GLOSSARY
Smart Export Guarantee definition
What does Smart Export Guarantee mean?
A regulated mechanism to provide owners of small scale renewable installations in GB with a guaranteed contract for selling surplus electricity. Yet to be introduced, secondary legislation will be made will be made under Energy Act 2008, s 43; a financial incentives scheme ‘to encourage small-scale low-carbon generation of electricity’.
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Energy legislation tracker 2019
Energy legislation tracker 2019 This Energy legislation tracker tool displays key upcoming legislation of interest to Energy lawyers from 1 January 2019. The tracker is divided into the following jurisdictions: • England and Wales • European Union Legislation will be displayed in reverse chronological order. Legislation that is only applicable to Wales (Wales Statutory Instruments—Wales SI) will be indicated on the tracker. Legislation which was laid in 2018 and came into force in 2019 can be found at the top of the Energy legislation tracker 2018 [Archived]. Lexis®Library has launched three new features: Amendment Highlighter, Timeline and Legislation Menu. These new features will make it quicker and easier to access and track new legislation that the government intends to pass be it a Bill, Statutory Instruments (SI) or a new Act of Parliament as well as view historic, current and future changes to legislation. For information on previous legislation trackers, see: • Energy legislation tracker 2018 [Archived] • Energy legislation tracker 2017 [Archived] • Energy legislation tracker 2016 [Archived] Brexit impact As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. The implementation period will end on implementation period completion day (IP completion day, 31 December
Energy consultations tracker 2019
Energy consultations tracker 2019 This Energy consultation tracker tool displays the current status and most recent developments of key consultations conducted by government departments, regulators and other bodies in relation to energy law and policy in England and Wales between 1 January and 31 December 2019. Any consultations still open as of 1 January 2020 can be found in the Energy consultations tracker 2020. For information on previous consultation trackers, see: • Energy consultations tracker 2018 [Archived] • Energy consultations tracker 2017 [Archived] • Energy consultations tracker 2016 [Archived] For our tracker setting out the anticipated future dates of major policy/regulatory announcements in the Great Britain (GB) energy market, see: Great Britain energy market—policy and policy implementation tracker. Closed consultations Consultations are displayed in chronological order by reference to the date that they have closed. The consultation that has most recently closed is displayed as the first entry in the table. It also means that, generally speaking, older consultations will appear towards the bottom of the list. Consultation Topics Consultation period Status PSL Content Ofgem Industry standards and practices for commissioning equipment used in the production of biomethane: a call for evidence —Fuelled renewable, hydro and other baseload renewable projects 18 November 2019–16 December 2019 30 April 2020Ofgem publishes their Response document —LNB News 01/05/2020 15 BEIS The planning
Power purchase agreements (PPAs)—key terms and issues
Power purchase agreements (PPAs)—key terms and issues What is a power purchase agreement? A power purchase agreement (PPA) is a contract between an electricity generator (generator) and the party who is purchasing the power (offtaker) which incorporates the commercial terms for the sale and purchase of electricity for a project. For details of our full suite of resources and precedents on power purchase, see: Power purchase agreements and routes to market—overview. The PPA provides a route to market for the electricity generated by the generator and, in the case of renewable energy generating stations, any green benefits that the generator receives for generating electricity from renewable sources and that may be sold to electricity suppliers. The PPA is the contract pursuant to which a large proportion (if not all) of a project's revenues are earned and consequently the PPA underpins the economics of most power projects. The majority of PPAs will contain provisions dealing with the following issues: • commencement and term • sale of power • sale and transfer of any green benefits (for projects generating electricity from renewable sources) • forecasting, maintenance and outages • change in law • credit support • force majeure, and • extensions of the generating station For further information on the issues that commonly arise during the negotiation and drafting of PPAs entered into between a renewable generator and a licensed electricity supplier, see Checklist:
Energy consultations tracker 2018 [Archived]
