Recommendations & Conclusions
17 items
7
Recommendation
Sixth Report - Enabling sustainable ele…
Deferred
The Government must address as a matter of urgency the barriers to long term energy storage for the UK to ensure it can provide its citizens with clean and reliable energy during periods of limited renewable generation. This can be delivered through direct Government intervention and investment in infrastructure, as …
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The Government must address as a matter of urgency the barriers to long term energy storage for the UK to ensure it can provide its citizens with clean and reliable energy during periods of limited renewable generation. This can be delivered through direct Government intervention and investment in infrastructure, as well as through regulatory and policy reforms, such as cap and floor mechanisms or a reformed capacity mechanism, that signal to the market the value of long-term energy storage.
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Government response AI summary
The government's response focuses on Ofgem's work with the ENA to make connections queue data publicly available monthly, which does not directly address the broader policy and investment barriers to long-term energy storage or the suggested regulatory reforms.
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8
Recommendation
Sixth Report - Enabling sustainable ele…
Deferred
By the end of 2025 at the latest, the Government must publish an energy storage strategy, underpinned by robust analysis, that indicates to the market the capacity and type of both short-term and long-term energy storage which will be required in a net zero energy system, and the measures that …
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By the end of 2025 at the latest, the Government must publish an energy storage strategy, underpinned by robust analysis, that indicates to the market the capacity and type of both short-term and long-term energy storage which will be required in a net zero energy system, and the measures that Ministers plan to take to ensure that sufficient capacity is in place to meet the system’s needs in 2035 and in 2050.
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Government response AI summary
The government did not commit to publishing an energy storage strategy by 2025; instead, it outlined ongoing work by Ofgem and NESO on connections reform to accelerate connections for renewable generation and storage projects.
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10
Recommendation
Sixth Report - Enabling sustainable ele…
Deferred
We are nevertheless concerned that recent Government adjustments to the incentives for take-up of these technologies by consumers may affect the capacity of the grid to deliver the benefits of flexibility in the short- to-medium-term: this in turn may affect the willingness of investors to commit to leading and supporting …
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We are nevertheless concerned that recent Government adjustments to the incentives for take-up of these technologies by consumers may affect the capacity of the grid to deliver the benefits of flexibility in the short- to-medium-term: this in turn may affect the willingness of investors to commit to leading and supporting grid development initiatives. It is desirable that, as far as possible, Ministers should publish the rationale behind all decisions on changes to energy transition policies, including the underlying analysis: communication of such decisions should be informed by an assessment of their likely impact on achieving relevant net zero targets.
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Government response AI summary
The government deflected the recommendation to publish rationales and impact assessments for policy changes by detailing Ofgem's role in setting electricity network price controls and implementing agile investment mechanisms to support strategic grid investment.
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13
Recommendation
Sixth Report - Enabling sustainable ele…
Deferred
We further recommend that Ofgem expedite its programme to deliver market-wide half-hourly settlement. We expect Ofgem to provide a progress report in response to this recommendation, setting out current barriers to delivery of this objective, identifying measures to overcome them, and indicating a target date for final delivery. (Paragraph 67) …
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We further recommend that Ofgem expedite its programme to deliver market-wide half-hourly settlement. We expect Ofgem to provide a progress report in response to this recommendation, setting out current barriers to delivery of this objective, identifying measures to overcome them, and indicating a target date for final delivery. (Paragraph 67) Enabling sustainable electrification of the economy 45 Developing an electricity grid ready for net zero
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Government response AI summary
The government's response does not address the recommendation for Ofgem to expedite market-wide half-hourly settlement or provide a progress report. Instead, it discusses financial support and incentives for electricity network manufacturing supply chains, promising an update on wider incentives shortly.
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14
Conclusion
Sixth Report - Enabling sustainable ele…
Deferred
Ofgem and the Energy System Operator have sought to improve grid connection timeframes through reforming grid queue procedures and introducing milestones. Early evidence suggests that the reforms introduced to date appear not to have yet had the immediate and radical effect on reducing grid connection times which they were designed …
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Ofgem and the Energy System Operator have sought to improve grid connection timeframes through reforming grid queue procedures and introducing milestones. Early evidence suggests that the reforms introduced to date appear not to have yet had the immediate and radical effect on reducing grid connection times which they were designed to deliver: two months after the introduction of milestones, the queue had markedly lengthened, a development likely to have been due to a significant increase in applications.
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Government response AI summary
The government's response focuses on the creation of the Office for Clean Energy Jobs to address workforce skills and training in the energy sector, rather than directly addressing the committee's observation that grid connection reforms have not yet reduced connection times.
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15
Conclusion
Sixth Report - Enabling sustainable ele…
Deferred
Overall visibility of the grid connections queue is limited, and it is possible that the immediate effect of the reforms introduced has been to lengthen the connections queue as developers react to the new regime. While we welcome the Ofgem project milestone reforms which took effect in November 2023, the …
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Overall visibility of the grid connections queue is limited, and it is possible that the immediate effect of the reforms introduced has been to lengthen the connections queue as developers react to the new regime. While we welcome the Ofgem project milestone reforms which took effect in November 2023, the measures entailed in the Connections Action Plan may take longer to have a positive effect on the queue.
