Department for Energy Security & Net Zero

High Temperature Superconducting magnets will not only be critical for fusion energy machines such as STEP, but have potential to revolutionise aviation, trains, marine propulsion, medical scanners, wind turbines, materials processing, big science facilities, and more. The Department for Energy Security and Net Zero is working with the Department for Science, Innovation and Technology, the Science and Technology Facilities Council, the UK Atomic Energy Authority, and the private sector, to support the establishment and growth of the UK’s HTS magnet capabilities, to capture the benefits of this growing market, and ultimately enable the delivery of commercially viable fusion energy.

Section 30(1) of the Environment Act 2021 states that the Office for Environmental Protection (OEP) must give advice to a Minister of the Crown about any proposed changes to environmental law, or any other matter relating to the natural environment, on which the Minister requires it to give advice.

Section 30(3) of the Environment Act 2021 states that the OEP may give advice to a Minister of the Crown about any changes to environmental law proposed by a Minister of the Crown.

The Great British Energy Bill does not propose any change to environmental law. Therefore, as there is no basis for the minister to form a view on the need for advice from the OEP on any matter relating to the natural environment, the OEP is not providing advice.

Section 30(1) of the Environment Act 2021 states that the Office for Environmental Protection (OEP) must give advice to a Minister of the Crown about any proposed changes to environmental law, or any other matter relating to the natural environment, on which the Minister requires it to give advice.

Section 30(3) of the Environment Act 2021 states that the OEP may give advice to a Minister of the Crown about any changes to environmental law proposed by a Minister of the Crown.

The Great British Energy Bill does not propose any change to environmental law. Therefore, as there is no basis for the minister to form a view on the need for advice from the OEP on any matter relating to the natural environment, the OEP is not providing advice.

I refer the noble Lord to the answer given on 12 February by my hon Friend the Minister for Climate (Kerry McCarthy) to the hon Member for Edinburgh West (Christine Jardine).

We cannot comment on individual investment cases, but investment into the energy sector is subject to the highest levels of national security scrutiny, and we will continue to work closely with industry to build secure supply chains and ensure the UK remains one of the most attractive investment destinations in the world.

The Community Energy Fund enables both rural and urban communities across England to access grant funding to develop local renewable energy projects for investment.

Projects funded by the Community Energy Fund are published on GOV.UK. This list will be updated in due course to include projects funded during the period from 1 August to 31 December 2024: https://www.gov.uk/government/publications/local-net-zero-support-for-local-authorities-and-communities/local-net-zero-central-support-for-local-authorities-and-communities#community-energy.

The Government response to the road fuels consultation published on 30 October 2024 confirmed that the Government will implement the recommendation made by the Competition and Markets Authority (CMA) in its Final Road Fuel Market Study to set up a statutory open data scheme for fuel prices, called Fuel Finder.

Fuel Finder will increase price transparency and help drivers easily compare prices and find the best deals. This will increase pressure on fuel retailers to compete strongly to attract customers. Subject to legislation and parliamentary timings, we aim to launch Fuel Finder by the end of 2025.

A summary of the research is available. We will consult on the merits of alignment with new EU regulations and will align where it makes sense to do so. GB may choose not to align if it is not in the interests of consumers, businesses, and our wider policy goals.

The Government published the ‘Improving the energy performance of privately rented homes in England and Wales’ consultation on 7 February 2025. This consultation includes government responses to the 2020 consultation on ‘Improving the energy performance of privately rented homes’.

Responses to the 2019 and 2021 consultations on minimum energy efficiency standards in the non-domestic private rented sector are being reviewed to inform the policy design and ensure it remains fair and appropriate for landlords and tenants, with the aim to publish in the early part of 2025.

The Government has pledged to take action to stand with tenants and deliver the safety and security of warmer, cheaper homes. We are currently consulting on plans to reduce energy bills by increasing standards in the private rented sector in England and Wales.

As Government-funded trials have shown, Heat-as-a-Service is a potentially attractive way for consumers to finance the installation and operation of low carbon heating systems. We continue to explore how Government can enable these types of business models, while working to ensure consumers are protected.

At the end of November last year, the first uprated payments for the Mineworkers Pension Scheme landed for over 100,000 miners and their families. This is an average increase of 32% on their monthly payments (or an average additional £28/week).

The department launched the consultation ‘Review of the Fuel Poverty Strategy’ on 7 February 2025, with more information available at the following link:

https://www.gov.uk/government/consultations/review-of-the-fuel-poverty-strategy

(opens in a new tab)

As per the department's accessible documents policy, the consultation document is published on GOV.UK and provided as both a tagged PDF and HTML so screen readers can understand the page structure. The digital survey for users to respond to the consultation is also hosted on an accessible platform.

