Author: admin

The below Parliamentary question was asked by William Cash on 2016-05-18.

To ask the Secretary of State for Energy and Climate Change, what assessment she has made of the effects of retention of Eggborough and Fiddler’s Ferry coal plants on investment in new combined cycle gas turbine plants.

Andrea Leadsom

Security of supply is our top priority and we monitor all market developments closely. In the shorter term, extending the operation of existing plant can provide important capacity whilst new capacity is built.

We are confident that the Capacity Market is the right mechanism to bring forward new capacity as older, less efficient plants close. Industry and investors made clear during our recent review their confidence in the Capacity Market. Our plan to buy more capacity and buy earlier will improve the chances of new capacity, particularly gas, clearing in future auctions.

The below Parliamentary question was asked by William Cash on 2016-05-18.

To ask the Secretary of State for Energy and Climate Change, what discussions she has had with (a) OFGEM and (b) the National Grid on encouraging the construction of new combined cycle gas turbine power stations.

Andrea Leadsom

Ministers and officials are in regular contact with OFGEM and National Grid including in relation to the prospects for new gas power stations.

The below Parliamentary question was asked by William Cash on 2016-05-18.

To ask the Secretary of State for Energy and Climate Change, what measures she is taking to reassure existing electricity generators that the capacity market is fair and stable.

Andrea Leadsom

The Capacity Market design will enable competition between new and existing capacity and between different technologies so that all providers of capacity have the right incentives to make efficient decisions about investment in, and operation of, their assets. We work with all stakeholders to review the Capacity Market continuously to ensure it remains a fair competition and have acted to ensure a level playing field which retains the confidence of bidders and investors.The Rules governing the operation of the Capacity Market mechanism are managed by Ofgem to ensure both a fair and stable process.

The below Parliamentary question was asked by William Cash on 2016-05-18.

To ask the Secretary of State for Energy and Climate Change, what the cost of maintaining Black Start plans for coal-fired power stations has been to date.

Andrea Leadsom

National Grid is responsible for maintaining a Black Start capability for the Great Britain national electricity transmission system. This includes ensuring that all plans are up to date and fit for purpose. The costs for National Grid to administrate the Black Start capability are included in its operating expenditure under the transmission price control managed by Ofgem (currently RIIO-T1).

The below Parliamentary question was asked by William Cash on 2016-05-18.

To ask the Secretary of State for Energy and Climate Change, what discussions she has had with (a) Big Six and (b) other combined cycle gas turbine generators on the effect on the electricity market of Black Start payments to coal-fired power stations.

Andrea Leadsom

My rt. hon. Friend the Secretary of State has not had specific discussions with the Big Six or combined cycle gas turbine generators on this matter.

The below Parliamentary question was asked by William Cash on 2016-05-18.

To ask the Secretary of State for Energy and Climate Change, what recent progress has been made on the gas generation strategy.

Andrea Leadsom

The Gas Generation Strategy [1], published in December 2012, set out a range of proposed measures, at that time, to support investment in new gas plant. The Government has made significant progress in delivering the measures outlined in the Strategy. Of particular importance was the introduction of a capacity market in 2014 which provides reliable capacity, including gas plant, 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] https://www.gov.uk/government/publications/gas-generation-strategy

“

The below Parliamentary question was asked by William Cash on 2016-05-18.

To ask the Secretary of State for Energy and Climate Change, what discussions she has had with UK electricity generators on the effect on the electricity market of market imported electricity by interconnectors not subject to the carbon price floor.

Andrea Leadsom

The Department has discussed this issue with Energy UK and its members. The Government supports greater interconnection, and Ofgem’s assessment of the impact of importing electricity shows significant benefits to the consumer. The first round of new projects could deliver more than £11.8bn of consumer benefits over 25 years, primarily driven by reductions to the GB electricity wholesale price. Ofgem’s assessment also considered a scenario with no carbon price differential between countries and concluded that this would make no material difference to the business case for these projects.

The below Parliamentary question was asked by William Cash on 2016-05-18.

To ask the Secretary of State for Energy and Climate Change, how many megawatts of Combined-Cycle Gas Turbine construction is taking place in the UK; and what the (a) size and (b) location is of each of those constructions.

Andrea Leadsom

There is currently one CCGT project under construction and commissioning. This has a connection capacity of 910MW and is located in Carrington, Greater Manchester.

The below Parliamentary question was asked by William Cash on 2016-05-18.

To ask the Secretary of State for Energy and Climate Change, what discussions she has had with the European Commission on EU state aid related to UK interconnector operations.

Amber Rudd

All interconnector projects apply to Ofgem to operate under a regulatory regime. Their regulation is compatible with EU rules and there are no state aid issues

The below Parliamentary question was asked by William Cash on 2016-05-18.

To ask the Secretary of State for Energy and Climate Change, if she will publish the information her Department holds on the (a) process, (b) criteria and (c) guidance followed by the National Grid to deliver (i) supplementary balancing reserve and (ii) black start ancillary services contracts for the next 12 months; and what analysis was taken in advance to inform that delivery.

Andrea Leadsom

These services are a matter for National Grid, and the appropriate documentation is published on their website. The contingency balancing methodologies are available here:

http://www2.nationalgrid.com/UK/Services/Balancing-services/System-security/Contingency-balancing-reserve/Methodologies/

These documents also include National Grid’s analysis.

And information on the procurement of the Black Start Service is published here:

http://www2.nationalgrid.com/UK/Services/Balancing-services/System-security/Black-Start/Black-start-about-the-service/

National Grid have not published their analysis of this as it is commercially confidential.

“