Latest news with #CfDs
Yahoo
5 days ago
- Business
- Yahoo
Starmer under pressure to save factories crushed by energy prices
Sir Keir Starmer has been urged to dramatically cut factory energy costs amid warnings huge bills are pushing Britain towards 'de-industrialisation'. Make UK, which represents Britain's biggest manufacturers, said domestic companies faced some of the highest electricity prices in Europe – and that half now viewed this as their biggest future challenge. It called on the Prime Minister to scrap a series of 'regressive' net zero levies on bills, arguing this is 'the most direct and impactful way to improve industrial competitiveness'. Make UK is also calling for the Government to provide manufacturers with wind-farm style electricity deals, known as contracts for difference (CfDs), which would fix their electricity price at a set level. The announcement comes as ministers are preparing to unveil their industrial strategy for Britain, with Sir Keir and Rachel Reeves under pressure to help firms with their energy bills. Stephen Phipson, chief executive of Make UK, said: 'If we do not address the issue of high industrial energy costs in the UK as a priority, we risk the security of our country. 'We will fail to attract investment in the manufacturing sector and will rapidly enter a phase of renewed de-industrialisation.' The proposal to remove net zero levies would not be cheap, however. It would cost the Treasury £3.8bn, while giving manufacturers CfDs would cost a further £1.1bn. Without other immediate cuts to government expenditure, this would probably have to be shifted on to general taxation or the bills of domestic consumers. Make UK suggested the schemes could be 'phased in' gradually to reduce the financial impact and argued that both measures would be revenue-neutral in the long-run because they would stimulate industrial growth. Removing net zero levies would instantly slash the electricity price paid by manufacturers by about one quarter, according to the lobby group's analysis. The report said this should include scrapping the so-called renewables obligation, feed-in tariffs levy, capacity market levy, climate change levy and CfD costs. They currently account for about 6.4 pence per kilowatt hour of the 27.1 pence per kilowatt hours paid by industrial firms for electricity, Make UK said. A single levy, the renewables obligation, accounts for £2bn of the £3.8bn in levies paid per year by manufacturers alone. The legacy scheme was set up to support early wind and solar farms with 20-year subsidy deals, topping up the electricity price they are paid. It closed to new entrants in 2017, having been replaced with newer CfDs. CfDs guarantee renewable generators a price at which they can sell electricity, with the Government paying the difference if market prices are lower than this and generators repaying the state when market prices go higher. Manufacturers want a similar arrangement, but in reverse. This would mean they are guaranteed a fixed price for buying, rather than selling, electricity – with the Government once again covering any difference. Ministers have previously suggested they intend to provide further support on energy costs for manufacturers in the industrial strategy, but this has previously only been extended to the most energy-intensive firms such as steel makers, glass blowers and ceramic factories. A policy known as the 'British industrial supercharger', which exempts these companies from many policy costs as well as network charges, benefits around 400 businesses. But Make UK warned that the supercharger 'does not eliminate the need' for greater action on energy bills, as it only benefitted a relatively small number of firms. 'Not only is most of the manufacturing sector still exposed to these high costs, [but] as the costs of the supercharger are met by other electricity bill payers, ineligible manufacturers are facing an even greater share of costs, to subsidise eligible energy-intensive industries, further exacerbating the problem,' its report added. On Friday, a spokesman for the Government said: 'Through our clean power mission, we will get off the rollercoaster of fossil fuel markets – protecting business and household finances with clean, home-grown energy that we control. 'We are already bringing energy costs for UK industries closer in line with other major economies through the British Industry Supercharger – saving businesses £5bn over the next ten years.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Zawya
22-04-2025
- Business
- Zawya
Global nuclear power capacity to reach 494GW by 2035
The global nuclear power sector is experiencing steady growth due to the need for low-carbon baseload power, energy security, and decarbonizing industrial sectors. New capacity additions, advancements in reactor technology, and supportive policies have contributed to increased generation and reinforced the role of nuclear power in the energy transition. GlobalData predicts that nuclear capacity will grow from 395 GW in 2024 to 494GW by 2035, with nuclear electricity generation rising from 2,616 TWh to 3,410 TWh over 2024-35, reflecting a 2% CAGR. Countries with aging reactors are pursuing lifetime extensions and expanding their nuclear fleets, especially in Asia. The US remains the world's largest producer of nuclear power, with 97GW of installed capacity generating 787.6 TWh in 2024. France relies on nuclear for over 60% of its