Energy consultations tracker 2018 [Archived] ARCHIVED: This Practice Note has been archived and is not maintained. This Energy consultation tracker tool displays the current status and most recent developments of key consultations conducted by government departments, regulators and other bodies in relation to energy law and policy in England and Wales between 1 January and 31 December 2018. For information on consultations updated since 1 January 2019, see: Energy consultations tracker 2019. For information on consultations updated since 1 January 2020, see: Energy consultations tracker 2020. For information on previous consultation trackers, see: • Energy consultations tracker 2017 • Energy consultations tracker 2016 For our tracker setting out the anticipated future dates of major policy/regulatory announcements in the Great Britain (GB) energy market, see: Great Britain energy market—policy and policy implementation tracker. Closed consultations Consultations are displayed in chronological order by reference to the date that they have closed. The consultation that has most recently closed is displayed as the first entry in the table. It also means that, generally speaking, older consultations will appear towards the bottom of the list. Consultation Topics Consultation period Status PSL Content BEISClean Growth Fund: Request for Proposals • Renewable subsidies • Energy storage • Electric Vehicles 17 October 2018–14 December 2018 Responses being analysed • LNB News 17/10/2018 120 BEISSouthern North Sea review of consents: draft
Great Britain energy market—policy and policy implementation tracker
Great Britain energy market—policy and policy implementation tracker Introduction Updated monthly, this tracker monitors the anticipated dates of future decisions, implementing measures, consultations and other key milestones in respect of new and evolving policy in the Great Britain (GB) energy market. For each of these areas of policy/policy implementation, it also provides links to the main milestones and publications to date. Given the amount of change and policy intervention in the GB energy market, this tracker cannot include all ongoing developments. However, it aims to provide a useful and detailed resource for tracking the evolution of the most significant areas of changing GB energy policy and regulation and to provide key anticipated dates for your diary in the coming weeks, months and years. Inevitably, the future timings given by government and other organisations involved with implementing policy and new regulation are estimates and often refer to fairly broad time periods. The future looking timescales given in the table below should therefore be read in this context. Should you wish to see particular areas of changing GB energy policy/regulation covered in more detail, you can let our Energy team know using the Lexis Ask link at the bottom of this tracker. This tracker collates individual areas of policy implementation progress/anticipated future progress under the following policy areas: • Implementation of policy on the deployment of offshore wind •
Feed-in tariffs (FiT)—closure in 2019 and the future for small-scale low-carbon generation
Feed-in tariffs (FiT)—closure in 2019 and the future for small-scale low-carbon generation Key primary resources on closure of the FiT Resource and date Link Government consultation (19 July 2018) on the future for new small scale renewables after the FiT closes (follow up consultation published 8 January 2019 (see table row below) The Future for Small-Scale Low-Carbon Generation: a call for evidence (Future Support Consultation) Government consultation (19 July 2018) and consultation decision (18 December 2018) confirming FiT closure The Feed-In Tariffs scheme: closure of the scheme to new applications after 31 March 2019, and administrative measures (FiT Closure Consultation) The Feed-in Tariffs (Closure, etc) Order 2018, made 17 December 2018 and came into force 1 February 2019 SI 2018/1380 (FiT Closure Order) Ofgem FAQ document on FiT closure FAQ: FIT scheme closure (Ofgem FiT Closure FAQs) Ofgem guidance on closure of the FiT scheme Feed-in Tariffs: Essential guide to closure of the scheme (Ofgem FiT Closure Guidance) Ofgem updated general FiT guidance, incorporating guidance on closure of the FiT scheme Feed-in Tariffs: Guidance for renewable installations (Ofgem Generator Guidance)Feed-in Tariffs: Guidance for licensed electricity suppliers (Ofgem Supplier Guidance) Government publish follow-up consultation on the Smart Export Guarantee, 8 January 2019 (closes to responses 5 March 2019) The Future for Small-Scale Low-Carbon Generation: A consultation on a Smart Export Guarantee (Smart Export Guarantee Consultation) Ofgem publishes guidance its administration of the
Smart Export Guarantee—key features
Smart Export Guarantee—key features Introduction to the Smart Export Guarantee This Practice Note provides a detailed explanation of the ‘Smart Export Guarantee’, a regulated mechanism to provide owners of small-scale low-carbon installations in Great Britain (GB) with a guaranteed contract for selling surplus electricity they generate. Among other things, it discusses the proposed terms of power purchase under the Smart Export Guarantee, the role of electricity suppliers in the Smart Export Guarantee mechanism, and technology types that will be eligible for the Smart Export Guarantee. The Smart Export Guarantee is due to come into force on 1 January 2020. The concept of the Smart Export Guarantee was first mooted in the consultations announcing the confirmed closure (for new installations) of the small-scale Feed-in Tariff (FiT) from 1 April 2019. This is because one key consequence of the closure of the FiT is the end of the ‘Export tariff’ provided by the FiT, which gave a guaranteed route to market for the export on to the grid of electricity generated by FiT-supported installations. For more on this background and the closure of the FiT, see Practice Note: Feed-in tariffs (FiT)—closure in 2019 and the future for small-scale low-carbon generation. The detail of the Smart Export Guarantee was first proposed by the government in The Future for Small-Scale Low-Carbon Generation: A consultation on a Smart Export Guarantee (Smart
