First elected: 7th May 2015
Left House: 3rd May 2017 (Defeated)
Speeches made during Parliamentary debates are recorded in Hansard. For ease of browsing we have grouped debates into individual, departmental and legislative categories.
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The incident on 26 December 2015 was a safety-related incident at an offshore oil and gas installation, the regulation of which falls within the Health and Safety Executive’s statutory remit under the Offshore Safety Directive.
The regulation of the safety of offshore oil and gas installations in external waters is a matter for the Health and Safety Executive (HSE), working as part of the Offshore Safety Directive Regulator partnership. DECC and the Oil and Gas Authority are in regular contact with the industry and HSE regarding a range of offshore infrastructure issues, including the relationship between maintaining safety standards and reducing the cost of production. Together, we aim to ensure that industry resources are directed to maximising safe, sustainable production.
My Rt. hon Friend,the Secretary of State announced in November, this Government is committed to taking pragmatic action to meet the fourth carbon budget whilst ensuring that energy is secure and bills remain low. Measures announced in her speech - including the intention to replace unabated coal with new gas, nuclear and renewables; increased competition; concerted action on heat; and support for innovation – are all in line with this commitment.
Our new emissions reduction plan will be published towards the end of 2016 and will set out our proposals in full.
The speech contained a number of policy proposals which are at different stages of implementation. Some measures which are close to delivery have already had assessments published, such as the changes to the Renewables Obligation and Feed-in Tariff to ensure bill payers get value for money. Where appropriate impact assessments for other proposals, such as the consultation to close unabated coal-fired power stations, will be published in due course.
The Department takes into account a number of factors to project Levy Control Framework (LCF) spending in relation to Contracts for Difference (CfD) contracts, including capacity for each individual project, strike prices, wholesale electricity prices, load factors and commissioning dates. Some of the CfD predictions that fed into the Office for Budget Responsibility November LCF forecasts are already in the public domain, such as strike prices for signed CfD contracts which are available on the LCCC website. Some predictions are based on commercial intelligence and sensitive information from the developers which we cannot disclose.
The Government set out its capital budget and priorities for this Spending Review period on 25 November 2015.
The Department is currently considering the Committee on Climate Change’s advice and Government will set the fifth carbon budget in law next year.
The Renewable Heat Incentive (RHI) does not operate under separate budgets for the domestic and non-domestic schemes. For 2015/16 it has a single budget limit of £430m for both schemes combined. This is a spending limit, not a central forecast; and the scheme is not deemed to have ‘underspent’ if expenditure is below that limit. The central spend forecast for 2015/16 that was set out at the time the £430m budget limit was agreed (as part of the 2013 Spending Round) was £365m.
DECC does not regularly publish forecast expenditure for financial years; instead publishing monthly data on ‘committed expenditure’ – the estimated costs of supporting all plants applied to the scheme for a rolling 12-month cycle.
However, as part of the 2015 Comprehensive Spending Review, the Office of Budget Responsibility (OBR) have published a forecast of £420m for 15/16:
http://budgetresponsibility.org.uk/supplementary-forecast-information/.
This is still subject to considerable uncertainty, as the scheme is largely paid on metered heat; and so final expenditure will be determined by the level of heat generation this winter, as well as rates of new applications.
The provision of ring-fenced capital support for CCS was judged against other Government funding priorities as part of the Spending Review. We are engaging closely with the two bidders and wider industry on the implications of the decision. The Government’s view remains that CCS has a potential role in the long term decarbonisation of the UK’s power and industrial sectors.
The Government continues to view CCS as having a potential role in the long-term decarbonisation of the UK’s power and industrial sectors.
Through the CCS Competition the Department has held discussions on a regular basis with both Shell and Capture Power Ltd. We continue to engage closely with the two bidders on the implications of the Spending Review decision for their Bids.
The provision of ring-fenced capital support for CCS was judged against other Government funding priorities as part of the Spending Review. We are currently engaging with both bidders regarding the implications of this decision on their Bids.
