Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what progress has been made on the status of the proposed Trafford combined cycle gas turbine plant.
Answered by Jesse Norman
Following representations from the developer, as provided for under the Capacity Market legislation, an extension of 60 working days to 19 December has been granted for them to achieve the requirements of the Capacity Market progress milestone. The Secretary of State’s discretionary powers to extend a compliance period are designed to recognise situations where a little additional time can help a provider achieve a milestone, to the benefit of our security of supply.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
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 electricity balancing and management responsibilities.
Answered by 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.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
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.
Answered by 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.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
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.
Answered by 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
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
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.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
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.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Energy and Climate Change, what assessment her Department has made of the effect of the National Grid's (a) Supplementary Balancing Reserve and (b) other Black Start ancillary support contracts to coal plants on the capacity market auction price.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
DECC does not have access to all the commercially confidential details of National Grid procurements such as ancillary support and Supplementary Balancing Reserve (SBR) contracts.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
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 potential effect of an expansion of electricity interconnectors on (i) the capacity market and (ii) long-term investment in gas-fired electricity generation.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
Ministers and officials routinely meet with all stakeholders including the vertically integrated energy companies, independent generators and other capacity providers to discuss the energy market, their views on the Capacity Market and new interconnection as well as prospects for any planned investment in new gas power stations.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Energy and Climate Change, what assessment she has made of the effects of retention of Eggborough and Fiddler's Ferry coal plants on investment in new combined cycle gas turbine plants.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
Security of supply is our top priority and we monitor all market developments closely. In the shorter term, extending the operation of existing plant can provide important capacity whilst new capacity is built.
We are confident that the Capacity Market is the right mechanism to bring forward new capacity as older, less efficient plants close. Industry and investors made clear during our recent review their confidence in the Capacity Market. Our plan to buy more capacity and buy earlier will improve the chances of new capacity, particularly gas, clearing in future auctions.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
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.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
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.
Asked by: William Cash (Conservative - Stone)
Question to the Department for Business, Energy and Industrial Strategy:
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.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
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.