter 2022.

That’s according to a new government report which suggests during last winter there was a notable shift in home heating methods compared to the previous year.

The decline in the use of gas central heating was observed in owner-occupied households as well – from 82% to 60%.

The latest Public Attitudes Tracker also reveals that there was an increase in the use of alternative heating sources, including portable electric heaters (from 3% to 11%), solid fuel and wood heaters (from 1% to 7%), and natural gas heaters (from 1% to 4%).

Furthermore, the survey revealed that 41% of respondents paid significant attention to the amount of heat used in their homes during winter 2022.

This marked an increase compared to winter 2021 when only 27% reported being attentive to their heating costs.

The proportion of respondents who indicated they paid little or hardly any attention to their heating costs decreased from 25% to 15% during the same period.

These findings are likely influenced by rising energy prices and the overall cost of living, both of which have increased since winter 2021.