The British government has unveiled a bill that aims to reinforce the country's energy security. The text comprises 26 measures to reform the energy system and reduce its dependency on fossil fuels and exposure to volatile gas prices, with the aim to drive £100bn (€117bn) of private sector investment by 2030 and to deploy technologies such as carbon, capture, usage and storage (CCUS) and hydrogen at scale. The bill creates a new independent system operator to coordinate and plan the United Kingdom’s energy system and enable the extension of a cap on retail energy prices beyond 2023. The Competition and Markets Authority (CMA) is also tasked with ensuring consumers are protected cost-wise if energy network companies merge.
In addition, the bill introduces a business model for CCUS and hydrogen and establishes economic regulation and licensing framework for CO2 transport and storage networks. It also empowers the North Sea Transition Authority (NSTA), which replaced the Oil and Gas Authority (OGA) in March 2022, to regulate the sector of CCUS. In June 2022, the NSTA launched the country’s first CO2 storage licensing round, with 13 areas available for bids along the Scottish and English eastern coasts, as well as the Irish Sea. These carbon storage areas are expected to contribute to the UK’s goal of storing 20 to 30 MtCO2 by 2030 and reaching net zero carbon by 2050.
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