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Tuesday 28 June 2022 8:33 am  |  Updated:  Tuesday 28 June 2022 6:02 pm

Fossil fuels spared emissions checks as UK scrambles for supplies ahead of winter

By: Nicholas Earl

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Since 2016, the world's 60 largest banks have poured more than $3.8 trillion into the fossil fuel industry, a new report released today has shown.
According to an annual report from the Rainforest Action Network, the FTSE 100’s five banking giants invested $35.7bn into fossil fuel companies in 2022, down from $51.6bn in 2021.

Fossil fuel power plants could be temporarily excluded from emissions checks, as the Government races to secure energy supplies ahead of winter.

Coal and gas stations providing back-up supply next year will no longer have to get reports on their emissions signed off by an independent expert, according to The Telegraph.

The changes are being proposed by Whitehall officials with Downing Street desperate to prevent blackouts this winter amid continued disruption of gas flows from Russia into Europe.

There is growing concern the Kremlin will shut off gas into Europe entirely, in retaliation for Western sanctions imposed in response to its invasion of Ukraine.

While the UK only relies on Russia for four per cent of its gas imports, Russia is Europe’s biggest customer and without its supplies – the UK will find itself in competition with dozens of countries for oil and gas.

Worst-case scenarios modelled in Whitehall indicate 6m households could face black-outs if this winter if Russia turns off the taps.

The UK has recently reached an agreement with EDF to extend the life of West Burton Power A Station in Nottinghamshire over the coming winter, and is in talks about extending the two other remaining coal plants operated by Uniper and DRAX.

It is also weighing up the potential opening of a new coal mine in Cumbria, and is expected to receive the geological survey on fracking this week – which could pave the way for a revival of the process.

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Grid operator issues fresh heatwave warning over power supplies

Air conditioning vents in a grid pattern, illustrating cooling solutions during a heatwave

Gas quality rules could also be relaxed to allow more from the North Sea into Britain’s pipes. 

Explained: Emissions checks for fossil fuel plants

Fossil fuel facilities bidding to take part in National Grid ESO’s market for back-up power supply have to declare carbon emissions in line with limits.

The Government wants to make it compulsory for these declarations to be independently verified, however there have been delays in getting enough people accredited to do the verification.   

Officials are concerned that if independent verification is compulsory, some power plants will be unable to qualify to provide back-up supply for the winter of 2023-2024.

The Telegraph has reported that officials now plan to postpone the requirement to have emissions figures verified for another year, meaning plants should be able to take part in the auction for 2023. 

In consultation papers, officials warned that failure to act could lead to lower competition which could trigger increased prices and “risks to security of supply”. 

They added: “We consider this proposal would be a reasonable precaution to take.”

Officials also plan to change criteria to make it easier for mothballed power plants to take part in the market.  

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Europe has made a ‘major mistake’ on slow electrification, IEA chief warns 

UK industrial electricity prices are the highest in the G7 and 46 per cent above the average of the International Energy Agency.

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