Clean energy to power over seven million homes by 2025 at record low prices

  • Around 6GW of clean energy is to be added to the grid by 2025 – an important step towards decarbonising our energy system and reaching net zero emissions by 2050
  • Results show the UK’s leadership in offshore wind, creating up to 8,000 jobs across the UK and economic opportunities as we leave the European Union

Twelve new renewable energy projects will be powering over seven million homes at record low prices thanks to the latest round of the government’s flagship Contracts for Difference scheme.

The new projects will provide around 6GW of capacity – 2.4GW more than the last round. For the first time renewables are expected to come online below market prices and without additional subsidy on bills, meaning a better deal for consumers. The costs of offshore wind are now around 30% lower than the second auction held in 2017, with projects now being delivered for as low as £39.65/MWh.

The new projects and lower prices are another step toward decarbonising our energy system as we work toward net zero emissions by 2050, creating jobs and economic opportunities across the UK. According to research by RenewableUK, the new projects could see 8,000 jobs created.

Prime Minister Boris Johnson said:

The UK is leading the way in the fight against climate change, and it’s great news that millions more homes will be powered by clean energy at record low prices.

Seizing the opportunities of clean energy not only helps to protect our planet, but will also back businesses and boost jobs across the UK.

Energy and Clean Growth Minister Kwasi Kwarteng said:

Offshore wind is a British success story, with new projects at record low prices creating new opportunities for jobs and economic growth as we leave the EU.

The support we’re announcing today will mean that over 7 million more homes will be powered by renewable energy as we decarbonise our energy system – crucial as we continue on the road to net zero emissions by 2050.

The Contracts for Difference (CfD) scheme is the government’s primary method of supporting low-carbon electricity. It encourages investment in renewables by providing projects with a stable income while protecting consumers from paying increased support costs when electricity prices are high.

Renewables projects across the UK have been awarded CfDs – from Birmingham to Orkney. Successful technology types include:

  • Offshore wind – wind projects off the UK coast delivering up to a third of our electricity coming from the technology by 2030;
  • Advanced Conversion Technologies – converting waste which would otherwise go to landfill into energy;
  • Remote Island Wind – wind projects on the remote islands of the UK which can take advantage of strong winds.

Today’s results are the latest stage of the government’s support for renewable energy. In March 2019 we signed a ground-breaking £250 million sector deal with the offshore wind industry which committed us to maximising opportunities and sourcing up to a third of electricity from offshore wind by 2030.

The UK has the largest installed capacity of offshore wind in the world, with around 8GW installed at the end of 2018. This is expected to rise to 10GW by next year, and even further as more projects start contributing power to the grid into the 2020s.

In June the government committed to reaching net zero emissions by 2050 and ending the UK’s contribution to global warming altogether. The UK has already made a strong start in decarbonising its energy system, with renewables generating a record 33% of the country’s electricity last year.

It has been estimated that the low carbon economy in the UK could grow four times faster than rest of the economy out to 2030 and could deliver between £60 billion and £170 billion in exports by 2030. Today’s results demonstrate the potential of renewables to create such ‘green-collar’ jobs.

Notes to Editors:

Previous rounds of the Contracts for Difference scheme have seen around 10GW of new renewable power projects awarded contracts in total, with the potential to provide enough clean electricity for over half a million homes each year.

How Contracts for Difference works:

  • The Contracts for Difference (CfD) scheme is the government’s main mechanism for supporting new renewable electricity generation projects in Great Britain.
  • CfDs are 15-year private law contracts between renewable electricity generators and the Low Carbon Contracts Company (LCCC), a government-owned company that manages CfDs at arms’ length from government.
  • Contracts are awarded in a series of competitive auctions; the lowest price bids are successful, which drives efficiency and cost reduction.
  • Successful generators still sell the electricity they produce on the wholesale market but receive a ‘top-up’ payment over the course of the contract.
  • When the market reference price (a measure of the average market price for electricity) is below the strike price (a price for electricity reflecting the cost of investing in a particular low carbon technology, determined by competitive bidding), generators receive a top-up payment for the additional amount. Conversely if the reference price is above the strike price, the generator must pay back the difference.
  • This provides a degree of income stabilisation for new projects, making projects that have a high up-front cost but long lifetime and low running costs attractive to investors.
  • The CfD scheme is funded by a compulsory levy (that is, fee) on electricity suppliers, calculated in proportion to their market share of the GB electricity supply market.
  • The auction process is run by National Grid ESO, the Delivery Body for Electricity Market Reform (EMR). National Grid ESO responsibilities



