Written questions by Heylings.

Whether his Department has made an assessment of the potential merits of adopting a spatial energy planning approach to better align land use planning with net zero objectives.

In October 2024, the UK, Scottish and Welsh governments, jointly commissioned the National Energy System Operator to develop a Strategic Spatial Energy Plan (SSEP): the first ever spatial energy plan for Great Britain, to support a more actively planned approach to energy infrastructure across both land and sea. The SSEP will help bring about an efficient and net zero consistent energy system and provide greater clarity to industry, investors, consumers and the public. The plan’s methodology was published in May 2025, with the SSEP due to be published in 2026.

Whether he plans to introduce additional regulatory mechanisms to ensure the financial viability of community energy schemes under the Great British Energy Bill.

The Government recognises the role community groups play in our efforts to tackle climate change. In March, we published a response to a consultation, started by the previous government, on the barriers to community energy. We will learn from the responses to the consultation to inform our future work on community energy. The Government also recognises requests to take steps to better enable local energy markets. The Secretary of State previously commissioned Ofgem to explore the policy and regulatory barriers and solutions for the community energy sector. The energy industry has also been working to make changes to industry rules to support local trade of energy, including modification P442 of the Balancing and Settlement Code, which came into effect in February 2025. The Department is working closely with Ofgem and other key stakeholders to develop this work further.

What plans his Department has to publish a national strategy on community energy.

The Government recognises the importance of communities being at the heart of the energy transition and the benefits of communities owning energy infrastructure in their own community. Great British Energy will take forward the Local Power Plan and working alongside DESNZ to unlock regulatory changes will drive forward an expanded community energy sector across the UK. We will say more about the Local Power Plan in due course.

What assessment he has made of the merits of policy in (a) Denmark, (b) Germany and (c) other countries in increasing community energy.

My Department regularly looks to good practice from other countries and will continue to build on those experiences and lessons learned as we jointly develop the Local Power Plan with Great British Energy.

Whether the 2035 Future Energy Scenarios-derived capacity ranges for solar and batteries in his Department’s Clean Power Action Plan connections annex are intended to be used by Ofgem and network operators as (a) technology caps and (b) interim indications.

The 2035 capacity ranges present credible pathways to decarbonise our energy system and provide certainty to investors by ensuring a 10-year horizon for connection offers. NESO will use the ranges to underpin connection offers out to 2035. The 2035 figures are interim, to enable connection reform to proceed at pace, and are subject to updates through the Strategic Spatial Energy Plan, which will be published in 2026.

On what statutory basis his Department can prevent biomass companies from claiming renewable subsidies for burning wood from irreplaceable primary forests.

The Secretary of State has the statutory authority to determine the sustainability criteria for biomass subsidies either by secondary legislation such as regulations under the Renewables Obligation scheme, or by determining the terms of a contract under the Contracts for Difference scheme. While the Secretary of State sets the sustainability framework, it is for relevant regulators such as Ofgem, or the Low-Carbon Contracts Company as the contractual counterparty to the Contracts for Difference (CfD) scheme, to enforce sustainability requirements. Government only supports biomass that satisfies sustainability criteria. The proposed Low-Carbon Dispatchable CfD will strengthen sustainability criteria by excluding biomass sourced from primary forest and old-growth areas from receiving subsidy.

What steps he is taking to consult the public on his revised seventh carbon budget plan.

We have a clear mission to make the UK a clean energy superpower. This transition will make people better off now and for generations to come. We remain committed to supporting people to realise the benefits and design policies that are responsive to their needs. By end of October 2025, we will deliver an updated plan that sets out the policy package out to the end of Carbon Budget 6 in 2037 for all sectors of the economy. We will also publish a Net Zero Public Participation Strategy which will set out how we will support people to access the benefits of new technologies and ensure that diverse perspectives are considered in net zero policy making. Looking ahead, we will set Carbon Budget 7 by June 2026, in line with our statutory duties. This will set out the next phase of our pathway to net zero to continue to secure the economic and societal benefits of the net zero transition.

