Asked by: Alan Brown (Scottish National Party - Kilmarnock and Loudoun)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, with reference to the BBC Panorama programme entitled The Green Energy Scandal Exposed, whether Ofgem is (a) investigating or (b) auditing Drax Group PLC for that company's compliance with sustainability regulations.
Answered by Graham Stuart
Ofgem undertakes regular audits of Drax’s adherence to their obligations under the Renewables Obligation scheme. As part of ongoing scheme compliance monitoring, an additional assurance audit is underway.
Asked by: Andrew Percy (Conservative - Brigg and Goole)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the potential impact of the close of the Renewables Obligation Certificates scheme on (a) 100MW biomass operators and (B) UK biomass generating capacity.
Answered by Graham Stuart
The Government is considering the best market arrangements to ensure existing assets are properly valued for their renewable generation.
Asked by: Andrew Percy (Conservative - Brigg and Goole)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps the Government will take to support the UK biomass sector for sub 100MW operators following the end of the Renewables Obligation Certificates scheme.
Answered by Graham Stuart
The Government is considering the best market arrangements to ensure existing assets are properly valued for their renewable generation.
Asked by: Martyn Day (Scottish National Party - Linlithgow and East Falkirk)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the potential merits of offering further support to the waste wood biomass sector to protect the baseload power they produce and to adopt carbon capture and storage capability for (a ) ensuring the UK's energy security and (b) achieving Net Zero.
Answered by Graham Stuart
The Government recognises the important contribution that the waste wood biomass sector contributes to energy security and net zero goals. Waste wood is already eligible for support under the Renewables Obligation and the Contracts for Difference schemes. The Government consulted on a First of a Kind business model for biomass power with carbon capture and storage in August 2022 and will publish our response later this year.
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department has made a recent assessment of Drax power station's compatibility with the sustainability criteria of the Contracts for Difference and Renewable Obligation scheme.
Answered by Graham Stuart
Only biomass that complies with stringent sustainability criteria is eligible for support under the Contracts for Difference and Renewables Obligation schemes. Biomass generators, including Drax, must demonstrate to Ofgem and the Low Carbon Contracts Company respectively that they have met the criteria before they can receive payment under these schemes.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he is taking steps with Cabinet colleagues and the Northern Ireland Executive to help ensure that the proportion of energy generated from renewable sources is reflected in the energy prices charged to energy consumers in Northern Ireland; and what recent steps his Department has taken to increase the level of renewable energy generation.
Answered by Graham Stuart
The Northern Ireland Renewables Obligation is the principal renewable energy scheme in Northern Ireland, supporting renewable electricity generation. Usually paid for by consumers via their electricity bills, the levy costs are currently further reduced under the UK Government’s energy bill support measures.
The Government continues to work with Northern Ireland’s Department for the Economy officials to identify a suitable pathway for a Northern Ireland Contracts for Difference scheme to bring more renewable generation online.
Asked by: Lord Randall of Uxbridge (Conservative - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask His Majesty's Government what discussions they have had with Drax about the sustainability of their supply chains in relation to the cutting down of primary forests.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The UK only supports sustainable biomass use which can deliver genuine Greenhouse Gas (GHG) emissions savings compared to fossil fuels. Ofgem is responsible for auditing the sustainability of biomass used by biomass electricity generators which receive support under the Renewables Obligation and has a process in place for this.
Asked by: Baroness Jones of Moulsecoomb (Green Party - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask His Majesty's Government what knowledge they had, if any, of renewable energy company Drax purchasing licences to cut down trees from primary forests in Canada to make wood pellets for its power station in Yorkshire, as alleged in the BBC's Panorama investigation, which aired on 3 October.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The regulator Ofgem is responsible for auditing the sustainability of biomass used by biomass electricity generators which receive support under the Renewables Obligation and has a process in place for this. As is routine, Ofgem is establishing whether the biomass sustainability criteria have been met by the generator. These criteria ensure that only sustainable biomass is used to produce renewable electricity. Sustainability information is publicly available on Ofgem’s website.
To receive support generators must follow sustainable management practices that require the maintenance and replanting of the forest, demonstration that deforestation is not occurring where they source material from, and that biodiversity, soil and water are protected, among other requirements.
Asked by: Beth Winter (Labour - Cynon Valley)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to Annex A of the Explanatory Notes to the Energy Prices Bill, published on 12 October 2022, what assessment he has made of the potential impact of the cost-plus revenue limit facility on (a) private and (b) public sector investment in renewable energy.
Answered by Graham Stuart
The mechanics of the temporary Cost-Plus Revenue Limit will be subject to a consultation to be launched shortly, with final details to be announced and an Impact Assessment conducted ahead of regulations coming into force from the start of 2023. The Government will set a price that is fair for consumers, taxpayers and industry, recognising the need to ensure the design reflects generators’ investment commitment and risk. Under the scheme, generators will retain entitlements under the Renewables Obligation and Capacity Market.
Asked by: Rebecca Long Bailey (Labour - Salford and Eccles)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, following the BBC Panorama report on 3 October, what recent assessment he has made of the (a) environmental and (b) financial impact of burning imported wood pellets for energy at Drax power station.
Answered by Graham Stuart
The UK only supports sustainable biomass use which can deliver genuine greenhouse gas emissions savings compared to fossil materials. The regulator Ofgem is responsible for auditing the sustainability of biomass used by electricity generators which receive support under the Renewables Obligation. Ofgem routinely checks whether the sustainability criteria have been met by generators.
Sustainability information is publicly available on Ofgem’s website, with the latest dataset accessible here: https://www.ofgem.gov.uk/publications/biomass-sustainability-dataset-2020-21. The forthcoming Biomass Strategy will set out recommendations for further enhancing the UK’s stringent biomass sustainability criteria.