Volume 33 Number 2 SNP Energy policy – Callum McCaig MP July 2016 The abolition of DECC – Statement from Angus MacNeil The new department – Department for Business Energy and Industrial Strategy ENERGY FOCUS Didcot DECC demolished DBEIS rises from the ashes This is not an official publication of the House of Commons or the House of Lords. It has not been approved by either House or its committees. All-Party Parliamentary Groups are informal groups of Members of both Houses with a common interest in particular issues. The views expressed in Energy Focus are those of the individual organisations and contributors and do not necessarily represent the views held by the All-Party Parliamentary Group for Energy Studies. The journal of The All-Party Parliamentary Group for Energy Studies Established in 1980, the Parliamentary Group for Energy Studies remains the only All-Party Parliamentary Group representing the entire energy industry. We champion cross-sector energy research and development. The Group’s membership is comprised of over 100 parliamentarians, 100 associate bodies from the private, public and CHAIRMAN’S charity sectors and a range of individual members. Published three times a year, Energy Focus records the Group’s activities, tracks key energy and environmental developments through parliament, presents articles from leading industry contributors and provides insight into the views and interests of both parliamentarians and officials. FOREWORD Executive Council Chairman Ian Liddell-Grainger MP Officers Rt Hon Lord Hunt of Kings Heath OBE | Ian Lavery MP | Lord O’Neill of Clackmannan Lord Oxburgh | Neil Parish MP | Lord Skelmersdale European Officer Ian Duncan MEP Membership Lead Robert Lane CBE Executive Council Christopher Chope OBE MP | Julie Elliott MP | Martin Fry | Ian Graves | Dr Simon Harrison | James Heappey MP Louise Kingham OBE | Joan MacNaughton CB | Paul Needley | Albert Owen MP | Chris Pincher MP | Michael Roberts OBE | Ruth Thompson OBE | Stephen Vaughan | Barbara Vest | Simon Virley | Graham Ward CBE | Dr Eilidh Whiteford MP | John Wybrew OBE Disclaimer: The views expressed in Energy Focus are those of individual organisations and contributors and do not necessarily represent the views held by members of the All-Party Parliamentary Group for Energy Studies. Contents Every time I start this foreword, I write that we live in interesting times, but the past few months Foreword 3 have been like no other – and certainly interesting for both UK energy policy, and for PGES. Ian Liddell–Grainger MP, Chairman of PGES Decarbonising Heat: Green Gas 4 However, I must add a personal sad note to reflect on the loss of David Jefferies CBE, who died Mike Foster, Chief Executive – Energy & Utility Alliance (MARCH SPEAKER MEETING) earlier this year. It was with great sadness that we heard of the loss of David, who was a founding member of the group, was elected as a Life Member many years ago and served on Executive Decarbonising Heat: Supply of Renewable Gas 6 Council until his death in March. We will miss both him and his insight, charm and kindness. Tony Nixon, Strategy and Innovation Manager – National Grid (MARCH SPEAKER MEETING) Decarbonising Heat: What nest for the gas Grid? 8 This edition of Energy Focus is being published as the repercussions of the EU Referendum result Neil Schofield, Head of External Affairs – Worcester Bosch (MARCH SPEAKER MEETING) to leave Europe are still being felt. We have a new Prime Minister, will have elections for the Leader of the Opposition, a new leader of UKIP, a new leader of the Green Party. DECC has been Academic Review - the future for energy 10 dismantled and a new department created, the Department for Business, Energy & Industrial Professor David Elmes, Warwick University (APRIL SPEAKER MEETING) Strategy. Academic Review - the energy trilemma 12 Professor Gavin Gillmore, Kingston University (APRIL SPEAKER MEETING) Energy is bound to be affected by at least some of this. Academic Review - Change Ahead: Energy for Transport 14 The Group is well placed to be at the heart of helping energy policy makers to access the Doctor Adam Chase, E4Tech (for Imperial College) (APRIL SPEAKER MEETING) knowledge and understanding that is in the energy industry and academia. Our programme for the SNP Energy Policy 16 remainder of the year includes some important speakers as well as our House of Lords Dinner, Callum McCaig MP, SNP Energy Spokesman (MAY SPEAKER MEETING) which will be preceded by a new PGES Energy Policy Workshop. PGES Summer Reception 18 That’s why, whatever the future may hold for UK energy with the UK separate from the EU, I am Obituary - David Jefferies, CBE, CCMI, FREng, FIEE 20 confident that the Parliamentary Group for Energy Studies, along with its members, will be at the forefront of the policy discussion. Statement from Angus McNeil MP 21 Chairman, Select Committee on Energy & Climate Change, on the abolition of DECC Ian Liddell-Grainger