Renewable energy use has overtaken other power sources such as nuclear in Scotland, according to the latest UK Government statistics.

In the first six months of 2014, renewable sources produced 32% more power than any other source.

In total, the renewable sector produced 10.3 terawatt-hours (TWh), compared with 7.8TWh from nuclear power generation, which was previously the region’s primary source of electricity.

On the other hand, coal and gas-fired plants in total produced 5.6TWh and 1.4TWh respectively during the first half of 2014.

Scottish Renewables chief executive Niall Stuart said: “The announcement that renewables have become Scotland’s main source of electricity is historic news for our country, and shows the investment made in the sector is helping to deliver more power than ever before to our homes and businesses.

“This important milestone is good news for anyone who cares about Scotland’s economy, our energy security and our efforts to tackle climate change.

According to Stuart, the renewables industry has come a long way in a short space of time and there is still plenty of potential for further growth.

He continued: “Offshore wind and marine energy are still in the early stages of development but could make a big contribution to our future energy needs if they get the right support from government.

That support includes the delivery of grid connections to the islands, home to the UK’s very best wind, wave and tidal sites.”

Scottish Energy Minister Fergus Ewing said the figures indicated that the country was making good progress towards reaching its target of producing 100% of electricity from renewable sources.

A more ambitious energy efficiency investment programme would pay for itself within 10 years and add £13.9bn annually to the UK economy by 2030.

That’s according to a report commissioned by Energy Bill Revolution and co-funded by the UK Green Building Council which suggests that a national energy efficiency programme would create up to 108,000 jobs and cut natural gas imports by 26%, making the UK less vulnerable to unstable energy markets and creating a more resilient economy.

The programme would also cut carbon emissions from homes by 23.6 million tonnes per year by 2030.

Director of the Energy Bill Revolution Ed Matthew said: “We have one of the most badly insulated housing stocks in Europe and as a result a truly woeful record on winter deaths and fuel poverty.

“Fixing Britain’s badly-insulated homes won’t just save lives, it will provide a massive economic boost to the UK economy and it pays for itself. There is now an overwhelming case for it to be made a top UK infrastructure investment priority.”

Solid investment

Commenting on the report, UK Green Building Council director of policy and communications John Alker said: “Government spending on energy efficiency is not a frivolous drain on the public purse, but a rock solid investment proposition for UK Plc.

“The challenge now for all political parties is to set out a way for energy efficiency to not only be classified as a national infrastructure priority, but to benefit from capital investment to pump prime the market. It can no longer be considered the poor relation to shiny new energy generation projects.”

Construction company Saint-Gobain are in support of the campaign.

The company’s advocacy leader Jade Lewis said: “The report details a positive approach to improving the UK’s housing stock, which is one of the poorest in Europe in terms of energy efficiency. Buildings are responsible for almost 37% of all UK carbon emissions, so it is important that this figure is reduced nationwide.

“Saint-Gobain would like to see energy efficiency retrofit a priority infrastructure spend in the UK. Much more needs to be done to simplify and incentivise the uptake of energy efficient retrofit measures if we are to reduce emissions from the built environment, meet our UK carbon reduction targets and tackle fuel poverty. We believe that a long-term fabric first approach is needed to meet these targets.”

Earlier this month, edie reported on unpublished EU figures used by environmentalists in call for a more ambitious goal for reducing energy use by 2030.

Lois Vallely

The UK Green Investment Bank (GIB) will be investing £5.2m in a project to deliver efficient electricity and cooling in a UK data centre in Lewisham owned by global bank Citi.

The announcement comes in the month that GIB celebrates its two-year anniversary.

It will fund the installation of a 2.8MW combined cooling and power (CCP) system as well as energy efficient cooling units and efficiency improvements to the building’s air conditioning system.

GIB’s chief executive Shaun Kingsbury said: “The IT industry is one of the most energy intensive sectors globally, second only to aviation. Energy can represent up to 80% of the cost of running a data centre, so they provide an important opportunity for energy efficiency measures.

“I am pleased that we have been able to support the first energy efficiency project at a UK data centre and hope that this is the first of many such projects.

“This project makes financial sense, reducing Citi’s energy costs, and makes environmental sense, reducing the data centre’s greenhouse gas emissions. And because of the innovative investment model, it will involve no upfront capital expenditure for Citi as the cost of the project will be paid for out of the energy cost savings achieved.”

Reduce emissions

The CCP system will generate 71% of the electricity needed to power the data centre and provide cooling for servers housed therein, reducing Citi’s overall costs and greenhouse gas emissions.

Business Minister Matthew Hancock said: “This is a hugely welcome investment from Citi, one of the first of its kind for the banking sector. Reducing energy costs makes sound business sense and shows that businesses across the UK can benefit from making the most of green technology.

“We’ve already invested £3.8 billion into the Green Investment Bank opening up jobs and paving the way for projects like this one from Citi. But we are committed to going further to make sure the whole system is more efficient.”