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Government response AI summary
The government's response discusses the definition of green jobs and the role of the Office for Clean Energy Jobs in developing skills and monitoring the clean energy workforce, without addressing the committee's observations on grid connections queue visibility or the impact of recent reforms.
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16
Conclusion
Sixth Report - Enabling sustainable ele…
Deferred
Delivery of renewable energy projects at pace, and securing their connection to the transmission network, is essential to achieving the generation capacity required under the Government’s strategy for energy security. The connection of generation capacity to the grid is being held up by delays to the ‘critical path’ of grid …
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Delivery of renewable energy projects at pace, and securing their connection to the transmission network, is essential to achieving the generation capacity required under the Government’s strategy for energy security. The connection of generation capacity to the grid is being held up by delays to the ‘critical path’ of grid readiness. Delays in project connections are unlikely to improve the confidence of investors in electrification projects. While the connection reforms brought in by Ofgem and the commencement of implementation of the Connection Action Plan measures are welcome, further work is likely to be required to reduce the time taken to connect generation projects to the transmission grid.
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Government response AI summary
The government's response addresses proposals to increase planning fees and support for local planning authorities, funded by the stamp duty surcharge, rather than directly detailing further work to reduce grid connection delays for renewable energy projects.
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17
Conclusion
Sixth Report - Enabling sustainable ele…
Deferred
Sustained and consistent action by Government and the regulator will be required to manage the grid connections queue down so that commissioned renewable generation projects are able to deliver outputs to the grid without unreasonable delays.
Government response AI summary
The government response focuses on initiatives to improve planning capacity for Nationally Significant Infrastructure Projects through the Planning Advisory Service, recruitment funding, and cost-recovery, rather than directly addressing how it will manage down the existing grid connections queue for commissioned renewable generation projects.
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18
Recommendation
Sixth Report - Enabling sustainable ele…
Deferred
We recommend that the Department for Energy Security and Net Zero and Ofgem actively monitor the progress of connection reform initiatives and the delivery of the transmission capacity required to facilitate new grid connections, and, where appropriate, streamline the measures already introduced. In particular, we recommend that Ofgem review its …
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We recommend that the Department for Energy Security and Net Zero and Ofgem actively monitor the progress of connection reform initiatives and the delivery of the transmission capacity required to facilitate new grid connections, and, where appropriate, streamline the measures already introduced. In particular, we recommend that Ofgem review its milestone queue reforms with a view to advancing projects which are demonstrably ready to connect to the grid to the front of the queue.
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Government response AI summary
The government's response focuses on accelerating infrastructure delivery through a new Bill and promoting renewable energy via changes to the National Planning Policy Framework, but does not specifically address monitoring existing connection reform initiatives or Ofgem reviewing its milestone queue reforms to advance ready projects.
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20
Conclusion
Sixth Report - Enabling sustainable ele…
Deferred
The Government and Ofgem must implement in full the changes proposed in the Connections Action Plan. This must entail, for example, the prioritisation of short- term grid requirements, so as to incentivise network operators to prioritise renewable energy connections. The connection of grid inputs from solar and wind, generation, and …
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The Government and Ofgem must implement in full the changes proposed in the Connections Action Plan. This must entail, for example, the prioritisation of short- term grid requirements, so as to incentivise network operators to prioritise renewable energy connections. The connection of grid inputs from solar and wind, generation, and outputs serving decarbonised applications such as heat pumps and electric vehicle charging, must be prioritised in parallel with connections for larger nuclear and carbon-emitting technologies. (Paragraph 93) 46 Enabling sustainable electrification of the economy
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Government response AI summary
The government's response outlines a planned national public awareness campaign for early 2025 to promote the importance of new electricity network infrastructure, which does not address the recommendation to implement the Connections Action Plan in full or prioritise renewable energy connections.
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21
Conclusion
Sixth Report - Enabling sustainable ele…
Deferred
We recognise the rationale for the current restrictions on the commissioning and construction of connections to regional substations. The GB electricity network must be constructed to certain minimum standards which ensure coherence, reliability and interoperability, under arrangements which provide long-term certainty over responsibility for maintenance. Nevertheless, we consider that there …
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We recognise the rationale for the current restrictions on the commissioning and construction of connections to regional substations. The GB electricity network must be constructed to certain minimum standards which ensure coherence, reliability and interoperability, under arrangements which provide long-term certainty over responsibility for maintenance. Nevertheless, we consider that there is in principle scope to accelerate grid expansion by authorising experienced third parties to build connections which meet approved standards.
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Government response AI summary
The government's response focuses on reviewing mechanisms for delivering community benefits and mitigating visual and community impacts from new electricity transmission infrastructure, rather than directly addressing the committee's suggestion of authorising experienced third parties to build connections to accelerate grid expansion.
