Question

To ask the Secretary of State for Energy and Climate Change, what steps the Government is taking to encourage investors to develop and construct new gas plant such as the Gateway Energy Centre.

Gas generation currently forms an integral part of the UK’s electricity mix and it will continue to do so over the coming decades as we decarbonise our electricity system; it is the cleanest fossil fuel and is one of the most flexible and reliable sources of electricity.

The Department’s analysis [1] suggests significant investment in new gas plant is needed, in part to replace older coal, gas and nuclear plant as it retires.

The Gas Generation Strategy [2], published in December 2012, set out measures to support investment in new gas plant. Of particular importance is the introduction of a capacity market last year which provides all reliable capacity, including gas, with secure revenues. The Government believes the capacity market provides the necessary financial incentives to ensure new gas plant are brought forward as and when needed.

[1] Each year DECC publishes updated energy projections, analysing and projecting future energy demand and supply (including from gas generation) and greenhouse gas emissions in the UK. The latest projections are available via https://www.gov.uk/government/collections/energy-and-emissions-projections

2] https://www.gov.uk/government/publications/gas-generation-strategy