Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he plans to take in response to Ofgem’s July 2020 consultation, Supporting Retail Innovation, to provide derogations from standard licence conditions and grant supply licences for specific geographic areas or premises types; and whether Ofgem plans to progress its consideration of a local electricity supply licence.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
The right to local energy supply already exists under the Electricity Act 1989. As the independent regulator, Ofgem has powers to award supply licenses that are restricted to specified geographical areas or premise types. In some circumstances, electricity suppliers can also apply to Ofgem for a derogation from a particular provision of their supply licence. If granted, those provisions of the supply licence will not apply.
In July 2020 Ofgem consulted on proposed changes to their approach to granting supply licences for specific geographical areas or premise types and to supply licence conditions relating to derogations, to support innovation in the retail energy market. The consultation closed on 12 October 2020, and we await Ofgem’s announcement on any next steps.
Asked by: Peter Aldous (Conservative - Waveney)
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 Ofgem’s July 2018 Call for Evidence on Future Supply Market Arrangements, what assessment he has made of the potential merits of reforming the supplier hub model.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
The December 2020 Energy White Paper committed the Government to review the overall retail market regulatory framework, including for energy supply, to make sure that it is fit for purpose in the future, and accommodates emerging and innovative business models that can best meet consumer needs and contribute to our net-zero ambitions. The Government will engage with industry and consumer groups this year to assess what market framework changes may be required, in advance of a formal consultation.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether, as part of the process of issuing a Strategy and Policy Statement to Ofgem as set out in the Energy White Paper, his Department plans to include guidance to Ofgem on steps to support community energy and to establish a right to local supply.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
As set out in the Energy White Paper, the Government will consult on an energy sector Strategy and Policy Statement (SPS) for Ofgem during the course of 2021. The consultation will be a chance to engage with stakeholders from across the energy sector.
The SPS will reflect the strategic priorities and policy outcomes of the Government’s energy policy and the roles of Government, Ofgem and other parties which are collectively responsible for delivering these outcomes.
Asked by: Peter Aldous (Conservative - Waveney)
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 follow-up to the recent call for evidence on the electricity exemptions regime, whether he has made an assessment of the potential merits of modifying the exemptions regime to enable community or local supply.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
The current electricity licence exemptions regime already provides a framework for small scale electricity supply without the need for a licence. For example, there is an exemption for those who do not at any time supply more electrical power than 5 megawatts of which not more than 2.5 megawatts is supplied to domestic consumers.
The recent call for evidence is part of a wider review of the exemptions regime. We are currently considering responses to the call for evidence and will issue a response in due course.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether the Government plans to issue a call for evidence or consult on community energy and local supply in advance of the publication of the Net Zero Strategy to inform its proposals.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
The Government has ongoing discussions with Community Energy England and other community and local energy groups, and the views and evidence provided are being taken into account as we consider future plans for community energy in the Net Zero Strategy.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, when Ofgem plans to issue its first annual report on the Smart Export Guarantee (SEG) scheme; whether that report will include the range, nature and uptake of SEG tariffs; when his Department plans to carry out its review of the effectiveness of that scheme; and what steps his Department is planning to take to improve the route to market for community energy generators.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
Ofgem are required to publish a report on the SEG each calendar year, starting in 2021. Ofgem are currently in the process of collecting data from suppliers, with plans to publish the first report later this year. This will include information regarding available SEG tariffs, the size and technology of installations, the electricity exported, and the payments provided. BEIS will review the findings and consider whether any changes to the SEG are required in the future.
On route to market for community energy generators, our recent call for evidence, as part of a wider review of the licence exemptions regime for supply and generation, is designed to ensure licence exemptions are fit for purpose in the changing landscape. BEIS are currently considering responses and will issue a response in due course.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to increase the production of green hydrogen from nuclear energy.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
My Rt. Hon. Friend the Prime Minister’s 10 Point Plan confirmed our aim, working with industry, for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy.
The Government welcomes the nuclear industry’s ambition to support low-carbon hydrogen production. BEIS funded EdF’s ‘Hydrogen to Heysham’ feasibility study[1] showing that current nuclear technologies are technically capable of producing low-carbon hydrogen in the 2020s. Recognising planned decommissioning and the time required to build new nuclear, we assess that the amount of hydrogen produced from nuclear in this period will be determined by the availability of nuclear power for this purpose.