Defra opens £2 million fund to restore flood-affected farmland

A £2 million fund to help farmers affected by summer flooding has opened for applications today (20 September).

Through the Farming Recovery Fund, farmers in parts of North Yorkshire and Wainfleet, Lincolnshire, who have suffered uninsurable damage to their property can now apply for grants between £500 and £25,000 to cover a number of repair costs.

This comes after the Government confirmed up to £5.25 million to support wider recovery work in the area, including the repair of roads and bridges and activating the Bellwin scheme, which can be utilised when an emergency involving the destruction of or danger to life or property occurs, to reimburse local authorities for emergency work in flood-affected areas.

Grants under the Farming Recovery Fund are available for a range of farm restoration work, including rebuilding dry stone walls, re-cultivating productive land and replacing damaged field gates. A handbook has been published today with full details of what is eligible and how to apply for funding.

Environment Secretary Theresa Villiers said:

This summer’s unprecedented weather wreaked havoc on farmland in North Yorkshire and Wainfleet. The Government is taking action to help farmers get back on their feet in light of the extensive damage suffered.

I’m therefore delighted to open the Farming Recovery Fund and would encourage all those affected to check what they are eligible to apply for and to submit an application promptly to ensure they can access the money available to contribute to their restoration work.

To apply for this funding, farmers must submit an application to the Rural Payments Agency (RPA) which explains how their business has been impacted and provides the relevant evidence to show any damage caused by the flooding. For applications covering damage where the applicant has already paid for repairs, farmers should provide copies of any receipts and quotes to help the RPA process them as quickly as possible.

RPA Chief Executive Paul Caldwell said:

I welcome the opening of Farming Recovery Fund today for applications, following the destruction caused by unprecedented weather earlier this summer.

The RPA, alongside the NFU and CLA, has worked hard to get this scheme up and running, and we will continue to offer advice and support to affected farmers to complete their applications.

Farmers will have until 31 March 2020 to submit an application for this funding.

NFU Vice President Stuart Roberts said:

The reinstatement of the Farming Recovery Fund will be a relief to those farmers affected by the recent flooding events in Yorkshire and Lincolnshire who’re now coping with a massive clear-up operation.

We will continue to work with Defra to ensure that the scheme is implemented and farmers are able to apply for the funding they desperately need.

CLA North Director Dorothy Fairburn said:

In early August, the CLA welcomed the Rural Payments Agency’s announcement of £2 million flood recovery funding for farmers in North Yorkshire and we are delighted that this funding can now be accessed by those affected by the flooding.

We collaborated with the RPA to make sure the application process is as simple as possible, and we encourage those affected to apply for funding under this agreement as it will enable farmers and landowners to re-construct the landscape, allowing communities and the visitor economy to re-boot.

We have been working closely with farming support organisations and the local MP to ensure a swift and robust response to this very difficult situation. The diverse nature and quality of this response exemplifies what resilience is all about.




UK advances preparations for new UK-Japan Economic Partnership

The UK government has today (Friday 20 September) launched an online ‘call for input’ to prepare for trade negotiations with Japan after Brexit.

Businesses, interest groups and members of the public across the whole of the UK will have the opportunity to tell the government what their priorities are for our future trade relationship with Japan. The call for input will be open for six weeks, until the 4th November 2019 and anyone can take part online.

The International Trade Secretary, Liz Truss is in Tokyo today and will discuss with the Japanese government how to establish a new economic partnership as soon as possible.

