2020 Carbon Challenge
Help Warwick to hit its carbon targets
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Our target is to emit under 19,000 tonnes per year by 2020, massively reducing environmental damage, and keeping campus the world-class place it is.
If we don't work to cut down the amount of energy we use, we'll emit over 50,000 tonnes of CO2 per year by 2020. As well as damaging the environment, that’ll cost about £19 million per year from 2020. Energy bills like that may well have an impact on campus development and services.
We're always working to make campus a more energy-efficient place, but, if we're going to hit the target, all of our staff and students need to take responsibility for their own energy consumption. We hope these pages will help you to do that.
Read more about how we intend to meet our target
What we've already done to cut carbon
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It's a pleasure to be with you again at this Nuclear Industry Association event to showcase the many benefits that nuclear energy brings to the UK, and to have the opportunity to speak to you all - the people that are instrumental in turning this new nuclear promise into a reality that delivers clean, safe and affordable energy for generations to come.
2013 has been an unprecedented year for the nuclear agenda and this conference takes place at a pivotal time for nuclear power in the UK.
It brings a timely opportunity for me to reflect on the significant milestones we've seen this year, and look ahead to the challenges we must overcome next year as we all play our part in making nuclear new build happen.
HPC Investment Contract
Now, it would be remiss of me not to start with, perhaps, the biggest achievement of the year – the agreement reached with EDF on key commercial terms for a potential investment contract for Hinkley Point C.
Following a tremendous amount of work from many parties we can now look forward confidently to the first new nuclear power station in a generation being built at Hinkley Point.
What we've agreed represents a very good deal for Britain. It's a good deal for UK consumers providing value for money - and also provides an attractive proposition for EDF and its investors - offering a reasonable rate of return for the risks they are taking.
But there are still hurdles to overcome on the path to a final investment decision.
It is dependent on a number of factors, such as a positive decision on State Aid from the European Commission, Royal Assent on the Energy Bill and EDF's progress with potential investors to secure the capital investment needed to deliver the plant.
We will continue to do everything necessary to progress this in a timely way over the coming months.
But Hinkley is not the only success story this year.
As we heard yesterday, HM Treasury have signed a co-operation agreement with Hitachi, Horizon Nuclear Power Wylfa Ltd, to promote external financing for a new nuclear power station at Wylfa, Anglesey.
This agreement will enable access to the UK Guarantee Scheme that will underpin the establishment of external project finance for the 'Wylfa Newydd' project, expected to come on-stream in the first half of the 2020s.
And Government has made good progress over the last 12 months to make new nuclear happen in the UK.
We've successfully completed the first generic design assessment for Areva's UK EPR and starting the process for Hitachi's ABWR design.
We've also introduced a community benefit regime which recognises the contribution of local populations surrounding new nuclear power stations to the long term provision of clean and secure energy for the nation.
And subject to the will of Parliament, we expect the Energy Bill to receive Royal Assent by the end of the year.
We know that investors want certainty from Government and Contracts for Difference will give them the certainty they need.
This Bill will bring unprecedented levels of inward investment into our energy infrastructure, on a scale that will dwarf the Olympics and indeed many other projects in the UK's infrastructure pipeline from transport, water and telecoms.
Global investment climate
Our market reforms have made Britain one of the most attractive investment markets for electricity in the world, and we have seen £35 billion invested in new, green energy generation since 2010.
I and my Ministerial colleagues have spoken with a number of potential international investors over recent months, both at home and abroad. I've been delighted by the strong level of interest in our new nuclear build programme.
The spread of international interest from countries such as Japan, France, China, the US, Canada and Russia shows that our nuclear market is clearly an attractive prospect. Such interest from around the world can only be a good thing.
Consumer energy prices
And on that very subject, the Government is very aware that rising energy prices are hitting many households hard at a difficult time. We are also facing a looming energy crisis in the next decade thanks to years of neglect and underinvestment.
The best way to keep everyone's bills down is to help people to save energy, ensure fair tariffs and encourage competition. That is exactly what the Government is doing.
New nuclear will increase energy security and resilience: a safe, reliable homegrown source of electricity that reduces our reliance on foreign gas imports and the associated volatile prices.
