November 2024 was another incredibly busy month in the British energy industry. A series of consultations have been published, records have been broken, and industry milestones are reshaping the landscape! This November Energy Industry Roundup summarises what Engage feels are last month’s most interesting and impactful developments.
Government Policies and Initiatives
Fast-track consultation on the Zero Emission Vehicle (ZEV) Mandate
On the 27th November, the government announced that the plan was “not working as intended” and has launched a fast-track consultation with car manufacturers to address these issues. The world-first Zero Emission Vehicle (ZEV) mandate, which sets legally binding sales targets for zero-emission vehicles that increase yearly, requires 22% of all UK new car sales to be Battery EVs this year and 28% in 2025. Many automobile manufacturers have suggested that the current economic and market conditions make it challenging to comply. Vauxhall cited the ZEV mandate in its November announcement of plans to close its Luton Van factory in 2025. Whilst the technical design of the ZEV mandate is being discussed, the government stressed that the commitment to return the 2030 phase-out date for all new internal combustion engine sales remains in place.
Ofgem launched end-to-end review of Connections
On 8th November, Ofgem launched an end-to-end review to overhaul the regulatory framework for electricity grid connections. This review is intended to complement more practical changes to the connections process, which are being conducted under the ‘Connections Action Plan’.
The “end-to-end review” seeks views on the incentives, obligations, and requirements of connections themselves, including proposals on data visibility, service standards, and network companies’ connection date delivery. The current connections queue includes 730 GW worth of projects, roughly four times what National Energy System Operator (NESO) models is needed by 2050. Initiatives such as this review and the Connections Action Plan aim to ensure priority projects are delivered efficiently and speculative applications which haven’t progressed are removed.
Heat Networks consultations
Heat is often acknowledged as the most difficult to decarbonise sector, and Heat Networks (insulated pipes which transport from a central source) will play a key role. Heat networks currently meet about 2% of the UK’s current total heat demand. The Climate Change Committee has estimated that around 18% of UK heat could come from heat networks by 2050 to support cost-effective delivery of our carbon targets.
As the future regulator for heat networks in Great Britain, Ofgem launched two consultations on the topic on 8th November. The first focuses on new rules for authorisation and regulatory oversight of heat networks, setting out proposed monitoring, auditing, compliance, and enforcement approaches. The second consultation is being run jointly with
Department for Energy Security and Net Zero (DESNZ), focusing on consumer protection measures for heat networks, safeguarding vulnerable customers, and delivering fair pricing.
Heat Networks Regulation Implementing Consumer Protections
Heat Networks Regulation Authorisation and Regulatory – Oversight
Market changes
Virtual Trade Parties enable flexibility trading on wholesale market
On 7th November, Elexon implemented “P415 Facilitating access to wholesale markets for flexibility dispatched by Virtual Lead Parties”. This rule change allows independent aggregators of electricity, known as Virtual Lead Parties (VLPs), to register to participate in the wholesale electricity market under the new Virtual Trading Party (VTP) category.
Until now, VLPs and their behind-the-meter equivalent Asset Metering Lead Parties (AMVLPS) were limited to Balancing Mechanism participation. This meant electricity consumers could not gain value from their flexibility through the wholesale market unless it was through their supplier.
VTPs will now be able to trade this flexibility on the wholesale market measuring electricity flows from a site boundary meter. If they also qualify as an AMVLP, they can trade more granularly use behind boundary assets.
If you are interested in exploring market entry as a VLP, AMVLP or VTP, you can read more in our previous blog on the topic.
Industry Milestones and Market Trends
Records in generation, EV and boiler upgrades
Great Britain saw several milestones achieved in clean energy sector in November. For the first time, wind and solar power combined generated more electricity than fossil fuels over a month. This landmark achievement, documented on November 25, 2024, was achieved largely due to offshore wind farms in the North Sea.
Furthermore, November 2024 saw a record sale of electric vehicles in the UK, with EV registrations surging by 35% compared to the same period last year. In 2024 to date, electric vehicles have captured 18.1% of the new car market share.
Finally, in November the government announced that the preceding month saw the most grants paid under the Boiler Upgrade Scheme since it began in May 2022. The grant incentivises property owners to replace fossil fuel heating with more efficient low carbon heating systems. Over 50,000 vouchers were issued, most of which were used for air source heat pumps.
Scottish Gas Hydrogen (SGN) Network
On 2nd of November SGN completed construction of what they claim to be the world’s first domestic hydrogen gas network in Levenmouth, Fife. Residents in the area will soon have the option of joining Scotland’s first green hydrogen community by signing up for the H100 Fife trial. This is a milestone trial after attempts to introduce similar ones for hydrogen used for heating in Redcar and Whitby, England.
Green hydrogen gas, created using renewable electricity from a local 7MW offshore wind turbine, will flow through the new 8.4km network when it goes live next year. The project is expected to provide key evidence to inform the government’s decision on the role of Hydrogen in heating, which it is expected to make in 2026.
Engage News – November
Engage Consulting Supports Ashden’s Clean Energy Mission
We’re proud to contribute £400 to Ashden, a leader in accelerating clean energy and climate solutions. From empowering solar entrepreneurs in African refugee camps to driving zero-carbon initiatives in UK schools, Ashden’s work is transforming communities globally.
Our donation reflects our commitment to:
– Supporting practical, community-based climate solutions
– Promoting innovation in the energy sector
– Driving a greener, fairer future
Engage Consulting Extends Support to the Fuel Bank Foundation
We’re proud to continue our support for the Fuel Bank Foundation, an organisation providing emergency assistance and practical guidance to households facing fuel crises across the UK.
Why This Matters:
– Over a quarter of a million households may seek help this winter to keep the lights, power, and heating on.
– The Foundation delivers same-day fuel vouchers and vital advice to prevent future crises.
– Our support enables immediate relief and long-term solutions for vulnerable families.
Our CSR Commitment:
At Engage Consulting, we’re dedicated to creating positive change in the energy sector. Supporting the Fuel Bank Foundation reflects our focus on helping those most in need while driving sustainable, equitable solutions.
Reflecting on the Final Lightning Bolt Talk of 2024
Engage Consulting proudly sponsored Energy UK’s final Lightning Bolt Talk of the year, held on Tuesday, 19th November 2024 at The Tokenhouse, London.
The event brought together key voices from across the energy sector to discuss data-driven innovation and its role in advancing the UK’s Net Zero goals.
Highlights from the Evening:
– Royston Black, Lead Consultant at Engage Consulting, delivered an insightful talk on the importance of data models and interoperability in Demand Side Response (DSR), sparking meaningful discussions on digital transformation.
– A diverse range of perspectives from industry leaders and policy experts, offering innovative solutions to the challenges facing the energy sector.