Users of assistive technology (such as screen readers) can request a copy of the consultation in an accessible format by emailing alt.formats@energysecurity.gov.uk. Users who have queries on the consultation can also contact fuelpovertyconsultation@energysecurity.gov.uk.

The department launched the consultation ‘Improving the energy performance of privately rented homes’ on 7 February 2025, with more information available at the following link:

https://www.gov.uk/government/consultations/improving-the-energy-performance-of-privately-rented-homes-2025-update (opens in a new tab)

As per the department's accessible documents policy, the consultation document is published on GOV.UK and provided as both a tagged PDF and HTML so screen readers can understand the page structure. The digital survey for users to respond to the consultation is also hosted on an accessible platform.

Users of assistive technology (such as screen readers) can request a copy of the consultation in an accessible format by emailing alt.formats@energysecurity.gov.uk. Users who have queries on the consultation can also contact PRSMEESConsultation@energysecurity.gov.uk.

There is a 0% rate of VAT on the installation of heat pumps, including air-to-air systems, due to last until 2027. The Government wants to target grant support at technologies that offer the greatest potential to decarbonise our buildings, and in most cases air-to-air heat pumps only provide space heating, with many installations still reliant on another less efficient appliance to provide hot water. The Government will, however, keep its position on alternative electric heating technologies under review, utilising the latest evidence before making any decisions.

I refer the hon Member to the answer I gave to my hon Friend the Member for Falkirk (Euan Stainbank) on 29 January 2025 to Question UIN 25410.

The Warm Homes Plan will help people find ways to save money on energy bills and transform our ageing building stock into comfortable, low-carbon homes that are fit for the future. We will partner with combined authorities and local and devolved governments to roll out this plan. We will set out full details of our Warm Homes Plan in due course.

Under the Government’s Warm Homes Plan, policies including the Boiler Upgrade Scheme, Warm Homes: Social Housing Fund and Local Grant and Energy Company Obligation are delivering financial support for low carbon heating. Heat pump installations are also zero-rated for VAT.

The Government will also amend Permitted Development Rights, removing the 1m rule for air source heat pump installations in England.

We expect most properties will ultimately switch to heat pumps, with evidence showing they are widely suitable across UK housing archetypes. The Government will keep this position under review as the evidence base on possible alternatives develops.

The Department has invested over £25 million to establish three Skills Training Competitions and the Heat Training Grant, which subsidise 33,000 retrofit training opportunities. The Heat Training Grant is on track to train 10,000 trained heat pump and heat network installers by April this year. These initiatives support the delivery of the Department’s retrofit schemes. The Government will continue to work with industry to facilitate a competent and robust retrofit supply chain in which businesses can grow. Further detail will be set out in our Warm Homes Plan later this year.

The Government has pledged to take action to stand with tenants and deliver the safety and security of warmer, cheaper homes, and has committed an initial £3.4 billion over the next 3 years towards heat decarbonisation and household energy efficiency, with £1bn of this allocated to 2025/2026. We have published our consultation on improving energy efficiency standards in the private rented sector in England and Wales, containing proposals that could lift up to half a million households in England out of fuel poverty by 2030. Further details on the Warm Homes Plan will be set out in due course.

The Government announced on 14th November 2024 its intention to introduce new legislation to restrict the future licensing of new coal mines. https://questions-statements.parliament.uk/written-statements/detail/2024-11-14/hcws215 This will be taken forward when timing allows.

Previous question

UIN 30533, tabled on 10 February 2025

Ann Davies Plaid Cymru Caerfyrddin Commons

To ask the Secretary of State for Energy Security and Net Zero, whether his Department plans to introduce legislation to ban future coal licensing.

Answered on 13 February 2025

Michael Shanks Labour Rutherglen Commons

The Government announced on 14th November 2024 its intention to introduce new legislation to restrict the future licensing of new coal mines. https://questions-statements.parliament.uk/written-statements/detail/2024-11-14/hcws215

Great British Nuclear (GBN) is driving forward its SMR Technology Selection Process for UK deployment. This is a live, ongoing procurement based on fairness and transparency, and it is important GBN can deliver value for the British taxpayer.

Funding and financing arrangements for SMRs remain under consideration, with no decisions taken yet.

The Government continues to assess future energy requirements, including the potential impact of powering datacentres. Consumption from datacentres has been forecast by NESO to increase and require an uninterrupted supply of electricity. The Government is committed to nuclear playing an important role in generating low carbon power and contributing to UK energy security. Alongside large-scale plants, such as Hinkley Point C and Sizewell C, SMRs have the potential to supply the grid or to be a dedicated energy source for datacentres.

Consumption from datacentres has been forecast by NESO to increase and require an uninterrupted supply of electricity. SMRs have potential as a dedicated energy source for datacentres, given their potential to provide a near-constant supply of low-carbon electricity. SMRs do not have traditional storage capabilities, however some SMRs could be paired with thermal energy storage or grid-scale electricity storage to provide backup power and enhance their flexibility.

