Source · Select Committees · Environmental Audit Committee
Recommendation 23
23
Acknowledged
Paragraph: 110
The British Energy Security Strategy appears to reflect a 20th century approach to energy security,...
Recommendation
The British Energy Security Strategy appears to reflect a 20th century approach to energy security, prioritising the construction of big, centralised power generation facilities to meet fixed demand. A move to a smarter, more flexible, digitally-enabled grid, which technological innovations now make possible, holds exciting potential to smooth demand peaks by flexing demand up and down in a way that was hitherto impossible. Developments in this area could have important implications for other elements of the Government’s energy strategy - for instance, how much baseload electricity is necessary and how much grid distribution capacity is needed to connect a more dispersed generation network. We recommend that the Government provides a progress report in 2023 on the joint Ofgem and BEIS Smart Systems and Flexibility Plan and incorporates any relevant actions from this report into its ongoing efforts to enhance energy security and decarbonise the electricity grid.
Government Response Summary
The government recognizes the importance of a smart, flexible energy system, and that Ofgem has been working with industry to develop new grid codes and standards and it will bring forward retail market reforms to support system transformation to achieve power decarbonisation by 2035.
Paragraph Reference:
110
Government Response
Acknowledged
HM Government
Acknowledged
56. The Government recognises the importance of a smart, flexible energy system that can respond to changing patterns of demand and generation, and that can exploit technological advances to operate more efficiently and securely. Ofgem has been working with industry to develop new grid codes and standards that will enable the integration of more distributed generation and demand-side response. These reforms are designed to facilitate the development of a smarter, more flexible grid that can better manage demand and supply. 57. The Government is also supporting the development of new technologies that can help to improve the flexibility and resilience of the energy system, such as battery storage, smart meters, and electric vehicle charging infrastructure. These technologies can help to smooth out demand peaks and reduce the need for costly grid upgrades. 58. Furthermore, the Government will bring forward retail market reforms that deliver a retail market that works for consumers, that is resilient and investable over the long-term, and that supports system transformation. To achieve power decarbonisation by 2035 and support energy independence we are working across government to deliver a net zero energy system.