The UK and Japan have already committed to seeking an economic partnership which is just as ambitious, high standard and mutually beneficial as the existing EU-Japan Economic Partnership Agreement (EPA). We expect a new partnership would go even further in areas of shared interest.

Ms Truss will meet with Minister of Foreign Affairs Toshimitsu Motegi, Minister of Economy, Trade and Industry Isshu Sugawara, and Minister for Economic Revitalisation, Yasutoshi Nishimura.

International Trade Secretary, Liz Truss said:

I am in Tokyo today to deliver one very clear message: the UK is ready to trade. The UK is an open, welcoming country and we are the perfect place to do business.

Businesses should be reassured that there is huge political will on both sides to begin negotiating a new free trade agreement with Japan as soon as possible.

Launching our call for input today will allow us to begin these formal negotiations rapidly and will give people throughout the UK the opportunity to have their say on the new agreement.

This is about taking back control of our trade policy and negotiating an agreement that is even more ambitious and tailored to the needs of both our countries.

Japan is the world’s third largest economy and in the last year alone trade between the UK and Japan was worth £29.5 billion, up by over 8% on 2017.

It is estimated that there are nearly 1,000 Japanese firms based in the UK, employing over 150,000 people.

We have secured a string of recent export and market access wins, including:

  • Suffolk based Harrod Sport, are leading the way as the exclusive supplier of rugby posts for this year’s World Cup, which kicks off today, in a deal worth £100,000.
  • World-leading robotic technology firm, Shadow Robot Company have secured a new contract with a large-scale Japanese client worth over £100,000.

The UK and Japan will also sign an exchange of letters to ensure continuity of effect of the EU-Japan Mutual Recognition Agreement (MRA) today, which covers more than £2 billion worth of trade.

The exchange of letters ensures that UK certificates and inspections of technical regulations can continue to be recognised by Japan, saving businesses time, money and resources. Japan exporters to the UK benefit in the same way.

The exchange of letters ensures continuity of effect for almost all relevant aspects of the current EU-Japan MRA and will help facilitate trade flows between the two countries.

ENDS

Notes to Editors:

  • Office for National Statistics. UK Balance of Payments, The Pink Book 2018.
  • DIT analysis. HMRC, UK trade in goods, 2017-2018 average. The MRA covers 4 directives: Electrical Products; Telecommunications, Terminal Equipment and Radio Equipment; GLP Chemicals; and GMP Medicinal Products.
  • The government’s call for input into the UK’s future relationship with Japan is now live on GOV.UK.
  • Total trade in goods and services between the UK and Japan was £29.5 billion in 2018, an increase of 8.5% from 2017.
  • The government has already consulted and published a summary of responses to a public consultation on potential accession to the CPTPP, of which Japan is a member. Japan has confirmed its support for the UK acceding to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, should we choose to pursue this option.



Government announces over £10 million for 5 more coastal communities

  • People living in 5 more coastal communities set to benefit from new government investment
  • Projects from Cumbria to Kent to receive money to boost prosperity as part of drive to level up every part of the UK
  • Government is investing over £200 million in the Great British Coast by 2021

The cash boost will support coastal projects in Cumbria, Dorset, Gloucestershire, Kent and Suffolk to create jobs, boost tourism, improve transport and protect much-loved coastal heritage sites.

The fund helps to develop and improve local attractions, create jobs and promote socio-economic growth.

The Coastal Communities Fund projects announced today are forecast to support nearly 1,000 jobs and attract up to £7.9 million in additional investment from public and private sector sources.

This latest announcement brings the total Coastal Communities Fund investment to £228 million which is supporting 359 projects across the UK which are forecast to create over 20,000 jobs and builds on the government’s commitment to level up every place to ensure people have opportunities to prosper, no matter where they live.

The government has also supported 184 “at risk” coastal heritage assets such as seafront piers, promenades, lighthouses, lidos and marinas with a further £7.5 million investment from the Coastal Revival Fund to allow them to reach their full economic potential.

