Trowers partner contributes to University of Oxford study on climate change

Cassandra Lim

Partner Cassandra Lim, of international law firm Trowers & Hamlins has participated in the Climate Policy Monitor, a new study launched by the University of Oxford.

The study collaborates with 48 leading international law firms and was published during the 2024 United Nations Climate Change Conference which was held from 11 – 22 November in Baku, Azerbaijan (COP 29). The Monitor seeks to provide an in-depth analysis of how economic regulations and policies align with the Paris Agreement objectives across 30 jurisdictions (G20+) including Singapore.

The Monitor will be a regularly updated public resource evaluating the ambition, comprehensiveness, and stringency of climate-related regulations. It evaluates national regulations in three key domains:

  • Climate-related disclosure: regulations that recommend or mandate corporates and financial institutions to publicly report on the emissions associated with their activities and/or their exposure to climate risks.
  • Transition planning: regulations that recommend or mandate corporates to define and/or implement targets towards decarbonisation.
  • Public procurement: regulations that recommend or mandate governments to consider climate objectives in their procurement practices.

Partner Cassandra Lim contributed to the study, focusing on the aforementioned domains from a Singapore perspective:

“We are delighted to have the opportunity to contribute to this meaningful initiative led by the amazing team at Oxford. This research is a critical step towards deeper understanding of the regulatory regimes surrounding climate change for these jurisdictions which in turn help to identify areas where policymakers and regulators can strengthen and align economic rules to cultivate a level playing field for achieving net zero.”

The Monitor’s findings, including details for each participating country, can be accessed at climatepolicymonitor.ox.ac.uk.

1Energy deploys £75m to scale city-wide heat network in Bradford

Bradford College - David Hockey Building

Heat network will address UK’s biggest source of emissions, creating blueprint for national rollout

1Energy, the UK’s leading low-carbon city heat network developer, has secured £75m of investment and three anchor customers for its heat pump-powered network in Bradford. With the support of its key partners – the University of Bradford, Bradford College, and Bradford Courts – the Bradford Energy Network will enable the rapid decarbonisation of heating, the country’s biggest source of carbon emissions.1

With 1Energy recently breaking ground on its energy centre, its novel approach combines £75m of private capital and public investment in Bradford, providing a blueprint to decarbonise cities and towns nationally.2 This total includes £20m of investment from the UK Government’s Green Heat Network Fund.

Using Bradford as a blueprint, 1Energy has ambitions to deploy £1bn within the next eight years into building new city-wide, low-carbon heat networks across the UK, with its innovative model providing the lowest cost, simplest and fastest route to decarbonising heat at scale and a long-term foundation for healthier, greener cities. This will be primarily funded by investment from UK and global institutional investors through Asper Investment Management’s dedicated fund, which supports the development, construction and operation of 1Energy’s heat networks. 

These networks will play a key role in achieving Britain’s climate goals by  providing a locally generated, sustainable alternative to heat produced by fossil-fuel gas boilers, which currently powers over 2 million businesses and 24.5 million homes, throughout the UK.3 The Bradford Energy Network, for example, is projected to reduce the carbon emissions from heating connected buildings by 80 per cent during its first phase, supporting the council’s city-wide net zero targets. Through reducing the country’s reliance on gas for heating, the networks will also bolster energy security while protecting public and private sector organisations against sudden changes in prices.4

Tackling 80 per cent of the UK’s heat emissions

City and town councils, universities, colleges and other leading public sector organisations have set net zero targets that require rapid decarbonisation of heating to drive down emissions. While individual building-level heat pumps can play a role in this for some organisations, they cannot be scaled rapidly or economically enough to support a rapid, low-cost city-wide decarbonisation of heat.

Heat networks offer a viable solution, providing huge efficiencies of scale. Connecting to a heat network is the lowest cost way to reduce carbon emissions from heating at scale, with upfront and operational costs significantly less than individual building-level heat pumps.5

To date, the majority of private heat network developers have been focusing on building heat networks for new buildings, which represents 20 per cent of the challenge.6 This is due to the complexity and costs associated with decarbonising heat in cities and towns – with existing buildings requiring a variety of retrofit measures.

By deploying significant investment and expertise and facilitating the retrofitting of existing properties, 1Energy will address the dominant 80 per cent of the problem, tackling around one third of Britain’s total carbon emissions.