We conducted an engagement exercise to better understand the views of stakeholders on the early closure of the Renewable Obligation to onshore wind. To protect investor confidence a grace period was proposed in June, and we have subsequently proposed amendments to this in response to stakeholder feedback over the summer. We consider this will strike the right balance between consumer and industry interests.
We also ran a consultation on changes to support for small scale solar projects under the Renewable Obligation and one on the feed-in tariff review. We strongly welcomed evidence from the sector during these consultations and we hope this will allow us to improve our understanding of the impact on jobs and investment.
The measures we announced are about getting costs under control, which is essential to provide the foundations for clean electricity investment in the future. We will still be delivering at or above the EMR Delivery Plan ranges and reaching at least 30% electricity generation from renewables by 2020. So we are still supporting a strong pipeline of projects that are bringing jobs and investment across the UK.
DECC regularly discusses the resilience and security of the UK’s electricity supply with the Governments Departments in committees and sub-Committees.
The Department of Energy and Climate Change Energy regularly meets with the Scottish Government to discuss resilience issues in the energy sector.
There is no impact on security of supply for winter 15/16 as these power stations are expected to be available for generation throughout this winter. Assessments about plant availability are made during National Grid’s winter outlook process which will inform the final view presented in National Grid’s Winter Outlook Report.
The Department of Energy and Climate Change takes security of supply very seriously and has worked with National Grid to put in place a plan to secure electricity supplies even in tough system conditions such as cold weather
The government takes security of supply very seriously. We have worked with National Grid and Ofgem to put an effective plan in place for this winter and we are already taking prudent steps to manage margins in winter 2016/17.
DECC officials have worked with National Grid and Ofgem on National Grid’s winter outlook process for 15/16 which has informed the procurement of the Contingency Balancing Reserve for this winter.
National Grid and Ofgem agree that Grid should retain the ability to procure the contingency balancing services for the next two winters and the Government supports this position. On 15 October, Ofgem commenced its consultation on the extension of the cost recovery arrangements for the contingency balancing services to allow National Grid’s contingency balancing services to continue for the winters prior to the introduction of the Capacity Market in 18/19. National Grid’s Tender for the Contingency Balancing Reserve (subject to the outcome of the Ofgem consultation) opened on 2 November.
The Capacity Market, a key part of our reform of the electricity market, will drive new investment in gas and demand side capacity in the future. The first Capacity Market auction was successfully concluded in December 2014 and the next will commence on 8December 2015. We have announced our intention to procure a total of 47.9GW capacity for the delivery year 2019/20 and that the target capacity for the auction this December will be 45.4GW. The balance (2.5 GW) will be procured in 2018, one year ahead of delivery.
DECC Officials work closely with National Grid counterparts on the analysis in the winter outlook and maintain a constant dialogue as it is developed.
The Winter Outlook Report presents a snapshot view of the forecast security of supply situation which is constantly being analysed by National Grid in cooperation with DECC and Ofgem. The Winter Outlook is part of a wider programme of analysis including National Grid’s Summer Outlook, Winter Outlook Consultation and Ofgem’s capacity assessment.
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My rt. hon. Friend the Secretary of State spoke with Steve Holliday, National Grid’s Chief Executive on 5November to discuss the Notice of Inadequate System Margin which National Grid issued on 4 November.
Following the call, the Secretary of State has written to National Grid requesting a more in-depth analysis of some the factors contributing to the issuing of the notice and an assessment of the potential implications on future decisions.
We take security of supply very seriously and we are working with National Grid to make sure there is always sufficient generating capacity available to meet demand even in challenging conditions, such as extremely cold weather.
The Department recognises the potential for storage to help us use energy more flexibly and decarbonise our energy system cost effectively, alongside interconnection and demand-side response (DSR). In light of this, more than £80m public sector controlled support has been committed to energy storage research, development and demonstration activities since 2012.
Storage is also eligible to participate in the Capacity Market (CM). One pump hydro company has conditionally prequalified with a new project for the next round of auctions this year.