Hinkley Point C represents the start of investment in a new fleet of nuclear power stations. This is expected to reduce domestic bills by around 11% by 2030 (or around £77 per year) compared to a non-nuclear future.
And the Hinkley agreement is good value for money compared to the alternative. The strike price will be competitive with large scale renewables and with gas fired generation, based on our current projections.
In addition to the headline grabbing milestones that I've already mentioned a lot of work is underway to prepare the ground for new nuclear and ensure that the UK nuclear sector remains vibrant in the longer term. To achieve this, Government and industry are working together in partnership.
A very successful third meeting of the Nuclear Industry Council (NIC) took place in mid November, as many of you in the audience will be aware.
Absolutely central to ensuring UK businesses win contracts in the nuclear markets is the Council's Business Capability workstream. As joint Minister for Business and Energy this is an area where I have a strong personal interest and I was pleased to hear the progress being made on this front. This work requires an effective dialogue between developers and the rest of the supply chain, underlining the importance of the collaborative nature of the Nuclear Industry Council.
While the Council's objectives have timeframes that span decades, it was agreed that work must gather pace now if we are to help UK companies seize the window of opportunity for Hinkley work, as well as other developments.
The NIA Programme Management Board has a key role in this area. With my colleague Lord Hutton, a long-time champion of the industry, as Chair of the NIA, I have every confidence it can drive forward this important work in the coming months.
Nuclear skills and supply chain opportunities
Key to the successful delivery of the new nuclear fleet will be a strong domestic workforce and supply chain.
The opportunities are huge and are there for the taking. For example, Hinkley Point C will inject £16 billion into the economy – with the potential for British firms to get the majority of the work.
When we consider the global picture, the opportunities for the UK are also enormous. An estimated £930 billion of investment is projected for nuclear new build globally, with international procurement running at about £25 billion every year from now to 2025.
I want to see the UK take advantage of this and for our nuclear industry to become a global leader.
To highlight the opportunities that Hinkley Point C represents for UK business EDF are holding a conference next week (9 December). The event is targeting Tier 1 and Tier 2 supply chain companies to help them understand the opportunities available and how they can access them. I will be there to support this event as it is an area that I am very much committed to.
Furthermore, I am delighted to announce today the launch of a partnership between AMEC and the University of Manchester's Dalton Nuclear Institute.
This partnership supports strong collaboration between industry and academia, one of the cornerstones of the Nuclear Industrial Strategy, and will support the UK in exporting its skills and expertise overseas ensuring that we keep our rightful place as the leader in the nuclear sector.
I call on all of you to make the most of the opportunities that exist; both in new build but also in maintenance, life extensions, decommissioning, waste management and environmental remediation. Even gaining a modest proportion of the global market in those areas will provide huge business prospects for our areas of expertise – in design, engineering, project management, professional consulting and so on.
We have done a lot but we need to do more / Challenges ahead
So as we move towards Christmas our thoughts turn to the new year ahead and the challenges we face.
I am looking forward to seeing the regulators move to the detailed Step 2 for Generic Design Assessment of the ABWR and to the department receiving an application for Regulatory Justification of the ABWR.
And we must not forget the need to manage our waste legacy. This has been ignored for too long and we must tackle this issue once and for all.
So it is important to mention that, alongside our commitment to new nuclear build, we continue work to implement a means of managing higher activity radioactive waste in the long-term, which we know is vital to public confidence in the nuclear industry.
We remain committed to our policy of geological disposal, and to the overall Managing Radioactive Waste Safely programme. However, we believe that some changes are needed to the selection process for a geological disposal facility, and today is the closing date for a public consultation on potential revisions to that process.
I hope many of you have already taken the opportunity to respond to the consultation and to engage with the policy team, who have been discussing the proposals with a wide range of stakeholders. It is important that we can draw on the real experiences and knowledge of those involved in the industry as we seek to map out a successful path to delivery of a permanent waste management solution.
I am also sure there will be an ongoing role for the industry itself in helping to communicate a clearer picture of the realities of this issue. This needs to be seen as just another step in the process of managing nuclear materials safely, for the benefit of society and not as some sort of uniquely difficult problem to be avoided.
And so to finish as I began let me say how delighted I am to see you all at today's event.