Andrew Wettern, CEO of 1Energy, said: 

“We cannot reach net zero without decarbonising heat. We are proud to be delivering a city-wide solution to this challenge for Bradford alongside the University of Bradford, Bradford College, and Bradford Courts.”

“The Bradford Energy Network is a flagship project in the UK’s transition to low carbon heating. Crucially, it also provides a blueprint for national rollout, successfully demonstrating how to: deploy institutional investment alongside Government funding, deliver savings for customers in the transition, and decarbonise existing and new buildings across a city through an exemplar low carbon heat network.”

“The project is already delivering significant social value and wider benefits to the city – creating new jobs and skills, utilising the local supply-chain and creating a more favourable environment for inward investment into Bradford. Thanks to the support of our key partners, we are able to put Bradford right at the very forefront of decarbonised, healthier cities in the UK and to assist its regeneration and growth.”

Empowering Britain’s youngest city7

The Bradford Energy Network will play a key role in driving a just transition, addressing environmental, health, and economic challenges at the same time. By replacing gas boilers with heat network connections, as well as reducing carbon emissions, the project will reduce other forms of air pollution8 from heating by 75 per cent during its first phase, aiming to further reduce this in future. Additionally, the project will save its three key partners 29,7809 tonnes of carbon dioxide, equivalent to taking over 21,360 cars off the road.10

Representing 54 per cent of the carbon savings among the key partners, the University of Bradford aptly led the charge on behalf of its students – the nation’s next generation of political leaders and engineers.

Through combining long term or ‘patient’ private capital and public investment, the project will support a brighter future for both Bradford – the country’s youngest city and next UK City of Culture – and Yorkshire. Combined with other regional developments, such as the West Yorkshire Mass Transit system, the Bradford Energy Network is laying the foundations for a net zero city. The network will make the area an even more attractive place to invest in and accelerate the growth of the local low carbon employment sector.

Professor Shirley Congdon, Vice-Chancellor of the University of Bradford, said: 

“This represents a pivotal moment for the city and the UK. As an anchor customer of the Bradford Energy Network and strategic partner of UK City of Culture 2025, we are proud to have played a vital role in helping build a healthier, greener Bradford.

”The network provides an opportunity to show the government how to build a brighter future for young people across the country, with other cities following in Bradford’s footsteps. It shows how we as a university, are enabling positive change, for people and planet.”

Chris Malish, Vice Principal of Bradford College, said: 

“Joining the Bradford Energy Network is another significant milestone in Bradford College’s sustainability strategy. After all the planned works are complete, a total annual direct carbon saving of over 285 tonnes per year is predicted, moving us a step closer to achieving Net Zero. 

“Nearly 3,500 staff and students based at our David Hockney Building and Advanced Technology Centre will benefit from this transition to renewable energy. Given Bradford is one of the UK’s youngest cities, it’s vital that we future-proof our region for the next generation, and we are delighted to be at the forefront of this work.”

Ade Alao, Head of Capital Improvement at HM Courts and Tribunals Service, said:

“Our exciting partnership with the Bradford Energy Network will help cut emissions while heating the court for years to come. 

“It will save hundreds of tonnes of carbon emissions over the course of two decades as part of our transition to a more environmentally sustainable courts estate.”

1Energy’s mission is to decarbonise heat in cities and towns across the UK, accelerating the transition to net zero. The company is also developing other heat networks to provide green heat to public and private sector organisations in other cities and towns across the country based on the Bradford blueprint, including Exeter and Milton Keynes.

Join the UK’s leading, innovative organisations and explore a connection to 1Energy’s heat networks at 1energy.uk/networks.

Footnotes

1 Heating accounts for over a third (37 per cent) of Britain’s total carbon emissions (Energy Systems Catapult).

2 Home to over 80 per cent of the population, cities and towns are responsible for the vast majority of emissions (Our World in Data).

3 Energy Systems Catapult

4 1Energy sources 90 per cent of its energy from UK-based renewables, meaning the company is insulated against international price fluctuations in gas.

5 Whilst not every network is the same, Innovate UK estimates that connecting to a heat network could cost 60-80 per cent less than installing individual building-level heat pumps and running costs could be 30-40 per cent lower (Innovate UK: p.31).

