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, if he will recconsider the proposal to introduce Contract for Difference auctioning three years earlier than planned.

Michael Fallon

We have always been clear that auctions can be used to drive value for money, once the market is sufficiently developed. As set out in the Consultation on Competitive Allocation, published by the Department on 16 January 2014, we consider that market conditions are such that for some, more established, technologies this will be the case from the start of the allocation of Contracts for Difference (CfDs) under the enduring arrangements.

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 (a) the readiness of markets for a Contract for Difference (CfD) competitive bidding process and (b) the effect on independent generators of early introduction of CfD auctioning.

Michael Fallon

The Department launched a consultation on our approach to competitive allocation of Contracts for Difference (CfDs) in January 2014. This included proposals to move to auctioning of CfDs from the first allocation this autumn. We carefully considered the responses to the consultation before confirming our policy position in the Government Response published on 13 May 2014. Competitive allocation will deliver renewable energy at a lower cost for consumers.

In developing our proposals for the move to competitive allocation, my officials have also worked closely with developers and other stakeholders, including representatives of independent renewable energy generators.

In particular, we are introducing the Offtaker of Last Resort (OLR) to support independent renewable generators by guaranteeing a route-to-market and therefore improving their ability to raise project finance. 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 2014-05-08.

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.