Tag Archives: HM Government

• Competition drives down the cost for consumers – new offshore wind projects will be delivered as low as £58/MWh from 2022-23
• Further boost to the UK’s low-carbon supply chain, as part of the government’s ambitious Industrial Strategy and upcoming Clean Growth Plan

Eleven new energy projects worth up to £176m per year have been successful in the latest competitive auction for renewable technologies, the government has announced today (Monday 11 September).

The projects, which are set to generate over 3GW of electricity, enough to power 3.6 million homes, demonstrate that the UK continues to be an attractive place to invest in clean energy.

The government is committed to investing in clean technology and driving economic growth as set out in our ambitious Industrial Strategy and upcoming Clean Growth Plan.

The competitive approach is continuing to drive cost reductions in the renewable energy industry – the cost of new offshore wind projects starting to generate electricity from 2022-23 are now 50% lower than the first auction held in 2015 (1). The other successful technologies, Advanced Conversion Technologies and Dedicated Biomass with Combined Heat and Power, also achieved significant savings.

Competition has also driven down the costs for consumers. The capacity delivered in this auction cost up to £528m per year less than it would have in the absence of competition.

Projects are to be delivered across Great Britain from Wales, to the Scottish Highlands and the West Midlands from 2021.

Minister for Energy and Industry, Richard Harrington, said:

We’ve placed clean growth at the heart of the Industrial Strategy to unlock opportunities across the country, while cutting carbon emissions.

The offshore wind sector alone will invest £17.5bn in the UK up to 2021 and thousands of new jobs in British businesses will be created by the projects announced today. This government will continue to seize these opportunities as the world moves towards a low carbon future, and will set out ambitious proposals in the upcoming Clean Growth Plan.

This investment will help the UK meet its climate targets while supporting jobs in Britain’s growing renewable industry. The UK has the largest offshore wind capacity in the world and low carbon businesses have a combined turnover of £43 billion, employing 234,000 people.

Notes to Editors

The Contract for Difference auction results can be found here.

Contracts for Difference, which provide long-term certainty for investors, are designed to drive investment in a new generation of clean, secure electricity supplies. This is the second round of Contracts for Difference auctions, with the first held in 2015. Successful projects receive 15 year contracts.

(1) The cost of offshore wind projects are now 50% lower than the first auction held in 2015 when comparing the lowest clearing price for successful offshore wind projects commissioning in 2018/19 and the lowest clearing price for offshore wind projects commissioning in 2022/23.

Total budget impact for contracts allocated in the second CFD auction round is forecast by National Grid at up to £176.2m/year (in 2012 prices). However, actual annual spend will depend on how wholesale prices and project-specific operational factors change over time.

The Low Carbon Contracts Company (LCCC) now has 10 working days in which to make an offer to successful developers. Developers then have 10 working days after the offer is made to return signed contracts.

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An historic signing ceremony took place today (Monday, September 11) to ratify the development of a compound semiconductor industry cluster in South-East Wales.

The signing followed an agreement in May by the Cardiff Capital Region (CCR) Regional Cabinet to contribute £37.9 million from the CCR City Deal’s Wider Investment Fund towards the establishment of a major, cutting edge facility, as an anchor in the region for high end production of compound semiconductors.

The aim being to support the development of a compound Semiconductor Industrial cluster in the region, with the potential to:

• lever £375m of private sector investment,
• create up to 2,000 high skilled jobs,
• return the investment for use on other regional schemes, and
• create hundreds more jobs in the wider supply chain cluster

It is the first such investment since the £1.2 billion CCR City Deal programme was formally signed by the leaders of the ten local authorities in the region on March 1.

The facility at Newport will be owned by the 10 Councils in the Regional Cabinet under the special purpose vehicle ‘CSC Foundry Limited’ / ‘LDC Ffowndri’ and the space leased to IQE plc for compound semiconductor manufacturing and applications development, helping the establishment of the world’s first Compound Semiconductor Cluster, CS connected, in the region.