6 Approximately 80 per cent of the UK’s 2050 building stock already exists, with the remaining 20 per cent to be delivered in the intervening period (UK Green Building Council: p.40).

7 Bradford Council

8 Nitrous oxides (NOx), sulfur oxides (SOx), and particulate matter (PM2.5 and PM10).

9 The University of Bradford is projected to save 16,000 tonnes over a 20-year period while Bradford College and Bradford Courts will save 5,700 and 8,000 tonnes over the same time period, respectively.

10 This figure was calculated by dividing the total carbon saving (29,780 tonnes) by the average carbon emissions per car per year (1.393920 tonnes), which equals 21,364 (NimbleFins).

Schneider Electric Introduces EcoStruxure™ Building Activate, Simplifying Automated Management for Small and Mid-size Buildings

Schneider Electric, the global leader in digital transformation of energy management and automation, has launched EcoStruxure™ Building Activate, an energy management and automation IoT platform for small and mid-size buildings (>10k sqm each).  

This innovative software platform addresses the growing demand for simple, flexible, and cost-effective solutions that empower building owners and operators to reduce energy and operating costs, comply with energy and decarbonisation regulations, and improve customer retention – all without requiring an onsite facilities manager. 

“Rising costs, shrinking demand for commercial spaces, and updated regulations, and government funding are accelerating building renovation efforts around the globe,” said Kas Mohammed, Schneider Electric’s Vice President, Digital Energy UK&I. “Small and mid-size buildings represent a significant proportion of our built environment, and many will still be in use by 2050. But historically they have lacked access to affordable solutions for energy and operational efficiency. EcoStruxure™ Building Activate fills this gap by empowering our customers to reduce operational emissions and optimise energy use without costly, large-scale overhauls.” 

Ideal for sectors such as retail, hospitality, healthcare, education, and offices, EcoStruxure™ Building Activate is a cloud-based Software-as-a-Service (SaaS) designed to enable simple retrofitting. It eliminates the need for significant upfront costs associated with traditional software licensing and hardware infrastructure. Instead, users pay a recurring subscription fee resulting in lower upfront costs and a faster payback period of up to two years. The system is an open platform that works seamlessly with a wide range of equipment, integrating HVAC, lighting, refrigeration, and more. It is accessible via a user-friendly web and mobile interface.  

This flexible solution lets customers choose the features they need, ensuring they only pay for their necessary selections. Key features include: 

  • Sustainability Management: Reduce operational carbon emissions by up to 60% by monitoring utility data in real time and automating systems. 
    After only six months of using EcoStruxure™ Building Activate’s energy management module, the historic 4-star hotel Grand Monarque saw a 15% energy reduction in its 600-year-old building, thanks to energy consumption insights and monitoring capabilities. Full financial payback was recovered in under 12 months. 
  • Energy Management: Slash energy demand by up to 48% through monitoring, analysing, optimising and controlling energy usage – ideal for facilities with limited or no existing building management system. 
  • Operations Management*: Manage 90% of issues remotely through real-time remote monitoring, control, and optimisation of building systems (e.g. HVAC, lighting, etc.) at the building and portfolio level, cutting operational issues by a third. 
  • Workplace Management*: Improve indoor conditions by up to 25% through monitoring and automatically adjusting air quality, temperature, and humidity levels, creating a healthier, more comfortable environment that is responsive to the needs of employees and customers. 
  • Asset Management*: Reduce asset breakdowns by 30% through instant anomaly alerts and planned preventive maintenance which reduces the risk of disruptions and extends the lifecycle of assets.  

In the era of Electricity 4.0, the convergence of electric and digital technologies is revolutionising energy management. As businesses managing small and mid-size buildings are grappling with how to bridge the gap between sustainability ambition and action, EcoStruxure™ Building Activate emerges to offer one unified solution to streamline their operations for greater efficiency and sustainability. 

To learn more, visit https://www.se.com/uk/en/product-range/254997161-ecostruxure-building-activate/#overview. 

*Available for Enterprise customers with more than 50 sites  

New Whitepaper Seeks to Highlight Hybrid Heat Pump ‘Missed Opportunity’

A whitepaper exploring the policy landscape around hybrid heat pump systems has been launched to provide a series of key findings which inform a recommended rollout of the technology in the UK.

