Security of Electricity Supply

Energy and Climate Change – in the House of Commons at 12:00 am on 14th July 2016.

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Photo of Sir David Amess Sir David Amess Conservative, Southend West 12:00 am, 14th July 2016

What steps her Department is taking to ensure security of electricity supply in winter 2016-17 and in future years.

Photo of Richard Graham Richard Graham Conservative, Gloucester

What steps her Department is taking to ensure security of electricity supply in winter 2016-17 and in future years.

Photo of Andrea Leadsom Andrea Leadsom The Minister of State, Department of Energy and Climate Change, The Secretary of State for Environment, Food and Rural Affairs

Our top priority is to make sure that families and businesses have secure energy supplies, and therefore to ensure that National Grid has the right tools in place to manage the system. Our energy security has been strengthened by reforms of the capacity market, including holding an auction this coming winter for delivery in 2017-18.

Photo of Sir David Amess Sir David Amess Conservative, Southend West

As the promoter of the Warm Homes and Energy Conservation Act 2000, I am very interested in energy supplies in winter. Will my hon. Friend do all she can to encourage investment in new gas generation?

Photo of Andrea Leadsom Andrea Leadsom The Minister of State, Department of Energy and Climate Change, The Secretary of State for Environment, Food and Rural Affairs

The capacity market is the most cost-effective way to make sure we have the infrastructure to cope with unexpected demand peaks. In May, we committed to buying more capacity and buying it sooner. New build capacity is eligible for 15-year agreements, providing a secure revenue stream and thereby encouraging new gas infrastructure.

Photo of Richard Graham Richard Graham Conservative, Gloucester

Yesterday I launched a new all-party parliamentary group for marine energy, to promote the fantastic potential from our tumultuous seas of energy, whether tidal, stream or wave. Does my hon. Friend agree that when the Hendry review comes out in November this year, the Government should respond as fast and as positively as possible to make us a world leader in what could be one of the great sources of energy in the world?

Photo of Andrea Leadsom Andrea Leadsom The Minister of State, Department of Energy and Climate Change, The Secretary of State for Environment, Food and Rural Affairs

We certainly recognise the potential that tidal lagoons could bring to the UK, which is why we have commissioned this independent review. We are absolutely committed to providing clean, affordable and secure energy that we can rely on now and in the future. This review will report in the autumn and will help us to determine what role tidal lagoons could play in that.