Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the adequacy of the Scottish Crown Estate’s ScotWind leasing requirements for Scottish supply chain content.
Answered by Kwasi Kwarteng
Responsibility for offshore wind leasing is a devolved area.
The Government has not made any assessment of the Scottish Crown Estate’s ScotWind leasing programme. However, Ministers and officials regularly engage with the Scottish Government.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential merits of including binding contractual clauses for supply chain plan estimates in future contract for difference offshore wind projects.
Answered by Kwasi Kwarteng
The Department does not have the legal power to require the holder of a Contract for Difference to sell all or most of their stake in a project under these circumstances.
The Secretary of State can take into account an Applicant’s failure to demonstrate that they have implemented a previously approved supply chain plan when considering a plan for a future CfD Allocation Round. This could lead to the Applicant (and any partner(s) with a 20% share or greater) having their supply chain plan rejected and therefore be prevented from entry to that CfD Allocation Round.
We recently consulted on potential changes to the CfD scheme for the next allocation round, due to be held in 2021. This included questions around the potential merits of strengthening the powers to fail supply chain plans, including the remedies the Department could consider for Applicants who do fail, and of linking compliance with an approved supply chain plan with CfD payments. We will publish the Government’s response to the consultation in due course.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what penalties his Department applies to offshore wind developers who fail to meet estimates made on (a) value and (b) jobs for the UK supply chain in awarded contract for differences.
Answered by Kwasi Kwarteng
The Department does not have the legal power to require the holder of a Contract for Difference to sell all or most of their stake in a project under these circumstances.
The Secretary of State can take into account an Applicant’s failure to demonstrate that they have implemented a previously approved supply chain plan when considering a plan for a future CfD Allocation Round. This could lead to the Applicant (and any partner(s) with a 20% share or greater) having their supply chain plan rejected and therefore be prevented from entry to that CfD Allocation Round.
We recently consulted on potential changes to the CfD scheme for the next allocation round, due to be held in 2021. This included questions around the potential merits of strengthening the powers to fail supply chain plans, including the remedies the Department could consider for Applicants who do fail, and of linking compliance with an approved supply chain plan with CfD payments. We will publish the Government’s response to the consultation in due course.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what legal recourse his Department has to ensure that the original developer of a contract for difference for offshore wind sells (a) the project or (b) a majority stake in that project if they no longer meet the conditions on the UK supply chain in that contract.
Answered by Kwasi Kwarteng
The Department does not have the legal power to require the holder of a Contract for Difference to sell all or most of their stake in a project under these circumstances.
The Secretary of State can take into account an Applicant’s failure to demonstrate that they have implemented a previously approved supply chain plan when considering a plan for a future CfD Allocation Round. This could lead to the Applicant (and any partner(s) with a 20% share or greater) having their supply chain plan rejected and therefore be prevented from entry to that CfD Allocation Round.
We recently consulted on potential changes to the CfD scheme for the next allocation round, due to be held in 2021. This included questions around the potential merits of strengthening the powers to fail supply chain plans, including the remedies the Department could consider for Applicants who do fail, and of linking compliance with an approved supply chain plan with CfD payments. We will publish the Government’s response to the consultation in due course.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will place in the Library a copy of the supply chain plans for consented offshore wind contract for difference projects.
Answered by Kwasi Kwarteng
The redacted supply chain plans for renewable energy projects that were awarded Contracts for Difference (CfD) in the CfD Allocation Round 3 will be published on the Government website shortly.
The supply chain plans for previous Allocation Rounds can be found here:
Allocation Round 1
Allocation Round 2
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, when he last met with Scottish and Southern Energy regarding their Seagreen Offshore wind development; and what was discussed at that meeting.
Answered by Kwasi Kwarteng
Details of meetings held by BEIS Ministers are recorded in the Transparency data published on gov.uk, and available at:
Officials have regular meetings with SSE to discuss various issues, including the Seagreen offshore wind development.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what representations he has received from Scottish and Southern Energy on the minimum levels of (a) UK and (b) Scottish content in the supply chain for the Seagreen offshore wind farm development prior to the award of a contract for difference.
Answered by Kwasi Kwarteng
The Seagreen Offshore Wind Farm Supply Chain Plan (which will be published in due course), submitted prior to the award of a contract for difference, committed to maximising opportunities for UK suppliers with an aspirational target of achieving 50% - 55% lifetime UK content.
Seagreen Wind Energy Ltd also committed to encouraging new suppliers into the market and promoting supply chain opportunities to the local and national supply chain and has collaborated with Scottish Enterprise and Highlands and Islands Enterprise to compile a list of Scottish companies capable of supplying to the sector.
The Department will monitor the implementation of the Seagreen Supply Chain Plan.
Asked by: Angus Brendan MacNeil (Independent - Na h-Eileanan an Iar)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the Seagreen offshore wind farm’s Environmental Impact Assessment report Chapter 15, paragraph 15.95, how much of the £690 million of estimated contracts available to Scottish companies in the CAPEX phase of the project have been awarded; and with reference to table 15.10 of that report, how much of the estimated £79m for foundations has been awarded by Scottish and Southern Energy.
Answered by Kwasi Kwarteng
The Department does not hold that information. However, we work closely with the Scottish Government and the Department for International Trade and the industry to maximise the opportunities for UK suppliers from offshore wind projects.