Tag: William Cash

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

To ask the Secretary of State for Energy and Climate Change, by what mechanisms the National Grid can procure electricity supplies outside of the capacity market.

Andrea Leadsom

National Grid routinely purchases electricity through the balancing mechanism to ensure supply and demand balance precisely minute-by-minute. National Grid is also able to contract forward to ensure the availability of capacity which can provide these balancing services, for example, through the Short Term Operating Reserve (STOR); and for the provision of other ancillary services required to meet the physical needs of the system, although these services are often provided by capacity which is also participating in the energy market. These will still be available to Grid after the Capacity Market begins operation and some of the services will be available through plant participating in the capacity market.

During 2014/15, 2015/16 and 2016/17, ahead of the introduction of the capacity market, National Grid has also been allowed by Ofgem to procure capacity into the Supplementary Balancing Reserve (generation) and Demand-side Balancing Reserve. National Grid has already procured 3.6GW for next winter which ensures we will have an adequate capacity margin. Once the capacity market begins operation in 2017/18, Ofgem have stated that they will discontinue this facility.

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, what estimate her Department has made of the level of megawatts of new Combined-Cycle Gas Turbine (CCGT) capacity unit that will be commissioned by 2022; and what estimate her Department has made of the total available CCGT capacity by 2022.

Andrea Leadsom

The volume and mix of new capacity which will come forward is determined by the energy market, together with the capacity market mechanism. However, the Updated Energy and Emissions projections published in November 2015 included a reference case of a cumulative total of 5GW of new gas fired capacity and total gas fired capacity of 30GW as at 2022. This includes all forms of gas, including CCGT as well as flexible gas peaking capacity – the mix of new capacity will be determined through technology neutral competition in the capacity market. All projections are sensitive to changes in market conditions: if gas prices remain low, more new gas projects will be economic in this period, relative to ageing coal plant, than if the gas price rises.

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.

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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 the application of EU state aid rules related to the provision of (a) Supplementary Balancing Reserve and (b) other Black Start ancillary support contracts provided by the National Grid to Eggborough, Fiddler’s Ferry and Drax power plants; and if she will make a statement.

Amber Rudd

The Supplementary Balancing Reserve and Black Start services are procured directly by the System Operator, National Grid and the Government has no involvement in the tendering, or award of Supplementary Balancing Reserve or Black Start contracts. As such DECC has not discussed these with the European Commission in relation to their application to State Aid.

The below Parliamentary question was asked by William Cash on 2016-07-13.

To ask the Secretary of State for Business, Energy and Industrial Strategy, what the financial cost will be to other electricity generators of the proposed supplementary balancing reserve and Black Start payments made to Fiddlers Ferry and Drax power plants.

Jesse Norman

Details of charges and how they are applied are available through National Grid’s website: http://www2.nationalgrid.com/bsuos/. However National Grid does not provide a public breakdown of the costs of individual Black Start and SBR contracts.

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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 her Department has made of the effect on the (a) costs and (b) margins of combined cycle gas turbine plants of (i) Supplementary Balancing Reserve and (ii) other Black Start ancillary support subsidy contracts to coal plants.

Andrea Leadsom

The Supplementary Balancing Reserve and Black Start contracts are two important services developed to support National Grid in managing security of supply. Responsibility for these services rests with OFGEM.

The below Parliamentary question was asked by William Cash on 2016-07-13.

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to remove any potential conflict of interest between National Grid and its support for new interconnectors to import electricity.

Jesse Norman

There is a case for greater independence for the system operator to promote more competition and flexibility in our electricity system. We are working alongside National Grid and Ofgem to this end, so that the electricity system continues to be operated in the best interest of consumers.

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 is of (a) the supplementary balancing reserve and (b) other black start ancillary support contracts provided by the National Grid to (i) Eggborough, (ii) Fiddler’s Ferry and (iii) Drax power plant.

Andrea Leadsom

Information on Supplementary Balancing Reserve and ancillary support contracts is confidential. The cost of contracts with individual suppliers is therefore unavailable.

The below Parliamentary question was asked by William Cash on 2016-07-13.

To ask the Secretary of State for Business, Energy and Industrial Strategy, whether his Department plans to create a new independent system operator to remove any potential conflict of interest between National Grid and its electricity balancing and management responsibilities.

Jesse Norman

There is a case for greater independence for the system operator to promote more competition and flexibility in our electricity system. We are working alongside National Grid and Ofgem to this end, so that the electricity system continues to be operated in the best interest of consumers.