UK Confirms £205 Million Budget To Power More Of Britain From Britain
The title of this post, is the same as that of this press release from the Department of Energy Security And NetZero.
This is the sub title.
UK government confirms budget for this year’s Contracts for Difference scheme as it enters its first annual auction, boosting energy security.
These are the three bullet points.
- Government announces significant financial backing for first annual flagship renewables auction, boosting Britain’s energy security
- £170 million pledged for established technologies to ensure Britain remains a front runner in renewables and £10 million ring-fenced budget for tidal
- Scheme will bolster investment into the sector every year, delivering clean, homegrown energy as well as green growth and jobs
These are my thoughts.
First And Annual
The scheme is flagged as both first and annual!
Does this mean, that each Budget will bring forward a pot of money for renewables every year?
My father, who being a letterpress printer and a Cockney poet would say it did and I’ll follow his lead.
Two Pots
In Contracts for Difference Round 4, there were three pots.
- Pot 1 – Onshore Wind and Solar
- Pot 2 – Floating Offshore Wind, Remote Island Wind and Tidal Stream
- Pot 3 – Fixed Foundation Offshore Wind
This document on the government web site lists all the results.
For Contracts for Difference Round 5, there will be two pots, which is described in this paragraph of the press release.
Arranged across 2 ‘pots’, this year’s fifth Allocation Round (AR5) includes an allocation of £170 million to Pot 1 for established technologies, which for the first time includes offshore wind and remote island wind – and confirms an allocation of £35 million for Pot 2 which covers emerging technologies such as geothermal and floating offshore wind, as well as a £10 million ring-fenced budget available for tidal stream technologies.
It could be described as a two-pot structure with a smaller ring-fenced pot for tidal stream technologies.
Contract for Difference
There is a Wikipedia entry for Contract for Difference and I’m putting in an extract, which describes how they work with renewable electricity generation.
To support new low carbon electricity generation in the United Kingdom, both nuclear and renewable, contracts for difference were introduced by the Energy Act 2013, progressively replacing the previous Renewables Obligation scheme. A House of Commons Library report explained the scheme as:
Contracts for Difference (CfD) are a system of reverse auctions intended to give investors the confidence and certainty they need to invest in low carbon electricity generation. CfDs have also been agreed on a bilateral basis, such as the agreement struck for the Hinkley Point C nuclear plant.
CfDs work by fixing the prices received by low carbon generation, reducing the risks they face, and ensuring that eligible technology receives a price for generated power that supports investment. CfDs also reduce costs by fixing the price consumers pay for low carbon electricity. This requires generators to pay money back when wholesale electricity prices are higher than the strike price, and provides financial support when the wholesale electricity prices are lower.
The costs of the CfD scheme are funded by a statutory levy on all UK-based licensed electricity suppliers (known as the ‘Supplier Obligation’), which is passed on to consumers.
In some countries, such as Turkey, the price may be fixed by the government rather than an auction.
Note.
- I would trust the House of Commons Library to write up CfDs properly.
- As a Control Engineer, I find a CfD an interesting idea.
- If a generator has more electricity than expected, they will make more money than they expected. So this should drop the wholesale price, so they would get less. Get the parameters right and the generator and the electricity distributor would probably end up in a stable equilibrium. This should be fairly close to the strike price.
I would expect in Turkey with Erdogan as President, there are also other factors involved.
Renewable Generation With Energy Storage
I do wonder, if wind, solar or tidal energy, is paired with energy storage, this would allow optimisation of the system around the Contract for Difference.
If it did, it would probably mean that the generator settled into a state of equilibrium, where it supplied a constant amount of electricity.
Remote Island Wind
Remote Island Wind was introduced in Round 4 and I wrote about it in The Concept Of Remote Island Wind.
This was my conclusion in that post.
I must admit that I like the concept. Especially, when like some of the schemes, when it is linked to community involvement and improvement.
Only time will tell, if the concept of Remote Island Wind works well.
There are possibilities, although England and Wales compared to Scotland and Ireland, would appear to be short of islands.
This map shows the islands of the Thames Estuary.
