Business energy news - September 2016

Our pick of the most relevant energy political and market news items, updated every month.

Man on the phone

Top energy headlines 

Europcar snaps up largest UK order of Renault electric cars

French car manufacturer Renault has delivered its biggest UK order of electric vehicles (EVs) to date, after agreeing to supply 55 all-electric Renault ZOEs to rental company Europcar for its car hire service throughout major UK cities. (www.edie.net)

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Heatwave adds to pressure on UK power networks

UK wholesale electricity prices for the day ahead shot up as a heatwave in some parts of the country helped push up the demand for power. (www.bbc.co.uk)

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PepsiCo extends innovation fund to educational institutions

PepsiCo's recycling branch has announced plans to expand its college and university eco-innovations programme through its Zero Impact Fund, where educational institutions can receive up to $10,000 from PepsiCo to support sustainable initiatives. (www.edie.net)

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Parliament calls for carbon capture to revive British industry and slash climate costs

A high-level Parliamentary inquiry has called for a massive national investment in carbon capture to revive depressed regions of the North and exploit Britain's perfectly-placed network of offshore pipelines and depleted wells.

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E.ON Updates

What is Combined Heat and Power?
Combined heat and power plant

Combined Heat and Power (CHP) is a system that converts your fuel supply into both electricity and heat. In traditional energy production a lot of heat is wasted, but in a CHP system this heat is captured and used. 


CHP is highly energy efficient, and typically a good CHP scheme can provide energy savings of up to 20–30% compared to the separate traditional energy systems it replaces. 

CHP is a long term solution, and along with supplying heat and power it can also deliver a number of financial, performance and environmental benefits. If your business has large energy demands then CHP can provide real opportunities to lower your energy costs and improve your carbon footprint. 

The Carbon Trust recommends that CHP should be considered when:

• Designing a new building

• Installing or replacing a new boiler plant

• Replacing or refurbishing an existing plant

• Reviewing electricity supply

• Reviewing standby electricity generation or plant

• Considering energy efficiency in general

• Exploring options towards building regulation compliance

• Reducing CO2 emissions and environmental impact


To find out more about CHP, please contact your account manager.


Market update

August Market Report

Market summary for August 2016 

Gas: Rough storage announcement eases pressure on the curve. 

Power: Power prices decrease, but retain a premium on the winter peak products. 

Oil: Oil enters a bull market in anticipation of a production freeze. 

Carbon: European carbon prices end the month relatively unchanged.

For a detailed look at the energy markets for the past month, download the full report here.


Political briefing 

The Government have announced that they have approved the Hinkley Point C deal.

The BEIS Secretary of State, Greg Clark, announced that the Government had decided to proceed with the Hinkley project, with important changes. Existing legal powers and a new legal framework would mean that the Government could intervene in the sale of EDF’s stake once the plant was operational. Furthermore, he said the Government would reform the wider legal framework for foreign investment in critical British infrastructure, based around three main elements:

Nuclear power plant• First, after Hinkley, the Government would take a share in all future nuclear new build projects, to ensure that significant stakes could not be sold without Government knowledge or consent. 

• Second, the Office for Nuclear Regulation would require notice from operators of any change of ownership or part ownership. 

• Third, the Government would “significantly reform” ownership and control of critical infrastructure, to ensure that the full implications of foreign ownership were scrutinised for the purposes of national security. Some of these changes will require amendments to primary legislation.

He said the contract negotiated placed risk on investors as opposed to consumers and argued that the deal compared broadly well with the costs of other energy sources like gas and CCS. He also suggested that rebooting the UK’s nuclear industry now would lead to cost reductions in future.

The Labour Party, although supportive of the project because of the jobs it will create, has criticised the Government for agreeing too high a strike price. Shadow Energy Secretary Barry Gardiner suggested that it was unwise for the Government to have re-examined various aspects of the deal but not the strike price. 

high-level Parliamentary inquiry has called for a massive national investment in carbon capture to revive depressed regions of the North and exploit Britain's perfectly-placed network of offshore pipelines and depleted wells
high-level Parliamentary inquiry has called for a massive national investment in carbon capture to revive depressed regions of the North and exploit Britain's perfectly-placed network of offshore pipelines and depleted wells