Energy: Hydropower

Baroness Worthington Excerpts

Wednesday 10th October 2012 Lords Chamber

[Baroness Verma]

My Lords, all the different technologies have different subsidy levels. I should like to write to the noble Countess on the different subsidy levels, if she will allow that.

[Baroness Worthington]

My Lords, I extend a warm welcome to the noble Baroness, Lady Verma, in her new position as Minister. She has some very large and fine Wellington boots to fill but I am sure that she will do so very ably. My question relates to pumped-storage hydro, which, as I am sure the noble Baroness will know, is a very effective way of balancing demand and supply on our electricity grid. Will the forthcoming energy Bill contain something to support this very important technology, particularly in relation to the capacity mechanism therein?

[Baroness Verma]

I thank the noble Baroness and your Lordships’ House for their very warm welcome. The energy Bill will seek powers to implement a capacity market as part of the reforms to the electricity market to deliver secure, affordable, low-carbon electricity. We expect that pumped-storage hydro projects would be eligible to receive capacity payments under the capacity market. Further detail will be set out alongside the introduction of the energy Bill in autumn.