The Department is investigating the potential barriers to the deployment of energy storage. We are carefully considering possible mitigating actions, focussing in the first instance on removing regulatory barriers to energy storage. We plan to conduct a consultation and call for evidence in the spring.
National Grid makes an assessment of the extent to which all GB interconnectors can be relied upon at times of system stress. This is based on an assessment of European markets. In recent years we have, in fact, observed increased efficiency of the interconnectors and imports to the UK system at times of peak demand. As market coupling is further implemented, we expect this to continue. This is assessed on an annual basis to take into account any changing market dynamics. For this winter, forward power prices suggest net imports to GB over interconnectors with continental Europe.
Beyond these market arrangements, should GB need additional support, it is also possible for National Grid as the System Operator to call upon interconnectors at a time of system stress.
National Grid, as part of their winter outlook process assesses the overall reliability of technologies based on their historic reliability. This is the ‘de-rating factor’ that is applied to calculate available margins.
There is nothing about the decision to cease connection to the transmission grid that would make a plant more unreliable prior to its planned withdrawal.
Our priority is to ensure that British families and business have access to secure affordable energy supplies that they can rely on and we are taking prudent steps to manage the margins in winter 2016/17. Since 2014 National Grid have had the ability to procure a Contingency Balancing Reserve (CBR), which consists of the Supplemental Balancing Reserve (SBR), where existing power stations stand by ready to generate additional electricity and the Demand Side Balancing Reserve (DSBR) where companies bid for contracts with National Grid to receive payments in return for reducing their electricity usage times of peak demand should National Grid so require. National Grid and Ofgem agree that we should retain the ability to procure CBR for the next two winters. Government supports this position and we expect confirmation later this month following an Ofgem consultation. Beyond winter 2017/18, the Capacity Market will take over as the long term solution for security of supply.
As indicated by National Grid’s 2015 Winter Outlook, forward power prices for this winter suggest that we will see net imports to GB over electricity interconnectors with continental Europe (IFA and Britned).
Beyond these market arrangements, should GB need additional support, it is also possible for National Grid as the System Operator to call upon interconnectors at a time of system stress.
National Grid makes an assessment of the extent to which all GB interconnectors can be relied upon to provide electricity to GB when needed. The assumptions around electricity imports are informed by an assessment of connected markets, including consideration of their electricity margins, the wider network to which they are connected and the chance of coincident scarcity with the connected markets.
Beyond these market arrangements, should GB need additional support, it is also possible for National Grid as the System Operator to call upon interconnectors at a time of system stress.
Our priority is to ensure that British families and business have access to secure affordable energy supplies. We are working with National Grid to make sure there is always sufficient generating capacity available to meet demand even in challenging conditions, such as extremely cold weather.
National Grid forecasts show Peak demand for electricity for 2015/16 and 2016/17 is expected to be broadly stable, which is consistent with recent trends.
Since 2014 National Grid have had the ability to procure a Contingency Balancing Reserve and they have secured 2.4GW of capacity through this mechanism to ensure supplies for this winter.
On 15 October, Ofgem commenced its consultation on the extension of the cost recovery arrangements for the contingency balancing services to allow National Grid’s contingency balancing services to continue for the winters prior to the introduction of the Capacity Market in 18/19. National Grid’s Tender for the Contingency Balancing Reserve (subject to the outcome of the Ofgem consultation) opened on 2 November. The Government supports the position taken by National Grid and Ofgem that Grid should retain the ability to procure the contingency balancing services for the next two winters and that this tool will help ensure sufficient margins until the first delivery year of the Capacity Market.
Beyond winter 2017/18, the Capacity Market will take over as the long term solution for security of supply, driving new investment in gas and demand side capacity in the future. The first Capacity Market auction was successfully concluded in December 2014 and the next will commence on 8December 2015. We have announced our intention to procure a total of 47.9GW capacity for the delivery year 2019/20 and that the target capacity for the auction this December will be 45.4GW. The balance (2.5 GW) will be procured in 2018, one year ahead of delivery.
