Question

To ask the Secretary of State for Energy and Climate Change, if she will bring forward proposals to allow the creation and sale of licences and franchises to provide heating using power station waste heat.

The Government has a range of policies in place to promote the use of Combined Heat and Power (CHP), which is a key technique capable of generating heat from power station waste heat. Environmental permitting requires developers of power plants to consider opportunities for operating CHPs, and provides them with CHP permits if these are cost effective. CHP installations that are certified by our Quality Assurance Programme are eligible for Enhanced Capital Allowances, Business Rates exemptions, a partial exemption from the Carbon Price Support tax, and Renewable Obligation Certificates and Renewable Heat Incentive payments for any heat they generate from biomass. Developing heat networks offers further opportunities for power plants to recover and supply heat.