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 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.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
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.
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, by what mechanisms the National Grid can procure electricity supplies outside of the capacity market.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
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.
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 estimate her Department has made of the level of megawatts of new Combined-Cycle Gas Turbine (CCGT) capacity unit that will be commissioned by 2022; and what estimate her Department has made of the total available CCGT capacity by 2022.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
The volume and mix of new capacity which will come forward is determined by the energy market, together with the capacity market mechanism. However, the Updated Energy and Emissions projections published in November 2015 included a reference case of a cumulative total of 5GW of new gas fired capacity and total gas fired capacity of 30GW as at 2022. This includes all forms of gas, including CCGT as well as flexible gas peaking capacity – the mix of new capacity will be determined through technology neutral competition in the capacity market. All projections are sensitive to changes in market conditions: if gas prices remain low, more new gas projects will be economic in this period, relative to ageing coal plant, than if the gas price rises.
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 on the (a) costs and (b) margins of combined cycle gas turbine plants of (i) Supplementary Balancing Reserve and (ii) other Black Start ancillary support subsidy contracts to coal plants.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
The Supplementary Balancing Reserve and Black Start contracts are two important services developed to support National Grid in managing security of supply. Responsibility for these services rests with OFGEM.
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 the cost is of (a) the supplementary balancing reserve and (b) other black start ancillary support contracts provided by the National Grid to (i) Eggborough, (ii) Fiddler's Ferry and (iii) Drax power plant.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
Information on Supplementary Balancing Reserve and ancillary support contracts is confidential. The cost of contracts with individual suppliers is therefore unavailable.
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 electricity generators on the effect on the electricity market of (i) existing and (ii) new combined cycle gas turbine generation.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
DECC officials regularly meet with electricity generators to discuss the electricity market, including the outlook for their existing gas power stations 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 discussions she has had with (a) OFGEM and (b) the National Grid on encouraging the construction of new combined cycle gas turbine power stations.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
Ministers and officials are in regular contact with OFGEM and National Grid including in relation to the prospects for 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 measures she is taking to reassure existing electricity generators that the capacity market is fair and stable.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
The Capacity Market design will enable competition between new and existing capacity and between different technologies so that all providers of capacity have the right incentives to make efficient decisions about investment in, and operation of, their assets. We work with all stakeholders to review the Capacity Market continuously to ensure it remains a fair competition and have acted to ensure a level playing field which retains the confidence of bidders and investors.The Rules governing the operation of the Capacity Market mechanism are managed by Ofgem to ensure both a fair and stable process.
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 the cost of maintaining Black Start plans for coal-fired power stations has been to date.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
National Grid is responsible for maintaining a Black Start capability for the Great Britain national electricity transmission system. This includes ensuring that all plans are up to date and fit for purpose. The costs for National Grid to administrate the Black Start capability are included in its operating expenditure under the transmission price control managed by Ofgem (currently RIIO-T1).
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 effect on the electricity market of Black Start payments to coal-fired power stations.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
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.