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, what discussions she has had with (a) Ofgem and (b) the National Grid on steps to encourage coal plants to stay open.

Andrea Leadsom

Ministers and officials have regular discussions with Ofgem and National Grid on the outlook for generation including the relative profitability of coal and gas generation. DECC consulted National Grid and Ofgem when preparing proposals for an early capacity auction to ensure this would be deliverable and effective. This auction is technology neutral so open to all capacity providers but the prospect of success in this auction has been welcomed by coal plant operators who may otherwise have closed.

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 (a) Big Six and (b) other combined cycle gas turbine generators on the effect on the electricity market of Black Start payments to coal-fired power stations.

Andrea Leadsom

My rt. hon. Friend the Secretary of State has not had specific discussions with the Big Six or combined cycle gas turbine generators on this matter.

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 of the expansion of new electricity interconnectors on (a) the capacity market auction price and (b) long-term investment in gas-fired electricity generation.

Andrea Leadsom

We are confident that the Capacity Market is the right tool to bring forward new capacity including gas as it is needed. The participation of interconnectors in the Capacity Auction is expected to increase competition among capacity providers in the auction helping to take clearing prices as low as possible for consumers. The security of supply contribution that interconnection makes is assessed annually, based on detailed market modelling to determine anticipated electricity flows from connected markets at times of GB system stress. The government published an impact assessment last year on the inclusion of interconnectors in the Capacity Market which is available here:

http://www.legislation.gov.uk/ukia/2015/187/pdfs/ukia_20150187_en.pdf.

Both new gas and new interconnectors are likely to be important parts of the long-term investment we need in new capacity to ensure energy supply.

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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 recent progress has been made on the gas generation strategy.

Andrea Leadsom

The Gas Generation Strategy [1], published in December 2012, set out a range of proposed measures, at that time, to support investment in new gas plant. The Government has made significant progress in delivering the measures outlined in the Strategy. Of particular importance was the introduction of a capacity market in 2014 which provides reliable capacity, including gas plant, with secure revenues. The Government believes the capacity market provides the necessary financial incentives to ensure new gas plant are brought forward as and when needed.

[1] https://www.gov.uk/government/publications/gas-generation-strategy

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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, which Combined-Cycle Gas Turbine plants have closed in the last two years; and what the (a) generation size and (b) location was of each of those plants.

Andrea Leadsom

The following Combined Cycle Gas Turbine plants have closed within the last two years:

Name of Plant	Capacity (MWe)	Location
Barking	1,000	London Borough of Barking and Dagenham, East London
Roosecote (mothballed in 2012; demolition in 2015)	229	Barrow in Furness, Cumbria
Killingholme (Centrica)	665	Killingholme, Humberside

This excludes combined cycle gas turbine plants which remain available under National Grid’s Supplementary Balancing Reserve and/or plants which have converted to open cycle operation at reduced capacity or have otherwise reduced capacity.

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 UK electricity generators on the effect on the electricity market of market imported electricity by interconnectors not subject to the carbon price floor.

Andrea Leadsom

The Department has discussed this issue with Energy UK and its members. The Government supports greater interconnection, and Ofgem’s assessment of the impact of importing electricity shows significant benefits to the consumer. The first round of new projects could deliver more than £11.8bn of consumer benefits over 25 years, primarily driven by reductions to the GB electricity wholesale price. Ofgem’s assessment also considered a scenario with no carbon price differential between countries and concluded that this would make no material difference to the business case for these projects.

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 representations she has received from (a) industry bodies and (b) the public on reviewing the treatment of electricity interconnectors under the reformed capacity market; and if she will make a statement.

Andrea Leadsom

We have received a number of representations on this topic, most particularly in response to the three formal consultations on this topic over the last three years. A summary of all the responses we received to these consultations are available on the Government website.

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

To ask the Secretary of State for Energy and Climate Change, how many megawatts of Combined-Cycle Gas Turbine construction is taking place in the UK; and what the (a) size and (b) location is of each of those constructions.

Andrea Leadsom

There is currently one CCGT project under construction and commissioning. This has a connection capacity of 910MW and is located in Carrington, Greater Manchester.

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