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The below Parliamentary question was asked by Nigel Adams on 2016-05-05.

To ask the Secretary of State for Energy and Climate Change, what assessment her Department has made of the effect of the closure of coal-fired power stations on (a) job losses and employment trends in the energy sector and (b) power generation; and what plans her Department has to mitigate those losses.

Andrea Leadsom

Coal is the most carbon intensive form of electricity generation and is not consistent with our decarbonisation plans, which is why the Secretary of State has announced an intention to consult on ending unabated coal generation by 2025.

The Capacity Market is designed to bring forward the capacity we need as older plant such as coal come of the system. On 6 May 2016 we announced changes to the Capacity Market to buy more capacity and earlier; tighten the sanctions on those who fail to deliver on their obligations; and bolster energy security in the short–term by holding a new auction bringing forward the first Capacity Market delivery year to 2017/18.

The below Parliamentary question was asked by Nigel Adams on 2016-05-05.

To ask the Secretary of State for Energy and Climate Change, if she will make an assessment of the feasibility of using biomass conversion and energy generation to mitigate job losses from the closure of coal-fired power stations.

Andrea Leadsom

Reducing our reliance on coal generation is an important part of decarbonising the electricity system. The Capacity Market will ensure continued security of supply while the Contract for Difference scheme will support cost effective low carbon electricity; the new investment brought forward by both schemes will help create new jobs.

The below Parliamentary question was asked by Nigel Adams on 2016-05-05.

To ask the Secretary of State for Energy and Climate Change, what incentives her Department (a) is providing and (b) is planning to provide for (i) biomass and (ii) gas generation to create additional capacity.

Andrea Leadsom

Support is provided for biomass under a range of renewable financial incentives: the Renewables Obligation (RO), Feed in Tariff (FIT), Contracts for Difference (CfD) and Renewable Heat Incentive (RHI). The RO closed to co-firing and conversions last year and any future support will be via CfD.

The government announced it will hold three auctions for Contracts for Difference of up to £730 million this Parliament. Details of the future CFD allocation rounds will be published in due course.

The Government confirmed increased funding for the Renewable Heat Incentive scheme in November 2015 as part of the Spending Review, with the annual budget rising from £430m in 2015/16 to £1.15bn in 2020/21.

Getting new gas-fired stations built is a priority for Government and we are confident that the Capacity Market is the right mechanism to bring forward new capacity as older less efficient plants close. We have announced that we are going buy more capacity in December’s auction, tighten delivery incentives and bring forward the first capacity market delivery year to 2017/18. This should improve the chances of new gas (CCGTs, OCGTS and gas engines) capacity clearing in future auctions. Subject to a forthcoming consultation, closing unabated coal by 2025 will further strengthen investment signals for new gas. In addition, DECC is working with the planning inspectorate to arrange a workshop in June to explain how developers can use the pre-application project planning process to ensure applications for new gas plants are progressed as swiftly as possible.

The below Parliamentary question was asked by Nigel Adams on 2016-05-05.

To ask the Secretary of State for Energy and Climate Change, what assessment her Department has made of the case for including (a) biomass energy and (b) biomass conversions from former coal-fired stations alongside offshore wind in future Contract for Difference auctions; and what assessment has been made of the case for evaluating bids in such auctions on a whole system costs basis.

Andrea Leadsom

Biomass can be used as a feedstock in Dedicated Biomass with CHP, Advanced Conversion Technologies and Anaerobic Digestion plants. Those three technologies are already eligible to compete alongside offshore wind in the CFD allocation pot for “less established” technologies.

The Government will consider whether it is appropriate for biomass conversions to compete alongside offshore wind or the allocation pot for “established” technologies in due course.

DECC recognises the importance of considering the whole system impacts (both costs and benefits) of different electricity technologies when formulating future government policy, since it is a crucial element in delivering secure, clean and affordable energy to consumers.

The below Parliamentary question was asked by Nigel Adams on 2016-05-05.

To ask the Secretary of State for Energy and Climate Change, what steps her Department is taking to ensure that ancillary services, including black start, are available to the national grid following the removal of coal-fired power stations from the system; and who will be responsible for providing those services.

Andrea Leadsom

National Grid ancillary services, including Black Start, are procured from generators that have the capability to meet the service requirements. National Grid assesses the suitability of different technologies from a Black Start perspective on an ongoing basis and any generator technology can be considered as a Black Start provider.

As we drive forward our decarbonisation strategy, DECC is working with National Grid to ensure that the Black Start strategy remains resilient and cost effective. Part of this work includes National Grid assessing which new technologies may be suitable for Black Start in the future and engaging these providers to understand the feasibility of achieving this.

National Grid is also investigating alternative approaches to the Black Start strategy and is taking forward the recommendations of two independent consultant reports commissioned in 2015. Both reports are available on the Energy Networks Associations’ website via the Smarter Networks Portal.

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The below Parliamentary question was asked by Nigel Adams on 2016-05-05.

To ask the Secretary of State for Energy and Climate Change, when her Department intends to publish its report on the whole system costs of different sources and methods of low-carbon and renewable energy generation.

Andrea Leadsom

Following peer review by experts in the field of whole system impacts, DECC will publish the methodology report of the Whole System Impacts of Electricity Generation Technologies project in due course, taking into account timing restrictions relating to purdah(s). The report sets out a comprehensive framework to define whole system impacts and their components and drivers, which can be applied to conventional, low-carbon and renewable large- and small-scale technologies.