Source · Select Committees · Environmental Audit Committee
Recommendation 6
6
Accepted
Government lacks clear strategy for long-term energy storage, hindering private investment.
Conclusion
The form that this energy storage should take has not been made clear by the Government. It is by no means clear to us that Ministers have grasped the scale of the storage facilities likely to be required, nor the Government action likely to be necessary either in providing long-term storage or establishing the conditions for it to be developed. The sector therefore lacks strategic direction, inhibiting private investment and delaying the future rollout of grid-scale energy storage. (Paragraph 45) 44 Enabling sustainable electrification of the economy
Government Response Summary
The government and Ofgem are working to accelerate grid connections by granting urgency status to code modification proposals and intending to legislate for connections reform. NESO will submit proposals by end of 2024, with a decision expected in early 2025.
Government Response
Accepted
HM Government
Accepted
Government and Ofgem are working at pace with the National Energy System Operator (NESO) and network companies to accelerate connections. In March 2024, Ofgem granted urgency status to code modification proposals for a reformed connections process5 that would require new and existing projects to demonstrate sufficient progress to obtain and retain a connection agreement. The capacity released will enable accelerated connection of viable generation and demand projects that align with our strategic needs, including ensuring projects necessary for 2030 Clean Power can connect in time. DESNZ and Ofgem published a joint open letter in November 2024 supporting proposals to align grid connections with strategic plans and announcing government’s intention to legislate to ensure the connections process enables delivery of the Clean Power by 2030 ambition.6 NESO plans to submit proposals and options for connections reform to Ofgem by the end of 2024. Ofgem is expected to make a decision on proposals in early 2025. DESNZ and Ofgem agree on the need to actively monitor progress on connections reform. This is done through the Connections Delivery Board,7 which also provides strategic direction to industry where further action is required. The Department has established a senior stakeholder group convened by the Minister for Energy to monitor actions across the Electricity Networks programme including those on connections reform.