Note.
- In Kent, there is the Isle of Sheppey and the Isle of Grain.
- Between the two islands is a large gas terminal , a gas-fired power station and an electricity sub-station connecting to Germany.
- In Essex, there is Canvey, Foulness and Potton Islands.
- There is also the site at Bradwell, where there used to be a nuclear power station.
If we assume that each island could support 200 MW, there could be a GW of onshore wind for London and perhaps a couple of SMRs to add another GW.
This map shows the islands around Portsmouth.
Note.
- Hayling Island is to the East of Portsmouth.
- Further East is Thorney Island with an airfield.
The Isle of Wight could be the sort of island, that wouldn’t welcome wind farms, although they do make the blades for turbines. Perhaps they should have a wind farm to make the blades even more green.
But going round England and Wales there doesn’t seem to be many suitable places for Remote Island Wind.
I do think though, that Scotland could make up the difference.
Geothermal Energy
This is directly mentioned as going into the emerging technologies pot, which is numbered 2.
I think we could see a surprise here, as how many commentators predicted that geothermal heat from the London Underground could be used to heat buildings in Islington, as I wrote about in ‘World-First’ As Bunhill 2 Launches Using Tube Heat To Warm 1,350 Homes.
Perhaps, Charlotte Adams and her team at Durham University, will capitalise on some of their work with a abandoned coal mine, that I wrote about in Exciting Renewable Energy Project for Spennymoor.
Timescale
This paragraph gives the timescale.
The publication of these notices mean that AR5 is set to open to applications on 30 March with results to be announced in late summer/early autumn 2023, with the goal of building upon the already paramount success of the scheme.
It does look like the Government intends this round to progress at a fast pace.
Conclusion
If this is going to be an annual auction, this could turn out to be a big spur to the development of renewable energy.
Supposing you have a really off-beat idea to generate electricity and the idea place in the world is off the coast of Anglesey.
You will certainly be able to make a bid and know like Eurovision, one auction will come along each year.
Is This The World’s Best Renewable Energy Video?
This is a promotional video from Minesto about their Deep Green technology.
Is it a serious proposition or is it just kite-flying?
After reading their web site in detail, I think they are serious.
Here’s why!
The Company Is A Well-Backed Spin-Out from Swedish Aerospace Company SAAB
These two paragraphs are from the About Us page.
Minesto is a marine energy technology developer, founded in 2007 as a spin-off from Swedish aerospace manufacturer Saab. Since then, Minesto has successfully developed its unique Deep Green technology.
The company has operations in Sweden, Wales, Northern Ireland and Taiwan, with headquarters in Gothenburg, Sweden. Main owners are BGA Invest and Midroc New Technology. The Minesto share is listed on the Nasdaq First North Growth Market in Stockholm.
A company rarely succeeds without appropriate and sufficient financial backing.
One Of Their Target Markets Is Powering Remote Islands
This page from World Atlas is entitled Which Countries Have The Most Islands?
These are the top five countries.
- Sweden – 267,570
- Norway – 239,057
- Finland – 178,947
- Canada – 52,455
- United States – 18,617
Note.
- That’s a lot of islands.
- The United Kingdom is 26th with a thousand islands.
- Scandinavia has 685574 islands or 686993 if you include Denmark.
Sweden has a thousand inhabited islands, so that means that in Scandinavia alone, there are about 2,500 inhabited islands. How many need a reliable decarbonised power supply?
In the UK, we are developing Remote Island Wind to serve similar locations, which I wrote about in The Concept Of Remote Island Wind.
The UK and Minesto are both looking at the supply of power to remote islands.
One of Minesto’s projects is in the Faroe Islands and it is described in this page on the Minesto web site, which has a title of Faroe Islands – Tidal Energy To Reach 100% Renewable By 2030.
These are the first two paragraphs.
In the Faroe Islands, Minesto is part of one of the world’s most ambitious energy transition schemes.
Collaborating with the electric utility company SEV, Minesto is working to pave the way for tidal energy to become a core part of the Faroese energy mix, allowing them to reach 100% renewable energy by 2030.
