Energy Supply

Energy and Climate Change written question – answered on 6th April 2010.

Alert me about debates like this

Photo of Gregory Barker Gregory Barker Shadow Minister (Energy and Climate Change)

To ask the Secretary of State for Energy and Climate Change what assessment he has made of the effects of changes in the carbon price set under the EU Emissions Trading Scheme on private sector investment in energy supply infrastructure.

Photo of Joan Ruddock Joan Ruddock Minister of State (Department of Energy and Climate Change)

No assessment has been made on this particular issue. The Government have recently published the initial findings of their Energy Market Assessment, which recognises the carbon price and its long-term certainty is one of many, and not the most significant factor, that affects investment decisions in electricity generation. Gas price volatility and its relationship to electricity price is a key driver, as well as, uncertainty around future electricity demand and the impact of renewables on wholesale electricity prices.

Despite these uncertainties and the current low level of demand, high levels of investment are currently taking place. National Grid's data show that 20 GW are currently under construction or have been granted planning consent.

The next stage of our Energy Markets Assessment work will be a detailed assessment of a range of options for reforming the electricity market to meet our objectives beyond 2020, assessing them against cost-effectiveness, affordability and investor certainty. Government will consult on proposals in autumn 2010 and publish a White Paper in 2011.

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.