Electricity

Questions the necessity of increasing imported energy through interconnectors, expressing scepticism about climate change policies.

Responds to John Redwood, emphasising the need for increased interconnector capacity due to net zero commitment goals and reliance on renewable energy sources like offshore wind power.

Raises concerns about the current dysfunctional system with regard to pricing and flexibility of grid systems, questioning the embedding of this system into new regulations.

Clarifies that the debate on market evolution and smart pricing is separate from the current statutory instrument regarding the capacity market. The issue lies outside the scope of these specific regulations, which are technology-neutral.

Inquires about the impact of house building programmes on energy demand and whether the Government's goals are achievable given such increases.

Asserts that these regulations do not address broader issues like housing or population growth but focuses on flexible pricing, renewables, nuclear power, and offshore wind projects as part of the electricity generation strategy.

Suggests a need for greater flexibility in the market and asks if the regulations could have been more ambitious given temporary measures regarding coronavirus impacts.

Reiterates that debates on system evolution should wait until the publication of a White Paper, advising patience and understanding the specific scope of these regulations.

Mr Whitehead concurs with the Minister that it is not the time to debate wider energy issues. He welcomes the upcoming White Paper and inquires about its timeline and form. The statutory instrument introduces changes to the capacity market and measures for performance requirements due to the coronavirus pandemic. While he sees these measures as sensible, he raises a question regarding contract termination timelines. Concerning changes to the capacity market rules, Mr Whitehead questions why some commitments made at the time of the judgment are not included in today's statutory instrument and asks if additional legislation will be introduced.

Continues to express concerns over increased reliance on European energy sources, especially those dependent on Russian gas. Highlights the need for clear explanations of regulations and questions whether Britain will have its own independent energy policy.

Supports John Redwood's point that imported EU electricity might come from less green sources, including coal.

Welcomes changes in regulations for compliance with state aid but questions the impact of these on renewable energy technologies. Raises concerns over grid pinch points, multi-year contracts, and the efficiency of demand-side response measures. Calls for a review of the capacity market to facilitate large-scale storage alongside renewables.

Asked about pumped-storage schemes and their value, inquired how the Government is responding to ideas of pumped storage.

Discussed the extension at Cruachan and another scheme up north. He noted difficulties with pricing mechanisms for these projects, asking the Government to look into long-term support mechanisms for such supply security measures.

Stressed that pumped storage is important both in short term due to quick switching capacity and long term for supply security.

Emphasised the dual functionality of pumped-storage hydro: using cheaper electricity during low demand periods and generating when there is peak demand. Questioned whether regulations adequately address the UK's departure from the EU, particularly regarding interconnectors. Criticised current government guidance on energy post-Brexit as placing too much burden on operators. Called for definitive timescales for the White Paper and greater support for renewable strategies such as wind power, hydrogen production, and carbon capture.

Responded to concerns raised about interconnectors, arguing that increased capacity from France, Ireland, and Norway does not indicate an EU encroachment. Clarified the nature of T-1 suspensions for exemptions under the regulations. Addressed specific points regarding diesel generators in the capacity market. Emphasised the necessity of these regulations for ensuring security of electricity supply post-suspension due to judicial decision.