The Government is clear that nuclear power, including small modular reactors (SMRs), is and will continue to be an important part of the UK energy mix, providing secure, low carbon energy and thousands of skills jobs. Great British Nuclear is pushing forward with its SMR competition for UK deployment with final decisions to be taken this spring. As with all energy projects, the economic case for SMRs would be considered as part of any investment decision into the technology.

The recovery of coal from former coal tips does not require licenses from the Mining Remediation Authority, formerly the Coal Authority. The majority of coal tips are in local authority or private ownership which includes legal responsibilities for their safety. Local authorities are the primary authority for coal recovery schemes from tips through planning permission and enforcement.

Previous question for reference

Question

To ask the Secretary of State for Energy Security and Net Zero, whether his Department plans to introduce legislation to ban future coal licensing.

Answer

The Government announced on 14th November 2024 its intention to introduce new legislation to restrict the future licensing of new coal mines. https://questions-statements.parliament.uk/written-statements/detail/2024-11-14/hcws215

GBE will develop, own and operate assets, investing in partnership with the private sector. It will have a capitalisation of £8.3 billion of new money over the Parliament. This is in addition to the work of the National Wealth Fund (NWF), which is central to this Government’s mission to deliver growth and a greener economy. Capitalised with an additional £7.3 billion, the NWF will make transformative investments across every part of the country - mobilising billions of pounds worth of additional private sector investment.

We will continue to support new renewable deployment through our flagship Contracts for Difference scheme, with Allocation Round 7 due to take place this year. In addition, on 12 November, the government launched the Contracts for Difference (CfD) Clean Industry Bonus (CIB). Fixed and floating offshore wind applicants can obtain extra CfD revenue support if they choose to invest in more sustainable supply chains.

The CIB allocation framework sets out how to apply for a Clean Industry Bonus, and how funding will be allocated. The CIB guidance sets out the process for receiving CIB payments, and other matters related to the delivery of CIB commitments. The CIB application window opened 12 February and will close in April 2025.

There is provision within the rules of ECO4 for shared ground loops to be delivered. ECO4 is not funded by government. Rather, the government requires energy suppliers to deliver energy efficiency measures to eligible households. The energy suppliers fund those measures and recoup the costs from their customers’ energy bills.

Ofgem estimates of the relative costs of overhead, underground and offshore electricity transmission cables vary significantly depending on various factors such as technology types, voltage levels and locations. Due to commercial sensitivity, Ofgem cannot not share specific estimates. However, as set out in the Institution of Engineering and Technology’s 2012 study, offshore cables have considerable cost and technical challenges and can have substantial impacts on the marine environment. Undergrounding is usually by open trenching with costs between 5-10 times those of overhead lines.

The Boiler Upgrade Scheme does not currently support air-to-air heat pumps, as heat pump installations must provide both space heating and hot water heating, using liquid as a medium for delivering that heat. In most cases, air-to-air systems only provide space heating, with many installations still reliant on burning fossil fuels for hot water. We want to target support at technologies that offer the greatest potential to decarbonise our buildings.

However, the Government will keep its position on alternative electric heating technologies under review, and would consult industry and key stakeholders on any potential changes to the scheme before making any decisions.

Unabated gas generation is increasingly being displaced on the system by the rollout of renewables, setting the marginal price less frequently. The most effective mechanism for driving renewable generation is a Contract for Difference-type scheme that includes key features such as competitive auctions to minimise costs to consumers, alongside a mechanism wherein generators pay back when wholesale prices are high. The Government is committed to retaining this type of scheme and as part of the Review of Electricity Market Arrangements programme, is also considering what further steps can be taken to protect consumers from the impacts of potential price spikes.

With marginal pricing, the price of electricity is set by the last technology needed to meet overall demand. The marginal price reflects the value of generating an additional unit of electricity at any given time. This ensures that generators increase or decrease their output to meet demand and incentivises them to make efficiency improvements to remain competitive in electricity markets and keep costs down for consumers.

As part of the Review of Electricity Market Arrangements (REMA) programme, the Government is also considering what further steps can be taken to protect consumers from the impacts of potential price spikes.

The Office for Clean Energy Jobs (OCEJ) has been created to ensure that clean energy jobs are abundant, high quality, paid fairly, and have favourable terms and good working conditions.

The OCEJ is engaging widely with industry, experts, and trade unions for a clear assessment of the skills opportunities and challenges. It is working closely with Skills England to ensure that skills systems reforms support the clean energy transition.

The OCEJ will also set out targeted interventions to support specific skills needs in the clean energy workforce. It has recently launched the initial version of the Energy Skills Passport to support oil and gas workers into new roles in the clean energy sector.

