| MPA RAG rating
(A Delivery Confidence Assessment of the project at a fixed point in time, using a five-point scale, Red Amber/Red Amber Amber/Green Green; definitions in the MPA Annual Report) |
Data exempt under Section 35 of the Freedom of Information Act (2000) |
Amber/Green |
Data exempt under Section 43 and Section 35 of the Freedom of Information Act (2000) |
Amber |
Amber |
Data exempt under Section 43 and Section 35 of the Freedom of Information Act (2000) |
Data exempt under Section 43 and Section 35 of the Freedom of Information Act (2000) |
Amber |
Green |
Data exempt under Section 43 and Section 35 of the Freedom of Information Act (2000) |
Amber |
| Description / Aims
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The Green Deal programme aims to promote a step change in the delivery of energy efficiency measures, supported by private capital. The new market framework and Energy Company Obligation will help to meet legally binding carbon budgets, support seasonal energy security, tackle fuel poverty and help consumers reduce energy bills over the long term. The programme is designed to remove financial and quality assurance barriers for consumers, stimulate demand and encourage companies to energy the market for energy efficiency in buildings. |
In terms of the objective of the procurement, this has been established to be the delivery of a series of outputs largely based on the extant baselines of Magnox and RSRL and currently defined as outcomes of the Magnox Optimised Decommissioning Plan (MODP). This is subject to minor variations, mostly in terms of the timing of some of the key deliverables, some being drawn forward in time, while others are moved back to prevent foreclosure of potential strategic options for the NDA. The performance obligations associated with delivery of this objective are being embodied within a Client Specification which will ultimately form the basis of the contracts which are placed. Via the application of competitive tension, it is anticipated that a target cost incentivised pricing arrangement will be put in place for delivery of the performance obligations of the contract at lower cost than is currently planned. A key enabler to achieving this will be NDA's ability with the concurrence of HMG, to put in place a quantum of planned assured funding which will support competition. |
The New Nuclear Programme aims to ensure that the framework is in place to enable operators to build and operate new nuclear power stations in England and Wales from the earliest possible date. There are four main elements to the programme:
1. Delivering the "facilitative actions" to which Government committed in the 2008 Nuclear White Paper.
2. Ensuring that all necessary actions are taken to enable the construction of the first new nuclear power station at Hinkley Point C, by working with and through others (within DECC and externally) to help secure for example generic design approval, planning permission, CfD negotiation, state aid, helping current investors secure additional equity and direct negotiation of the arrangements for decommissioning and waste management.
3. Creating the environment in which nuclear operators can finance and successfully deliver a significant nuclear programme in the UK of around 16GW by 2030.
4. Creating the environment in which the UK supply chain can compete effectively to secure a significant proportion of the new build work in the UK and export into the world nuclear market. |
The rationale for the RHI is to help meet the Governments renewables target which requires 15% of energy to be sourced from renewable sources by 2020 in a cost-effective way and to help lower carbon emissions. The Renewable Energy Strategy published in 2009 suggests that a 12% contribution to achieving the target could come from the heat sector. The Renewable Heat Incentive provides financial support to renewable heat generators and producers of biomethane that is designed to help address the additional cost associated with renewable technologies, in order to incentivise their take up. For more information, see:
https://www.gov.uk/government/policies/increasing-the-use-of-low-carbon-technologies/supporting-pages/renewable-heat-incentive-rhi
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The Government's vision is for every home in Great Britain to have smart electricity and gas meters by 2020. Smart Meters will give consumers up-to-date information about how much gas and/or electricity they have used in pounds and pence, as well as units of energy. Smart meters will have benefits for consumers, suppliers and energy networks. Consumers will have near real-time information about their energy use, enabling them to monitor and manage their energy consumption, save money and reduce carbon emissions. Switching between suppliers will also be made simpler. Energy suppliers will have access to accurate data for billing and will be able to offer a wider range of services and tariffs. Energy networks will have better information to manage and plan current activities and support the move towards the development of a smart grid. |
The Electricity Market Reform White Paper set out the Governments commitment to work actively with relevant parties to enable early investment decisions to progress to timetable wherever possible, including those required ahead of implementation of the Feed-in Tariff with Contracts for Difference (FiT CfD). To deliver this commitment, DECC will enter into discussions with relevant developers with a view to considering what form of comfort might be given to support the taking of such investment decisions. The FID Enabling project gives effect to this commitment.
By providing an appropriate form of comfort in advance of the implementation of EMR reforms, we are likely to encourage final investment decisions to come forward that would otherwise have been delayed until all necessary legislation had been enacted and new institutional arrangements put in place; or possibly cancelled altogether. This supports the Governments decarbonisation and security of supply objectives as well as stimulating investment which creates jobs and growth.
The first developer to seek assurance through the FID Enabling project, and whom we have accepted meet the criteria, is New Nuclear Build Generation (NNBG), a subsidiary created by EDF Energy to build a new nuclear plant at Hinkley Point C. NNBG will not move to a final decision to proceed with construction in the absence of additional certainty on expected revenue in the reformed market. A delay until the enduring regime is in place could substantially increase costs (ultimately principally borne by the consumer) or result in EDF abandoning the project. Either of these outcomes risks setting back the rollout of new nuclear generation as a whole, because the other developers are waiting for EDF to bear the first-mover risks.
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The Electricity Market Reform White Paper set out the Governments commitment to work actively with relevant parties to enable early investment decisions to progress to timetable wherever possible, including those required ahead of implementation of the Feed-in Tariff with Contracts for Difference (FiT CfD). To deliver this commitment, DECC will enter into discussions with relevant developers with a view to considering what form of comfort might be given to support the taking of such investment decisions. The FID Enabling project gives effect to this commitment.
The aim of FID Enabling for Renewables is to avert an investment hiatus in the deployment of renewable electricity generation caused by the announced reform of the electricity market, in the period between the publication of the EMR White Paper and the full implementation of the EMR CfD, expected in Autumn 2014. In particular it seeks to enable developers to take final investment decisions, or other critical investment decisions directly impacting on the time to commission the project, which would otherwise be delayed by the uncertainty caused by the transition to the enduring CfD regime.
The project aims are as for the EMR CfD: to ensure that the UK can attract the investment in renewable electricity generation needed to meet its renewable and carbon emission reduction targets in the most cost-effective way as well as to have a secure, affordable, supply of electricity towards the end of this decade and in the longer-term.
Supporting investment decisions through the project will contribute to two of DECCs priorities:
Deliver secure energy on the way to a low carbon energy future
Drive ambitious action on climate change at home and abroad
It will also contribute to wider Government objectives on jobs and economic growth.
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The CCS Commercialisation Programme aims to build confidence and drive down costs of developing a cost competitive CCS industry, by supporting practical experience in the design, construction and operation of commercial scale CCS with £1bn Government capital funding and support under Electricity Market Reform. As a result of the CCS Programme existing fossil fuel supplies (gas & coal) will be used more cleanly, maintaining the diversity of our fuel mix; emissions from electricity generation will be reduced; in addition to providing a flexible and predictable supply of low carbon electricity generation, that can respond to changes in demand. For more information, see:
https://www.gov.uk/uk-carbon-capture-and-storage-government-funding-and-support#ccs-commercialisation-competition |
