The Energy Transition | Great British Energy Bill passes second reading

This week we look at the Great British Energy Bill passing its second reading, Ofgem dropping its proposal to amend the electricity generation licence, and more.

Great British Energy Bill passes second reading

The Great British Energy Bill has passed its second reading following a debate in the House of Commons on 5 September 2024. The Bill, described by the government as "the next stage of Great British Energy's journey" will, if passed into law, establish Great British Energy (GB Energy) as a publicly owned and independent energy company.

As we previously reported, the new government intends to establish GB Energy to own, manage and operate clean power projects as part of its plans to make Britain a "clean energy superpower". The draft Bill sets out the primary objectives of GB Energy which include: reducing greenhouse gas emissions from energy produced by fossil fuels; increasing energy efficiency; and ensuring energy security in the future. This Bill also grants the Secretary of State the authority to provide financial assistance to GB Energy and mandates the preparation of a statement of strategic priorities which will be laid before Parliament.

The Bill will now pass to the committee stage, before going on to the report stage, third reading and then finally on to the House of Lords before it is ready to receive Royal Assent and become law.

Ofgem drops proposal to amend electricity generation licence following consultation

Following an industry consultation, Ofgem has confirmed that its proposal to add a new section F to the electricity generation licence is to be dropped. The initial proposal was intended to provide clarity on the process by which assets for providing network services are treated, which includes assets such as synchronous generators. However, following the responses to the consultation, Ofgem has concluded that the proposed modification would have gone beyond Ofgem's legal powers permitted under the Electricity Act 1989 and raised questions around the lack of de minims value for network service provisions. 

As we previously reported, the initial consultation was part of Ofgem's commitment to reviewing the regulatory framework which applies to ancillary service assets. The proposed amendment to include a new section F to the licence was prompted by the treatment of network services assets under the Electricity System Operator's tender process, as the current regime means there is a reduced availability of network services such as inertia, short circuit infeed and reactive power.

Ofgem intends to continue to consider the issues with the licence and will publish further details and a broader review later this year.

Net Zero Technology Centre launches its TechX Clean Energy Accelerator funding

Net Zero Technology Centre (NZTC) has opened applications to its TechX Clean Energy Accelerator programme which will see applicants apply for a share of £500,000 of grant funding.

The programme aims to help the most promising clean energy start-ups scale their businesses through various channels including mentorship, commercial support and guidance on technology development. The programme will also provide successful applicants with a variety of NZTC resources including its advisors, investors and supply chain.

Applications are open to companies specialising in the following sectors:

• methane capture and carbon capture, usage and storage;
• low carbon hydrogen;
• alternative fuels; and
• renewable energy.

NZTC will award 10 applicants up to £50,000 each. The application deadline for the grants is 27 October 2024. According to NZTC, previous recipients of the funding have generated an aggregate of up to £27.3 million in revenue and have the potential to save 20-25million tonnes of C02 annually by 2030.

Mark Anderson, Chief Acceleration Officer of TechX, said “I am always amazed at the innovations we see each year through our TechX programmes. The disruptive nature of start-ups makes them key players in discovering and advancing nascent technologies that will be required to reach net zero."