Alex Sobel

The Government has noted and is considering the recommendations in the Association for Decentralised Energy's report, Powered by People, Powered by Place.

Responsibility for the development of Regional Energy Strategic Plans (RESPs) and the associated governance arrangements sits with the National Energy System Operator (NESO), under Ofgem's policy framework and guidance. Following their consultation, NESO is currently finalising the RESP methodology. DESNZ Secretary of State and Ofgem are due to review and approve the methodology in due course.

RESPs are intended to support whole-system planning across electricity, gas, heat and hydrogen networks at the distribution level, and consider industrial energy demand, heat networks, storage and flexibility.

The Government has noted and is considering the recommendations in the Association for Decentralised Energy's report, Powered by People, Powered by Place.

Responsibility for the development of Regional Energy Strategic Plans (RESPs) and the associated governance arrangements sits with the National Energy System Operator (NESO), under Ofgem's policy framework and guidance. Following their consultation, NESO is currently finalising the RESP methodology. DESNZ Secretary of State and Ofgem are due to review and approve the methodology in due course.

RESPs are intended to support whole-system planning across electricity, gas, heat and hydrogen networks at the distribution level, and consider industrial energy demand, heat networks, storage and flexibility.

The DESNZ/GBE Local Power Plan is designed to engage a wide range of stakeholders and participants including community energy organisations, local authorities as well as investors and lenders. The initial entry route for those seeking support is typically through a Great British Energy Expression of Interest (EOI). This is open to communities and local authorities to submit project ideas for support. This EOI is GBE’s first step toward coordinated engagement on local and community power, to build a shared understanding of what projects are emerging across the country. Great British Energy is developing further schemes, with more information available this year.

The Department’s latest assessment of the value for money of heat pump deployment is outlined in the March 2026 impact assessment of the Boiler Upgrade Scheme. The scheme is demand-led, and funds installations in urban and semi-urban areas, including Leeds.

Our strategy for upgrading buildings is outlined in the Warm Homes Plan, and our Heat Network Zoning policy is designed to support the development of low carbon heat networks in the optimum right places. This ensures that consumers can benefit from the efficiencies that heat networks bring, as described in ADE’s research, whilst also ensuring that we respond to consumer demand for cleaner heat today.

Carbon capture, usage and storage (CCUS) is fundamental to the deep decarbonisation of industries such as EfW. CCUS is the only net zero compliant technology for many types of plants in the residual waste management sector.

The residential waste sector also has a high percentage of biogenic CO2, which if captured have the potential to create greenhouse gas removals.

CCUS technology requires energy to power the facility, and therefore the energy balance of an energy-from-waste (EfW) facility is expected to be impacted by the deployment of CCUS. These impacts will vary depending on the facility, notably whether the EfW facility is new or whether CCUS is being retrofitted on an existing site.

Carbon capture and storage (CCUS) is fundamental to the deep decarbonisation of industries such as energy-from-waste (EfW). CCUS is the only net zero compliant technology for many types of plants in the residual waste management sector.

The residential waste sector has a high percentage of biogenic CO2, which if captured have the potential to create greenhouse gas removals.

The government has developed a business model to support Waste CCUS projects and stimulate private sector investment. Following the signature of the first Waste ICC contract, the Protos Energy Recovery Facility in Cheshire is set to be the UK’s first CCUS-enabled Energy from Waste facility, generating enough electricity to power 80,000 UK homes securing 500 jobs. This is a first step to delivering carbon removals from the EfW sector, demonstrating the technical readiness of CCUS enabled EfW facilities.

The Warm Homes Plan sets our strategy for upgrading buildings, including. the case for heat networks to decarbonise heat whilst reducing the cost of upgrading the grid. We estimate that heat network deployment will save £5-7 billion in avoided distribution network costs, even before flexibility is accounted for. ADE’s research adds to our understanding in this area.

Our Heat Network Zoning policy will ensure that heat networks are built where they are the lowest-cost low carbon option, whilst Regional Energy Strategic Plans will ensure a more strategic, joined-up approach to electrification at a distribution level.

The Warm Homes Plan sets our strategy for upgrading buildings, including. the case for heat networks to decarbonise heat whilst reducing the cost of upgrading the grid. We estimate that heat network deployment will save £5-7 billion in avoided distribution network costs, even before flexibility is accounted for. ADE’s research adds to our understanding in this area.

Our Heat Network Zoning policy will ensure that heat networks are built where they are the lowest-cost low carbon option, whilst Regional Energy Strategic Plans will ensure a more strategic, joined-up approach to electrification at a distribution level.