The department is currently developing the Warm Homes Plan to ensure that homes are fit for the future. The department has been carrying out research to respond to the relevant climate change adaptation risks identified by the third Climate Change Risk Assessment.

This research is closing evidence gaps identifying the buildings most vulnerable to extreme heat and where these are located, as well as appropriate adaptation solutions. This includes considering the role of technologies, such as air-to-air heat pumps. This work is informing the development of the Warm Homes Plan.

There are approximately 22,810 Non-Domestic Renewable Heat Incentive participants with meters that will need to comply with metering obligations. Currently 630 are under review by Ofgem, the scheme administrator. The time taken to complete a review is dependent on the quality and complexity of the participant’s submission, response time to requests for further information and the review caseload.

The Department is a strategic partner of the Energy Skills Passport project in collaboration with industry and Scottish Government. The passport is an industry led initiative overseen by Renewable UK and Offshore Energy UK and supported by the UK and Scottish Governments.

The Department and Scottish government are working with RUK/OEUK to identify how best to expand the passport in the future.

Through the Nuclear Skills Plan, we are committed to encouraging career transitions and accelerating learning and upskilling for new entrants into the nuclear sector.

The Government only supports the use of sustainable biomass and generators only receive subsidies for biomass that meets our strict sustainability criteria.

This Government is committed to enhancing sustainability, and the low carbon dispatchable CfD, announced earlier this month, increases the proportion of woody biomass that must meet the sustainability criteria from 70 to 100 per cent.

Great British Nuclear (GBN) is pushing forward its small modular reactor competition for UK deployment, which is based on fairness and transparency to ensure value for the British taxpayer. Final decisions will be taken in the spring.

GBN is seeking those technologies best able to facilitate commercially operational projects by the mid-2030s.

GBN (Great British Nuclear) is pushing forward its small modular reactor competition for UK deployment, which is based on fairness and transparency to ensure value for the British taxpayer. Final decisions will be taken in the spring.

GBN follows usual government best practice for delivering major projects.

GBN (Great British Nuclear) is pushing forward its small modular reactor competition for UK deployment, which is based on fairness and transparency to ensure value for the British taxpayer. Final decisions will be taken in the spring.

GBN follows usual government best practice for delivering major projects.

GBN (Great British Nuclear) is pushing forward its small modular reactor competition for UK deployment and is negotiating with four companies. Final decisions will be taken in the spring.

In line with usual government approvals, it will be important that any SMR projects represent value for money for the British taxpayer.

The Government works closely with a range of stakeholders including academia and independent experts to assist policy development around sustainability of biomass, ensuring that evidence informs long-term decision making. This has included commissioning several independent studies exploring the sustainability of biomass.

It has also included working with Ofgem and independent experts, alongside research gathered from engagement with industry and academia, to support development of strengthened assurance around the compliance of generators with sustainability criteria.

The Government is clear that nuclear power is and will continue to be an essential part of our journey to net zero by 2050, in combination with other low carbon and renewable technologies. Great British Nuclear is pushing forward with its SMR competition for UK deployment with final decisions to be taken this spring. The economic case for SMRs would be factored into any investment decision into the technology.

The Prior Information Notice was published to support policy exploration under the previous Government and has since closed with 10 responses. The names of the organisations which responded is commercially sensitive. No decision has yet been taken on whether to pursue a future large-scale project.

The Department’s UK TIMES model captures interactions across the entire energy system, from fuel extraction to final energy demands, enabling comprehensive analysis of decarbonisation pathways and helping us explore the optimal future energy system. This model has been instrumental in developing departmental net zero strategy, including our understanding of the future power sector. Building on this, DESNZ recently invested in BID3, a new model designed to simulate a fully connected power and hydrogen market across the UK and EU. BID3 will model power generation, hydrogen production, transmission, gas transport, interconnectors, and storage, allowing comparison of whole-life system costs and cashflow, across future scenarios.

The Department for Energy Security and Net Zero (DESNZ) publishes UK territorial greenhouse gas emissions statistics. They can be found here: https://www.gov.uk/government/statistics/final-uk-greenhouse-gas-emissions-statistics-1990-to-2023

DESNZ also publishes carbon dioxide (CO2) emissions from the combustion of fossil fuels reported by industrial sites, including those covered by the UK Emissions Trading Scheme (ETS). CO2 emissions from fossil fuel combustion at the Drax site can be found here: https://naei.energysecurity.gov.uk/data/maps/emissions-point-sources, https://reports.view-emissions-trading-registry.service.gov.uk/ets-reports.html

UK reporting is consistent with international guidelines established by the Intergovernmental Panel on Climate Change (IPCC), which require CO2 emissions from the combustion of biomass to be accounted for in the land use, land use change and forestry (LULUCF) sector of the country in which the biomass was harvested, rather than at the point of release to the atmosphere.