The Department for Business, Energy & Industrial Strategy (BEIS) is actively seeking evidence on how to best develop the future policy framework to support the continued deployment of power CCUS projects beyond Track-1 of the Cluster Sequencing Process. This call is specifically for dispatchable gas-fired power generation with CCUS rather than bioenergy, which will be held separately.
The call for evidence closes on 17th October 2022. Key questions revolve around:
- The evolution of the power CCUS business model (the Dispatchable Power Agreement or DPA).
- The introduction of a competitive allocation process in the 2020s (views on timing and incorporation into the ongoing Cluster Sequencing Process.
- Managing barriers to power CCUS deployment (specifically where they are).
- Realising the economic benefits (further development of supply chains, removal of bottlenecks, realising regional level benefits).
- Future plans in the GB power CCUS sector (views on the trajectory of power CCUS, current project pipeline, scale and pace).
- Creating suitable market arrangements for power CCUS (view on the mid-merit role, relationship with the capacity market and the continuation of direct support).
For context, power CCUS can play an important role in the provision of low carbon electricity and will form a crucial part of the UK electricity sector (current and future). To meet Carbon Budget 6 targets the UK needs to deploy as much as 10GW of power CCUS by 2035. To deliver this, the deployment of power CCUS needs to ramp up in the late 2020s and 2030s. To minimising the cost to consumers, the ambition is to begin competitive allocation for power CCUS in the 2020s to support a future pipeline of projects.