electricity, while China has expanded its capacity to 56GW, producing 386.1 TWh. Mohammed Ziauddin, Power Analyst at GlobalData, comments 'The growing focus on energy security due to geopolitical tensions, increasing demand for low-carbon dispatchable power, government support through regulations and incentives such as grants, loan guarantees, production and investment tax credits (PTCs and ITCs), and market-based mechanisms like Contracts for Difference (CfDs), advancements in SMRs and next-gen technologies, and a surge in electricity demand from data centers are the major reasons behind the increasing adoption of nuclear energy worldwide.' Unlike traditional large-scale nuclear reactors, SMRs offer compact designs, flexible deployment, and advanced safety features that make them well-suited for remote regions, smaller grids, and industrial applications. With capacities typically under 300MW, SMRs can be factory-fabricated, transported, and assembled on-site, significantly reducing construction time and costs. The global SMR pipeline is expanding rapidly, with over 100 reactors at various stages of development. Although only a few SMRs are currently operational, primarily in Russia and China, the next decade is expected to bring a significant increase in new capacity, with more than 10,000MW anticipated by 2035. Countries such as the US, Canada, the UK, China, and Russia are leading the charge with diverse deployment strategies, marking SMRs as a key pillar in the global transition toward secure, low-carbon energy systems. Zia concludes: 'With growing concerns over climate change and energy security, nuclear power has re-emerged as a crucial pillar in the global energy transition. Governments across the world are implementing ambitious net-zero targets and investing in clean, dispatchable energy sources to decarbonize their economies. Nuclear energy, with its ability to provide reliable baseload power and reduce dependency on fossil fuels, is playing a vital role in this transition. 'As countries ramp up their focus on SMRs, lifetime extensions, and advanced nuclear technologies, the nuclear power market is poised for long-term growth, driven by the dual goals of energy resilience and climate neutrality.' Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Trade Arabia
22-04-2025
- Business
- Trade Arabia
Global nuclear power capacity to reach 494 GW by 2035
The global nuclear power sector is experiencing steady growth due to the need for low-carbon baseload power, energy security, and decarbonizing industrial sectors. New capacity additions, advancements in reactor technology, and supportive policies have contributed to increased generation and reinforced the role of nuclear power in the energy transition. GlobalData predicts that nuclear capacity will grow from 395 GW in 2024 to 494GW by 2035, with nuclear electricity generation rising from 2,616 TWh to 3,410 TWh over 2024-35, reflecting a 2% CAGR. Countries with aging reactors are pursuing lifetime extensions and expanding their nuclear fleets, especially in Asia. The US remains the world's largest producer of nuclear power, with 97GW of installed capacity generating 787.6 TWh in 2024. France relies on nuclear for over 60% of its electricity, while China has expanded its capacity to 56GW, producing 386.1 TWh. Mohammed Ziauddin, Power Analyst at GlobalData, comments 'The growing focus on energy security due to geopolitical tensions, increasing demand for low-carbon dispatchable power, government support through regulations and incentives such as grants, loan guarantees, production and investment tax credits (PTCs and ITCs), and market-based mechanisms like Contracts for Difference (CfDs), advancements in SMRs and next-gen technologies, and a surge in electricity demand from data centers are the major reasons behind the increasing adoption of nuclear energy worldwide.' Unlike traditional large-scale nuclear reactors, SMRs offer compact designs, flexible deployment, and advanced safety features that make them well-suited for remote regions, smaller grids, and industrial applications. With capacities typically under 300MW, SMRs can be factory-fabricated, transported, and assembled on-site, significantly reducing construction time and costs. The global SMR pipeline is expanding rapidly, with over 100 reactors at various stages of development. Although only a few SMRs are currently operational, primarily in Russia and China, the next decade is expected to bring a significant increase in new capacity, with more than 10,000MW anticipated by 2035. Countries such as the US, Canada, the UK, China, and Russia are leading the charge with diverse deployment strategies, marking SMRs as a key pillar in the global transition toward secure, low-carbon energy systems. Zia concludes: 'With growing concerns over climate change and energy security, nuclear power has re-emerged as a crucial pillar in the global energy transition. Governments across the world are implementing ambitious net-zero targets and investing in clean, dispatchable energy sources to decarbonize their economies. Nuclear energy, with its ability to provide reliable baseload power and reduce dependency on fossil fuels, is playing a vital role in this transition. 'As countries ramp up their focus on SMRs, lifetime extensions, and advanced nuclear technologies, the nuclear power market is poised for long-term growth, driven by the dual goals of energy resilience and climate neutrality.'
