Renewable Energy: Scotland
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment her Department has made of the potential impact of transmission charging structures on the commercial viability of renewable energy developments in Scotland.
Answered by Department for Energy Security and Net Zero
Transmission charges are designed to be cost-reflective. As a result, generators located further from centres of demand, and which drive higher levels of network investment, face higher charges. The Government is working with Ofgem to ensure that charging arrangements continue to provide efficient investment signals. The Contracts for Difference (CfD) scheme is the government’s main mechanism for supporting new low-carbon electricity generation projects in Great Britain. The Government keeps CfD auction parameters under review ahead of each allocation round and continues to consider how differences in transmission charges across Great Britain may affect participation and competition in future CfD auctions.
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