Latest news with #AuroraEnergyResearch
Straits Times
3 days ago
- Business
- Straits Times
AI boom risks pushing UK further away from 2030 carbon goals
Increasing electricity demand will not allow it to meet its end-of-decade goal for a clean power system. PHOTO: ST FILE LONDON - Britain is relying on a renewables expansion that is too slow to meet the booming power needs of data centres and risks missing its 2030 decarbonisation targets as a result. Regardless of whether the nation's data centre build-out maintains its current momentum or accelerates, increasing electricity demand will not allow it to meet its end-of-decade goal for a clean power system, market analytics firm Aurora Energy Research said in a report. That is because higher demand will likely need to be met with natural gas. Aurora said it is possible to avoid missing decarbonisation goals if the UK expands its grid and renewable infrastructure by more than what is currently planned. Tech companies across the globe are hungry for stable supplies of electricity, with gas-fired power plants often favoured due to their ability to meet 24-7 electricity needs. In the US, large firms such as Microsoft Corp. and Alphabet Inc.'s Google have reported soaring emissions amid higher energy use, while Meta Platforms Inc. signed a 20-year deal to buy nuclear power. Aurora sees data centre demand reaching as much as 10 per cent of total UK power demand by 2030, up from 4 per cent in 2025. The UK government is keen to tap into the economic growth offered by the data centre sector, but has also set out clear green goals around its power system. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Bloomberg
3 days ago
- Business
- Bloomberg
AI Boom Risks Pushing UK Further Away From 2030 Carbon Goals
Britain is relying on a renewables expansion that is too slow to meet the booming power needs of data centers and risks missing its 2030 decarbonization targets as a result. Regardless of whether the nation's data center buildout maintains its current momentum or accelerates, increasing electricity demand won't allow it to meet its end-of-decade goal for a clean power system, market analytics firm Aurora Energy Research said in a report.
Yahoo
30-05-2025
- Business
- Yahoo
The quiet demise of Texas' anti-renewables legislation
This analysis and news roundup comes from the Canary Media Weekly newsletter. Sign up to get it every Friday. Over the past few months, the Texas Senate passed three bills that could've devastated the state's nation-leading renewable energy rollout — but clean energy appears to have dodged the bullet. The first of those bills would establish new fees, setback requirements, and other permitting regulations on utility-scale wind and solar development, even though fossil-fuel plants don't face the same restrictions. The second would require large renewables installations to buy gas generation as a backup. And the third would ensure all renewable power development came with a side of fossil fuels, as it directed that 50% of all new power plant capacity added to the state's grid come from dispatchable resources other than battery storage. That would have amounted to a gas mandate: Since solar panels and wind turbines can only produce power under certain conditions (sun shining, wind blowing, you know the drill), they can only be dispatchable power sources if batteries are involved. An earlier version of the bill explicitly said 50% of new capacity would have to come from gas. These bills would have seriously slowed Texas' deployment of solar, batteries, and wind power, which are shattering power-generation records in the state and helping its grid withstand extreme weather and meet surging electricity demand. The legislation would have caused reliability to fall and utility bills to soar, according to an April report from Aurora Energy Research. But the Texas House's session is set to end on June 2, and none of those three bills have been scheduled for consideration. This doesn't necessarily mean they won't resurface at some point, but they're at least dead as standalone bills for this session, Doug Lewin writes in his Texas Energy and Power newsletter. There are growing signs that these sorts of restrictions on renewables aren't popular among many Texas Republicans and business interests. Recent polling from Conservative Texans for Energy Innovation shows widespread Republican support for renewables, while even the Texas Oil and Gas Association allied with renewable power generators to oppose the state House's companion to the Senate's bill requiring gas backup for clean energy. Similar efforts in the state were defeated two years ago as well. DOE orders a coal plant to stay open The Trump administration took its pro-coal agenda to a new level last Friday, ordering a retiring Michigan coal plant to stay open through at least the end of August. The J.H. Campbell plant was supposed to shut down tomorrow, and Michigan utility Consumers Energy had been working since at least 2021 to do so. But the administration contended that the Midwest faces an 'energy emergency' and needs the plant to guarantee power reliability. Clean energy advocates, consumer watchdogs, and even Michigan's top energy regulator disagree. 