Written questions by Whitby.

What assessment he has made of the potential implications for his Department's policies of policy measures adopted in Germany to improve energy efficiency and waste heat utilisation in data centres.

To address the growing energy demands of AI, the AI Energy Council was established. The Council offers expert insights into preparing the UK’s energy system to manage AI’s energy footprint, as well as harnessing AI’s potential within a modern energy system - aligned with the Clean Power 2030 goals. Heat network zoning will enable heat sources to be connected to a network. This will allow for strategic heat networks to be built across the country, making use of recoverable heat sources, including data centres, where available. The department is undertaking research into best practice for connecting heat sources to heat networks. This includes learning from national and international case studies.

What steps he is taking to encourage the integration of data centres into local heat network zoning plans.

The Department is looking at how waste heat from data centres can be used to support the development of large scale, strategic heat networks. Through heat network zoning, certain buildings and heat sources, including data centres, can be required to connect to a network within set timeframes. Additionally, the Green Heat Network Fund provides £195m p.a. in capital grants up to 2029–30 for low carbon heat networks in England. One supported project is a major new network in North-West London that will utilise data centre heat, powering 10,000 new homes and 250,000m2 of commercial space.

Whether he plans to provide targeted support to businesses that use heating oil.

The government recognises that many businesses across the country will see the global events and be concerned about the impact on their fuel bills. We are monitoring the situation closely and actively engaging with industry and trade associations to understand what support may be needed. It is vital that consumers are treated fairly. Price gouging will not be tolerated. My Rt hon Friend the Secretary of State has written to the heating oil industry setting out our expectations that they adhere to the industry’s Code of Practice. We have also requested the CMA undertake a detailed examination of the heating oil market and we will work closely with the CMA to understand their findings and develop options to increase consumer protection.

What assessment he has made of the potential impact of industrial carbon capture projects, such as Peak Cluster, on safeguarding domestic cement production and skilled jobs in Derbyshire and Staffordshire.

Carbon capture, usage, and storage (CCUS) is essential for fully decarbonising clinker production within the cement sector, which is critical for producing foundational materials for the UK economy. 40% of the UK’s cement and lime is produced in Derbyshire and Staffordshire. The Peak Cluster would therefore significantly contribute to the region’s decarbonisation. Together, the Peak Cluster and Morecambe Net Zero project stated in a recent study that they could create and safeguard 13,000 jobs. This includes: Over 2,000 existing jobs in the cement and lime industryAround 300 new jobs created at manufacturing sites1,200 temporary jobs created for the construction of the pipeline and capture facilities

What steps his Department is taking to coordinate planning, energy policy and building regulations to maximise solar deployment across the built environment.

We work closely across Whitehall to ensure alignment between planning policy, energy policy and building regulations. The Government will publish the Future Homes Standard in the coming months, ensuring solar panels are installed on the majority of new build homes once it comes into force. Similarly, the Future Buildings Standard will ensure that solar will, where appropriate, play an important role on new non-domestic buildings.

What assessment his Department has made of the effectiveness of current mechanisms supporting small-scale solar generation following the closure of the Feed-in Tariff scheme.

The Smart Export Guarantee (SEG) is a market-led mechanism that ensures small-scale solar generators receive payment for any electricity exported to the grid. The Government keeps current market offerings under review to assess whether the market is continuing to deliver effective options. Ofgem also reports annually on the range and uptake of SEG tariffs offered by suppliers. The market offers a wide range of SEG tariffs, with registration numbers increasing to over 270,000 installations at the end of March 2025, compared with around 166,000 for the previous year. The latest Ofgem report can be found at Smart Export Guarantee Annual Report - April 2024 to March 2025 | Ofgem

Whether his Department has plans for new incentives to help encourage businesses to install rooftop solar panels on large industrial and commercial buildings.

The Government is aware of the significant potential that commercial rooftops have in our mission to make the UK a clean energy superpower. The Solar Council is monitoring delivery of Roadmap actions to support rooftop solar deployment on commercial and industrial buildings, including through resolving complex stakeholder interactions and improving grid access. Businesses already benefit from incentives such as the Smart Export Guarantee, capital allowances, and business rates exemptions for qualifying plant and machinery. We continue to work closely with industry to identify further opportunities to enable cost‑effective uptake.

What steps the forthcoming Local Power Plan will take to support partnerships between schools, local authorities and community energy groups to deliver increased levels of community energy.

The forthcoming Local Power Plan will be a joint document owned by GBE and the Department for Energy Security and Net Zero which will outline our shared vision for the local and community energy sector. We are continuing to develop the Local Power Plan with GBE and updates will be provided soon.