The project is not a grant or a loan – it is a commercial investment with ownership of the foundry shared between the 10 Councils. The proposal seeks to return the original investment plus interest over the life of the project.

The project was formally confirmed in a signing ceremony today at IQE’s headquarters in Cardiff by Secretary of State for Wales, The Right Hon. Alun Cairns MP, Welsh Economy and Infrastructure Secretary Ken Skates, CSC Foundry directors Councillors Bob Greenland (Monmouthshire) and Andrew Barry (Merthyr), and IQE chief executive Dr. Drew Nelson.

The CCR City Deal seeks to position the region as the global leader in compound semiconductor-enabled applications, which was initiated by a £12 million investment from the Welsh Government.

In 2016, Innovate UK – the UK Government’s innovation agency – announced a £50million investment to establish a new Compound Semiconductor Applications Catapult in South-East Wales. This new Catapult will build on existing investment by Cardiff University, IQE, and Welsh Government.

Councillor Peter Fox, Leader of Monmouthshire County Council, and Deputy Chair of the CCR City Deal Regional Cabinet, said:

The objective of this commitment is to create a complete compound semiconductor eco-system in South Wales to take advantage of the growing prominence of compound semiconductor technologies.

The opportunity this investment creates, to help the establishment of the world’s first compound semiconductor cluster in South East Wales, should not be underestimated

It has the potential to place our region at the heart of this cutting edge sector and will require the development and integration of a compound semiconductor supply chain in South Wales, with the economic and social benefits that will bring.

Secretary of State for Wales Alun Cairns said:

Compound semiconductors are at the heart of many devices we use today, from smart phones to tablets and satellite communication systems. It is an area of UK strength and today’s confirmation of the development of a cluster of excellence in Wales reinforces our own strong position in the growth of this important and growing technology.

Of course, government does not create innovation, but it can be a catalyst to getting the scientists and engineers, the designers and the entrepreneurs together to make it happen.

This collaboration is important because innovation is a shared endeavour and I look forward to seeing the cluster take shape and create a lasting engineering and manufacturing legacy in Wales.

Economy Secretary Ken Skates said:

It is hugely encouraging that Welsh Government’s initial £12m investment in developing the cluster back in 2015 has been the catalyst for today’s announcement that IQE plans to expand into the City Deal’s new facilities. Not only is it extremely exciting news for the Welsh economy, securing additional jobs and investment, but it further cements Wales as a world leader in this state of the art technology.

With the world’s first compound semiconductor cluster located here in South East Wales, we are punching well above our weight in developing technology which not only plays an increasingly vital role in the way we live our lives today but will drive innovation which will shape the world we live in tomorrow.

Dr Drew Nelson, Chief Executive of IQE plc said:

Compound semiconductors are rapidly defining 21 century technologies and Wales is uniquely positioned to be centre stage of this global, high-tech industry sector.

This dedicated compound semiconductor facility between Cardiff and Newport will act as a key component of the burgeoning cluster that is already cementing Wales reputation for for technology leadership.

The initiative is a shining example of what can be achieved through collaboration. The Welsh and UK governments, along with the ten councils that form the Cardiff Capital Region, have worked closely with academic institutes and industry to build an innovation infrastructure that will support and nurture the region as a true global player in new and emerging technologies.

The facility will become the base for a number of compound semiconductor related activities, including IQE, where we expect to rapidly expand our production capacity to meet increasing demand for our technology.