'We currently produce more energy in Michigan than needed,' Michigan Public Service Commission Chair Dan Scripps said in a statement. 'The unnecessary recent order from the U.S. Department of Energy will increase the cost of power for homes and businesses across the Midwest.' Trump's nuclear orders probably won't outweigh cuts President Donald Trump signed a series of executive orders late last week to boost nuclear power — though they probably won't counteract his many moves to weaken the industry. The four orders will: Expedite nuclear reactor testing at federal labs, with a goal of approving three new designs by next year. Slash regulations for building nuclear reactors on federal lands. Speed the Nuclear Regulatory Commission's reviews of reactor licenses. Boost uranium mining and enrichment. But in recent months, the Trump administration has also looked to reduce funding for the Energy Department's Office of Nuclear Energy, and cut staff at the Loan Programs Office, even though it funds nuclear reactor projects. And though nuclear made out better than other low-carbon energy sources in the federal budget bill recently passed by the House, projects would only be eligible for tax credits if they start construction by 2028 — an ambitious timeline for a famously slow-to-build energy source. Those are big setbacks that won't 'magically be solved' by simply cutting red tape, Josh Freed, who heads the climate and energy program at that think tank Third Way, told Latitude Media. DOGE days over? Elon Musk announces he'll leave the Trump administration as Tesla investors demand he return to the company, then condemns the U.S. House's proposed end to clean energy tax credits. (Associated Press, Financial Times, Politico) A blow to industrial decarbonization: The U.S. Energy Department announces the termination of $3.7 billion in grants from the Office of Clean Energy Demonstrations, which funds carbon capture and other ambitious but unproven projects to help cut industrial emissions. (news release) Solar loses its farm: A U.S. Agriculture Department report says solar development on productive farmland poses a 'considerable barrier' to agricultural expansion, and the department says it will reshape federal loans to disincentivize solar on farmland. (Heatmap) I'll drive what she's driving: A nonprofit's nationwide campaign aims to get more women into electric vehicles, including by turning suburban moms into EV ambassadors who can talk about benefits, like lower operating costs than gas cars and added storage space with 'frunks.' (Canary Media) Recycling reduction: The collapse and bankruptcy of EV battery recycling startup Li-Cycle underscores the battery recycling industry's challenges, especially as federal support dwindles. (Canary Media) Things that make no sense: The U.S. EPA has reportedly drafted a plan to eliminate all greenhouse gas emissions limits on coal and gas power plants, stating in its proposed rule that the facilities 'do not contribute significantly to dangerous pollution' or climate change. (New York Times) Another threat to batteries: Executives overseeing battery component production at an LG Energy Solution plant in western Michigan say the combination of high tariffs and restricted federal subsidies would devastate the domestic market that's attempting to compete with China. (New York Times) Cities step up on climate: Cleveland's work around reducing building emissions and installing EV chargers in underserved neighborhoods shows how U.S. mayors are taking climate action, with or without the help of the federal government. (Grist)
The Herald Scotland
20-05-2025
- Business
- The Herald Scotland
Grid transmission charge reform could save consumers £16 bn
Three firms behind some of Scotland's largest offshore wind farms have warned that the industry is in 'significant and immediate risk' due to punishing grid costs. But, they point out, according to new analysis, reform of the transmission charging system could save billpayers £16 billion. A new report from Aurora Energy Research, commissioned by companies and published ahead of a key decision on changes from the energy regulator, Ofgem, shows that investment in the industry could be protected through reforms to the transmission charging system. The trio of companies - Ocean Winds, Northland Power,and West of Orkney Windfarm - collectively through their projects generate enough power for a third of the UK's homes. Adam Morrison, UK Country Manager at Ocean Winds, said: 'The magnitude and volatility of transmission charges are harming existing Scottish projects and undermining investments which will be vital for Clean Power and Net Zero ambitions. 'Amid a rapidly changing energy market, the UK has to reckon with the fact that the charging methodology is broken as it is pulled in directions it was never designed to go. 