MP Department for Business, Energy and Industrial Strategy 22 The full list of ministerial responsibilities in the Department for Business, Energy and Industrial Strategy Chairman, PGES An All-Party Parliamentary Group Departmental Statements 24 Written and oral statements Parliamentary Record 27 Select Committees, oral questions, debates and legislation ISSN 0265-1734 For non-members, annual subscription rate is £65.00, single copies £27.00 Members receive a complimentary copy as part of membership to the Group Copyright 2016 2 Parliamentary Group for Energy Studies. All rights reserved. None of the articles or addresses in this publication may be reproduced, stored in a retrieval 3 system or transmitted in any form, by any means., electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the Copyright owner. Printed in Great Britain by First Colour Ltd, London. a range of green gases. Perhaps of waste gives the gas its “green” study into 100 per cent hydrogen “low carbon” gas is a better credentials. The Swindon plant through the gas grid. Their Leeds DECARBONISING description. First off the blocks envisages supplying gas for HGVs 21 study is arousing considerable is biomethane. This is the gas but there is nothing to stop it interest within the industry on the captured from waste processing, being fed into the gas grid for basis that it envisages using the typically anaerobic digestion. everyday use once it is blended to existing gas grid, conventional HEAT: GREEN GAS The technology is proven, it has reach the gas quality standards heating systems such as central worked for years. Companies required. heating in the home but in a like Severn Trent clean up the completely carbon free way. biomethane from their Minworth Another “green” gas is hydrogen, Mike Foster, Chief Executive – Energy & Utility Alliance sewerage works and inject the currently produced from natural This article is not designed to “green” gas into the grid. gas using Steam Methane reach the conclusion that one [email protected] Reforming, where the carbon can single option can solve the UK’s BioSNG is next; a “green” gas then be captured. The question energy trilemma, there is no that achieves its status because is how much hydrogen can be silver bullet. However, green MARCH SPEAKER MEETING: Address to the All-Party it uses waste materials, usually used and in what manner? It gas, whatever the source, offers sent to landfill or incineration, is possible, within existing gas a viable way forward using our Parliamentary Group for Energy Studies to create the gas. The process is quality guidelines, to mix up to existing gas infrastructure. It technically complex, it involves 2 per cent of hydrogen into the means not turning our back on Advanced Plasma technology. blend that flows through the gas but embracing it. Overall, Ofgem have recently awarded gas grid. Some studies suggest it could prove to be the most National Grid funding to develop that up to 20 per cent might be cost effective way of keeping a commercial scale plant in feasible – remember this makes people warm and meeting our Swindon, having seen the the overall mix of gas “greener”. international climate change success of smaller trials of the However, Northern Gas Networks obligations. technology. The alternative use are conducting a feasibility King Canute could not turn back As a result of natural gas that. Switching away from gas the tides; he acknowledged his abundance, the UK has the heating will mean households powers were limited. Similarly, world’s leading gas grid face considerable up-front costs, UK politicians must recognise infrastructure in place, directly which are simply unaffordable. that our geographic location, supplying the energy to heat 85 A recent study of Bridgend, climate and weather patterns per cent of UK homes. It would produced by Wales and West are major determinants of future be a travesty not to use this Utilities, suggest that 81 per cent energy policy and that they can existing infrastructure as part of of households simply do not have Half-hourly Heat and Electricity Demand try but will fail to alter them. The the solution to the trilemma, and the cash at their disposal to make energy trilemma, a phrase that “green” gas could be the key. that investment, without massive rightly suggests the difficulty subsidies. in balancing the competing Heat demand is seasonal, no demands of affordability, surprise there, but its peaks There is no definition of what reliability and sustainability, during the winter either need to “green” gas is; indeed this is part should be set against the UK’s be met by supply, or people will of the attraction in that there is no particular energy needs. go cold, and no politician wants winner or silver bullet but instead 4 5 biomass-rich waste-derived The journey to decarbonising heat capture and storage the hydrogen fuels, followed by cooling, produced under this process cleaning and polishing.