Notes to editors:

• The Compound Semiconductor Cluster builds on Wales’ recognised company strengths to create critical mass and commercial value in the supply chain by bringing together next-generation semiconductor materials and end-user applications such as 5G smart phones, the Internet of Things, tele-health and autonomous vehicles
• Compound semiconductors are more complex than silicon technology and offer lower power consumption, higher operating speeds and temperatures, light-emitting and detecting properties

• Four translational infrastructure pillars are already operational and bridge the so-called “valley of death”, pulling through early stage academic research into commercial activity. They include:

  1. Institute for Compound Semiconductor Technology, at Cardiff University, part-funded by Welsh Government.
  2. Compound Semiconductor Centre – a joint venture between IQE plc and Cardiff University
  3. Compound Semiconductor Applications Catapult, funded by InnovateUK
  4. Future Compound Semiconductor Manufacturing Hub at Cardiff University, funded by EPSRC
  5. The Cardiff City Deal is a £1.2 billion deal to unlock significant economic growth across the Cardiff Capital Region (CCR)
  6. The specific aims of the CCR City Deal can be summarised to: improve productivity; tackle worklessness; build on foundations of innovation; invest in physical and digital infrastructure; provide support for business; and ensure that any economic benefits are felt across the region

• The Shadow Regional Cabinet comprising the leaders of the 10 local authorities in south east Wales was set up in 2016 to provide the leadership, vision and strategic direction for the Cardiff Capital Region; help shape and manage the City Deal programme and structure; integrate and align the City Deal agenda with the Metro; prioritise projects which demonstrate the potential to achieve real economic improvements across the region; establish a secure platform for development encouraging alignment of relevant functions and activities and strategic application of funds as part of a fully integrated City Region approach; engage with wider stakeholders to encourage and support a collaborative approach to make the Cardiff Capital Region a success.

• The ten local authorities are: Blaenau Gwent, Bridgend, Caerphilly, Cardiff, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen, The Vale of Glamorgan.

• The City Deal includes funding of £734m for the South Wales Metro, of which over £500 million is provided by the Welsh Government and £125m from the UK Government.

• The CCR Deal was formally signed on March 1, 2017, and the Regional Cabinet came out of shadow, and the programme entered a transition phase

• The Cardiff Capital Region Transition Plan will detail key activity to be undertaken, including establishing a Regional Office to drive the delivery of the Regional Cabinet’s work programme in anticipation of receiving proposals. This includes the creation of a bespoke impact assessment model for those proposals.

• The transition phase will also see the creation and development of three advisory bodies to the Regional Cabinet – the CCR Economic Growth Partnership, a region-wide business representation organisation, and an Employment and Skills Board, and one delivery body, the Regional Transport Authority.

• The ten partnering Councils approved the Cardiff Capital Region City Deal (CCRCD) Wider Investment Fund (WIF) totalling £495 million, consisting of £375 million grant from HM Treasury, passported via Welsh Government over the next 20 years. The remaining £120 million will be contributed by the ten partnering councils based on their respective population base and is currently modelled as being 100% capital in nature.

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I’ve just come out of COBR where we’ve again been discussing the catastrophe that’s engulfed our friends in the British Virgin Islands, in Anguilla and Turks and Caicos, and of course across the Caribbean, the victims of Hurricane Irma.

It was a mercy that Hurricane Jose proved less destructive than had been feared, but now we’re stepping up our aid effort. Three planes going in today, 500 British troops in the region, 125 UK soldiers on British Virgin Islands alone. As I speak, 53 UK police officers in the air, on their way to help sort things out, get these wonderful places back on their feet.

If you want to donate to help British people over there in the Overseas Territories, then we will match your contributions to the Red Cross, pound for pound.

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On a screen in the Foreign Office Crisis Centre, Hurricanes Irma and Jose are being tracked across the Caribbean – mile by devastating mile.

Britain would help any human being caught up in these forces of nature. But we have a special responsibility today because Hurricane Irma inflicted its most powerful blows upon British Overseas Territories, inhabited by 75,000 British citizens.

First was Anguilla, where Irma knocked out the power and cast the island into darkness, then came the British Virgin Islands – which have borne the brunt of the storm – followed by the Turks and Caicos.

