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The below Parliamentary question was asked by Callum McCaig on 2015-11-13.

To ask the Secretary of State for Energy and Climate Change, what assessment she has made of the effect of the National Grid’s assumption of electricity supply from interconnectors increasing from 0GW to 1GW of electricity at the same time as electricity margins on the continent shrink on the UK being able to import electricity at times of peak demand.

Andrea Leadsom

National Grid makes an assessment of the extent to which all GB interconnectors can be relied upon to provide electricity to GB when needed. The assumptions around electricity imports are informed by an assessment of connected markets, including consideration of their electricity margins, the wider network to which they are connected and the chance of coincident scarcity with the connected markets.

Beyond these market arrangements, should GB need additional support, it is also possible for National Grid as the System Operator to call upon interconnectors at a time of system stress.

The below Parliamentary question was asked by Callum McCaig on 2015-11-13.

To ask the Secretary of State for Energy and Climate Change, what assessment she has made of the probability of the UK having to export electricity across the interconnectors to the continent at times of peak demand during winter 2015-16.

Andrea Leadsom

As indicated by National Grid’s 2015 Winter Outlook, forward power prices for this winter suggest that we will see net imports to GB over electricity interconnectors with continental Europe (IFA and Britned).

Beyond these market arrangements, should GB need additional support, it is also possible for National Grid as the System Operator to call upon interconnectors at a time of system stress.

The below Parliamentary question was asked by Callum McCaig on 2015-11-13.

To ask the Secretary of State for Energy and Climate Change, what assessment she has made of the potential effect on security of energy supply of failures this winter in the operation of those major coal power stations which are due to close in spring 2016.

Andrea Leadsom

National Grid, as part of their winter outlook process assesses the overall reliability of technologies based on their historic reliability. This is the ‘de-rating factor’ that is applied to calculate available margins.

There is nothing about the decision to cease connection to the transmission grid that would make a plant more unreliable prior to its planned withdrawal.

Our priority is to ensure that British families and business have access to secure affordable energy supplies that they can rely on and we are taking prudent steps to manage the margins in winter 2016/17. Since 2014 National Grid have had the ability to procure a Contingency Balancing Reserve (CBR), which consists of the Supplemental Balancing Reserve (SBR), where existing power stations stand by ready to generate additional electricity and the Demand Side Balancing Reserve (DSBR) where companies bid for contracts with National Grid to receive payments in return for reducing their electricity usage times of peak demand should National Grid so require. National Grid and Ofgem agree that we should retain the ability to procure CBR for the next two winters. Government supports this position and we expect confirmation later this month following an Ofgem consultation. Beyond winter 2017/18, the Capacity Market will take over as the long term solution for security of supply.

The below Parliamentary question was asked by Callum McCaig on 2015-11-13.

To ask the Secretary of State for Energy and Climate Change, what assessment her Department has made of the probability of the UK not being able to rely on electricity interconnectors to the continent as in previous years because of French and Belgian supply being limited until 2020 due to the closure of old fossil fuel plant and nuclear reactors in those countries.

Andrea Leadsom

National Grid makes an assessment of the extent to which all GB interconnectors can be relied upon at times of system stress. This is based on an assessment of European markets. In recent years we have, in fact, observed increased efficiency of the interconnectors and imports to the UK system at times of peak demand. As market coupling is further implemented, we expect this to continue. This is assessed on an annual basis to take into account any changing market dynamics. For this winter, forward power prices suggest net imports to GB over interconnectors with continental Europe.

Beyond these market arrangements, should GB need additional support, it is also possible for National Grid as the System Operator to call upon interconnectors at a time of system stress.

The below Parliamentary question was asked by Callum McCaig on 2015-11-13.

To ask the Secretary of State for Energy and Climate Change, if her Department will bring forward plans to invest in energy storage, including pump storage hydro, to increase security of electricity supply.

Andrea Leadsom

The Department recognises the potential for storage to help us use energy more flexibly and decarbonise our energy system cost effectively, alongside interconnection and demand-side response (DSR). In light of this, more than £80m public sector controlled support has been committed to energy storage research, development and demonstration activities since 2012.

Storage is also eligible to participate in the Capacity Market (CM). One pump hydro company has conditionally prequalified with a new project for the next round of auctions this year.

The Department is investigating the potential barriers to the deployment of energy storage. We are carefully considering possible mitigating actions, focussing in the first instance on removing regulatory barriers to energy storage. We plan to conduct a consultation and call for evidence in the spring.

The below Parliamentary question was asked by Callum McCaig on 2015-11-13.

To ask the Secretary of State for Energy and Climate Change, what discussions she has had with National Grid after it gave its notification of inadequate system margin on 5 November 2015.

Andrea Leadsom

My rt. hon. Friend the Secretary of State spoke with Steve Holliday, National Grid’s Chief Executive on 5November to discuss the Notice of Inadequate System Margin which National Grid issued on 4 November.

Following the call, the Secretary of State has written to National Grid requesting a more in-depth analysis of some the factors contributing to the issuing of the notice and an assessment of the potential implications on future decisions.

We take security of supply very seriously and we are working with National Grid to make sure there is always sufficient generating capacity available to meet demand even in challenging conditions, such as extremely cold weather.

The below Parliamentary question was asked by Callum McCaig on 2015-11-13.

To ask the Secretary of State for Energy and Climate Change, what discussions her Department has had with National Grid on its Winter Outlook Report 2015-16, published in October 2015.

Andrea Leadsom

DECC Officials work closely with National Grid counterparts on the analysis in the winter outlook and maintain a constant dialogue as it is developed.

The Winter Outlook Report presents a snapshot view of the forecast security of supply situation which is constantly being analysed by National Grid in cooperation with DECC and Ofgem. The Winter Outlook is part of a wider programme of analysis including National Grid’s Summer Outlook, Winter Outlook Consultation and Ofgem’s capacity assessment.

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