Onshore wind and tidal could be an ideal combination, if they worked together.
At the bottom of the Faroe Islands page, the web site talks about The Deep Green Island Mode Project, where this is said.
In June 2019, Minesto was awarded a €2.5 million grant from the European Commission’s SME Instrument programme. The awarded funding will support the installation of Minesto’s technology in the Faroe Islands together with the utility company SEV. The aim of the project, called Deep Green Island Mode (DGIM), is to install Minesto’s first two commercially viable microgrid units in a production and customer environment.
Successful demonstration of DGIM will act as a first step to developing commercial ties with utilities across Europe, both for smaller-scale microgrid systems and as a catalyst for the market up take of larger utility-scale Deep Green systems.
This is also said about the number of installations in Europe.
15 million Europeans live on Europe’s 2,400 inhabited islands, at an average of approximately 1,500 households per island. As recognised by the European Commission, island energy is expensive, polluting, inefficient and dependent on external supply, with significant negative impacts on emissions, the competitiveness of businesses, and the economy.
It appears to me, that Minesto have researched their market well.
Minesto Can Provide Baseload Power
Another of Minesto’s projects is in Taiwan and it is described in this page on the Minesto web site, which has a title of Taiwan – Replacing Nuclear With Renewable Baseload.
These are the first two paragraphs.
In Taiwan, Minesto is carrying out site development with the purpose to establish the first tidal energy arrays with Minesto’s technology in Asia – and to demonstrate renewable baseload generation from the continuously-flowing Kuroshio current.
The conditions for extracting marine energy in Taiwan are very good due to access to both tidal streams and continuous ocean currents. Taiwan aims to produces 20% of electricity from renewable sources by 2025 and has decided to scrap its nuclear power capacity within the same timeframe. Today, 97.5 percent of the country’s total energy use comes from imported fossil fuels.
Taiwan has a well-developed industrial infrastructure and a number of stakeholders in the private and public sectors are active in marine energy.
Decarbonising Taiwan and removing nuclear is a tough ask!
Conclusion
Minesto may be kite-flying in an unusual way, but they appear to be a very serious Swedish company.
What Is INTOG?
This page on the Crown Estate Scotland web site outlines INTOG.
This is the introduction at the top of the page.
Innovation and Targeted Oil & Gas (INTOG) is a leasing round for offshore wind projects that will directly reduce emissions from oil & gas production and boost further innovation.
Developers can apply for seabed rights to build two types of offshore wind project:
IN – Small scale, innovative projects, of less than 100MW
TOG – Projects connected directly to oil and gas infrastructure, to provide electricity and reduce the carbon emissions associated with production
INTOG is designed, in response to demand from government and industry, to help achieve the targets of the North Sea Transition Sector Deal, which is a sector deal between government and the offshore oil and gas industry.
I have a few thoughts and have also found some news stories.
Isolated Communities
This document from the Department of Business, Industry and Industrial Strategy lists all the Contracts for Difference Allocation Round 4 results for the supply of zero-carbon electricity that were announced yesterday.
The document introduces the concept of Remote Island Wind, which I wrote about in The Concept Of Remote Island Wind.
I don’t know of one, but there might be isolated communities, with perhaps a dodgy power supply, who might like to improve this, by means of a small offshore wind farm, meeting perhaps these criteria.
- Less than 100 MW.
- Agreement of the locals.
- A community fund.
- An important use for the electricity.
Locations and applications could be.
- A small fishing port, where winds regularly bring the grid cable down in winter.
- A village with a rail station to perhaps charge battery-electric trains.
- A deep loch, where floating wind turbines are erected.
- To provide hydrogen for transport.
We shall see what ideas are put forward.
Floating Power Stations
Floating wind farms are generally made up of individual turbines on floats.
- Turbines can be up to the largest used onshore or on fixed foundations.
- The Kincardine floating offshore wind farm in Scotland uses 9.5 MW turbines.
- The floats are anchored to the sea bed.
- There is a power cable connecting the turbines appropriately to each other, the shore or an offshore substation.