COBR may be used as a mechanism to coordinate the government’s response to disruption to energy supplies that have a national impact, and where the response requires central government support and coordination.
The Government does not have a renewable heat target for 2020, but by that year the UK is required to obtain 15% of its final energy consumption from renewable sources under the EU Renewable Energy Directive. This includes renewable heating, where the level of renewables has more than doubled since 2012/13 to reach 4.9% in 2014.
Progress towards the overall target is monitored via interim milestones. The UK is continuing to make progress; and we are set to meet the next interim target, which is an average of final energy consumption over 2013/14. The provisional figure, released on 25 June, showed 6.3% of final energy consumption for 2013/14 came from renewable sources, against a target level of 5.4%.
The Department has made projections of carbon dioxide savings (MtCO2) from the domestic and non-domestic Renewable Heat Incentive scheme in the Updated Energy & Emissions Projections (EEP), last updated Sept 2014. In the absence of funding arrangements after 2015/16, these carbon savings assume an extrapolation of RHI deployment to 2020.
The projected savings will be updated if required for any RHI scheme changes following the Spending Review outcome.
The EEP, which include the relevant carbon saving projections from the RHI, are available at:
In August 2015 DECC published estimated capacity of key renewable technologies through delivery under Contracts for Difference, the Renewables Obligation and Investment Contracts in 2020/21 after cost control measures are implemented:
We also published an Impact Assessment for the review of the FITs scheme which set out projected installed capacity and generation output under the options proposed:
The estimated total installed capacity (in gigawatt) and generation (gigawatt hours) from all renewable electricity support schemes (Renewables Obligation, Feed-In Tariff, Contracts For Difference and Investment Contracts) in 2020/21 is set out in the table below:
In 2020/21 | Capacity (GW) | Generation (GWh) |
Offshore Wind | 10.2 | 38,200 |
Onshore Wind | 13.2 | 33,500 |
Solar PV | 9.6 | 9,100 |
Biomass Conversions | 2.2 | 14,800 |
Please note that the generation has been rounded to the nearest 100th gigawatt hour.
It is important to note that these estimates include assumptions about policy changes which have been proposed but not yet finalised and which could therefore change subject to the responses received – in particular, the consultation on a review of the Feed-in Tariff scheme, and the consultation on changes to financial support for solar PV under the Renewables Obligation:
https://www.gov.uk/government/consultations/changes-to-financial-support-for-solar-pv.
The Department has made projections for the renewable heat generation of renewable heat installations under the Renewable Heat Incentive (RHI), the main scheme of our heat strategy. Projections to the end of 2015/16 can be found in the Impact Assessment for the RHI, which is quoted below.
Detailed projections do not go beyond 2015/16 because this is the end of agreed RHI budget; and so policy beyond that period is subject to future budget arrangements. The Department’s projections only cover the generation projected from deployment under the RHI. The Department does not hold projections for the market beyond the RHI.
The Department has not published projections for the total capacity (by technology) under the RHI, as, due to the highly variable use patterns (known as load factors) of heating technologies, capacity is not a very useful metric. Instead, we consider generation per year, which is also the unit that we report against the target set by the EU Renewable Energy Directive (RED).
Renewable heat projections under RHI (GWh)
Source | Low MI scenario | Central MI scenario |
Small and Medium Biomass | 2,799 | 3,167 |
Large Biomass | 818 | 1,228 |
Ground-source Heat Pumps | 138 | 194 |
Air- and water-source heat pumps | 312 | 427 |
Biomethane and Biogas | 708 | 1,073 |
Combined heat and power (CHP) | 186 | 879 |
Other (e.g. Deep Geothermal) | 28 | 34 |
Domestic (all technologies) | 178 | 370 |
TOTAL (non-domestic and domestic) | 5,167 | 7,373 |
Source: Table 8, RHI Tariff Review, Scheme Extensions and Budget Management (24/09/2013).
The table uses the Low and Central scenarios for Market-Intelligence based projections of potential deployment, spend and installation numbers under the RHI (MI). Non-domestic projections are split by technology; domestic technologies are aggregated.