What assessment he has made of the potential implications for his policies of concerns from solar developers on the Government’s 2035 projections for their technology and the potential impact on (a) Contracts for Difference competition and (b) reaching Government’s clean power targets post-2030.

My Department engaged extensively with Ofgem, NESO, and stakeholders on the 2031-35 solar capacity ranges figures in the Clean Power Action Plan. In April, we published an update to the Action Plan to reflect the recent trend of an increased solar project pipeline at transmission. [1] Connections reform will benefit Contracts for Difference competition and achieving clean power by prioritising projects that are progressing and aligned with our strategic needs. Projects which hold CfD contracts, for example, will automatically be considered strategically aligned and will be eligible for a confirmed connection agreement as part of the reformed connections queue.1. https://www.gov.uk/government/publications/clean-power-2030-action-plan-solar-capacity-update-letter-to-neso/clean-power-2030-action-plan-solar-capacity-update-letter-to-neso-7-april-2025

What role the Treasury holds in approving new oil and gas fields.

The Oil & Gas Authority (operating as the North Sea Transition Authority (NSTA)) are the licensing authority for offshore oil & gas. The NSTA are also responsible for granting consents and authorisations for subsequent activities (including development consents) under the Petroleum Act 1998. The NSTA requires Secretary of State’s agreement under relevant environmental regulations prior to granting any licence, consent or authorisation.

Who approves new oil and gas fields.

The Oil & Gas Authority (operating as the North Sea Transition Authority (NSTA)) are the licensing authority for offshore oil & gas. The NSTA are also responsible for granting consents and authorisations for subsequent activities (including development consents) under the Petroleum Act 1998. The NSTA requires Secretary of State’s agreement under relevant environmental regulations prior to granting any licence, consent or authorisation.

Whether he is taking steps (a) reduce and (b) remove policy costs on electricity bills.

The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently. With this, the Government is also committed to ensuring a fair and affordable transition to Net Zero while considering the impact of policy costs on all energy consumers. NESO’s advice in their Clean Power 2030 Report on the impact of clean power on energy bills finds that a 2030 clean power system can be cheaper for the consumer than the one we have today. Policy costs, or levies, fund essential schemes that have delivered significant benefits, including increasing renewable generation capacity and reducing reliance on fossil fuels. The Department keeps the aggregate impact of these policies under review. The Government’s main mechanism to invest in new renewables capacity are our Contracts for Difference. We have consulted on reforms to the Contracts for Difference, which are intended to ensure we secure the capacity needed to deliver Clean Power by 2030, whilst minimising the costs to consumers. The Government will publish a response with a view to implementing any changes in time for Allocation Round 7 to open in summer 2025.

Whether he plans to legislate to prevent the Drax power station burning wood from primary forests for producing non-subsidised electricity.

The Government only provides support for biomass sourced from forests which are sustainably managed.Under the agreed Heads of Terms for short term support from 2027-2031, Drax must source 100% of its biomass from sustainable sources, and must exclude primary forest to receive support. Drax will be supported at a 27% load factor and we do not anticipate they will be incentivised to generate further, without subsidies. Nevertheless, we are considering further options through the new contract and the consultation on the Common Biomass Sustainability Framework to provide additional protection for primary forests.

Whether his Department has issued a response to BBC Panorama’s reports that the Drax powerplant has burned wood from primary forest sites.

Following the Panorama reports, Ofgem, as the independent regulator, conducted a comprehensive investigation into Drax’s sustainability arrangements and concluded that, whilst no subsidies were issued for unsustainable biomass, there was an absence of adequate data governance and controls. We are confident in Ofgem’s conclusion, and Drax accepted the findings of the investigation and made a voluntary redress payment of £25m. Further to this, we have tightened the sustainability criteria under the new Contract for Difference, including strict provisions to exclude material sourced from primary and old growth forests under the contract.

When he plans to stop unabated burning of wood at Drax power station.