But we are talking innovation here, so we might see some first-of-a-kind ideas.
Single Floating Turbines
A large floating wind farm, is effectively a large number of floating wind turbines anchored in the same area of sea, and connected to the same floating or fixed substation.
I can’t see any reason, why a single floating wind turbine couldn’t be anchored by itself to provide local power.
It might even be connected to an onshore or subsea energy store, so that it provided a more constant output.
Surely, a single turbine perhaps ten miles offshore wouldn’t be a very large blot on the seascape?
I grew up in Felixstowe and got used to seeing HM Fort Roughs on the horizon from the beach. That is seven miles offshore and some people, I know have windsurfed around it from the beach.
TwinHub
I talked about TwinHub in Hexicon Wins UK’s First Ever CfD Auction For Floating Offshore Wind.
TwinHub mounts two turbines on one float and this is a visualisation of a TwinHub being towed into place.
Note.
- The design turns into the wind automatically, so that the maximum amount of electricity is generated.
- A Contract for Difference for a 32 MW TwinHub has been awarded, at a strike price of £87.30/MWh, that will be installed near Hayle in Cornwall.
- With a capacity factor of 50 %, that will produce just over 140,160 MWh per year or over £12 million per year.
This article on the BBC, which is entitled Funding Secured For Floating Wind Farm Off Cornwall, gives more details of the Hayle TwinHub.
The possibility of a floating wind farm off the coast of Cornwall has moved a step closer after securing government funding, project bosses have said.
Swedish company Hexicon plans to install its TwinHub system, with the hope it could begin operating in 2025.
It would be deployed about 10 miles (16km) off Hayle.
Project supporters said it could be a boost to the local economy and help establish Cornwall in the growing renewable energy sector.
Figures have not been released, but it is understood the government funding has effectively secured a fixed price for the power TwinHub would produce for 15 years, making it economically viable.
The article says that this 32 MW system could develop enough electricity for 45,000 homes.
This could be a very suitable size for many applications.
- As at Hayle, one could be floated just off the coast to power a remote part of the country. As Cornwall has a few old mine shafts, it might even be backed up by a Gravitricity system on shore or another suitable non-lithium battery.
- Could one float alongside an oil or gas platform and be tethered to it, to provide the power?
Scotland’s hydroelectric power stations, prove that not all power stations have to be large to be successful.
Vårgrønn and Flotation Energy’s Joint Bid
This article on offshoreWIND.biz is entitled Vårgrønn And Flotation Energy To Jointly Bid in INTOG Leasing Round, gives a few details about their joint bid.
But there is nothing substantial about ideas and locations.
I can see several joint ventures with a suitable system, bidding for various projects around the Scottish coast.
Cerulean
Cerulean sounds like it could be a sea monster, but it is a shade of blue.
This article on offshoreWind.biz is entitled Cerulean Reveals 6 GW Floating Offshore Wind Bid Under INTOG Leasing Round.
These are the two introductory paragraphs.
Green energy infrastructure developer Cerulean Winds has revealed it will bid for four seabed lease sites with a combined capacity of 6 GW of floating wind to decarbonise the UK’s oil and gas sector under Crown Estate Scotland’s Innovation and Targeted Oil and Gas (INTOG) leasing round.
This scale will remove more emissions quickly, keep costs lower for platform operators and provide the anchor for large-scale North-South offshore transmission, Cerulean Winds said.
Note.
- It is privately-funded project, that needs no government subsidy and will cost £30 billion.
- It looks like each site will be a hundred turbines.
- If they’re the same, they could be 1.5 GW each.
- Each site will need £7.5 billion of investment. So it looks like Cerulean have access to a similar magic money tree as Kwasi Kwarteng.
Effectively, they’re building four 1.5 GW power stations in the seas around us to power a large proportion of the oil and gas rigs.
For more on Cerulean Winds’ massive project see Cerulean Winds Is A Different Type Of Wind Energy Company.
Will There Be An Offshore Wind Supermarket?
I can see the big turbine, float and electrical gubbins manufacturers establishing a one-stop shop for developers, who want to install small wind farms, that meet the INTOG criteria.