Even with our policies for greater waste prevention, reuse and a significant municipal waste recycling rate, there will still be a need to manage residual waste.

Energy from Waste (EfW) facilities are a better option than landfill or incineration without energy recovery. They will remain a key part of our waste system.

The residential waste sector has a high percentage of biogenic CO2, which if captured have the potential to create greenhouse gas removals.

Carbon capture, usage and storage (CCUS) is essential to cut emissions from waste facilities. It is currently the only net zero compliant technology for many types of plants in the residual waste management system.

The government has welcomed the Independent GGR Review, is considering the recommendations and will respond in due course.

Biomass feedstocks for power production at Drax utilise waste wood and residues from productive forestry for other wood products. The carbon balance of these depends on forest type and management, amongst other variables, and cannot be attributed to the growth of replacement trees alone. The Government only supports the use of sustainable biomass and operators only receive subsidies for biomass that meets our sustainability criteria. UK sustainability criteria include requirements on sustainable forest management in the sourcing region, which applies to both domestically sourced and imported biomass.

Biomass feedstocks for power production at Drax utilise waste wood and residues from productive forestry for other wood products. The carbon balance of these depends on forest type and management, amongst other variables, and cannot be attributed to the growth of replacement trees alone. The Government only supports the use of sustainable biomass and operators only receive subsidies for biomass that meets our sustainability criteria. UK sustainability criteria include requirements on sustainable forest management in the sourcing region, which applies to both domestically sourced and imported biomass.

Government does not gather or hold information on fuel used by Drax each year, however this data is published by Drax in the company’s annual ESG report, ESG Performance Report - Drax Global. Fuel use is also monitored and assured as part of the operation of subsidy schemes for large-scale electricity generation. This includes Ofgem, for Drax’s units under the Renewables Obligation, and the Low Carbon Contracts Company, for Drax’s unit currently operating on a Contract for Difference.

Future fuel use at Drax will depend on demand at the station, linked to its new dispatchable operation under the Low Carbon Dispatchable Contract for Difference from 2027. Drax will play a much more limited role in the system, providing dispatchable power only when the system really needs it. It will be supported to operate at a maximum load factor of 27%, operating less than half as often as it currently does. Accordingly, we anticipate that fuel use will reduce substantially under the new contract running from 2027-2031.

The Government is making a record investment of over £2.5 billion over five years in fusion energy, including funding for STEP, the UK’s world-leading programme to design and build a prototype power plant in Nottinghamshire.

As set out in the Industrial Strategy, this will support thousands of jobs and is key to growing UK fusion supply chains and building commercial partnerships with industry. The Government is also creating a pro-innovation policy environment, providing ongoing support for fusion R&D, skills development and supply chain growth.

Further detail on Government support for fusion will be set out in the forthcoming UK Fusion Strategy.

The Government is making a record investment of over £2.5 billion over five years in fusion energy, including funding for STEP, the UK’s world-leading programme to design and build a prototype power plant in Nottinghamshire.

As set out in the Industrial Strategy, this will support thousands of jobs and is key to growing UK fusion supply chains and building commercial partnerships with industry. The Government is also creating a pro-innovation policy environment, providing ongoing support for fusion R&D, skills development and supply chain growth.

Further detail on Government support for fusion will be set out in the forthcoming UK Fusion Strategy.

The Government is making a record investment of over £2.5 billion over five years in fusion energy, including funding for STEP, the UK’s world-leading programme to design and build a prototype power plant in Nottinghamshire.

As set out in the Industrial Strategy, this will support thousands of jobs and is key to growing UK fusion supply chains and building commercial partnerships with industry. The Government is also creating a pro-innovation policy environment, providing ongoing support for fusion R&D, skills development and supply chain growth.

Further detail on Government support for fusion will be set out in the forthcoming UK Fusion Strategy.

Drax has received almost £6.5bn in subsidy from to 2024 inclusive. Under the new contract from 2027, Drax will play a much more limited role in the power system, operating only when cheaper renewable power is not available. This new deal halves the subsidies for Drax – equivalent to saving billpayers around £6 per household per year.

Material for the wood pellets used in UK biomass electricity generation is sourced from forests which are sustainably managed to supply timber for housebuilding and furniture. Material removed that is unsuitable for other uses, together with sawmill residues, are a low-value by-product of sustainable forest management practices.

Stack emissions from biomass electricity generation should be considered as part of a wider picture, taking into account carbon sequestration in the short carbon cycle. This makes biomass significantly cleaner than fossil fuel alternatives, as emissions are netted off by the carbon absorbed from growing sustainable biomass.