Leading manufacturer of heating and hot water solutions Baxi commissioned Gemserv (a Talan Company) to research and produce the report – entitled Unlocking the Power of Heat Pumps with Hybrid Installations – which was launched at an event in Westminster.

Exploring the suitability of heat pumps deployed in hybrid configuration with new or existing gas boilers for UK homes, the paper highlights series of policy recommendations designed to help accelerate heat decarbonisation. These include consideration for eligibility under the Boiler Upgrade Scheme, better representation of hybrid systems’ carbon saving benefits under the Clean Heat Market Mechanism and a rebalancing of electricity prices to help reduce running costs.

The launch follows the announcement of the government’s Warm Homes Plan, which saw increased funding for the Boiler Upgrade Scheme and a reformed Clean Heat Market Mechanism as part of plans to increase the uptake of heat pumps in the UK.

Building on ambition from the Government to progress heat decarbonisation, Baxi has commissioned the report to demonstrate how hybrid systems could be a key transitional technology to clean heat.

Jeff House, External Affairs and Policy Director at Baxi, explains: “There has been no shortage of ambition to decarbonise heat in the UK, as demonstrated through the Government’s commitment to make Britain a Clean Energy Superpower and the additional support provided through the Warm Homes Plan. However, we wanted to commission this report to demonstrate that there is a real missed opportunity when it comes to including hybrid systems within these policies.

“Whilst heat pumps, whether deployed individually or at the heart of heat networks, will be one of the key mass market drivers of decarbonised heat, we have a responsibility to ensure a balanced and equitable transition in line with consumer needs. A hybrid system offers advantages as a transitional technology, not only in terms of overcoming some technical barriers to make them more cost effective in difficult to decarbonise homes, but also for energy system flexibility and resilience.”

The report also highlights learnings from the rest of Europe, including countries that are incentivising the installation of hybrid systems as a transition technology. For example, following extensive deployment in the Netherlands, the state was considering whether to mandate hybrid systems as the minimum requirement for all retrofit installations.

Jeff continues: “By including hybrids in more incentives such as Boiler Upgrade Scheme and Clean Heat Market Mechanism, we can expect to see the same spikes in uptake that there have been in Europe. Add to the addressing of the gap between electricity and gas prices for householders and we could well see uptake for clean heat technologies accelerate at the rate we need it to.”

The exclusive launch event, which took place on 28th November in Westminster, included an in-depth panel discussion on hybrid systems with industry experts from Gemserv, the Department for Energy Security and Net Zero (DESNZ), the Heat Pump Association and Passiv UK.

To read Unlocking the Power of Heat Pumps with Hybrid Installations, click here.

Vital Energi helping to transform Lancaster West into a carbon-neutral neighbourhood

Vital Energi has been awarded the design and build and operation and maintenance contracts for Notting Dale Heat Network by the Royal Borough of Kensington and Chelsea, to develop a renewable heat network at the Lancaster West Estate in North Kensington, supporting the estate’s transition to carbon-neutrality by 2030.

The design and build contract involves the implementation of eight block substations and two heat supply energy centres, located at Camelford Walk on the roof of Kensington Leisure Centre, which will be taken from the initial design concept through to construction by Vital Energi.  They will also design and install 1,000 metres of new district heating, which will serve renewable heating and hot water to hundreds of homes. The installation of the heat network will help to prevent 1,000 tonnes of carbon dioxide emissions per year.

Currently, the entire network is fed from two gas boilers, one of which is the Camelford energy centre which will be stripped back to the brick to make way for the brand-new green energy centre which will be split across two levels.

As part of the heat network system, the energy centre will house the new plant, including two 1MW electric boilers. The energy centre will also have upgrades made to the external layer, co-designed with residents by award-winning architects Tonkin Liu, which will match the external of the 50m3 thermal store.

The “Energy Tree” located at ground level will provide thermal energy storage to improve network operation. The installation of these renewable technologies will serve heating and low temperature hot water to over 750 properties on the development.

The Vital Energi team delivering the project

“Working with Lancaster West Neighbourhood Team will bring great benefit to the residents and community, and we’re pleased to be helping them work towards their ambitious target of becoming carbon-neutral by 2030. We’re also looking forward to delivering a range of social value initiatives within the community, and growing a thriving partnership,” Gerry Davies, Regional Director for Vital Energi’s London division said.