The government recently announced the first 100 places to benefit from the £3.6 billion Towns Fund which will enable local people to come together to develop a new generation of multi-million-pound Town Deals which will transform their town’s economic growth prospects with a focus on improved transport, broadband connectivity, social and cultural infrastructure.

Minister for the Northern Powerhouse and Local Growth, the Rt Hon Jake Berry MP, said:

Ensuring our coastal towns have the support they need to thrive is at the heart of this Government’s plan to level up every part of the UK.

Building on our £228 million investment into coastal communities, the projects receiving funding today were designed by local people who know best what will bring the biggest benefit to their community.

Their fantastic ideas demonstrate the raw potential of our coastal towns and will help create good jobs, boost economic growth and improve people’s lives as we leave the EU on 31 October.

The Coastal Communities Fund was introduced in 2012. This latest announcement brings the total Coastal Communities Fund investment to £228 million which is supporting 359 projects across the UK.

The government has also supported 184 “at risk” coastal heritage assets such as seafront piers, promenades, lighthouses, lidos and marinas with a further £7.5 million investment from the Coastal Revival Fund to allow them to reach their full economic potential.

The latest projects to receive funds are:

Cumbria Coastal Activities Centre – £2.45 million

The centre will create a dedicated facility for water sports and recreational activities at Whitehaven Harbour. The proposed low carbon Cumbria Coastal Activities Centre building will include an activity, arts and community centre with a multi-purpose event and educational space.

Southwold Enterprise Hub – £995,000

The enterprise hub will have space for one retail and 15 business units, including co-working areas for new and existing businesses. A Southwold Development Team will be set up with responsibility for regenerating the local economy, including business support and marketing activity.

Dover Soul – revitalising Dover’s Historic Market Square and Old Town – £2.44 million

To increase the number of visitors to the Old Town, the market square will be rejuvenated and the high street re-established as a leisure destination. Features will include improved pedestrian and public transport access, a water feature and green spaces. Year-round events will attract visitors and the wider community to the square.

Environmental Innovation Hub at Bournemouth and Poole Seafront – £2.39 million

The hub, part of wider improvements of the Dorset coast, will feature eco-accommodation and leisure facilities and improved public lighting. An interactive visitor centre will include a catering kiosk, public toilets, a lifeguard control point and waste transfer station. The hub will focus on reducing, and ultimately eliminating, single-use plastics through a programme of research and public recycling initiatives.

Destination Lydney Harbour, Gloucestershire – £2.1 million

The project will create safe, attractive transport routes into the harbour and develop the area as a recreation and tourism destination. This includes improved signage, art displays and an arts-based walking trail. Existing buildings will be upgraded with new toilets, a heritage information point and a new café. Mooring and seating points will be installed and improvements made to cycle routes, highway and station approaches and canal and harbour docks. Also planned is a community rowing boat building project.




UN Human Rights Council 42 – Statement for the Universal Periodic Review on Côte d’Ivoire

The United Kingdom welcomes Côte d’Ivoire’s engagement with the UPR process and determination for progress on human rights since their last review.

The UK welcomes Côte d’Ivoire’s acceptance of two of our recommendations, namely: to implement the recommendations of the National Committee for Monitoring Actions against Trafficking, Exploitation and Child Labour to end child labour and trafficking; and to protect the right to freedom of expression, in line with the Constitution, so that all individuals, including journalists, may speak and write openly without fear of reprisal or arrest. The latter is particularly important ahead of the 2020 Presidential elections.

We encourage the government to maintain a dialogue with journalists of all platforms and to articulate the government’s position by responding to, rather than sanctioning, journalists.

We also urge Côte d’Ivoire to ensure the 2020 Presidential elections are free, fair, peaceful, and in line with international best practice, so all individuals can freely exercise their rights. A free press is essential in creating the necessary environment for credible elections, and should be upheld to the fullest extent possible.

We regret that Côte d’Ivoire did not accept our recommendation to adopt an open, merit-based process when selecting national candidates for UN Treaty Body elections. We are open to discuss this and hope Côte d’Ivoire will consider this process in future elections.