The Department has made projections of carbon dioxide savings (MtCO2) in the Updated Energy & Emissions Projections (EEP), last updated Sept 2014. In the absence of funding arrangements after 2015/16, these carbon savings assume an extrapolation of RHI deployment to 2020.
The projections cover carbon dioxide displacement from the Renewable Heat Incentive (RHI), the main scheme in its heat strategy. The Department has not made projections for renewable heat carbon savings from technologies not supported by the RHI scheme.
The projected savings will be updated if required for any RHI scheme changes following the Spending Review outcome.
The EEP, which include the relevant carbon saving projections from the RHI are available at:
The carbon efficiency of heat pumps which utilise electricity supplied from the national grid is affected by two things:
1) heat pump performance (efficiency) which affects how much electricity is required to run the heat pump; and
2) the carbon content of electricity.
DECC publishes current and future assumptions about the carbon content of the electricity grid in the Green Book Supplementary Guidance: Valuation of energy use and greenhouse gas (GHG) emissions available here: https://www.gov.uk/government/publications/valuation-of-energy-use-and-greenhouse-gas-emissions-for-appraisal.
DECC has commissioned a number of studies looking at the installed performance and carbon effectiveness of heat pumps. As part of the Renewable Heat Premium Payment (RHPP) policy, the installed performance of around 700 domestic heat pumps was monitored. Preliminary results were published in January 2014 and include an estimate of carbon savings:
DECC are also currently monitoring a selection of ground and water source heat pumps installed under the Non-Domestic Renewable Heat Incentive.
Carbon Capture and Storage (CCS) has the potential to play an important role in enabling the UK to decarbonise its energy system. The Wood Review recognised that offshore storage of carbon dioxide could potentially benefit the UK continental shelf, and called for continued collaboration between industry, academia and DECC as the most appropriate means to realise the opportunity.
With the UK continental shelf now being one of the more mature offshore basins in the world, the Wood Review identified a range of key issues which the Government and industry must jointly address to deliver maximum economic recovery (MER) of UK petroleum, stressing the importance of a focused regulator. In accordance with the recommendations of the Wood Review, the Government is working to establish the Oil and Gas Authority (OGA), as a body with the objective of delivering MER.
The Government has taken steps to set up the OGA quickly in accordance with the recommendations of the Wood Review, which continues to attract strong industry support. In addition to its role as licencing authority for offshore carbon dioxide storage, the OGA is developing the Sector Strategies called for by the Wood Review. In developing the Technology and Decommissioning Sector Strategies, the OGA is considering the potential for offshore storage of carbon dioxide to help achieve MER.
Enhanced Oil Recovery (EOR) techniques that utilise carbon dioxide may also have a role in increasing hydrocarbon recovery in future. In its Technology Sector Strategy, the OGA will consider the potential contribution that the various EOR technologies, including carbon dioxide EOR, could make towards MER.
The OGA’s key actions are already providing crucial support to the oil and gas industry. Without this, we risk premature decommissioning of the UK continental shelf, loss of stranded assets and loss of the key infrastructure and skills – including those which could ultimately promote the longevity of the industry through carbon dioxide storage projects. This underlines the importance of the OGA focusing upon maximising economic recovery and constructively engaging with the CCS industry.
Carbon Capture and Storage (CCS) has the potential to play an important role in enabling the UK to decarbonise its energy system. The Wood Review recognised that offshore storage of carbon dioxide could potentially benefit the UK continental shelf, and called for continued collaboration between industry, academia and DECC as the most appropriate means to realise the opportunity.
With the UK continental shelf now being one of the more mature offshore basins in the world, the Wood Review identified a range of key issues which the Government and industry must jointly address to deliver maximum economic recovery (MER) of UK petroleum, stressing the importance of a focused regulator. In accordance with the recommendations of the Wood Review, the Government is working to establish the Oil and Gas Authority (OGA), as a body with the objective of delivering MER.