“Leaving a lasting impact on communities is high on the agenda for Vital Energi.  To date we have employed a local resident on the project, funded several summer holiday activities for local people, and we aim to carry out a number of social value initiatives to educate local residents about the benefits of heat networks, and bring climate change awareness to the younger generation”, he added.

James Caspell, Neighbourhood Director, said “We’re delighted to be working with Vital Energi to bring to life the shared ambition of the council and residents, delivering a green- heat network that provides reliable, decarbonised, and affordable heat and hot water to hundreds of homes on the Lancaster West Estate.”

www.vitalenergi.co.uk.

Insights from EMEX 2024

IAconnects at EMEX, November 2024

From CEOs to sustainability managers, there’s a growing focus on using data to reduce energy consumption, improve efficiency, and enhance carbon reporting. This reflects increasing pressure on organisations to meet sustainability targets while optimising operations. Here, Claire Robinson, sales director at monitoring solutions integrator IAconnects, shares insights from the 2024 EMEX show in London about the importance of monitoring and how to get the best out of energy data.

At the EMEX show in London, I met dozens of sustainability managers, energy managers and heads of companies that were interested in improving their energy monitoring. A key takeaway from these conversations was the ongoing challenge of turning disparate data into meaningful, actionable insights.

While many organisations are gathering data, the ability to analyse and use it effectively remains a significant barrier. So, where do they start?

The consensus is clear: meaningful carbon reduction efforts begin with monitoring. Without a clear understanding of current energy usage and emissions, it’s impossible to set reduction targets or implement effective changes. Monitoring provides the baseline data needed to inform decisions and drive progress.

Despite advances in technology, many organisations still rely on manual processes for reporting and assessing energy data. The automation of reporting and alerts offers a significant opportunity to improve efficiency, streamline decision-making, and reduce the time spent on repetitive tasks.

Working together

One question I walked away from EMEX 2024 with was: Who actually owns energy and sustainability initiatives? Stakeholders span energy managers, sustainability managers, and leadership teams. The ROI of energy efficiency and sustainability initiatives benefits the entire organisation, yet clarity is often lacking on who should drive these efforts.

In reality, achieving meaningful carbon reductions requires the buy-in of employees at all levels. Success lies in influencing behaviour and fostering a culture where everyone feels part of the solution. Education, communication, and empowerment are key to ensuring that carbon reduction becomes a shared responsibility.

Carbon reduction targets are not just aspirational — they are essential. Yet, many organisations are far from achieving them. The importance of reducing carbon emissions cannot be overstated. Immediate action is critical to meet regulatory standards, such as The Streamlined Energy and Carbon Reporting (SECR), and schemes such as The Energy Savings Opportunity Scheme (ESOS). Start with monitoring solutions!

Together, we must move beyond data collection to meaningful action. By prioritising monitoring, automating processes, clarifying accountability, and fostering employee engagement, businesses can address the challenges of energy management and work towards achieving their carbon reduction targets.

For us, EMEX 2024 highlighted the need for leadership, speed, innovation, and collaboration as businesses navigate the path to sustainability and net zero.  The journey to sustainability isn’t without its challenges, but with the right tools, shared commitment, and a clear vision, organisations can transform energy data into impactful actions that drive meaningful change.

IAconnects is a leader in digital transformation and a specialist in system integration. Discover more about its energy saving solutions at iaconnects.co.uk

Thousands of homes set to benefit from low carbon heat as new energy centre opens in Midlothian 

A new energy centre that will provide heat to thousands of homes across Midlothian has opened. 

The project is part of a partnership, called Midlothian Energy Limited (MEL), between Midlothian Council and Vattenfall to deliver low carbon energy projects across Midlothian. The first project is to supply low carbon heat to new homes in Midlothian through the MEL heat network that is planned to expand into existing buildings and other areas in Midlothian and north into Edinburgh. 

Once connected, the MEL Energy Centre will capture low carbon heat from the Millerhill Recycling and Energy Recovery Centre – an energy from waste plant operated by FCC Environment. The new MEL Energy Centre will then use this captured heat to supply around 3,000 homes, education and retail properties at Shawfair Town via the heat network.  

