Source · Select Committees · Environmental Audit Committee
Recommendation 3
3
Accepted
Paragraph: 21
Establish multidisciplinary planning cell to develop detailed delivery pathway for decarbonised grid by 2024.
Recommendation
We recommend that the Government, together with Ofgem and the National Energy System Operator, establish a multidisciplinary planning cell tasked with the development of a detailed pathway to the decarbonised grid. This unit ought to be commissioned to produce a delivery plan that sets out the necessary investment and rollout of electricity infrastructure required to deliver the Government’s current ambitions for low carbon electricity generation. The cell should be established as soon as possible, with a view to producing initial pathways and plans by the end of 2024 at the latest.
Government Response Summary
The government published its decision to introduce a cap and floor scheme for Long Duration Electricity Storage (LDES), with the first application round expected in 2025. They also committed to designing a new business model for hydrogen storage infrastructure by 2025.
Paragraph Reference:
21
Government Response
Accepted
HM Government
Accepted
Government agrees with the importance of long-duration energy storage as a key enabler to a secure, cost-effective and low carbon energy system. Long duration energy storage, for example electricity or hydrogen storage, can help to decarbonise the system by storing excess renewable generation over longer periods of time. This will allow us to replace fossil-fuelled generation with renewable power without losing flexibility from the grid. Long duration electricity storage (LDES) will save consumers money, as it minimises the amount of additional generation and network capacity needed. System modelling estimates savings for the energy system, and ultimately the energy consumer, of £24 billion by 2050 in one scenario1. On 10 October 2024 the Government published its decision to introduce a cap and floor scheme for LDES, with Ofgem as regulator and delivery body. Future procurement ambitions for this scheme will be provided ahead of the first application round, which is expected in 2025. NESO’s Clean Power 2030 analysis contains scenarios for future storage deployment (both LDES and batteries). We will continue to work with NESO to develop projections of future system need, e.g. in preparation for next steps on delivery of the LDES cap and floor scheme. Low-carbon hydrogen can also act as a flexible generating technology and provide long duration energy storage, making use of curtailed electricity. We are committed to designing, by 2025, a new business model for hydrogen storage infrastructure and how best to enable private sector investment and remove market barriers. The Energy Act 2023 provides the legislative framework that will underpin the delivery of the hydrogen transport and storage business models. Energy Flexibility