As Minister for both Business and Energy, I want to see the UK nuclear industry flourish as a global leader in this sector.
I want to see everyone here embracing the challenge we have ahead of us.
And I want to see the continuation of a genuine partnership between government and industry towards making this happen.
I am delighted to have the opportunity to join you today at this Supply Chain conference for Hinkley Point C. These are exciting times, particularly in respect of the UK's new nuclear programme. As you will already know - several key milestones in the Hinkley Point C programme have already been reached;
In November 2012 the ONR issued a nuclear site licence for Hinkley Point C.
In December 2012, following a five-year assessment of the generic design, the nuclear regulators confirmed that the UK EPR reactor is suitable for construction in the UK.
On 19 March 2013, the Secretary of State announced his decision to grant planning consent for the Hinkley Point C project.
And on 21st October the UK Government and EDF Group announced that they have reached commercial agreement on the key terms of a proposed investment contract, the 'strike price', for the Hinkley Point C nuclear power station
Lastly, and subject to the will of Parliament, we expect the Energy Bill to receive Royal Assent by the end of the year.
And while state-aid approval from the Commission and third-party financing is still to be secured - the significant progress made has cleared the path for starting the construction of the first new nuclear reactor to be built in the UK for 30yrs.
I would like to take this opportunity to pay tribute to the hard work and dedication of EDF Group and their partners in getting to this point. However, we have now reached the stage at which EDF Group, with their partners, cannot continue this project alone. This is the point at which the supply chain, working collaboratively, must engage and begin the process of turning the Hinkley Point C approved designs and plans into a physical reality. This is the point at which your expertise, skills and determination will take this project from the drawing board to producing 3.2GW of low-carbon power annually for the UK for over 60 years.
It is heartening to see so many highly skilled and capable firms in the room wanting to be part of this project and I know that you represent just a cross section of those who wish to be involved. It gives me great confidence in the success of the project - and the importance of this project being a success cannot be overstated. But It is also important to remember that Hinkley represents the first of a whole fleet that will hopefully be deployed in the medium-term so it is essential to take a long-term perspective of the supply chain opportunities that new nuclear brings. Building safe and secure nuclear power stations that generate carbon-free electricity - and doing it to time and budget - while also enhancing the UK's industrial and economic landscape, are crucial components underpinning the broad public support for new nuclear power in the UK. A significant failure in this regard would be to the detriment of our wider programme. The stakes are high and the challenges significant, but the opportunities are great.
Why does the UK need new nuclear?
It is worth taking a moment to remind ourselves on why new nuclear is important. It is without doubt, a safe, proven low carbon technology that can contribute to the UK's future energy security, helping to ensure a diverse mix of technology and fuel sources over the long term.
And it will do this in a way that doesn't pump harmful carbon emissions into the atmosphere.
In addition to helping the UK meet its energy needs and its environmental commitments, new nuclear power stations will create outstanding opportunities for the UK economy both via investment and jobs at Hinkley Point C and the follow-on developments.
Civil nuclear is a key growth industry that provides highly skilled jobs. The full 16GW of new build capacity planned by industry could support an estimated 29,000-41,000 jobs across the nuclear supply chain at the peak of construction activity, with industry investment equating to around £60 billion.
So I have explained why both the new nuclear programme and Hinkley Point C specifically is important to the UK, but why should it be important to you as a potential supplier. Why should you get involved? What's in it for you?
Why should you be involved?
The simple answer, apart from hopefully making a reasonable profit on your contract, is one of opportunity.
Involvement in this project gives you the opportunity take advantage of the entire UK new build programme right from the start.
It gives you the opportunity to benefit from Billions of pounds worth of manufacturing contracts for Hinkley Point C alone.
It gives you the opportunity to be identified as part of the 'baseline' supply chain for all EPR reactors that may be built in the UK in the future.
It gives you the opportunity to develop partnerships, both with other UK firms or with overseas companies to expand your offerings and provide new and innovative solutions.
It gives you the opportunity to be recognised as a suitably qualified nuclear supplier, with recent UK new build experience, to nuclear developers with an investment programme for the UK that equates to around 60 Billion pounds in total.
