3
Conclusion
Fourth Report - Renewable energy in Sco…
Deferred
The evidence we have heard has highlighted issues around the volatility of transmission charges. The short-term volatility of transmission charges is a barrier to the development of renewable energy as it affects confidence in investment and the future cost of a project.
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The evidence we have heard has highlighted issues around the volatility of transmission charges. The short-term volatility of transmission charges is a barrier to the development of renewable energy as it affects confidence in investment and the future cost of a project.
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Government response AI summary
The government acknowledges the importance of transmission charging arrangements but defers to Ofgem's ongoing call for evidence on reforms, stating that next steps will be announced later.
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Scotland Office
4
Conclusion
Fourth Report - Renewable energy in Sco…
Deferred
Locational transmission charges weigh more heavily on developers in Scotland when projects in other areas of the UK, like Wales, are paid to connect to the grid. The financial burden of transmission charges and grid investment needs to be justly shared across the UK and not fall heavily, and unjustly, …
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Locational transmission charges weigh more heavily on developers in Scotland when projects in other areas of the UK, like Wales, are paid to connect to the grid. The financial burden of transmission charges and grid investment needs to be justly shared across the UK and not fall heavily, and unjustly, on the developers of renewable energy projects in Scotland. The current review by Ofgem about locational transmission charges is not happening at a fast-enough pace.
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Government response AI summary
The government acknowledges the committee's view on transmission charges but defers to Ofgem's ongoing call for evidence on reforms, with next steps expected to be announced later this quarter.
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Scotland Office
5
Recommendation
Fourth Report - Renewable energy in Sco…
Deferred
We recommend that the UK Government specifies that, as part of its internal review, Ofgem must consider the financial burden of transmission charges in Scotland. Ofgem should consider the long-term impacts on net zero targets and aim for a way to ensure renewable energy projects have the chance to flourish …
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We recommend that the UK Government specifies that, as part of its internal review, Ofgem must consider the financial burden of transmission charges in Scotland. Ofgem should consider the long-term impacts on net zero targets and aim for a way to ensure renewable energy projects have the chance to flourish over the next 30 years, rather than pushing for a short-term, lowest cost view. Ofgem should publish the result of their internal transmission charges review as soon as practicable, and certainly within six months.
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Government response AI summary
The government defers to Ofgem's ongoing call for evidence on transmission charging reforms, stating that Ofgem will announce next steps later this quarter, without committing to the specific review or publication timeline requested.
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Scotland Office