Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government whether they have updated their assessment of the potential for hydroelectric power, further to the rise in electricity prices; and what assessment they have made of the benefits of introducing a scheme like the Contracts for Difference scheme to encourage the deployment of small-scale hydropower systems.

The Government acknowledges the valuable contribution of hydropower to the UK energy mix over many decades. However, economic and environmental constraints mean that in practice the viable remaining resource is less than 1% of total generation capacity, hence it will likely not be a significant contributor to our future generation plans.

The Smart Export Guarantee puts a requirement on most electricity suppliers to offer to buy electricity that is exported to the grid by small-scale generators, and as announced by my Rt hon Friend Mr Chancellor of the Exchequer in the Autumn 2021 Budget and recent Spring Statement, business rates will include an exemption for eligible plant and machinery used in the generation and storage of renewable energy from 1 April 2022 until 31 March 2035.