The connection is expected to take place in the middle of next year. In the meantime, the MEL Heat Network will initially run on a low carbon temporary solution in the form of processed waste vegetable oil (HVO), a certificated and traceable low carbon fuel which can reduce up to 98% of carbon emissions compared to gas.   

The MEL Energy Centre is a state-of-the-art facility and represents a significant milestone in MEL and the Scottish government’s commitment to low carbon energy solutions and community development in Scotland. It has been driven from the outset by Midlothian Council in partnership with Vattenfall.  

MEL has received £7.3m funding from the Scottish government’s Low Carbon Infrastructure Transformation Project to develop the heat network. This has unlocked over £40m of private investment into the joint venture. 

Construction of the heat network began in early 2023 and MEL hopes to be delivering heat soon to the first few properties. More homes will be gradually connected to the heat network in the coming years as developers sign connection agreements at Shawfair.  

Shawfair Town, being developed by Shawfair LLP, is one of Scotland’s largest new development projects. It will have three new schools, extensive cycling and walking networks and large areas of public open space – as well as retail, business and community facilities. 

Midlothian Council Leader, Councillor Kelly Parry said: 

“The opening of the centre is an exciting new phase and a significant milestone in our ambitious net zero plans and commitment to reducing fuel poverty for local people. By working in partnership with Vattenfall to serve local communities with low carbon, reliable heat, we really will be changing lives for the better.” 

Ian Meyer, Vattenfall’s Interim Director of Heat Networks in Scotland said: 

“Opening the MEL energy centre is fantastic news with residents of Shawfair Town set to benefit from low carbon heating. Working with our partners at Midlothian Council and FCC, the collaboration underscores our shared commitment to deliver sustainable energy solutions. 

“Heat networks are vital for a sustainable future, cutting carbon emissions, increasing energy efficiency, and providing Shawfair residents with a convenient and simple way to heat their homes.” 

Acting Minister for Climate Action Alasdair Allan said:  

“Heat networks have a major role to play in supporting Scotland’s heat transition. I’m very pleased therefore that the Scottish Government has been able to help this important project come to fruition through our Low Carbon Infrastructure Transformation Programme.  

“This is an excellent example of the importance of attracting private investment for such projects, and it is essential that we keep working together to deliver more low carbon heat networks and communal heating systems,  

“We continue to build on this work through Scotland’s Heat Network Fund, which aims to stimulate and accelerate the delivery of heat networks that will supply affordable, reliable and clean heat, supporting the Scottish Government’s objectives to eradicate fuel poverty and take action on climate change.” 

Heat networks are an essential means of decarbonising heating and hot water on a city-wide scale. They supply multiple properties with heating and hot water, rather than each property having to generate its own – for instance with a gas boiler or heat pump. The heating and hot water are distributed by an underground pipe system to the buildings that are connected to the network.  

These individual homes and buildings still control the heating and hot water in their home, just as they would if they had their own heating system. It is a more efficient and low carbon way of providing heating and hot water to homes and businesses, especially when the heat comes from renewable and low carbon sources. 

Birdsall launch Birdsall Decarbonisation Ltd at EMEX

Mitchell Clarke, Paul Birdsall and Lord Redesdale

Birdsall took the opportunity as an exhibitor at EMEX, the UK’s leading Net Zero show to launch a new company, designed to play its part in the UK Governments strategy todecarbonise the UK economy.

EMEX Expo Conference Chair Lord Redesdale kindly participated in the launch of the company on our stand.

The new company, Birdsall Decarbonisation Ltd, will specialise in decarbonising projects, installing commercial heatpumps for heat networks as well as public and commercial buildings.

The new company will be based in Holborn and will develop its skills to include air sourced, ground sourced and water sourced heat pumps. We plan to build partnerships with design consultants and main contractors to form a specialist team for medium to large sized decarbonisation projects.

We are currently working on a number of exciting opportunities which we expect will become orders in the near future.

The new company Birdsall Decarbonisation Ltd will operate as a sister company to our Birdsall Services Ltd under the ownership of Birdsall Ltd.

Get Ready for “Gate 2 Readiness”

Tessa Petrides, Legal Director – Gillespie Macandrew

The Relevance of Secured Land Rights to the Grid Connection Queue

It is well documented that the process for obtaining a grid connection offer is changing.  The changes have been under discussion for some time now under the banner of “First Ready, First Connected” (or “TM04+”), but the birth of NESO, the new system operator for Great Britain, coupled with the introduction of the Government’s Clean Power 2030 Action Plan (“CP30”) has shone a spotlight on the debate.