'Most importantly, the system bares a hidden cost to billpayers of billions of pounds of unnecessary subsidies for projects not burdened by these locational prices. The report assesses what are called Transmission Network Use of System (TNUoS) charges, a levy on generators which was designed for an era when gas dominated the UK power market, and which incentivised the building of generation projects near major cities in England but penalised generation in remote areas, particularly Northern Scotland. The three companies are warning that the system undermines UK Government plans to build huge wind projects off Scotland's northern shores, creating a signal not to invest. Winds of Change on offshore wind and transmission charging (Image: Derek McArthur) Existing projects, they note, are also under threat as the volatile charges can erode as much as half of their value, an impact which is only likely to worsen, as the report warns that Northern Scotland transmission charges are expected to climb by 100% within five years without intervention. As the Aurora Holdings Research report puts it: "The divergence of... TNUoS charges across regions has increased significantly in recent years and is expected to rise further over the next decades with TNUoS increasing in Scotland and decreasing in the South of Great Britain. This uncertainty disadvantages Scottish wind farms, increasing their cost of capital and opportunities to secure debt financing, increasing their bid prices in contracts for difference auction." Claire Mack, chief executive of Scottish Renewables, said: "Scotland's abundant natural resources should make it the home of the UK's biggest and most productive renewable energy projects but our outdated transmission charging rules, designed over 30 years ago, are unbalancing how the modern-day electricity network should be paid for which is negatively impacting the development of major sites. "These charges are both volatile and unpredictable, unfairly penalising Scottish projects by tens of millions of pounds every year." The analysis by Aurora Energy Research highlights that this transmission charging means a 1 GW Northern Scottish project would cost one billion pounds more through its life to run compared to an equivalent in Southern England. Ofgem is deciding on a 'cap and floor' model in coming weeks to mitigate the costs and many voices within the renewables sector are calling for change. READ MORE: 'Quite simply,' said Ms Mack, 'the UK Government will not meet the targets set out in its Clean Power 2030 Action Plan without the abundance of wind power generated around Scotland and it must work with Ofgem to urgently implement a 'cap and floor' model for transmission charging that alleviates these costs and keeps projects on track.' An Ofgem decision to back a reform proposal - known as CMP444 WACM 1 - would save billpayers £16.2bn between 2028-2050, according to the data, which reduces Scottish Transmission Charges by 59% and mitigates subsidies. The report sets out that transmission charging is having a bearing on billpayers due to its combination with the 'pay as clear' model of the contracts for difference (CfD) process which grants the same price to all projects on the basis of the highest successful bid. Transmission charges push up the costs of Scottish projects, and therefore CfD prices - southern projects unaffected by transmission charges do not need the same level of CfD, but still receive it. Emanuele Dentis, Commercial Manager at Northland Power commented: 'The investment signals are just inconsistent at the moment. Ofgem has greenlit billions of pounds of transmission investment works in Northern Scotland, without recognising that – without reform – these works are too expensive for generators to pay back. It's like building brand new motorways that too few users are going to use because the toll is too expensive. 'In the meantime, projects in the Southern England are paid (rather than pay) transmission credits. This was historically justified as an investment signal to minimise transmission costs, but this system is simply incompatible with renewable energy deployment, whereby generation is most efficiently produced where natural resources are strongest. 'We are in support of a regime that redistributes transmission charges costs more fairly, is better aligned with other locational incentives such as option lease fees and the contracts for difference (CfD), and delivers on the government's Clean Power 2030 targets and beyond. CMP444 WACM 1 and CMP432 are the best tools in the short term to kickstart this reform.' A Department for Energy Security and Net Zero spokesperson said: 'Our priority is to expand Britain's energy infrastructure to get more clean, homegrown, electricity onto the grid and protect billpayers from volatile fossil fuel markets. "We continue to work with Ofgem to ensure an update on transmission is provided as quickly as possible and ensure that any proposed changes to transmission network charges continue to support investment in clean energy projects across the country, while delivering value for money for consumers.'
Bloomberg
29-04-2025
- Business
- Bloomberg
PE Firm CGE Is Said to Weigh £1 Billion Sale of Aurora Energy
CGE Partners is exploring options for Aurora Energy Research including a sale that could value the data and analytics provider to the power and energy industry at as much as £1 billion ($1.3 billion), people familiar with the matter said. The London-based private equity firm is working with an adviser on the potential divestment, according to the people, asking not to be identified discussing confidential information.