Energy storage—the evolving regulatory regime and renewable subsidy position
Energy storage—the evolving regulatory regime and renewable subsidy position Brexit impact As of 31 January 2020 (exit day), the UK is no longer an EU Member State, but it has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. 11 pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. Any changes relevant to this content will be set out below. For information on how leaving the EU will affect Great Britain’s (GB) renewable energy sector, see Practice Note: Energy and Brexit—renewable energy, which tracks the key publications and announcements made to date in relation to Brexit and the Great Britain (GB) renewable energy sector. It also provides brief explanation of the key areas where Brexit will have an identified and direct legal impact on the renewables sector. It includes focus on Brexit and Renewable Energy Guarantees of Origin (REGOs); Brexit and Guarantees of Origin of Electricity Produced from High-efficiency Cogeneration (CHPGOs); and Brexit and the Renewables Obligation (RO), Feed-in Tariffs (FiTs), and Contract for Difference (CfD)
Key issues in operation and maintenance (O&M) contracts for renewable energy projects
Key issues in operation and maintenance (O&M) contracts for renewable energy projects Overview Operation and maintenance (O&M) of renewable energy projects is a critical component of an effective and successful project. Although capital expenditure typically makes up the bulk of the costs, the O&M still contributes significantly to the calculation for the levelised cost of electricity, which is key to the underlying project economics. Having an effective O&M strategy can enhance the competitiveness and make the investment case for renewable energy projects. The nature of O&M services varies between renewable energy technologies; photovoltaic (PV) solar requires a very different scope of services and risks to consider to offshore wind and has different practical challenges to overcome. The key terms will also vary between jurisdictions, and the depth of the market for the provision of such services. As operational renewable projects increase in scale and number, so the O&M industry increases in scale and sophistication. We consider here some of the key issues in O&M contracts in renewable energy for both the O&M contractor and the project company owning the project. This is neither an exhaustive list, nor will each issue apply to every renewable project. Structure of the O&M services For many renewable energy projects, just as for conventional power projects, it is common to see a long term O&M Contract, with an O&M contractor, for the operation and maintenance
Feed-in tariff scheme tracker
Feed-in tariff scheme tracker The Feed-in tariff (FiT) scheme was introduced in April 2010 and is the government’s main policy measure to encourage the deployment of small-scale low-carbon electricity generation in Great Britain (GB), and is implemented by the Feed-in Tariffs Order 2012, SI 2012/2782 (as amended), and modifications to Conditions 33 and 34 of the standard conditions of electricity supply licences, ie ‘the Standard Licence Conditions’. The FiT scheme is available to everyone—from domestic households to local authorities, landlords and businesses. Where they meet the relevant eligibility requirements and declare that they will use all the energy they generate, off-grid generators can also receive partial FiT payments. They will only be entitled to the generation tariff as they aren't exporting any electricity. Those eligible for the FiT scheme: • will be paid by certain licensed electricity suppliers (FiT licensee) for every unit of electricity, per kilowatt hour (p/kWh), they generate—the generation tariff • can sell any surplus electricity generated to the National Grid—the export tariff • will benefit from having lower energy bills, as they won't need to purchase as much energy from the National Grid The FiT scheme closed to new accreditations on 1 April 2019. For a detailed explanation on the background to, and proposed implementation of, this see Practice Note: Feed-in tariffs (FiT)—closure in 2019 and the future for small-scale low-carbon generation. This FiT
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Energy weekly highlights—19 December 2019
This week's edition of Energy weekly highlights includes details of the latest Brexit and Queen’s Speech announcements, the Office of Gas and Electricity Markets’ (Ofgem) new guidance for anaerobic digestion generators to facilitate compliance with smart export guarantee and Ofgem’s working paper considering options for reform of transmission network charges, as part of its significant code review into network access and forward-looking charging.