The forthcoming UK Hydrogen Strategy will set out further detail on the role of hydrogen production technologies in meeting our 5GW ambition. This ambition will be supported by a range of measures, including a £240 million Net Zero Hydrogen Fund, and our preferred long term, sustainable business model, which we will finalise in 2022. We intend to support a range of low carbon production methods but will be guided by timing, volumes and other considerations to meet our 5GW ambition. We will be consulting shortly on these measures, alongside the publication of the UK Hydrogen Strategy.
[1] https://www.gov.uk/government/publications/hydrogen-supply-competition
Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent assessment he has made of the UK's potential to produce green hydrogen from nuclear energy between (a) 2021 and 2025 and (b) 2025 and 2030.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
My Rt. Hon. Friend the Prime Minister’s 10 Point Plan confirmed our aim, working with industry, for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy.
The Government welcomes the nuclear industry’s ambition to support low-carbon hydrogen production. BEIS funded EdF’s ‘Hydrogen to Heysham’ feasibility study[1] showing that current nuclear technologies are technically capable of producing low-carbon hydrogen in the 2020s. Recognising planned decommissioning and the time required to build new nuclear, we assess that the amount of hydrogen produced from nuclear in this period will be determined by the availability of nuclear power for this purpose.
The forthcoming UK Hydrogen Strategy will set out further detail on the role of hydrogen production technologies in meeting our 5GW ambition. This ambition will be supported by a range of measures, including a £240 million Net Zero Hydrogen Fund, and our preferred long term, sustainable business model, which we will finalise in 2022. We intend to support a range of low carbon production methods but will be guided by timing, volumes and other considerations to meet our 5GW ambition. We will be consulting shortly on these measures, alongside the publication of the UK Hydrogen Strategy.
[1] https://www.gov.uk/government/publications/hydrogen-supply-competition
Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to increase the production of green hydrogen from onshore renewable energy.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
My Rt. Hon. Friend the Prime Minister’s 10 Point Plan confirmed our aim, working with industry, for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy.
The UK has abundant sources of renewable electricity, and the Prime Minister has made a further commitment to deploying 40 gigawatts of offshore wind by 2030, alongside further deployment of onshore wind.
Our ongoing work with stakeholders suggests there is a strong pipeline of electrolytic hydrogen projects ready to deploy in the 2020s, building on our existing investment in research and innovation to ensure we can achieve the scale up in low carbon hydrogen production necessary to meet our future energy needs.
The forthcoming UK Hydrogen Strategy will set out further detail on the role of hydrogen production technologies in meeting our 5GW ambition, including electrolytic projects using offshore and onshore wind as a primary electricity input. This ambition will be supported by a range of measures, including a £240 million Net Zero Hydrogen Fund, and our preferred long term, sustainable business model, which we will finalise in 2022. We will be consulting shortly on these measures, alongside the publication of the UK Hydrogen Strategy.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he is taking to increase the production of green hydrogen from offshore renewable energy.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
My Rt. Hon. Friend the Prime Minister’s 10 Point Plan confirmed our aim, working with industry, for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy.
The UK has abundant sources of renewable electricity, and the Prime Minister has made a further commitment to deploying 40 gigawatts of offshore wind by 2030, alongside further deployment of onshore wind.
Our ongoing work with stakeholders suggests there is a strong pipeline of electrolytic hydrogen projects ready to deploy in the 2020s, building on our existing investment in research and innovation to ensure we can achieve the scale up in low carbon hydrogen production necessary to meet our future energy needs.
The forthcoming UK Hydrogen Strategy will set out further detail on the role of hydrogen production technologies in meeting our 5GW ambition, including electrolytic projects using offshore and onshore wind as a primary electricity input. This ambition will be supported by a range of measures, including a £240 million Net Zero Hydrogen Fund, and our preferred long term, sustainable business model, which we will finalise in 2022. We will be consulting shortly on these measures, alongside the publication of the UK Hydrogen Strategy.