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.
Scotland’s Renewable Energy Jackpot: Hydrogen Exports Alone Could Be worth £25 Billion A Year By 2045
The title of this post, is the same as that of this article on the Edinburgh News.
This is the sub-heading.
Scotland is a phenomenally energy rich country. For decades the largest oil-producing nation in the European Union, it is now set to trail-blaze as a leader in renewable energy.
The title and sub-heading say it all for Scotland.
But these words could equally well apply to Anglesey, Cornwall, Devon, East Anglia, Humberside, Liverpool and Morecambe Bays, the Severn Estuary and Pembrokeshire.
We also mustn’t forget the Dogger Bank!
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.
UK CfD Round 4 Offshore Wind Projects Power Forward
The title of this post, is the same as that of this article on offshoreWIND.biz.
These are the first two paragraphs.
All 99 contracts offered through the fourth Allocation Round (AR4) of the UK government’s Contracts for Difference (CfD) scheme have now been signed and returned to Low Carbon Contracts Company (LCCC).
A total of 93 individual projects across Britain will now proceed to work with LCCC to meet the contractual milestones specified in the CfD, supporting projects’ development and the delivery of almost 11 GW of clean energy. The first AR4 projects are due to come online in 2023-24.
It does look like it’s a case of all systems go!
In Will We Run Out Of Power This Winter?, I estimated that these Round 4 projects would come onstream as follows.
- 2024 – Round 4 Solar – 125.7 MW
- 2025 – Round 4 Solar – 1958 MW
- 2025 – Round 4 Onshore Wind – 888 MW
- 2025 – Round 4 Energy from Waste – 30 MW
- 2026 – Round 4 Tidal Stream – 5.62 MW
- 2027 – Round 4 Tidal Stream – 35.2 MW
- 2027 – Round 4 Floating Offshore Wind – 32 MW
- 2027 – Round 4 Offshore Wind – 6994 MW
These are totals for the next four years from these contracts.
- 2024 – 125.7 MW
- 2025 – 2876 MW
- 2026 – 5.62 MW
- 2027 – 7061.2 MW
This is a total of over 10 GW.
Orbital Marine Power Awarded Two CfDs As Part Of UK Government Renewable Energy Auction
The title of this post, is the same as that of this news item on the Orbital Marine Power web site.
This is the heart of the news item.
Orbital, the renewable energy company focused on the development and global deployment of its pioneering floating tidal stream turbine technology, has been awarded two contracts for difference (CfDs) in the UK Allocation Round 4 (AR4) process.
This is a significant milestone in the company’s growth, with these CfDs underpinning the delivery of multi-turbine projects in Eday, Orkney.
Capable of delivering 7.2MW of predictable clean energy to the grid once completed, these Orbital tidal stream energy projects can power to up to 7,200 homes, supporting the UK’s security of supply, energy transition and broader climate change objectives.
This positive outcome also means Orbital can make a transformative investment in its UK supply chain, with around 150 jobs expected to be created through the manufacture and installation phase alone. On a jobs per MW installed basis, this would represent an unprecedented level of UK role creation for the construction phase of a renewable energy project.
It is good to see tidal power taken seriously.
The Strike Price For Tidal Stream Energy
Consider.
- Four contracts have been awarded for tidal stream energy.
- All have strike price of £178.54 per MWh of electricity.
- This may seem high, as all large wind farms have a strike price of only £37.35 per MWh of electricity.
On the other hand, there is a level playing field for all tidal stream energy developers. Just as there is for large wind farm developers, who have to live with £37.35 per MWh of electricity.
I think it will incentivise the developers and give them a reward for their technology.
All these strike prices are also mapped out for fifteen years, when trying to raise money for your tidal stream gubbins, you will know exactly where you stand.
I’ll give the Department of Business, Energy and Industrial Strategy, at least four out of five for their strike price regime!
Will It Be Third-Time Lucky For Grand Union Trains In Wales?
It is three years since I wrote Grand Union Seeks ’91s’ To Cardiff and their proposal has not been accepted and the third iteration has been announced.
This article on Wales Online is entitled Independent Rail Firm Bids To Launch As Rival To Great Western On The Mainline From South Wales To London.
These are the introductory paragraphs.
An independent rail firm is hoping to launch a rival train service in Wales which they say will slash journey times between Carmarthen and London. Grand Union Trains is making a fresh bid to introduce an initial service in both directions between Cardiff and London on the existing Great Western line.
The company believes the move will “create passenger choice” and increase the number of trains available, with the hope that the service can be extended west in South Wales towards Carmarthen.
Other points in the article include.
- Swansea will be by-passed, which will speed up services to and from Llanelli and Carmarthen.
- A new Park-and-Ride station will be built by Grand Union at Felindre, which is to the North of Swansea.
- Services will stop at Llanelli, Cardiff Central, Newport, Severn Tunnel Junction and Bristol Parkway.