At the beginning of November, NESO published a number of consultation documents, including the “Gate 2 Criteria Methodology”.  This particular paper sets out the proposed criteria for projects to become “Gate 2” projects, including securing land rights – in other words, one of the possible criteria to secure their spot in the queue for a grid connection.  

The proposals, aimed at ensuring projects are viable, strategically aligned with CP30 and ready to proceed efficiently, are clearly of huge significance to developers. They create a myriad of requirements for projects to support alignment with CP30 and increase the chances of successful project completion.  However, these measures are also of significance to every professional involved in negotiating land deals for energy projects.  This is because, along with satisfying those other requirements, NESO’s proposals state that if the commercial terms of the relevant land deal do not meet the Gate 2 criteria, the project will not secure that crucial spot in the grid connection queue.

As it stands, the proposed Gate 2 Criteria Methodology requires developers to evidence secured land rights for the area hosting the main generation/storage apparatus for the project, as follows:

 1. Option to take a Lease or to Purchase sufficient land to deliver the project (Option Agreements)

  • If the land is secured through an option agreement, it must be exercisable for a period of at least three years from the agreement date (subject to NESO discretion).
  • There will be an ongoing compliance requirement to keep the land under option by way of extensions or further agreements until the “Completion Date” (contracted connection date).
  • The lease or (if relevant) the purchase conditions must reflect the typical operational timelines for that type of project.  In the case of a lease, it will be for a minimum term of 20 years from the date the option is exercised (unless for a test/demo project or lesser operational life is justified to NESO) to help ensure the project has long term stability.

 2.Existing Land Ownership

  • Existing ownership. Projects can demonstrate that they own the land required for the project.

3 Existing Lease

  • The existing lease must have a remaining minimum term of 20 years from the date of submission of Gate 2 evidence, unless a test/demo project or lesser operational life is justified to NESO, again to help ensure the project has long term stability.

As well as securing land rights, projects will also have to demonstrate:

Minimum Acreage

  • The methodology stipulates the land must meet minimum acreage requirements, fixed for each technology and reviewed each year to ensure sufficient space to operate effectively.

Original Red Line Boundary

  • Developers must submit the original red line boundary plan showing the land secured and fixing that boundary for connection purposes.

The above will be subject to a few exceptions, for example inability to complete an option agreement because of an intervening death of a landowner during negotiations.

There is also the proposal to introduce an alternative route to achieving Gate 2 ready status via a DCO planning route, by submitting a DCO application and receiving a planning reference number from the relevant authority.  As the DCO route is not at present available in Scotland, this would draw a distinction between options available to projects North and projects South of the border.

The satisfaction of the criteria will also need to be verified by NESO through the submission of the relevant documentation. This raises usual issues of commercial confidentiality, which NESO have sought to address by noting that redacted documents will be permitted.

Consultation on these proposals will run until 2 December 2024.  The target date for introducing these requirements is Q2 2025, and crucially it is intended that they will apply retrospectively to the existing queue as well as new projects ahead … land agents and lawyers, take heed.

Discover the best kept ‘Secrets’ to Efficient Energy Management!

Paul Webb’s eighth book, “101 Energy Toolbox Tips for Business and Home” is now available.

This book is a culmination of Paul’s 43-year journey in the energy industry, from his early days at Bradwell Nuclear Power Station to his current role working with top-tier organisations.

“In this book, I share practical, proven tips that will help you achieve your Net Zero targets by 2050 and reduce your energy consumption. Whether you’re managing energy for a large organisation or looking to optimise your home’s energy use, these tips are designed to make a significant impact.” said Paul.

“With eight books under my belt, I’ve dedicated my career to teaching organisations how to manage their third-largest expense. My journey has also led me to become a Podcaster and YouTuber, furthering my mission to spread knowledge on effective energy management.”

He concludes: “Join me on this transformative journey and let “101 Energy Toolbox Tips” be your guide to a more energy-efficient future. Together, we can make a difference for our planet.”

Paul’s books can be found here:  https://www.b2benergybooks.co.uk/

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