So suppose, the archetypal Scottish laird in his castle on his own island wanted a 6 MW turbine to go green, he would just go to the B & Q Offshore web site and order what he needed. It would then be towed into place and connected to his local grid.
I can see modular systems being developed, that fit both local infrastructure and oil and gas platforms.
Conclusion
I can see scores of projects being submitted.
I even know the son of a Scottish laird, whose father owns a castle on an island, who could be taking interest in INTOG. They might also apply under Remote Island Wind in another leasing round.
But we will have to wait until the end of March 2023, to find out who have been successful.
The Concept Of Remote Island Wind
This document from the Department of Business, Industry and Industrial Strategy lists all the Contracts for Difference Allocation Round 4 results for the supply of zero-carbon electricity that were announced yesterday.
The contracts have also introduced a concept that is new to me, called Remote Island Wind. All have got the same strike price of £46.39 per MWh.
Two of the projects on Orkney are community projects of around 30 MW, run by local trusts. This is surely, a model that will work in many places.
There is more on Orkney’s Community Wind Farm Project on this page of the Orkney Islands Council web site.
It could even have an electrolyser to provide hydrogen for zero-carbon fuel, when there is more electricity than is needed. Companies like ITM Power and others already build filling stations with an electrolyser, that can be powered by wind-generated electricity.
The other Remote Island Wind projects are larger with two wind farms of over 200 MW.
It does look to me, that the Department of BEIS is nudging wind farm developers in remote places to a model, that all stakeholders will embrace.
The Viking Wind Farm
I wrote about this wind farm in Shetland’s Viking Wind Farm.
There are more details in this press release from SSE enewables, which is entitled CfD Contract Secured For Viking Energy Wind Farm.
These introductory paragraphs, give a good explanation of the finances of this farm.
SSE Renewables has been successful in the UK’s fourth Contract for Difference (CfD) Allocation Round, announced today, and has secured a low-carbon power contract for 220MW for its wholly-owned Viking Energy Wind Farm (Viking) project, currently being constructed in Shetland.
Viking’s success in securing a contract follows a competitive auction process in Allocation Round 4 (AR4) where it competed within Pot 2 of the allocation round set aside for ‘less established’ technologies including Remote Island Wind.
The 443MW Viking project, which SSE Renewables is currently building in the Shetland Islands, has secured a CfD for 220MW (50% of its total capacity) at a strike price of £46.39/MWh for the 2026/27 delivery year.
The successful project will receive its guaranteed strike price, set on 2012 prices but annually indexed for CPI inflation, for the contracted low carbon electricity it will generate for a 15-year period. Securing a CfD for Viking stabilises the revenue from the project whilst also delivering price security for bill payers.
It’s very professional and open to explain the capacity, the contract and the finances in detail.
The press release also has this paragraph, which details progress.
Viking is progressing through construction with over 50 per cent of turbine foundation bases poured. When complete in 2024, Viking Energy Wind Farm will be the UK’s most productive onshore wind farm in terms of annual electricity output, with the project also contributing to Shetland’s security of supply by underpinning the HVDC transmission link that will connect the islands to the mainland for the first time.
SSE also released this press release, which is entitled Major Milestone Reached As First Subsea Cable Installation Begins On Shetland HVDC Link, where this is the first paragraph.
The first phase of cable laying as part of the SSEN Transmission Shetland High-Voltage Direct Current (HVDC) Link began this week off the coast of Caithness, marking a major milestone in the £660M project.
SSE seem to be advancing on all fronts on the two projects!
The Stornoway Wind Farm
This press release from EDF Renewables is entitled EDF Renewables UK Welcomes Contract for Difference Success, where these are the first two paragraphs.
Two EDF Renewables UK projects bid into the Contract for Difference (CfD) auction round held by the UK Government’s BEIS department have been successful.
The projects are the Stornoway wind farm on the Isle of Lewis and Stranoch wind farm in Dumfries and Galloway. Together these onshore wind farms will provide 300 MW of low carbon electricity which is an important contribution to reaching net zero.