Environment weekly highlights—19 December 2019
This week's edition of Environment weekly highlights includes details of the latest Brexit and Queen’s Speech announcements, analysis from Camille Oung and Lucina Rolewicz, researchers specialising in healthcare and the environment at Nuffield Trust as to the environmental cost of healthcare and publication by the Committee on Climate Change of its annual progress report to the Scottish Parliament. In addition this week the European Commission has published ‘The European Green Deal’, described as ‘a roadmap for making the EU’s economy sustainable by turning climate and environmental challenges into opportunities across all policy areas and making the transition just and inclusive for all.’
Environment Weekly highlights—17 October 2019
This week's edition of Environment Weekly highlights includes the introduction of the Environment Bill, and other environmental issues arising from the Queen’ speech including the government’s pledges regarding infrastructure, the Fisheries Bill and Agriculture Bill. This edition also includes the launch of BEIS’s consultation seeking comment on how to achieve 2030 energy efficiency target, the government’s proposals to tackle climate change in its response to recommendations from the Committee on Climate Change, launch by the UK Green Building Council of a consultation seeking comment on proposals for energy performance targets for commercial offices and the latest Brexit updates including a report which discusses the legal and practical implications of a on a no-deal Brexit. In addition this week Ofgem has launched a consultation into its proposed changes to methodologies for calculating electricity and gas supply volumes under the Electricity and Gas (Energy Company Obligation) Order 2018 (ECO3), SI 2018/1183, the Department for Business, Energy & Industrial Strategy (BEIS) has published a consultation seeking views on the final design of the £315m Industrial Energy Transformation Fund and the Welsh Government has opened a consultation to inform new guidance on developing areas at risk of flooding and coastal erosion. We have published a new Practice Note this week: Energy Company Obligation (ECO)—key features of ECO3 and we have updated our Practice Note on Brexit—environmental law implications.
Energy weekly highlights—26 September 2019
This week's edition of Energy Weekly highlights includes the announcement of twelve winners of the Contracts for Difference (CfD) third allocation round, the publication by the Department for Business, Energy & Industrial Strategy (BEIS) of the results of its analysis into the different policies that could be used to support the take up of greenhouse gas removal (GGR) technologies, calls from Energy UK on the government to introduce a ‘net zero test’, the Office of Gas and Electricity Markets’ (Ofgem) consultation on modifications to the Smart Meter Installation Code of Practice. We also include our analysis in respect of the government’s recently announced £500m investment in green technologies and the recent Supreme Court decision ruling the prorogation of parliament unlawful.
Energy Weekly highlights—19 September 2019
This week’s Energy highlights includes several publications from the Office of Gas and Electricity Markets (Ofgem) including an update on the proposed Shetland and Western Isles electricity transmission projects, an announcement that it has approved Scottish and Southern Electricity Network’s (SSEN) plan for a £260m, 220MW transmission link from Orkney Islands, a consultation for feedback on its draft cyber resilience guidance documents, designed to assist in RIIO2 operational technology and a request for network companies to include a digitalisation strategy as part of their RIIO 2 business plan submissions. Also this week, the Department for Business, Energy & Industrial Strategy (BEIS) has launched a consultation on proposals to form a smart meter policy framework post 2020 and updated its guidance on applying for an exemption of compensation from renewable electricity tariffs.
