Here we are, Winter 2023, and the end of a year which has seen the continuation of companies, governments and countries announcing new technologies, the signing of project contracts, agreements for funding, collaborations, feasibility studies for new projects – the list of developments driven towards meeting climate targets for 2050 and the Paris Agreement goes on.
The importance of renewable energy was also echoed in the UK government’s recent Autumn Statement; sustainable energy is one of the key areas it will prioritise, with a number of ways laid out in which they will achieve this.
Firstly, the government will legislate for a new investment exemption for the Electricity Generator Levy (EGL), so as to support continued investment in the UK’s renewable generation capacity. This means that the EGL (which will end as planned on 31 March 2028) will not apply for new projects which make the substantive decision to proceed on or after 22 November 2023.1 The government has published a technical note on the exemption, and this will be legislated in an upcoming Finance Bill.
The role of offshore wind in the UK’s future energy supply was also a key point touched upon. To further accelerate the UK’s leading offshore wind deployment, the government will bring forward legislation to provide the Crown Estate with borrowing and wider investment powers – this will help unlock between 20 – 30 GW more of new offshore wind seabed rights by 2030. Moreover, the government and the Crown Estate are working together to bring forward additional floating wind in the Celtic Sea through the 2030s, which could see a further 12 GW of generation deployed, as well as the 4.5 GW round that is due to commence shortly. This has the potential to deliver £20 billion of direct investment from deployment in the area.1
And it is not just the UK that is ramping efforts to meet climate targets. COP28 Presidency, the International Renewable Energy Agency, and the Global Renewables Alliance have recently published a joint report that provides actionable policy recommendations for governments and the private sector on how to triple global renewable capacity while doubling annual average energy efficiency improvements by 2030.2 Meanwhile, BMI’s regional report (starting on p.4) looks at three key trends that will shape North America’s energy transition, with wind energy also crucial to its success in achieving this.
There is also an article from Energy Global’s Editorial Assistant, Théodore Reed-Martin, starting on p.48 which provides insight into a recent visit to Iceland, concentrating on how Iceland is effectively and efficiently generating green energy, along with a selection of articles from AGR (p.34), STRYDE (p.38), and NOV (p.44), covering how the geothermal sector can use lessons learned from oil and gas, to how new technologies can aid geothermal’s development.
As the year draws to a close, the Energy Global team would like to thank our readers and contributors. We look forward to continuing to provide you with current and information market news and developments as we move into 2024. Wishing all our readers a happy holiday season and New Year.
References
- ‘Autumn Statement’, gov.uk, www.gov.uk/government/publications/autumn-statement-2023/autumn-statement-2023-html
- ‘COP28, IRENA and Global Renewables Alliance outline roadmap at Pre-COP on fast-tracking the energy transition by tripling renewable power and doubling energy efficiency by 2030’, IRENA, (30 October 2023), www.irena.org/News/pressreleases/2023/Oct/COP28-IRENA-and-Global-Renewables-Alliance-outline-roadmap-at-Pre-COP
