In our most recent blog, we highlighted the flurry of policy activity which has taken place within Labour’s first one hundred days of government. We described a series of policies which are being implemented, proposed, or committed to the one-hundred-day milestone that has been passed for nearly 3 weeks, and now the industry’s eyes are on the recent budget announcements.
However, not all the exciting things happening in the energy and net zero sectors are delivered by state and government policy. No number of targets or policies will deliver what is needed without the physical infrastructure and skills to deliver being put in place. Much of this is delivered by the industry itself, and whilst government policy serves as a supporting backdrop, innovation from key industry organisations and increased investment activity continue to build the necessary backbone for a clean, flexible energy system.
Engage has been monitoring the activities on new infrastructure or industry changes. If you would like more advice on Investment opportunities and market analysis in greater detail, you can reach out to us for one of our core offerings.
Industry players
Elexon appointment 
Elexon was appointed as the market facilitator for local flexibility on the 29th of July, following Ofgem’s commitment to appoint one for the first time in November 2023. In this role, Elexon will function as an independent expert body that is accountable for decision-making and driving technical discussions forward through open, transparent, and participatory engagement. It will be responsible for reducing friction across DSO markets, aligning transmission and distribution market arrangements, and developing local flexibility markets. Following their appointment, Elexon was also announced as the lead for the ENA’s Open Networks Challenge Group, which will focus on flexibility challenges. Introducing clear facilitation of local flexibility markets will unlock the full value of flexibility of the wider energy system, which is essential for supporting Labour’s ‘green power by 2030’ manifesto policy.
Engage will continue to monitor developments in this fast-growing sector, and we look forward to applying our expertise to help our clients capitalise on the exciting changes to local flexibility. Our work on the government’s IDSR programme is contributing to designs of effective and safe standards for interoperable demand side response technologies, which will be crucial in empowering local communities to engage in flexible energy markets . 
NESO launches Future Energy Scenarios 
On the 15th July, National Grid ESO (now NESO) released its 2024 Future Energy Scenarios (FES) report bundle, replacing the older ‘pathways’ approach. The report outlines three main scenarios: Holistic Transition, Electric Engagement, and Hydrogen Evolution, each presenting different strategies for decarbonising the energy sector by 2050. The government is set to decide on Hydrogen for heating in 2026, which will impact the balance of the Hydrogen Evolution pathway. The first two scenarios depend closely on the results of initiatives involving Engage Consulting, namely the government programmes on Alternative Energy Markets Innovation Programme and Interoperable Demand Side Response programme. You can read more about the Hydrogen aspect of the FES report in our blog Why hydrogen provenance matters for Net Zero. 
Ofgem introduces changes to the Strategic Innovation Fund 
In August, Ofgem announced that it would amend the Strategic Innovation Fund (SIF), a collaboration between the government’s Innovation UK and Ofgem, to streamline the funding process. The SIF is a collaboration between Ofgem and Innovate UK and provides funding to projects that accelerate the transition to clean, homegrown energy through grid development solutions. At the Engage Sponsored Energy UK Lightning Bolt event on the 3rd of September, Ofgem’s Deputy director for data & digitalization, Oge Marzia Zafar, encouraged ambitious project runners to apply for funding. If you are interested in partnering with Engage as an innovation partner in an alpha, beta or discovery phase SIF project, then reach out to us to discuss how we can support you or your consortium partners.   
  
DNOs scrap 10GW worth of ‘zombie’ projects 
On the 26th September, the ENA reported that since launching its Strategic Connections Group, 10GW worth of stalled energy projects were scrapped by DNO. These projects were speculative or stalled energy schemes, which were seen as taking up space in the queue and blocking other more viable projects. Long wait times for grid connections are a frequent challenge reported by organisations seeking to install low-carbon technology, and Engage is looking forward to the Joint Connections Action Plan, which is expected to be published in the next month. Given the flurry of successful projects under the most recent Contracts for Difference Auction, activities such as this will help ensure the 9.3GW of potential new capacity can more quickly be introduced to the grid. To further support efficient grid connections, NESO launched “Connections 360” on Tuesday 29th of October, a digital tool which provides a comprehensive visualisation of the Transmission Entry Capacity Register. This landmark tool aims to make the connections process more transparent and help shape connection applications, cutting down on speculative ones to give better changes to viable projects.
