Letter and memorandum to the Clerk of
The Committee from The Senior Vice President of TXU Energy Regulation
I attach TXU's supplementary memorandum which
we should like the Committee to consider in connection with the
TXU has a three-pronged strategy to meet our
own ROCs quota and to encourage the development of the renewables
sector in the UK. This strategy reflects TXU's strengths as well
as recognising and playing to the expertise of independent renewables
The three "prongs" of TXU's renewables
BuildTXU is retaining its
in-house capacity to develop and operate renewables in its own
right, and with partner companies, such as: off-shore wind, on-shore
wind, biosolids and sustainable energy from waste.
BuyThis involves the purchase
of output and ROCs from independent renewables developers. The
provision of Power Purchase Agreements, and the route to market
which TXU can provide through its Trading business, will enable
developers to secure project finance and avoid price risk under
NETA's balancing market.
TradeTXU will take a lead
in the developing market for trading ROCs.
Sustainability is one of the key planks of our
business. Our strategy is an inclusive one that will promote the
growth of the renewables sector in the UK as a whole at the same
time as helping us to meet our targets under the Renewables Obligation.
Our memorandum sets out to cover, in turn, the
four key issues on which the Committee has invited supplementary
The impact of recent developments
in energy policy such as the New Electricity Trading Arrangements
and the Renewables Obligation.
Current policies to support renewables
(including R&D and capital grants) and the likelihood of meeting
Government targets in this area.
The extent to which current developments
reflect "joined-up" working between the parties involved
(Government departments, OFGEM, etc).
The outcome of the PIU Energy Review
and the development of a sustainable energy strategy.
I hope that Members of the Committee find our