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24
Recommendation
Sixth Report - Enabling sustainable ele…
Deferred
We recommend that the Government examine the operation of the current ED2 (distribution) and T2 (transmission) price control periods to establish whether the measures are driving the necessary connections and increases in capacity. If not, these price control periods should be re-opened or modified so as to incentivise immediate network …
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We recommend that the Government examine the operation of the current ED2 (distribution) and T2 (transmission) price control periods to establish whether the measures are driving the necessary connections and increases in capacity. If not, these price control periods should be re-opened or modified so as to incentivise immediate network reform. Future network regulatory reviews should be geared to respond as rapidly as possible to the potential for further innovations to decarbonise the economy.
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Government response AI summary
The government's response focuses on Ofgem's role in regulating NESO and developing the Regional Energy Strategic Plan (RESP), which will feed into future price control processes, but it does not commit to examining the operation of the current ED2 and T2 price control periods or …
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26
Conclusion
Sixth Report - Enabling sustainable ele…
Deferred
Energy infrastructure supply chains are often very fragile and are affected by fierce global competition. The shoring up of these supply chains serving the UK’s electrification requirements will require urgent and significant anticipatory investment to ensure that the rollout of infrastructure can take place at reasonable value for money.
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Energy infrastructure supply chains are often very fragile and are affected by fierce global competition. The shoring up of these supply chains serving the UK’s electrification requirements will require urgent and significant anticipatory investment to ensure that the rollout of infrastructure can take place at reasonable value for money.
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Government response AI summary
The government acknowledges challenges in supply chain resilience and states it will review the need for an electrification roadmap and set out its full approach in a forthcoming Industrial Strategy. It also highlights existing initiatives and Ofgem's plan to introduce an advance procurement mechanism from …
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27
Recommendation
Sixth Report - Enabling sustainable ele…
Deferred
We recommend that, alongside managing investor confidence through market certainty, the Government work with businesses in the sector to create an electrification supply chain roadmap, setting out how the Government will seek to ensure that the energy sector supply chain is resilient in the short term and is insulated as …
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We recommend that, alongside managing investor confidence through market certainty, the Government work with businesses in the sector to create an electrification supply chain roadmap, setting out how the Government will seek to ensure that the energy sector supply chain is resilient in the short term and is insulated as far as possible against possible future price volatility on international markets. This electrification supply chain roadmap should be published within three months of the State Opening of the next Parliament. (Paragraph 106) Enabling sustainable electrification of the economy 47
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Government response AI summary
The government states it will be reviewing the need for an electrification roadmap, rather than committing to create and publish one, and plans to set out its full approach to supporting UK supply chains in a forthcoming Industrial Strategy.
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29
Recommendation
Sixth Report - Enabling sustainable ele…
Deferred
We recommend that the Government work with industry to provide incentives, including financial support, to ensure that essential elements of the electricity infrastructure supply chain are based in the UK, so as to counter competitive incentives from other countries racing to develop their domestic electricity grids. Government policy in this …
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We recommend that the Government work with industry to provide incentives, including financial support, to ensure that essential elements of the electricity infrastructure supply chain are based in the UK, so as to counter competitive incentives from other countries racing to develop their domestic electricity grids. Government policy in this area should prioritise the maintenance and development of the clean UK steel industry as well as driving the UK technology sector.
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Government response AI summary
The government states that clean energy industries are a priority growth sector and that it will set out its full approach to supporting UK supply chains in the forthcoming Industrial Strategy, without committing to immediate financial incentives for basing essential supply chain elements in the …
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42
Recommendation
Sixth Report - Enabling sustainable ele…
Deferred
We recommend that the Government expedite the implementation of its current proposals for community benefits to be considered as part of community engagement in the delivery of certain transmission projects. A toolkit of illustrative community benefits and potential levels of support should be developed in order to inform communities what …
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We recommend that the Government expedite the implementation of its current proposals for community benefits to be considered as part of community engagement in the delivery of certain transmission projects. A toolkit of illustrative community benefits and potential levels of support should be developed in order to inform communities what options are available to them as well as providing incentives to developers to mitigate visual or community impacts as far as possible. Progress in implementing Enabling sustainable electrification of the economy 49 community benefit measures should be monitored following deployment, and the effectiveness of the overall approach should be reviewed at least every three years.
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Government response AI summary
The government is currently reviewing how to effectively deliver community benefits for electricity transmission network infrastructure, considering a combination of direct benefits and community funds, with further details to be set out shortly. It also mentions NESO developing Electricity Transmission Design Principles.
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53
Recommendation
Sixth Report - Enabling sustainable ele…
Deferred
We support recommendation 2 of the April 2023 report of the Business, Energy and Industrial Strategy Committee, on Decarbonising the power sector, proposing that the Government define the proviso ‘subject to security of supply’ condition in its 2035 target. Since this term is yet to be defined, we recommend that …
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We support recommendation 2 of the April 2023 report of the Business, Energy and Industrial Strategy Committee, on Decarbonising the power sector, proposing that the Government define the proviso ‘subject to security of supply’ condition in its 2035 target. Since this term is yet to be defined, we recommend that the Government provide a clear definition in its response to this report (Paragraph 176) Enabling sustainable electrification of the economy 51
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Government response AI summary
The government defers providing a clear definition for "subject to security of supply", stating it expects to set out more detail on its approach to delivering Clean Power by 2030, including how security of supply will be ensured, by the end of the year.
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