Charles Hendry yesterday published the finalised Energy National Policy Statements (NPSs), which map out the planning grounds for the future of energy supply in the UK, as well as helping to launch a new industry body to drive development of the country's smart energy grid.

Blueprint for new energy infrastructure

The finalised Energy NPSs, yet to be debated in Parliament, provide a framework for planning and approving an expected £100 billion of new energy infrastructure, including 33GW of new renewable energy capacity.

Five of the NPSs cover specific technologies: fossil fuels; renewables; gas supply and gas and oil pipelines; electricity networks; and nuclear. There is also an overarching energy NPS.

The latter sets out how the new system is compatible with the Localism Bill, retains the consultative approach (both on the NPSs and the consultation of local people in individual applications) and the transparency of the IPC system while increasing democratic accountability through returning the final decision to ministers.

The Nuclear NPS confirms eight sites across the country as suitable for new nuclear power stations by 2025 and lays out plans for how radioactive waste will be managed.

A Fossil Fuel NPS allows for carbon capture and storage to be fitted to new gas plants, as well as coal.

But the government has ruled that the Infrastructure Planning Committee, which oversees all nationally strategic developments and will make the decisions on whether proposed developments should be given the green light, need not take into account the carbon impact of a particular plant before deciding whether to approve it.

In its response to the consultation on the NPSs, the government says that "this is a matter for wider government intervention in energy markets, not a planning issue."

DECC also published yesterday new research into noise from wind turbines, and said it discussing with the Institute of Acoustics the establishment of a working group to develop best practice guidance for planners, developers and local communities.

Making energy supply more intelligent

Smart Grid GB, the new industry body, has been established by Intellect, the trade association for the UK’s technology sector, and brings together key players from the energy sector, ICT companies, environmental organisations, government, regulators and consumer groups.

It will be the self-proclaimed "national champion", of the consumer, environmental and economic benefits that the accelerated deployment of smart grid infrastructure will bring to Great Britain, said IBM's Gavin Jones, its acting chairman.

The Energy NPSs will set the stage for much needed investment in energy networks, of which the smart grid is a crucial part, and Government targets mean that most of the estimated 1.7m industrial and commercial gas meters and 21 million domestic gas meters in the UK will need to be replaced by 2019 to facilitate smart metering, which will reduce costs and help balance supply and demand more effectively.

Speaking at the launch of the new body, Charles Hendry, minister for energy and climate change, said, "Making smart grid a reality is absolutely essential for the UK and a top priority for government. SmartGrid GB is a welcome and overdue initiative that will bring a greatly needed, multi-stakeholder perspective on this major area of future energy policy," he added.

Regulator Ofgem, too, welcomed the initiative. "The DECC/Ofgem Smart Grid Forum is looking forward to working with SmartGrid GB and will regularly call upon it to understand the perspectives of its members," said Rachel Fletcher, Partner, Distribution, Ofgem.

Its founding members include Alcatel-Lucent, British Gas, Cable & Wireless, General Electric, IBM, Intellect, Logica, Oracle, Power Plus Communications, RWE NPower, SAP, Siemens, UK Power Networks and Utilisoft.

The group has three core aims: to provide an ongoing vision and advocacy for a British smart grid; to promote the commercial, environmental and consumer benefits that accelerated deployments of smart grid infrastructure can deliver; and to provide a central resource hub for smart grid activities in Britain, building connections between organisations.

Smart Grid GB will ensure the smart grid remains high up the political agenda, and that independent advice is readily available. It will also establish links worldwide; the launch included the signing of articles of association with the Global Smart Grid Federation (GSGF)., which is amn alliance of groups in the US, Europe, Canada, Japan, India, Australia, Korea and Ireland.

“We are extremely excited about this new initiative,” said David Pitcher, UK country manager at PPC. “The UK’s smart grid industry is at a critical juncture in its development, and the group will help guide the UK Government in establishing the necessary frameworks to support the implementation of smart grid technologies, as it looks to meet its commitments on modernising the UK’s ageing infrastructure. At PPC, we will primarily focus on providing independent advice, guidance and reference materials to the group on the technology options for a communications infrastructure to power the smart grid.”

Smart growth

The smart grid market is estimated to be worth $6.2 billion over this decade and companies in the field are experiencing rapid growth.

In separate developments yesterday, General Electric and SAP AG have joined an alliance of companies including Landis+Gyr AG to develop common standards for a UK smart-meter market so their products are compatible and may talk to each other.

Meanwhile, in Scotland, Smart Metering Systems, which provides services for many UK gas suppliers, is to start trading on Aim today, with an initial market capitalisation of £50 million. The Glasgow-based company has just raised £10 million of new capital and has patented a device which provides half-hourly meter reading data direct to suppliers through secure information gateways, using the nearest mobile phone link.

Its clients, who will be responsible for the roll-out of smart metering, supply gas to over 30% of the UK’s residential consumers and 80% of the UK’s industrial and commercial consumers, giving a clue as to the extent of the work required over the next eight years.