Combined Heat and Power Quality Assurance (Temporary Modifications) Regulations 2021

Baroness McIntosh of Pickering Excerpts

Wednesday 19th May 2021 Grand Committee

[Baroness McIntosh of Pickering (Con)]

I am delighted to contribute to this little debate and I welcome the regulations. I congratulate my noble friend on setting out their remit so clearly and comprehensively. I place on record my enthusiasm for combined heat and power and I recognise the advantages of this form of use, particularly given that it has efficiency of over 80%. Operators typically save around 20% on energy bills and can save up to 30% on carbon emissions. Transmission and distribution losses are reduced while fuel supply security is increased.

I should like to put a number of questions for my greater understanding of the impact of the regulations. My noble friend said that the Covid situation, particularly lockdown in 2020 and at the beginning of 2021, has led to the need for these regulations. However, if, heaven forfend, a lockdown were to be reinstated later this year, what will happen to the regulations when they come to their natural expiry date, which I understand is 12 months from 18 May?

Also, my noble friend referred to the fact that one of the issues leading to the need for the regulations before us is that there was a reduced supply of biomass. Is that still the case or has the situation been redressed? Are we still heavily dependent on imports of biomass? If so, I plead an interest, given that I was a North Yorkshire MP for 18 years.

Farmers in this country stand prepared to contribute to the supply of biomass. I could be wrong, but I understand that one of the sources could be fast-growing willow trees. It would be a much better and more sustainable supply, while contributing to the income of farmers in the UK, if we could secure biomass from a UK source rather than importing it. Will the Minister address the issue that she herself raised about the reduction in biomass supply? Is that still the case? Are we completely dependent, for the large part, on imports? Has the supply now been reinstated?

What happens at the expiry of this instrument on 18 May next year? Will it fall or be reviewed to see whether it could be reinstated?

I understand that there is a difference between combined heat and power plants and energy from waste. I am also an enthusiastic supporter of energy from waste. I am delighted to see that the energy from waste plant constructed near the A1 in North Yorkshire is working so well. My one regret is that the energy created is not being put into the local grid, because there is an argument—particularly in a cold part of the country, such as the north of England—that the supply should be for domestic consumption.

Can the Minister address how many CHP plants currently have the capability to operate CHP but are not yet functioning as CHP plants? To what extent does she imagine that the regulations will address that issue, or are they only addressing the issue of those who have benefited from the scheme in the past and who wish to have the amendments set out in the regulations?

I note that there are no plans to consolidate the Renewables Obligation Order 2015 or the Emissions Performance Standard Regulations 2015 for the simple reason that these are temporary modifications. That is very welcome indeed.

I support the regulations before us. They will come as a huge relief to those operators who have been caught on the hop in this way. With those points and questions, I wish the Minister a fair wind with these regulations.