Environment Weekly highlights—19 September 2019
This weeks edition of Environment Weekly highlights includes a publication from Natural England on badger control licences for areas that will undertake control operations within the high risk and edge areas of England in autumn 2019, the launch of a consultation from the Department for Environment, Food & Rural Affairs (Defra) seeking views on what general licences to kill or take wild birds should cover, and evidence on related issues along with Defra’s announcement that it will review the way in which the release of gamebirds on or near protected sites in England is managed. Also this week, the Environment, Food and Rural Affairs Committee has called for the government to take action to reduce all single use packaging—not just plastic, the European Chemicals Agency (ECHA) has urged companies to act and prepare for a no-deal Brexit and the European Environment Agency has published a report setting out the EU’s progress towards ending the use of chemicals harming the ozone layer in line with its commitments in the Montreal Protocol. In addition the Environmental Audit Committee (EAC) has called on the government to take ‘rapid action’ to address climate change and the risk it poses to national food security and the Environment Agency (EA) has announced it will carry out a review of permitted waste sites within the bio-waste sector, including composting, anaerobic digestion and mechanical biological treatment. We also include some key upcoming dates for your diary.
Energy weekly highlights—13 June 2019
This week’s edition of Energy highlights includes analysis on the impact of the introduction of the Smart Export Guarantee (SEG) and what it means for small-scale generators; the Department for Business, Energy & Industrial Strategy’s (BEIS) publication of the government’s responses to ‘The future for small-scale low-carbon generation: Part A and B’ in respect of SEG; as well as an announcement that it will invest £33m in 32 companies from across the UK to develop the next generation of low-carbon vehicles.
Environment weekly highlights—13 June 2019
This week’s edition of Environment highlights includes Theresa May’s announcement that the UK will enshrine a net zero emissions target into UK law, with an aim to end the UK’s contribution to global warming by 2050; the introduction of new labels in fuel filling stations across the UK, in a government-driven effort to educate drivers on the benefits of biofuel; and the government has announced two sets of funding comprising of £33m for projects aimed at transforming the UK’s low-carbon automotive future and £23m to be invested in companies which are at the forefront of developing the latest electric vehicle technology. Also this week, Environment Secretary, Michael Gove, has announced a review to examine the most effective way to introduce the strongest protections for Highly Protected Marine Areas (HPMAs), Directive (EU) 2019/904 on the reduction of the impact of certain plastic products on the environment has been published in the Official Journal and the British High Commission in Kuala Lumpur has announced that the UK will support Malaysian authorities on the issue of illegal trade in plastic waste.
Smart Export Guarantee introduced
Energy analysis: The Department for Business, Energy & Industrial Strategy (BEIS) has made provisions to introduce the long awaited smart export guarantee (SEG) scheme, intended to provide a route-to-market for smaller generators following closure of the Feed-In Tariff (FiT) Scheme to new applications on 31 March 2019. We consider the impact of the introduction of the SEG on suppliers and what it means for small-scale generators.
Energy weekly highlights—6 June 2019
This week’s edition of Energy highlights includes the Office of Gas and Electricity Markets’ (Ofgem) review into whether the introduction of the cap on default and standard variable tariffs has impaired competition and its consultation on Scottish Hydro Electric Power Distribution’s (SHEPD) proposals to contribute to planned transmission links to Shetland, Western Isles and Orkney. We also cover the launch of guidance in relation to the Department for Business, Energy and Industrial Strategy’s (BEIS) new Rural Community Energy Fund (RCEF) and the Oil and Gas Authority’s (OGA) award of licences under the 31st Offshore Licensing Round. We provide updates on new content and look at some key upcoming dates for the diary over the next few weeks.
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