Finally, it gives you the opportunity to use the skills, expertise and partnerships developed on this project to strengthen your ability to look beyond the UK market and access the staggering 1.5 trillion dollars worth of new build investment in new nuclear build predicted globally by the World Nuclear Association by 2025, across circa 30 countries.
Your being here today is evidence of your desire to be involved in this project and beyond. I know that it has taken longer than we all would have wanted to in order to get to this stage.
But we are now at a stage where practical action is essential to ensure that that firms stand ready and able to access the new build opportunities when they arise and win the contracts on the strengths of their bids. In order to do that, companies need confidence that the new build programme will indeed take place. The recent agreement announced between EdF Group and the UK Government is a clear demonstration to the supply chain of our commitment to new build. In addition, companies need much more information to be disseminated across the supply chain on the nature of the work packages involved, the estimated schedules and timeframe's associated with projects. There also needs to be strong partnership working between the developers, their top tier contractors and the rest of the supply chain. That is why events like this one today, are so important.
I've explained some of the benefits I believe you will gain by being involved in this project and what can be reasonably be expected of the developers and the top tier contractors but what will be expected of you in return? No company can expect to win such a prize without effort as you are all very aware.
What is expected of the HPC Supply Chain?
So what will be expected of the Hinkley Point C supply chain?
Well, EDF Energy will explain in greater detail their expectations for their supply chain during today's event and I'm delighted to note the publication of their accompanying guide on the detail of being a HPC supplier. However, I'd like to make you aware of the UK government's expectations.
Firstly, and most importantly, we expect the highest standards of safety and compliance to all requirements of the UKs independent nuclear regulator. The British people quite rightly expect, and trust, that the new nuclear programme will not compromise the very high safety record that has built up over decades of safe nuclear operations and decommissioning activity across the UK. The ongoing acceptability of nuclear power in the UK and beyond depends upon this.
You have an obligation to ensure that nothing you do in any of your operations has a detrimental effect on the trust that has been placed on you and the UK nuclear industry.
Secondly, all suppliers must comply with the proscribed codes and standards for this design. I know that these will be the subject of further discussion during the event today, as EDF Energy and their partners provide more detail of these, so I will not dwell on these.
Thirdly, all suppliers must be cost competitive. No company should expect to win a contract on this project unless they are cost competitive. No company can expect to win a contract just because they are British, or indeed, just because they may be part of an established developer supply chain.
This is important not just for the developer but also for the UK taxpayer who as the right to expect, as promised in the 2008 white paper, that nuclear power is cost competitive with other forms of low carbon energy.
These three requirements are simple to explain but, I know are not always simple to achieve so, quite rightly the government will be right alongside you in helping you to achieve these.
Support HMG will provide:
The British government is committed to providing the supply chain with the support needed to ensure they have both the capability and capacity to take full benefit from the opportunities I outlined earlier. The newly formed Nuclear Industry Council has been created to ensure both Government and Industry do just that. I am privileged to Chair the Council alongside the Secretary of State for Energy and Climate Change and Lord Hutton and have seen first-hand the robust conversations that take place to develop and target the support required.
Specifically for the manufacturing supply chain this support comes, to name just 3 of many groups, from;
The Nuclear Advanced Manufacturing Research Centre to help both develop the capability of individual firms and to ensure, via use of our world class R & D facility in Rotherham, that we can develop the advanced manufacturing techniques required to support both this and the next generation of reactor designs.
The Manufacturing Advisory Service to provide tailored business support in order to help you, the manufacturer, streamline your processes, reduce waste, become more energy efficient and generally improve and grow your businesses
And the National Skills Academy for Nuclear Manufacturing to both identify and develop the highly skilled resource that is the bedrock of the manufacturing supply chain.
Members of these groups are here today, along with many others who will be providing much more information on all the support available to you.
In addition to these I am delighted to announce that early in 2014, up to £13 million will be made available jointly by the UK's Innovation Agency, the Technology Strategy Board, the Department of Energy and Climate Change and the Nuclear Decommissioning Authority to help UK-based businesses take advantage of the opportunities that arise from the UK's new nuclear programme. This is part of a drive to grow a robust and sustainable UK supply chain by developing innovative products and services for the nuclear sector. The initiative will focus on key technology areas such as construction, manufacturing, operation, maintenance and decommissioning & waste. This funding competition will open on the 17th March 2014.
