Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 11 June 2021 to Question 8657 on Electricity Generation: Fees and Charges, what assessment his Department has made of the potential effect on investment in Scottish renewables of the differential created between generators in the north of Scotland paying the highest grid charges in Europe compared to interconnector imported energy with no surcharges; and if he will make a statement.

The UK Government remains firmly committed to the renewables industry across the UK, including in Scotland. Most major investment in new renewable generation projects continues to be underpinned by Contracts for Difference (CfD) arrangements introduced by the UK Government, and for which overseas generators are not eligible to bid. Scotland has benefitted significantly from the CfD scheme – 20 of the 58 projects awarded CfDs to date are in Scotland. This represents 34% of all CfD projects and 21% of total CfD capacity (around 3.4GW of nearly 16GW awarded contracts to date).

Electricity network charging arrangements are a matter for Ofgem, as the independent energy regulator. The level of transmission network charges is set to reflect the costs that generators and consumers in different locations impose on the transmission network.

Charging arrangements are important in achieving the UK’s net zero ambitions, and Ofgem is currently reviewing key aspects of those arrangements through its Access and Forward-Looking Charges Review. It plans to consult on proposals shortly.