To ask the Secretary of State for Energy and Climate Change when he plans to publish the results of his Department’s modelling of the effects of the EU Emissions Trading Scheme phase 3 on combined heat and power plants. (262111)

We hope to publish projections of Combined Heat and Power (CHP) capacity, including the possible effects of Phase III of the EU Emissions Trading Scheme, during the period for consultation on the Heat and Energy Saving Strategy which closes on 8 May 2009. The projections in this report will include input from developers on their likely investment in the future energy market.

To ask the Secretary of State for Energy and Climate Change what account will be taken of carbon dioxide emission levels from combined heat and power installations in the benchmarking allocation under phase 3 of the EU Emissions Trading Scheme. (262112)

The revised EU Emissions Trading Directive agreed in December 2008 sets out the principles by which free EU allowances will be distributed to installations, including those with combined heat and power. These principles are:

The allocation should be ex-ante i.e. based on historic data and not adjusted ex-post;

The allocation should give incentives to reduce emissions and take into account efficient techniques such as high efficiency combined heat and power (CHP);

The allocation should be calculated for final products rather than inputs to maximise emissions reductions and;

The starting point shall be the average performance of the 10 per cent. most efficient installations in a sector or sub-sector in the EU in 2007-08.

The final allocation rules are due to be agreed by 31 December 2010.

To ask the Secretary of State for Energy and Climate Change what steps he plans to take to support the financing and development of heat networks. (262113)

The Government have set out a number of possible measures to encourage the development of heat networks and district heating in the consultation on the Heat and Energy Saving Strategy, published on 12 February 2009.