Oral Answers to Questions

Alan Whitehead Excerpts

Thursday 14th March 2013 Commons Chamber

[Dr Alan Whitehead (Southampton, Test) (Lab)]

9. What recent representations he has received on a future route to market for independent power generators.

[The Minister of State, Department of Energy and Climate Change (Mr John Hayes)]

Since our call for evidence last year, Ministers and officials have held meetings with a wide range of independent generators, suppliers and other stakeholders covering route-to-market issues, including the availability of power purchase agreements.

[Dr Whitehead]

Does the Minister recognise the difficulties that independent low-carbon generators will have with the passing of power purchase agreements following the end of the renewables obligation? Is he looking at alternatives to PPAs, such as the green power auction market, and will he seek to implement such a market in consideration of the Energy Bill?

[Mr Hayes]

The hon. Gentleman has been consistent in his advocacy of independent generators. He raised this issue during the Committee stage of the Energy Bill. He knows that I am not unsympathetic to his assertions about the difficulties that independent generators face. I believe that contracts for difference will make it easier for independent generators to access the market, as he knows, because they will remove wholesale price risk and eliminate the requirement to market renewables obligation certificates, which will also reduce risk. I make this commitment: I think that we need to look at this matter more closely and to do more. We need a more plural and a more liquid market to create competition and drive down prices.