I watched the 2 hurricanes swirl across the screen in the Crisis Centre where dedicated staff from the Foreign Office and the Department for International Development have been working around the clock since Wednesday.

They’ve been dispatching emergency supplies, mobilising ships and planes and trying to second guess nature by anticipating exactly what help would be needed, where and when.

Their task is complicated by the fact that they are dealing with not 1 storm but 2. Following closely behind Irma is Hurricane Jose – the first time that 2 category 4 or above hurricanes have struck in such quick succession since records began in 1851. To all intents and purposes, this is an unprecedented situation.

The Crisis Centre got through to Tim Foy, the Governor of Anguilla, who briefed me in calm and measured tones. The power station on his island had survived, he said, but 70 or 80% of the transmission poles had been toppled, depriving everyone of electricity.

I thought of the 15,000 Brits living in darkness on Anguilla, with destroyed homes and schools all around them, having endured one hurricane and now in the path of another.

But the Governor was full of praise for the immediate help provided by the men and women on RFA Mounts Bay. The government dispatched this 16,000-ton naval supply ship to the Caribbean in July in preparation for the hurricane season. She carries her own floating dock, a Wildcat helicopter and a special disaster relief team.

And the Governor described how these skilled personnel had managed to restore power at Anguilla’s hospital, rebuild the emergency operations centre and – perhaps most valuable of all – clear the runway and make the island’s airport serviceable.

RFA Mounts Bay has now been repositioned to do everything possible to help the British Virgin Islands. But we must be humble in the face of the power of nature. Whatever relief we are able to provide will not be enough for many who have lost so much – and their ordeal is not over.

A crisis like this brings out the best in Britain’s public servants. We can all take pride in people like Tim Foy and the other Governors of the stricken islands, the staff of the Foreign Office Crisis Centre, and the crew of RFA Mounts Bay. All are striving tirelessly to help those in need.

And so they must because the people of Anguilla, the British Virgin Islands and the Turks and Caicos are British. Our obligation to them does not depend on the happenstance of geography: we will help just as surely as if the hurricane had struck Inverness or Dover or St Ives.

It is precisely because of this overriding sense of obligation that the government has ordered the flagship of the Royal Navy, HMS Ocean, to head the Caribbean. Our biggest warship in service – carrying eight helicopters including 2 giant Chinooks – has left its NATO tasking in the Mediterranean and begun steaming westwards with all dispatch. HMS Ocean will cross the Atlantic and reach the Caribbean in about 10 days.

There is, of course, a desperate need for aid in the meantime. On Friday a giant C-17 transport aircraft from the RAF took off for the Caribbean, laden with enough emergency shelters for almost 1,000 people. In total, almost 20 tonnes of aid has already been sent by air, including rations, water purification kits and emergency lighting.

Expertise matters just as much as materiel, so 250 Royal Marines have been deployed in the region, including military engineers and medics.

They will reinforce the 40 personnel of the humanitarian and disaster relief team on board RFA Mounts Bay, whose excellent work has made such a difference in Anguilla.

In a situation where roads are blocked and communications disrupted, helicopters are essential assets. So a second C-17 left the UK on Friday carrying 2 Puma transport helicopters. They will join the Wildcat already deployed by RFA Mounts Bay.

We can be reassured that a great deal of aid has either arrived or is en route. But heartbreaking damage has been inflicted and no-one should assume that everything will go smoothly in the crucial days that lie ahead.

We are working alongside our friends, including France and the Netherlands, whose Caribbean territories have also suffered terribly, and the United States.

And the government has promised to match what I know will be the generous donations of the British public pound for pound.

We must now look ahead to where Irma will strike next. On Sunday the hurricane is expected to make landfall in Florida, where hundreds of thousands of Britons either live or go on holiday. Our Consul General in Miami is making every preparation.

In the coming days, our fellow Britons will be caught in the pathway of these forces of nature. We will not relent in our efforts to give them every possible help.

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