Tag: Dan Byles

The below Parliamentary question was asked by Dan Byles on 2014-05-08.

To ask the Secretary of State for Energy and Climate Change, what assessment he has made of the impact on independent generators of introduction of Contract for Difference auctioning before the Offtaker of Last Resort is in place.

Michael Fallon

The OLR will support independent renewable generators by providing them with a guaranteed route to market and improving their ability to raise project finance.

My officials have worked closely with developers and other stakeholders in working up the Offtaker of Last Resort proposals. The policy design is already at an advanced stage, and the detail of the proposals has been recently consulted on. We are on track to deliver the final policy and introduce enabling regulations ahead of the first allocation of CfDs. CfD applicants will, therefore, have a high degree of clarity about the arrangements for OLR, well in advance of the first auctions.

The below Parliamentary question was asked by Dan Byles on 2014-06-04.

To ask the Secretary of State for Energy and Climate Change, what recent assessment he has made of the potential need for additional gas storage capacity in the UK; and if he will make a statement.

Michael Fallon

The Department commissioned independent analysis by Redpoint Energy on the case for intervention in the UK gas storage market.

This cost-benefit analysis did not support intervention to deliver additional gas storage capacity within the UK due to a combination of low risk, poor rates of return for the taxpayer, and the risk of unintended consequences within the market. A written statement to Parliament on gas security of supply policy and gas storage was made by my rt. Hon. Friend the Secretary of State on 4 September 2013.

The market continues to bring forward gas storage projects: two storage facilities have recently been completed and two more are currently under construction.

The below Parliamentary question was asked by Dan Byles on 2014-06-04.

To ask the Secretary of State for Energy and Climate Change, what steps he is taking to reassess the need for additional gas storage capacity in the UK; and if he will make a statement.

Michael Fallon

We published on 3 September 2013 an independent assessment about the need to intervene in the gas storage market. With reference to my answer to written question 198546, we decided against intervention on the basis of the cost-benefit analysis undertaken by Redpoint Energy.

The factors which underpinned this decision have not changed. I have no plans to reassess the need for additional gas storage capacity within the UK.

The below Parliamentary question was asked by Dan Byles on 2014-06-12.

To ask the Secretary of State for Energy and Climate Change, if he will make an assessment of the implications for his policy on the need for additional gas storage capacity in the UK of recent events involving Russia and Ukraine; and if he will make a statement.

Michael Fallon

We have no plans to reassess the need for additional gas storage capacity in the UK in the light of events between Russia and Ukraine. The Department commissioned from Redpoint Energy analysis on the case for Government support for additional gas storage in the UK, which was published in September 2013. This cost-benefit analysis did not support intervention to deliver additional gas storage capacity due to a combination of low risk, poor rates of return for the taxpayer, and the risk of unintended consequences within the market.

Disputes between Russia and Ukraine affecting gas supply to Europe do not change this stance. Previous analysis has demonstrated that the UK gas market is resilient to all but the most unlikely combination of high-demand conditions and supply disruption. The UK has a diverse range of gas suppliers and routes to market and receives less than 1% of its gas from Russia.

The below Parliamentary question was asked by Dan Byles on 2014-06-12.

To ask the Secretary of State for Energy and Climate Change, what assessment he has made of the proportion of the Demand Side Balancing Reserve that will comprise of active demand reduction rather than switching on generation assets.

Michael Fallon

The Demand Side Balancing Reserve is operated by National Grid independently from Government. Once National Grid has concluded the procurement of the reserve in the autumn it will be possible to identify the proportion of the reserve that comprises ‘load reduction’ rather than the export of additional generation onto the grid (though initial expressions of interest to National Grid suggest that around 75% of the reserve may be provided by load reduction). However, it will not be possible to determine whether this load reduction is achieved through a reduction in demand, or by turning on local back up generation to meet local needs.