- When Cardiff Parkway opens, this will be an extra stop.
An article in the June 2022 Edition of Modern Railways, which is entitled Grand Union Bids For London To Carmarthen, gives extra details.
- Three classes.
- 2023 start for the service.
- Five return trains per day.
- Cycle provision.
- Vanload freight will be carried.
- Electric trains could start between London and Cardiff by 2023.
- In 2025, trains could be nine-car bi-modes.
- South Wales-based operation and maintenance.
- 125 full-time jobs created.
It certainly seems to be a comprehensive and well-thought out plan.
These are my thoughts and observations.
Felindre Station
Felindre station is named in Wikipedia as the West Wales Parkway station, where it is introduced like this.
West Wales Parkway is a proposed railway station north of Swansea, near to the boundaries of the neighbouring principal area of Carmarthenshire, and the villages of Felindre and Llangyfelach. The station is proposed to be situated at the former Felindre steelworks, near Junction 46 of the M4 and A48, and near Felindre Business Park and Penllergaer Business Park. The project is in the planning stages, as part of a wider Department for Transport proposal to re-open the Swansea District line to passenger traffic.
This Google Map shows where, it appears the Felindre station will be built.
Note.
- The Felindre Business Park in the North-West corner of the map, with a Park-and-Ride.
- The M4 running across the bottom of the map.
- The Swansea District Line runs East-West between the motorway and the Business Park.
It looks that the new station could be located on the South side of the Business Park.
According to Wikipedia, the station would cost £20 million to build.
- It would need a comprehensive rethinking of transport improvements in the Swansea area.
- But it could result in time savings on services between Carmarthen and Cardiff.
The Modern Railways article says this.
GU proposes to build the Felindre station near Swansea and invest in Severn Tunnel Junction station, where it says it will increase parking, provide direct access from the M4 motorway and improve passenger and staff facilities, backing up plans being evaluated by the Welsh Government for the station.
Grand Union is not a charity and does this indicate that a bank or infrastructure company is prepared to fund parking and the extra passengers pay the charges.
Rolling Stock
Wikipedia says that the rolling stock could be nine-car InterCity 225s hauled by Class 91 or Class 93 locomotives.
As the Class 93 locomotives are bi-modes, these would handle the Carmarthen and Cardiff leg.
The Modern Railways article says this.
Trains could start between Cardiff and London Paddington as early as May 2023 if electric only, with services extended west around two years later with new bi-mode trains in up to nine-car formations.
Would a new Class 93 locomotive count as a new bi-mode train?
I suspect the new locomotive would be more affordable, than a new bi-mode train.
Vanload Freight
This is an interesting idea and it follows similar thinking to Royal Mail’s latest ideas, that I wrote about in Royal Mail Rolling Back The Years To Put More Post On Trains.
One coach could be a nice little earner, if it were modified to carry roller cages, that were loaded and unloaded at the end of the route.
One advantage of the InterCity 225s is that they are 125 mph trains, so that this will be high speed freight.
Timings
Consider.
- A GWR Carmarthen and London service takes three hours and 47 minutes.
- This includes a nine-minute reverse at Swansea.
- GWR makes seven more stops than Grand Union will.
- GWR does seven diesel stops, whereas Grand Union will only do two.
I would estimate that Grand Union will be under three hours and thirty minutes.
Carmarthen Station
This Google Map shows Carmarthen station.
Note.
- The station has two platforms.
- There are certainly pictures of the station with an InterCity 125 in the station.
These pictures show the station.
I suspect that the station will be upgraded to accommodate Grand Union.
Rrenewable Energy Developments In South West Wales
In Enter The Dragon, I talked about renewable energy developments in South West Wales.
I used information from this article on the Engineer, which is entitled Unlocking The Renewables Potential Of The Celtic Sea.
The article on the Engineer finishes with this conclusion.
For now, Wales may be lagging slightly behind its Celtic cousin to the north, but if the true potential of the Celtic Sea can be unleashed – FLOW, tidal stream, lagoon and wave – it looks set to play an even more prominent role in the net zero pursuit.
The Red Dragon is entering the battle to replace Vlad the Mad’s tainted energy.
South West Wales could see a massive renewable energy boom.
The Railways To The West Of Carmarthen
This map from OpenRailwayMap shows the rail lines to the West of Carmarthen.
There are three main branches to Fishguard, Milford Haven and Pembroke Dock.
I can see the railways becoming increasingly important in supporting the growing renewable energy in the area.
- There would be more frequent services.
- Services would tie in with London and Cardiff trains at Carmarthen.
- Closed stations could be reopened and new ones built.
It may also be possible to bring in large components needed by the renewable energy industry.
Conclusion
I feel that Grand Union have seen the opportunities presented to a frequent Carmarthen and London service and have grabbed them with both hands.