NESO publishes advice to government on Clean Power by 2030
On the 16th of September the government commissioned NESO to provide independent advice and expertise on how to reach its clean energy by 2030 target. On 5th of November NESO released a report with its comprehensive analysis of the key hurdles and actions to take to deliver 2030 whilst supporting consumers, the economy, society and energy security. The overall message from NESO was that delivering 2030 will require prioritising pace over perfection and bold, sustained action. Flexibility on the demand and supply side was described as ‘vital’ to managing the system, and that data availability would be key in unlocking these benefits. One way in which this data can be delivered accurately and efficiently is with the increased rollout of smart meters, which Engage has worked with industry on over a decade.
Physical infrastructure
Record-Breaking Clean Energy Auction  
On the 3rd of September, the government announced that 131 new renewable energy projects worth 9.3GW of capacity were delivered in the most recent Contracts for Difference (CfD) auction found. This was the largest auction round which has ever taken place under the CfD scheme and a huge increase on the disappointing 2023 round, which saw only 3.7GW of capacity secured. These projects, which include the Hornsea 3 offshore wind farm and Green Volt, the world’s largest floating offshore wind project, are estimated to generate enough energy to power eleven million homes. This increase in successful project applications in large part reflects the government over-turning the nine-year ban on new onshore wind farms, with 115 solar and onshore wind projects being approved. Onshore wind is one of the cheapest forms of energy, and lifting the ban is expected to reduce energy bills and decrease the UK’s reliance on foreign gas. 
UK Coal sees major change 
On the 13th of September, the UK High Court ruled that the development of a new deep coal mine in Cumbria could not proceed, deeming arguments that the new site being ‘net zero’ due to carbon credit off-setting plans were ‘legally flawed’. This result came 2 months after Labour’s new Secretary of State for MHCLG, Angela Rayner, announced Labour would not defend the 2022 government’s decision to grant planning permission from the two legal challenges made by Friends of the Earth and South Lakes Action on Climate Change. This decision blocked what would have been the UK’s first new deep coal mine in 30 years and was made in the month that its last remaining coal-fired power station, Ratcliffe-on-Soar, closed. This marks the end of coal power generation in the UK. 
Construction starts on Scotland to England electricity superhighway
National Grid started construction on the £4.3 billion Eastern Green Link 2 (EGL2) on the 26th of September. This groundbreaking project, which National Grid is conducting in partnership with SSEN Transmission, will create a 2GW high voltage direct current (HVDC) subsea electricity superhighway between Peterhead in Scotland and Drax in England. The superhighway will be the UK’s longest HVDC cable, running 436km under the sea. It is estimated that EGL2 will deliver hundreds of jobs during construction and deliver enough energy to power around two million homes by the time it’s operational in 2029. EGL2 is one of four Green Link projects planned by National Grid. EGL1, which is being developed in partnership with SPEN, is planned between Torness, Scotland and Hawthorn Pit, England, and will be operational in 2029. Eastern Green Links 3 and 4 are still in proposal stage.
Engage Consulting news 
Exciting things are not just happening in the wider Energy sector. Engage has had a very productive few months with exciting new additions, project milestones and upcoming events.
Welcome Grace Carroll 
Grace Carroll joined our consulting team on the 8th of July, coming to us from a career in the civil service. She most recently headed the UK’s policy for private electric vehicle charging. You can read more about Grace joining Engage in this blog.  
Engage speaking at the EV Infrastructure and Energy Summit 
Grace Carroll, Senior Consultant, hosted a panel on destination charging at the EV Infrastructure and Energy Summit on the 2nd of October at Novotel London West. You can hear about it at our here.
Engage sponsored the Energy UK Conference  
Engage Consulting were delighted to sponsor and attend Energy UK’s 2024 Annual Conference on the 17th of September. The event included a rousing speech from the new DESNZ Secretary of State Ed Milliband, MP, returning to the post he last held in 2008. Key figures and innovators of the industry head about collaboration, investor confidence and flexibility across the day during fascinating panels. You can read more about the event in our Insights blog.
Engage continues to sponsor Energy UK’s Lightning Bolt Talks Series
Following on from the successful event on the 3rd September at the Happenstance, 10 Paternoster Square, London, where attendees had the opportunity to hear a series of short, engaging talks from Ofgem, Measurable Energy, Modo Energy and Ideanomy.ai.  The next Lightning Bolt Talk date has been announced as the 19th November!
