Electricity Generation: Renewable Energy

Department for Energy Security and Net Zero written question – answered at on 14 March 2024.

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Photo of Dave Doogan Dave Doogan Shadow SNP Spokesperson (Energy Security and Net Zero)

To ask the Secretary of State for Energy Security and Net Zero, if she will instruct Ofgem to publish an estimate of the impact of the cost of future transmission charges for renewable companies in more expensive Transmission Network Use of System Charges zones on the agreed strike price for the fifth Contracts for Difference (CfD) Allocation Round.

Photo of Andrew Bowie Andrew Bowie Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Government acknowledges the uncertainty that renewable developers face in pricing in the cost of future transmission charges (TNUoS), and that this presents particular challenges for transmission-connected projects in more expensive TNUoS zones. Whilst network charges are a matter for Ofgem, the Department for Energy Security and Net Zero has overall responsibility for Contracts for Difference allocation rounds. The Department continues to assess implications of charging arrangements on CfD generators and will continue to engage with Ofgem to mitigate the impacts where possible and appropriate.

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