The Government has agreed Heads of Terms with Drax for time-limited support from 2027 to 2031. The National Energy System Operator advised that without Drax we would face increased security of supply risks from 2027 to 2031. No decisions have been made on Drax’s future after 2031. Over the next decade, more and more of our ageing gas and nuclear assets will retire. Government is bringing forward options for low carbon dispatchable power such as hydrogen and gas with carbon capture. But energy security is essential and we will retain existing assets where it is in the country’s interest to do so.

What steps he is taking to ensure the Climate Change Committee assesses the upcoming sixth carbon budget plan before it is published.

We value the CCC’s independent advice and expertise on progress against our targets. We will deliver an updated plan that sets out the policy package out to the end of Carbon Budget 6 in 2037 for all the sectors in due course. This will outline the policies and proposals needed to deliver Carbon Budgets 4-6 and our NDC commitments on a pathway to net zero. Government will consider CCC’s already published independent advice on Carbon Budgets as well as annual progress reports to Government ahead of publishing the new Plan.

Whether his proposed extension of subsidies for the Drax power station would raise the guaranteed strike price for the company from £100 MW/h to £113 MW/h.

The new CfD arrangement caps the volume of supported generation to an annual load factor of 27% compared to Drax’s current 65%. This incentivises dispatchable biomass generation only when the system needs it, ensuring consumers can benefit from cheaper wind and solar power at other times. The new arrangement is estimated to halve subsidies to Drax, saving around £6 per household per year compared to current arrangements. The strike price for the new CfD is £113 (2012 prices) compared to £100 MWh currently. This modest increase reflects that Drax’s fixed operating costs will be spread over fewer units of generation, but consumers get more valuable power for lower overall subsidy.

What steps he is taking to support low-income households with the costs of installing (a) insulation and (b) heat pumps.

As the first step towards the Warm Homes Plan, the Government has committed an initial £3.4 billion over the next 3 years towards heat decarbonisation and household energy efficiency.Government energy efficiency schemes such as the Energy Company Obligation, Great British Insulation Scheme, Warm Homes: Social Housing Fund and Warm Homes: Local Grant are targeted at low-income households to fund energy efficiency upgrades and low-carbon heating for those eligible. Further details on the Warm Homes Plan will be set out in due course.

Whether he has made an assessment of the potential merits of allowing hon. Members to access (a) the KPMG interim report of December 2022 and (b) the full NESO report on the alternatives to burning 27 million trees a year.

The KPMG report is an internal fact-finding document, commissioned by Drax to review their biomass supply chain against the sustainability requirements of existing arrangements. Whilst DESNZ Officials were granted time limited access to view the report, we do not hold a copy. We therefore have no means or rights to share the report. NESO published a summary of its advice to DESNZ (here). Given the focus of this analysis is on specific companies, it is commercially sensitive and cannot be shared publicly. This is the right approach to ensure security of our electricity system at a fair price for consumers.

Whether the trees burnt at the Drax power station are imported and transported on diesel freighters.

Drax sources the vast majority of its supply of biomass pellets from the US, with a small percentage from Canada, and elsewhere. It transports pellets to the UK by shipping them on bulk carriers, unloading at ports including Immingham, Liverpool and Port of Tyne before final transport to the Drax site by rail. Bulk transport of biomass pellets can be a highly carbon-efficient way of moving material across large distances. Under the new arrangements agreed with Drax we have strengthened the supply chain emissions threshold in line with European standards.

Whether he has made an assessment of the potential implications for the Government’s Clean Power 2030 target of limiting the supply of solar and battery storage projects as a result of the 2035 regional technology capacities.

The Clean Power Action Plan (CPAP) sets out regional capacities for solar and battery storage required to achieve Clean Power by 2030. Regional capacities out to 2035 are also included to provide a 10-year time horizon for connections offers. 2035 capacities are based on the top of the range of NESO's Future Energy Scenarios. NESO analysis suggests that projects allocated to the 2031-35 period may be able to connect pre-2030 where there is spare network capacity or if needed to deal with attrition. However, the reformed queue to 2030 will already contain additional capacity beyond the amount needed to achieve Clean Power by 2030.