The press release also gives this information about the contract and completion of the Stornoway wind farm.
Stornoway Wind Farm on the Isle of Lewis is a joint venture with Wood. The project has won a CfD for 200 MW capacity, the strike price was £46.39, the target commissioning date is 31 March 2027.
This page on the Lewis Wind Power web site, gives these details of the Stornoway Wind Farm.
The Stornoway Wind Farm would be located to the west of the town of Stornoway in an area close to the three existing wind farm sites.
The project has planning consent for up to 36 turbines and is sited on land owned by the Stornoway Trust, a publicly elected body which manages the Stornoway Trust Estate on behalf of the local community.
The local community stands to benefit as follows:
- Community benefit payments currently estimated at £900,000 per annum, which would go to an independent trust to distribute to local projects and organisations
- Annual rental payments to local crofters and the Stornoway Trust – which we estimate could total more than £1.3m, depending on the CfD Strike Price secured and the wind farm’s energy output
- Stornoway Wind Farm is the largest of the three consented wind farm projects with a grid connection in place and is therefore key to the needs case for a new grid connection with the mainland. Indeed, the UK energy regulator Ofgem has stated that it will support the delivery of a new 450MW cable if the Stornoway and Uisenis projects are successful in this year’s Contract for Difference allocation round.
Note the last point, where only the Stornoway wind farm was successful.
The Uisenis Wind Farm
This press release from EDF Energy is entitled Lewis Wind Power Buys Uisenis Wind Farm, gives these details of the sale.
Lewis Wind Power (LWP), a joint venture between Amec Foster Wheeler and EDF Energy Renewables has bought the Uisenis Wind Farm project on the Isle of Lewis. The wind farm has planning consent for the development of 45 turbines with a maximum capacity of 162 MW. This would be enough to power 124,000 homes and would be the biggest renewable energy development on the Western Isles.
LWP owns the Stornoway Wind Farm project located around 20km to the north of Uisenis which has planning consent to develop 36 turbines to a maximum capacity of 180 MW – enough to power 135,000 homes.
This would bring Stornoway and Uisenis wind farms under the similar ownership structures.
This is a significant paragraph in the press release.
On behalf of Eishken Limited, the owner of the site where the Uisenis Wind Farm will be located, Nick Oppenheim said: “I am delighted that LWP are taking forward the wind farm. The resources available on the Eishken estate, and the Western Isles in general, means that it is an excellent location for renewable energy projects and, as such, the company is also developing a 300MW pumped storage hydro project immediately adjacent to the Uisenis wind farm. With such potential for renewables and the positive effect they will have on the local community, economy, and the UK as a whole I am are looking forward to positive news on both support for remote island projects and the interconnector.”
Note the mention of pumped storage.
This article on the BBC is entitled Pumped Storage Hydro Scheme Planned For Lewis, where this paragraph introduces the scheme.
A pumped storage hydro scheme using sea water rather than the usual method of drawing on freshwater from inland lochs has been proposed for Lewis.
The only other information is that it will provide 300 MW of power, but nothing is said about the storage capacity.
It looks like Lewis will have a world-class power system.
Mossy Hill And Beaw Field Wind Farms
Mossy Hill near Lerwick and Beaw Field in Yell are two Shetland wind farms being developed by Peel L & P.
This press release from Peel L & P is entitled Government Support For Two Shetland Wind Farms, where these are the first two paragraphs.
Plans for two onshore wind farms on the Shetland Islands which would help meet Scotland’s targets for renewable energy production are a step closer to being delivered after receiving long-term Government support.
Clean energy specialists Peel NRE has been successful in two bids in the Department for Business, Energy and Industrial Strategy’s (BEIS) Contracts for Difference (CfD) scheme; one for its Mossy Hill wind farm near Lerwick and the other for Beaw Field wind farm in Yell.
It looks like the two wind farms will power 130,000 houses and are planned to be operational in 2027.
Conclusion
I must admit that I like the concept. Especially, when like some of the schemes, when it is linked to community involvement and improvement.
Only time will tell, if the concept of Remote Island Wind works well.
The Anonymous Widower 