The Government has taken steps to set up the OGA quickly in accordance with the recommendations of the Wood Review, which continues to attract strong industry support. In addition to its role as licencing authority for offshore carbon dioxide storage, the OGA is developing the Sector Strategies called for by the Wood Review. In developing the Technology and Decommissioning Sector Strategies, the OGA is considering the potential for offshore storage of carbon dioxide to help achieve MER.
Enhanced Oil Recovery (EOR) techniques that utilise carbon dioxide may also have a role in increasing hydrocarbon recovery in future. In its Technology Sector Strategy, the OGA will consider the potential contribution that the various EOR technologies, including carbon dioxide EOR, could make towards MER.
The OGA’s key actions are already providing crucial support to the oil and gas industry. Without this, we risk premature decommissioning of the UK continental shelf, loss of stranded assets and loss of the key infrastructure and skills – including those which could ultimately promote the longevity of the industry through carbon dioxide storage projects. This underlines the importance of the OGA focusing upon maximising economic recovery and constructively engaging with the CCS industry.
Estimates of the administrative costs of major household renewable energy and energy efficiency schemes are typically published in impact assessments accompanying individual scheme regulations. Examples for two of the largest major domestic energy efficiency and renewable energy regulations can be found at:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/373650/ECO_IA_with_SoS_e-sigf_v2.pdf. In scheme reporting on administrative costs is also available quarterly at: https://www.gov.uk/government/collections/green-deal-and-energy-company-obligation-eco-statistics
The development of a renewable energy installation has, by its nature, a degree of complexity. This can cover topics as diverse as the securing of planning permission, the granting of electricity generation licences, access to grid and administration of renewable energy financial incentives. Responsibility for these resides with a number of different regulatory authorities each of which have already put in place detailed guidance for applicants.
DECC keeps under review all policies which might be needed to meet future carbon budgets in line with the requirements of the Climate Change Act, in its consideration of the advice from the Committee on Climate Change.
Reducing carbon emissions will require improved energy efficiency measures and changes to heating systems in buildings. The Government is committed to considering both together through a stable long-term framework which explores the potential role of regulation.
DECC officials and Ministers have had extensive meetings with stakeholders from across the renewables industry during the feed-in tariff review consultation, including many of the organisations signing the letters of 21 August and 9 October. I held a roundtable in Parliament on Wednesday 21 October, with a wide ranging group of stakeholders. It was a highly productive meeting.
DECC replied to the letter of 21 August, and will respond to the letter of 9 October in due course.
The Government recognises the importance of the UK oil and gas industry to our economy and energy needs. Parliamentary business did not allow DECC Minsters to attend Offshore Europe but, as it is a key priority, the Oil and Gas Authority and DECC Officials played a leading role and we continue to maintain a dialogue with operators and other industry stakeholders. The Energy Minister’s first official visit was to Aberdeen to see first-hand what the industry is achieving even in these difficult times. She continues to visit and meet with many in the sector.
The table below shows how many tonnes of carbon dioxide were displaced by renewable electricity in each of the UK, England, Scotland and Wales in 2014.
UK | England | Scotland | Wales | |
Carbon dioxide displaced by renewable electricity generation (million tonnes) |
41.5 |
26.0 |
12.3 |
2.2 |
Carbon emissions displaced by renewable electricity generation have been calculated as renewable electricity generation multiplied by the average emissions factor for electricity supplied by fossil fuel stations in 2014. A breakdown of electricity generation for the UK countries can be found in Energy Trends table ET 6.1 at:
https://www.gov.uk/government/statistics/energy-trends-section-6-renewables
Carbon dioxide emissions factors for electricity supplied can be found in table 5D of the Digest of UK Energy Statistics, 2015, available at:
Information on the carbon savings from the total renewable heat produced in the UK is not available. Chapter 6 of the Digest of UK Energy Statistics provides more information on renewable heat, and shows that 2,730 ktoe of renewable fuels were used to generate heat in 2014. The full renewable energy chapter is available at:
These projects have been proposed for inclusion in the European Network of Transmission System Operators for Electricity draft Ten Year Network Development Plan for 2016. If they are included, they will be eligible to apply for Projects of Common Interest status as part of the 2017 revision of that list of projects.