Zawya
21-02-2025
- Business
- Zawya
UK presents plans for subsidy reform to speed up green energy projects
The British government on Friday presented plans for reforms of its flagship Contracts for Difference (CfD) scheme to remove planning barriers and bring green energy projects, especially offshore wind farms, online faster. The Department for Energy Security and Net Zero (DESNZ) said it is proposing to relax the eligibility criteria on planning consent for fixed-bottom offshore wind and to increase the CfD contract term beyond the current 15 years. CfDs are government-backed price guarantees for developers for the electricity produced. It also wants to change the way budgets for offshore wind are set and published, including allowing the government to view bid information in anonymised form. The UK last year awarded CfD contracts to a record number of projects totalling 9.6 gigawatts (GW), most of it for offshore wind. A new, seventh round (AR7) is planned for later this year, while the government has also introduced a scheme to support the domestic renewable energy industry. "Our bold new reforms will give developers the certainty they need to build clean energy in the UK, supporting our mission to become a clean energy superpower and bring down bills for good," Energy Secretary Ed Miliband said. The UK already has 30.7 GW of offshore wind either installed or committed, with a further 7.2 GW of capacity consented, compared with a targeted capacity of 43-50 GW to meet its clean power by 2030, the ministry said. The latest plans also propose enabling CfD support for onshore wind projects looking to increase capacity, so-called repowering. The government, as a temporary measure, also wants to remove the ability of generators with existing CfDs to enter surrendered capacity from previous allocations rounds into AR7. Stakeholders are invited to consult on the reforms to the CfD until March 21, with a government response expected ahead of the AR7 round, the DESNZ said. (Reporting by Nora Buli; editing by David Evans)
Reuters
21-02-2025
- Business
- Reuters
UK presents plans for subsidy reform to speed up green energy projects
OSLO, Feb 21 (Reuters) - The British government on Friday presented plans for reforms of its flagship Contracts for Difference (CfD) scheme to remove planning barriers and bring green energy projects, especially offshore wind farms, online faster. The Department for Energy Security and Net Zero (DESNZ) said it is proposing to relax the eligibility criteria on planning consent for fixed-bottom offshore wind and to increase the CfD contract term beyond the current 15 years. CfDs are government-backed price guarantees for developers for the electricity produced. It also wants to change the way budgets for offshore wind are set and published, including allowing the government to view bid information in anonymised form. The UK last year awarded CfD contracts to a record number of projects totalling 9.6 gigawatts (GW), most of it for offshore wind. A new, seventh round (AR7) is planned for later this year, while the government has also introduced a scheme to support the domestic renewable energy industry. "Our bold new reforms will give developers the certainty they need to build clean energy in the UK, supporting our mission to become a clean energy superpower and bring down bills for good," Energy Secretary Ed Miliband said. The UK already has 30.7 GW of offshore wind either installed or committed, with a further 7.2 GW of capacity consented, compared with a targeted capacity of 43-50 GW to meet its clean power by 2030, the ministry said. The latest plans also propose enabling CfD support for onshore wind projects looking to increase capacity, so-called repowering. The government, as a temporary measure, also wants to remove the ability of generators with existing CfDs to enter surrendered capacity from previous allocations rounds into AR7. Stakeholders are invited to consult on the reforms to the CfD until March 21, with a government response expected ahead of the AR7 round, the DESNZ said.