In June, edie reported on GIB’s announcement of a £2m investment to help SMEs make improvements in energy efficiency.

The bank also put forward £5m of funding for the Balmenach distillery in Speyside to support the installation of a new biomass boiler to reduce emissions.

Lois Vallely

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UK venture capital firm Scottish Equity Partners (SEP) has today (2 September) announced it has raised £135m for a new infrastructure fund to invest in a diversified portfolio of UK-based clean energy projects.

The Environmental Capital Fund (ECF) will be used to support small-scale hydro power, energy efficiency, heat pump and district heating projects in a bid to meet an increased demand for capital from the UK’s rapidly growing clean energy market.

“The market opportunity for energy infrastructure finance is very attractive, and the new fund fits well with our existing activities,” explained SEP’s managing partner Calum Paterson.

The EDF has been backed by British electric utility company SSE as well as a syndicate of financial investors led by Lexington Partners, the world’s largest independent manager of secondary private equity and co-investment funds.

SSE’s finance director Gregor Alexander said: “We are delighted to participate in SEP’s new fund targeted at small-scale clean energy projects throughout the UK. The transaction ensures our resources are fully focused on SSE plc’s core purpose of providing the energy people need in a reliable and sustainable way whilst supporting future investment in clean energy.”

ECF marks the first move into the infrastructure market for SEP, but complements the Environmental Energies Fund (EEF) launched in 2011, which acquired a portfolio of venture capital and private equity cleantech investments from SSE.

Marshall Parke a managing partner in Lexington Partners’ London office, added: “This is the second time Lexington has partnered up with SEP and SSE in an innovative secondary transaction, this time for the infrastructure and clean energy sectors. Both sectors are relatively new to the secondary market, and areas in which we expect to see more secondary activity in the future.”

Luke Nicholls

Lithuania is considering closing 900MW of its gas-fired generation capacity by 2016 due to reduced margins.

Producer and wholesaler of electricity Lietuvos Energijos Gamyba (LEG), which is part of the state-controlled energy group Lietuvos Energija, will close two 150MW units at Lithuania’s biggest power plant, Lietuvos Elektrine, by the end of 2014 and two additional units, each producing 300MW, in 2015.

Around 60% of electricity demand for the country is being met through imports as domestic generation of electricity from imported gas is turning out to be expensive, reports Reuters.

High gas prices and low wholesale prices for power have been the primary reasons for problems faced by gas-fired power plants in Europe.

Following the closures, the company will operate one 455MW combined cycle gas turbine (CCGT) and two reserve power units, each carrying a capacity of 300MW.

Lietuvos Energijos is also seeking to invest between $148m to $212m for 225MW unit development at its Kruonis pumped storage hydropower plant and a wind power park with an approximately 40MW to 45MW capacity.

Lithuania, by the end of 2015, plans to construct new power links to Sweden and Poland, which is expected to further push the prices down in the country.

In addition to importing gas from Russia, the country intends to import liquefied natural gas (LNG) from 2015.

Meanwhile, Lietuvos Energijos has announced its 2014-2020 business strategy.

Lietuvos Energijos Gamyba CEO Juozas Bartlingas said: “The seven-year strategy was drafted by taking into consideration a number of various aspects that affect the activity of Lietuvos Energijos Gamyba.”

The company expects its total revenue to drop for the next year due to reduced production volumes at Elektrenai Complex, and intense competition.

Greencoat UK Wind has signed an agreement with The AES Corporation to purchase 51.6% interest in Sixpenny Wood, Yelvertoft, North Rhins and Drone Hill wind farms in the UK.

Under the terms of the agreement, Greencoat will acquire the 51.6% stake in the four wind farms from AES’ subsidiaries for a total consideration of £90.6m.

Slated for completion on 22 August, the acquisitions will be funded through reinvestment of UKW’s cash resources and debt facility provided by RBC, RBS and Santander.

The four wind farms, which have a total generation capacity of 87.5MW, were developed by AES.

The 20.5MW Sixpenny Wood wind farm is located near Goole in the East Riding of Yorkshire, whereas the 16.4MW Yelvertoft facility is situated east of Rugby in Northamptonshire.

Both the Sixpenny Wood and Yelvertoft wind farms entered into service in July 2013.

The 22MW North Rhins wind farm, which has been operational since December 2009, is situated on the North Rhins peninsula, west of Stranraer in Dumfries and Galloway.

Located west of Eyemouth in the Borders, the 28.6MW Drone Hill facility started commercial operations in August 2012.

Greencoat UK Wind chairman Tim Ingram said: “We are pleased to increase our investment portfolio to 16 UK wind farms with a net generating capacity of 271.5MW.

“AES is the fifth seller of wind farms to UKW, a testament to the company’s independence and to its ability to be selective in its acquisitions.”

