Asked by: Al Pinkerton (Liberal Democrat - Surrey Heath)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential merits of negotiating an emissions trading scheme linkage with the European Union to reduce the costs of achieving net zero.
Answered by Chris McDonald - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Linking the UK and EU Emission Trading Schemes (ETSs) is expected to reduce costs for UK businesses by providing a cheaper path to net zero. Access to a larger, more liquid and stable carbon market will provide UK business with greater price certainty which will support investment.
Linking will also deliver a reduction in costs for UK businesses and lower barriers to trade through providing the conditions for an exemption from the EU Carbon Border Adjustment Mechanism.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether Drax is contractually required to disclose to the Government where the trees used in the pellets it purchases were cut down.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Biomass generators must currently comply with the reporting requirements of the Renewables Obligation and Contract for Difference (CfD). These include reporting sustainability profiling data for biomass which includes the country of purchase of each fuel consignment. From 2027 under the new Low-Carbon Dispatchable CfD, enhanced reporting obligations will require Drax to report the country of origin, including the identification of each processing plant within the supply chain.
Asked by: Carla Lockhart (Democratic Unionist Party - Upper Bann)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the potential impact of Great British Energy’s activities on small and medium-sized enterprises in Northern Ireland since its establishment; what steps his Department is taking with Great British Energy to ensure that opportunities in the clean energy supply chain and project investment are accessible to SMEs in Northern Ireland; and how his Department is monitoring SME engagement and participation in Great British Energy-related projects in the devolved regions.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Great British Energy (GBE) will operate in Northern Ireland as part of its commitment to deliver in all four nations of the UK. Recognising Northern Ireland’s distinct energy landscape and regulatory framework, GBE will continue to work with the Northern Ireland Executive to explore ways it can best support the delivery of clean power, community energy and drive inclusive economic growth. The contribution of SMEs to the development of clean power including supply chains will be part of this consideration.
Earlier this year GBE committed £1.62 million for community and public sector renewable projects in Northern Ireland. On 10 December, we announced that this funding will help Further Education Colleges to benefit from clean energy, through installation of Solar PV at a number of sites.
Additionally, on 11 December, GBE also launched a £300m supply chain fund for offshore wind and networks. All areas of the UK will be eligible for funding, meaning projects may be located anywhere in the UK, including in Northern Ireland, subject to Windsor Framework considerations.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what standards of forest sustainability are required of Drax for the supply of electricity to (a) private data centres and (b) the National Grid.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Drax must ensure its power generation complies with the terms of its subsidy agreements, currently provided for by the Renewables Obligation (RO) and Contract for Difference (CfD) schemes. These agreements include wide-ranging environmental protections addressing biodiversity, greenhouse gas emissions, legal and sustainable harvesting, and maintaining forest productivity, and require at least 70% of woody biomass to be sustainably sourced.
From 2027 these arrangements will be replaced by the new Low-Carbon Dispatchable CfD. This will require all of Drax’s generation to comply with strengthened sustainability standards, including an obligation to ensure that 100% of biomass used is sustainably sourced. We have also tightened the standard of supply chain greenhouse gas emissions and excluded primary feedstocks sourced from primary and old growth forests from receiving support payments.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what discussions he has had with Cabinet colleagues on the potential impact of domestic solar panels, energy efficiency and home battery storage on civil preparedness and national energy security.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Civil preparedness and national energy security are central to the Government’s resilience agenda. As we transition to Net Zero, we are working with Cabinet colleagues and industry to ensure that technologies such as domestic solar panels, home battery storage and energy efficiency measures contribute to a secure, resilient energy system and support household preparedness.
As set out in the National Security Strategy (https://www.gov.uk/government/publications/national-security-strategy-2025-security-for-the-british-people-in-a-dangerous-world) and the Resilience Action Plan
(https://www.gov.uk/government/publications/uk-government-resilience-action-plan) driving a conversation on risk and preparedness with the public is crucial. The forthcoming Energy Resilience Strategy will include proposals for how Government will work with wider society, in addition to the energy sector and partners in other critical sectors, to address the risks and challenges facing the energy system.
Asked by: Lord Spellar (Labour - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government, further to the Written Answer by Lord Vallance of Balham of 9 December (HL12318), whether the 70 per cent of United Kingdom content applies to only offsite manufactured plant or includes on-site construction costs and materials.
Answered by Lord Vallance of Balham - Minister of State (Department for Energy Security and Net Zero)
As set out on 9 December (HL12318), Great British Energy-Nuclear's (GBE-N) ambition is for 70% British built products across the Small Modular Reactor (SMR) fleet. GBE-N’s ambition encompasses both on-site and off-site activity.
While it would not be appropriate to speculate at this time on specific commercial contracts, subject to final government approvals and contract signature with Rolls-Royce SMR, GBE-N will continue to consider how the UK supply chain can support the deployment of SMRs.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps his Department plans to take to verify the proportion of wood burnt at Drax that is sustainable.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Monitoring and enforcement under the existing Renewables Obligation (RO) and Contract for Difference (CfD) schemes are the responsibility of the Low Carbon Contracts Company (LCCC) and Ofgem respectively, who conduct independent checks to ensure compliance with the sustainability requirements.
Under the new Low-Carbon Dispatchable CfD the monitoring, reporting and verification regime has been enhanced by extending LCCC’s audit rights across Drax’s global supply chain, increasing the audit standard from ‘limited’ to ‘reasonable’ assurance, and requiring sustainability data to be reported down to the level of individual pellet mill facilities. This will provide increased confidence that the biomass used is 100% sustainable.