In order to receive Projects of Common Interest status, the projects must demonstrate cross-border Member State benefit, overall project benefits should outweigh costs, enhance security of supply, support renewables integration and facilitate market integration, as set out in the guidelines for trans-European energy infrastructure - TEN-E Regulation (EU) 347/2013.
The Government will continue to support energy storage, including projects’ joining the EU’s Projects of Common Interest list, where they are a cost-effective addition to the UK’s energy system.
Energy storage is one way to provide flexibility to the energy system, alongside demand side response, interconnection and smarter networks. The Department of Energy and Climate Change continues to assess the potential for all forms of energy storage, including pumped hydro, to benefit the UK energy system.
With support from a DECC innovation grant, a UK pumped hydro storage developer has assessed the potential location of new pumped hydro sites around Great Britain. They concluded that up to 15GW of novel pumped storage could be possible, using various criteria such as the presence of existing or potential reservoirs, grid connection distance and whether the site is in an environmentally sensitive area. Other pumped storage developers have independently identified over 1 GW of additional potential pumped storage.
The Department of Energy and Climate Change recognises the potential role that cost effective energy storage could play in contributing to a resilient, affordable and low carbon energy system in the UK.
DECC has provided more than £18m of innovation support since 2012 to develop and demonstrate a range of energy storage technologies. This support has included a grant to a UK pumped hydro storage company to analyse the potential for wider deployment of new pumped hydro storage facilities in novel sites around Great Britain – for example, in disused quarries or other brownfield sites or using drinking water reservoirs.
DECC is in regular dialogue with prospective developers of new pumped hydro storage projects, and is keen to understand the extent to which any barriers to deployment can be overcome in a way that is affordable to the bill payer.
There were an estimated 19,000 people employed in the onshore wind sector in 2013, including in the supply chain.[1] We currently have enough projects in the pipeline to meet our 2020 renewable electricity objective of between 11-13GW of onshore wind capacity while remaining within the limits of what is affordable. This pipeline of projects will deliver new jobs across the UK.
[1] The Size and Performance of the UK Low Carbon Economy: Report for 2010 to 2013 (March 2013): https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/416240/bis-15-206-size-and-performance-of-uk-low-carbon-economy.pdf.
The level of top-up payments depends on many variables including the wholesale price and load factors.
We have extensive contacts with onshore wind developers and investors and have received a range of information on investment in projects in the onshore wind pipeline, including projects in Scotland.
We will be engaging with developers, investors and stakeholders in the coming weeks to consider how best to implement the onshore wind manifesto commitment and will consider carefully the level of investment that is likely to be brought forward under the proposals announced by my rt. hon. Friend the Secretary of State on 18 June.
The UK is open for business.
The UK is a leading destination for investment in offshore wind.
We have put in place a long term policy framework that gives certainty to developers to invest in offshore windfarms. Neart na Gaoithe, a project off the coast of Scotland, was awarded a Contract for Difference (CFD) in the first allocation round.
Officials are working with this Developer on the implementation of their Supply Chain Plan and to boost UK content.
We will be confirming our plans for future CFD allocation rounds in due course. The CFD scheme will be the primary instrument for ensuring cost effective decarbonisation of the power sector and we recognise the need to give industry more visibility of our approach.
I refer the hon. Member to my rt. hon. Friends the Secretary of State’s statement to the House on onshore wind subsidies on 22 June 2015, Official Report, Column 618:
“In advance of this announcement, I and other Ministers and officials discussed the proposals with the devolved Administrations in Wales, Northern Ireland and Scotland. We want to hear the further views of the devolved administrations, as well as of industry and other stakeholders. This is just the beginning of the process, and we will continue to consult them as we move towards implementation.” [1]
[1] http://www.publications.parliament.uk/pa/cm201516/cmhansrd/cm150622/debtext/150622-0001.htm