Finally I want to strongly welcome the earlier announcement made by Humphrey Cadoux-Hudson on the launch of the Nuclear Supply Chain SME Partnership. Developing strong partnerships and regular, shared communications across the supply chain will be critical to the successful delivery of the UK's Nuclear programme and I believe that this group will be a vital component in achieving this.
In summary, the Hinkley Point C project is a fantastic opportunity for you to become part of the firm foundations on which the UK's new nuclear renaissance will be built.
And today is a fantastic opportunity for you to find out, at first hand, both what you need to do to take advantage of this opportunity as well as where you can go for help.
I wish you all a very successful and productive conference and a successful future in the Hinkley Point C project and beyond.
14:30, Mon 9 Dec 2013
A British enterprise has been awarded a contract worth £3million to spur on innovation in energy storage, Energy and Climate Change Minister Greg Barker announced today.
The contract has been awarded to EValu8 Transport Innovations Ltd, on behalf of the EVEREST Consortium, as part of the Department of Energy and Climate Change's innovation competition to support energy storage technology.
EVEREST will use the funds to develop a new storage system, partly made out of recycled batteries from electric vehicles, that will store renewable energy generated at times of low demand for use at times of peak demand.
Energy and Climate Change Minister Greg Barker said:
"The ability to store energy for use at peak demand will become increasingly important in the move towards a low carbon economy.
"This investment will give EVEREST the boost it needs to develop energy storage designs, helping cut costs and bringing new technologies to market in this sector".
Keith Bevis, Managing Director of EValu8 Transport Innovations said:
"Low carbon and renewable energy technology is essential for the economic growth of the country.
"We are delighted to be working with this excellent consortium that brings innovation to support the expansion of Plug-In-Vehicle infrastructure and rapid charging. We see real potential for this energy storage solution to extend into a variety of other markets."
Notes for editors:
DECC supports innovation in low carbon technologies to help meet the Department's goal of delivering secure energy on the way to a low carbon energy future.
The EVEREST (Electric Vehicle Embedded Renewable Energy Storage and Transmission) Consortium will demonstrate its project at the Lotus Engineering test centre in Hethel, Norfolk. The EVEREST consortium members include: Evalu8 Transport Innovations Ltd (lead contractor); Future Transport Systems Ltd; Lotus Engineering Ltd; Goodwolfe Energy Ltd; APT Technologies Ltd; and Circontrol. For more information about the project, contact Hannah Broady firstname.lastname@example.org.
EVEREST has been awarded contracts under the second phase of a £17m energy storage technology demonstration SBRI (Small Business Research Initiative) competition launched in October 2012, to test designs of energy storage on the ground and to support cost reduction in storage technologies.
13:25, Mon 9 Dec 2013
We have started a LinkedIn discussion on ways to improve the non-domestic RHI scheme ahead of a review next year.
Since it was launched in November 2011 the non-domestic RHI has driven the uptake of 0.5 TWH of renewable heat and given out £21.8m in incentive payments.
To date our focus for the RHI has been on maximising the cost effective deployment of renewable heat (within budget), addressing key issues and extending the scheme to other renewable heat technologies.
But we feel we can do more to improve the quality and value for money the scheme offers, as well as increase the quantity of heat deployed.
To help us achieve that we want your views. Tell us what works, what doesn't and share your ideas for improvements or quick-wins.
As a starter for ten we're thinking of framing the review around three themes:
- Improving performance and efficiency: How to measure and evaluate the performance of non-domestic installations to make them more energy efficient over time?
- Developing the market: What other technologies should be included in the scheme?
- Simplifying the administrative burden: Can we streamline application, accreditation and reporting processes and requirements to reduce costs to industry and Government?
These are just suggestions. If you have other ideas for key themes please let us know.
To avoid creating uncertainty in the market there are some things we don't plan to consider as part of the review. These include:
- changes to new tariffs
- questions about the tariff setting methodology The review will also have to align with other government plans and activities in this area.
But aside from those we're looking for good ideas to help improve all aspects of non-domestic RHI.
So please take part, share your views and help us make non-domestic RHI work better for everyone.
Please comment by Friday 20 December
11:48, Mon 9 Dec 2013