What assessment his Department has made of potential challenges to decarbonise (a) homes and (b) businesses that (i) use alternative energy sources and (ii) are off the main gas grid.

The Clean Heat Market Mechanism is focused on developing the market and supply chain for upgrading homes with hydronic heat pumps – a core technology for the UK’s transition to cleaner heating since around 90% of UK homes have water-based central heating systems. The Government will keep the scope of the scheme under regular review. The Government has published a response to the consultation on proposed Boiler Upgrade Scheme changes, confirming grants of £2,500 for air-to-air heat pumps in domestic properties, starting in 2026. This will increase consumer choice and support the UK’s transition towards low carbon heating systems.

What progress the Government has made on reviewing how future MPS surpluses should be shared.

The previous Minister of State for Industry met the MPS Trustees on 9 July and confirmed the Government’s commitment to considering their proposals regarding the future of the scheme. DESNZ will now engage HM Treasury with a view to agreeing a way forward.

Whether his Department plans to introduce requirements for car parking companies to install solar canopies on large parking lots.

Outdoor car parks provide potential to deploy solar canopies providing clean electricity, potential for electric vehicle charging and shelter for cars. As such, the government published a Call for Evidence, which closed on the 18th June, to gather robust evidence from stakeholders across industry, local authorities and other relevant sectors to inform a carefully designed, evidence-based approach to increasing uptake. A Government Response will be published this year.

What steps his Department is taking to support the installation of solar energy projects on local government buildings.

The Department for Energy Security & Net Zero is working closely with Great British Energy (GBE), the Department for Health and Social Care, and the Department for Education to install rooftop solar panels on schools and hospitals. In England £180 million in funding will support around 200 schools and 200 hospitals. This could lead to lifetime savings of up to £400 million over approximately thirty years. Additionally, more than £1 billion is also being invested between now and 2028 through the Public Sector Decarbonisation Scheme and the Integrated Settlements with Greater Manchester and West Midlands Mayoral Combined Authorities, which supports the installation of solar on public sector buildings across England. The government has also published Solar on the Government Estate: A senior Leader’s handbook. This sets out the guidance available to senior leaders in the public sector regarding solar on their estates.

Pursuant to the Answer of 28 April 2025 to Question 44820 on Electricity Generation, what progress the industry working group has made on evaluating the P441 modification to the Balancing and Settlement Code.

Ofgem next convenes a working group on 11 June where Elexon will present cost and benefit analysis of the proposed solution. Subsequent timelines depend on whether any Alternative Modifications (solutions) are raised by industry, before a Final Modification Report (FMR) is submitted for Ofgem’s consideration and decision. Ofgem expects to receive the FMR by end of Q3 2025. The Department is continuing to examine how to remove barriers for community and local energy project’s route to market. This includes working with Ofgem, GBE and relevant stakeholders to find solutions that work in the best interests of local generators and consumers.

What steps his Department is taking to ensure that people in rural areas retain access to functioning energy meters following the Radio Teleswitch Service switch-off.

Customers will not unexpectedly lose access to their heating and hot water after 30th June, and we will not allow widespread disconnection.Suppliers must fulfil all of their legal obligations to their customers, and that any future, localised phase-out of RTS meters after 30th Junemust be controlled, planned, and communicated properly to all customers in order to proceed.The government will do everything it can to ensure that all customers are protected, and will work with Ofgem to hold suppliers to account if required. We expect energy suppliers to be taking measures, such as deploying roaming teams of installers including in rural areas, to ensure consumers receive replacement meters in a timely manner.

What assessment his Department has made of the potential merits of decoupling the electricity wholesale price from gas.

As part of the Review of Electricity Market Arrangements, the Government assessed the merits of decoupling the electricity wholesale price from gas, considering proposals such as a Split Market, Green Power Pool and future-proofed Contracts for Difference scheme. The Contracts for Difference scheme was identified as the best tool to decouple gas and electricity prices. Increasing participation of renewables in the wholesale market means that over time, cheaper renewable electricity will set the price more often, lowering costs for consumers.

What plans he has to support community-based energy projects.

Government recognises the role community groups play in our efforts to tackle climate change. Great British Energy, through the Local Power Plan, will enhance support for local and community energy by partnering with Mayoral Strategic Authorities, community energy groups and Devolved Governments. This includes the Great British Energy Community Fund, which will provide funding and support to community energy stakeholders, helping to increase the roll out of renewable energy project.