Solar Industry Debate
Full Debate: Read Full DebateDepartment: Department for Business, Energy and Industrial Strategy
Kevin Hollinrake
Main Page: Kevin Hollinrake (Conservative - Thirsk and Malton)Department Debates - View all Kevin Hollinrake's debates with the Department for Business, Energy and Industrial Strategy
Solar Industry
Kevin Hollinrake Excerpts(5 years, 8 months ago)
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Antoinette Sandbach
The Minister will have heard the hon. Lady’s comments, and I hope that she takes account of them, because a minimum floor price would put the sector on the same footing as the offshore wind industry, which benefits from the certainty that contracts for difference provide, and fossil fuel investors, who benefit from the capacity market.
Kevin Hollinrake (Thirsk and Malton) (Con)
I congratulate my hon. Friend on securing this important debate. I note that the Renewable Energy Association has lobbied for a market-based solution, which this clearly is. However, I share some of her concerns that, without certainty on pricing, some people will be deterred from investing here in the first place, unless we can get the matter right.
Antoinette Sandbach
I agree with that assessment, which is why I argue that a minimum floor is needed. I am afraid that failure to extend that kind of certainty to small-scale prosumers will give the impression that the Government are more comfortable with big business than with small producer-consumers.
A fair minimum export price will ensure that consumers are not ripped off while the industry and the new regulation sort themselves out. It will also encourage suppliers to get their systems in place in readiness for market-wide, half-hourly settlement, which will help accelerate the smart energy transition. If a minimum floor price was to be informed by the system imbalance price, it would ensure that all other generators and prosumers could be treated equally, as required by article 21 of the renewable energy directive, without inhibiting innovative smart offerings.
Additionally, the commitment to a zero floor price, while welcome, is insufficient. No country in Europe asks prosumers to pay to put electricity into the grid. Likewise, in 2018 just 0.4% of daylight hours were a negative pricing period. Therefore, given the rarity of such an occasion, this is not what prosumers need. What is needed is the minimum floor price, which would have a transformative impact on the prospects for the sector, not simply a zero floor price.