The new Low Carbon Dispatchable Contract for Difference (CfD) with Drax includes powers for the Low Carbon Contracts Company (LCCC) to terminate the contract as the ultimate sanction for serious breaches of generating requirements or sustainability criteria.

Over 90% of smart meters are sending automatic readings to energy suppliers. To drive this percentage up further we are working at pace alongside industry partners to share best practice and improve smart meter connectivity across Great Britain.

Ofgem is currently conducting compliance engagement into six energy suppliers in relation to their obligations to keep smart meters operating in smart mode. Ofgem is also currently consulting on new Guaranteed Standards of Performance (GSOPs) that will further strengthen consumer protections in cases where a smart meter is not sending automatic readings.

The Government is working closely with the Low Carbon Contracts Company and Ofgem to finalise the remit for the independent advisor on biomass sustainability and will set out a timescale for the appointment in due course.

The Government only supports sustainable biomass and generators only receive subsidies for biomass that complies with our criteria.

The results of Ofgem’s investigation into Drax’s compliance with biomass sustainability criteria was published in August 2024 and can be found here, https://www.ofgem.gov.uk/publications/ofgem-decision-investigation-drax-power-limited) . Ofgem found that whilst Drax complied with sustainability standards, it had failed to report data accurately. Drax’s misreporting is a serious matter and Government expects full compliance with all regulatory obligations. Drax’s £25 million redress payment underscores the robustness of the regulatory system. No decision has been taken as to whether transitional support arrangements will be introduced for relevant biomass generators when their current subsidies end.

Low carbon hydrogen is a leading option to decarbonise industrial processes that are harder or more expensive to electrify.

Hydrogen could therefore be important for processes that require high temperatures or direct firing such as in the glass or ceramics industry.

Government has an ambitious range of policies in place to incentivise and support industry to invest in innovative, clean technologies, including low carbon hydrogen.

The Government has no plans to introduce an energy social tariff this winter. However, we are committed to ensuring vulnerable households are supported with their energy bills and we are looking at all options on how to support these households.

The Government is continuing to deliver the Warm Home Discount which provides a £150 rebate off energy bills to over 3 million eligible low-income households. We are also working with energy suppliers to ensure they are providing additional support to vulnerable customers.

The Government has also extended the Household Support Fund for an additional 6 months until 31 March 2025 with an extra £500 million in funding, and I encourage any individual who is struggling to pay their bills contacts their local authority to see if they are eligible for this support.

The energy price cap is set by Ofgem and not the Department for Energy Security and Net Zero. More information on how Ofgem calculate the price cap can be found on its website - https://www.ofgem.gov.uk/energy-price-cap.

The 2023 Biomass Strategy contained a commitment to consult on developing and implementing a cross-sector sustainability framework to enable greater consistency across sectors. Next steps on this will be announced in due course.

Government provides support for biomass, for the purpose of heat and power generation, through active and legacy policy schemes, such as the Renewables Obligation (RO) and the Contracts for Difference (CfD). The annual cost of support is dependent on variables, such as the volume of electricity generation in a given year and the wholesale cost of electricity. The Department does not hold a combined estimate of the projected cost of these schemes for “biomass” in the years listed.

The department does not produce specific emissions estimates for the plastic production industry, however our greenhouse gas (GHG) territorial (i.e. occurring within the UK’s borders) emissions statistics by Standard Industrial Classification (SIC) includes a category for plastics products. The latest year for which data is available is 2022, when GHG emissions from manufacture of plastic products was 2,266 kilotonnes carbon dioxide equivalent (kt CO2e).

https://www.gov.uk/government/statistics/final-uk-greenhouse-gas-emissions-national-statistics-1990-to-2022

The department publishes Energy & Emissions Projections however these do not include an emissions split for plastic products.

https://www.gov.uk/government/collections/energy-and-emissions-projections

The Department is still considering the findings of the independent research, which looked at the size and nature of the prize draw market, as well as possible gambling harm associated with these products. This research is informing our policy considerations, as whilst not regulated as a gambling product under the Gambling Act, we want people who participate in large scale commercial prize draws to be confident that proportionate protections are in place. We will update Parliament further in due course.

Large scale commercial prize draws are a significant and growing market. Whilst not regulated as a gambling product under the Gambling Act, we want people who participate in large scale commercial prize draws to be confident that proportionate protections are in place. Independent research was commissioned in 2023, looking at possible gambling harm and assessing the impact of potential regulation, and will inform our policy considerations. The department is grateful for the voluntary action taken so far by the sector to act transparently and apply player protection measures. We want to ensure high standards in this area and the Minister for Gambling will be meeting the sector to discuss this work.