Greencoat UK will have a total outstanding debt of £225m, which is expected to be approximately 38% of gross asset value, upon completion of the transaction.

The remaining 48.4% stake in the wind farms will be acquired by Swiss Life Funds (Luxembourg) Global Infrastructure Opportunities, a fund managed by Swiss Life Asset Managers.

The UK’s Crown Estate has signed a lease agreement with 2-B Energy’s subsidiary Forthwind for the nation’s first offshore two-bladed turbine demonstration on the seabed at Methil in Scotland.

The demonstration involves the installation of two 6MW full-scale units at Methil.

The 6MW two-bladed turbine, designed for offshore wind industry, is claimed to be the first of its kind in the world.

Earlier, the Department of Energy and Climate Change (DECC) granted support, along with investment from the Scottish Investment Bank, to 2-B Energy for the development of full-scale onshore prototype in the Netherlands.

Prior to the grant, two offshore machines have already been planned for Methil and will be deployed in 2016, following planning approval.

The Crown Estate Offshore Wind head Huub den Rooijen said: “In order to fully unlock the potential of offshore wind over the long term, it is vital that opportunities are made available to test and demonstrate innovative and emerging technology platforms to bring down costs and secure the UK’s position as a global leader in offshore wind technology.

“As such, we are pleased to have concluded an Agreement for Lease with 2-B Energy and look forward with interest to seeing the technology mature.”

In addition to the two-bladed turbine design, the company is considering integrating wind turbine technology with grid and access systems innovations and the installation process, and a new operational strategy, to reduce costs.

2-B Energy chief operating officer Mikael Jakobsson said: “We hope that through this offshore development and demonstration step, and following the completion of our first on-shore demonstrator in early 2015, to be able to validate significant cost reductions in future offshore wind deployment.”

Siemens Energy has been awarded a contract by Vattenfall for wind turbines and servicing for the Sandbank offshore wind farm in Germany.

Under the contract, Siemens will supply 72 Model SWT-4.0-130 wind turbines and will also perform maintenance services on the Sandbank installations for an initial period of five years.

The project is being built 90km west of the island of Sylt in water depths between 25m and 37m, within the exclusive economic zone off the German North Sea coast.

A pioneering service plan will generate synergy from its close vicinity to the DanTysk offshore wind farm, utilising joint operations to drive down the maintenance costs of both projects.

Service operations will focus on a service operation vessel (SOV) specially designed for these deployments.

Following project commissioning, this specialised ship, fitted with living accommodations for technicians and a workshop equipped with spare parts, will take up a position between the two wind farms.

Located 20km away from the Sandbank offshore wind farm, the DanTysk wind farm is in an advanced stage of construction and is equipped with Siemens wind turbines of the G4 product platform.

Siemens claims that the SWT-4.0-130 wind turbines ordered for the project represent the latest generation of the Siemens G4 platform wind turbines.

Construction work is scheduled to commence in 2015 and commissioning will take place at the end of 2016.

Siemens Energy’s Wind Power Division CEO Markus Tacke said: “We are very pleased to be joining forces and pooling our shared experience again with Vattenfall to implement another major offshore project.

“Thanks to Vattenfall’s expertise in project construction and operation, and Siemens’ innovative technology and service prowess, Sandbank will boldly demonstrate just how far we’ve come in reducing the costs of offshore wind power.”

Vattenfall’s continental / UK region head of the Renewables Business Unit Gunnar Groebler said: “The Sandbank project is further testament to Vattenfall’s strategy of consistently focusing our growth efforts on the expansion of renewable energy.

“We know how to work offshore and we see it as a significant building block in the success of the energy transition in Germany. We are therefore delighted to have Siemens as an experienced partner for the building of the wind turbines.”

Yingli Green Energy International, a wholly-owned subsidiary of Yingli Green Energy Holding Company, has signed a collaboration agreement with AMB Energia Wytwarzanie (AMB Energia), a subsidiary of AMB Energia, for the development of 30MW of solar power projects in Poland.

As part of the agreement, AMB Energia as a local partner will fully develop the projects, while Yingli will provide its support throughout all project stages.

The two companies are planning to sell the turn-key projects to investors.

Yingli Green Energy International head of project business Manuel Seiffe said, “In this strategic alliance, the partners will jointly work on co-developing a diversified project portfolio to be ready for inclusion into the auction system in 2015.

“As a leading developer in Poland, AMB Energia will engage in all stages of the development phases of the solar PV projects. This partnership will furthermore enhance our strong position in the project business as well as in the Polish market.”

AMB Energia CEO Przemyslaw Pieta said, “It is a great honor to cooperate with the world’s leading PV manufacturer on the development, implementation and commissioning of projects. We believe that the investment in a pipeline of early-stage project opportunities will bear fruit as early as in 2015.”

The auctions will be conducted separately for planned renewable installations below and above 1MW with only ready-to-build projects allowed to participate.