Select committee: Scottish Affairs Committee
Recommendation 7
Fourth Report - Renewable energy in Scotland
Published 17 Sep 2021
Paragraph 37
Addressed to Scotland Office
Scottish Affairs Committee Renewable energy in Scotland All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Contracts for Difference (CfD) has been useful in driving down the cost of offshore wind and provides certainty to developers of renewable technology, but more could be done to improve the CfD system. By focusing on net zero goals the CfD could be realigned to prioritise best value, not just lowest cost. We recommend the next CfD round should prioritise renewable energy systems, not just at the lowest cost, but with a long-term view that focuses heavily on net zero targets and best value for money, up to 2050.
From: Scottish Affairs Committee, Fourth Report - Renewable energy in Scotland (HC 51), paragraph 37, 17 September 2021
Government response
The government responded to the whole report on 1 December 2021 (deadline 17 November 2021).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government's response sets out its position on each recommendation, stating that network regulation and transmission charging are "a matter for Ofgem as the independent regulator" and that it "has no plans to amend Ofgem's statutory duties".
- On grid reinforcement, the government "recognises the need for increased capacity on the grid" and says it "will continue to engage with Ofgem"; it gives no response on the Committee's deadline of the end of 2022.
- On transmission charging, it "shares the Committee's view on the importance" of the arrangements. It notes that Ofgem published a call for evidence on possible reforms and has said it will announce next steps "later this quarter".
- On Ofgem's statutory duties, it states it "has no plans to amend Ofgem's statutory duties to include a separate net-zero duty". It points instead to its commitment to consult on a Strategy and Policy Statement for Ofgem in 2021.
- On tidal energy, it says tidal stream "will have to reduce its costs to compete" but is an eligible technology for Contracts for Difference. It is "evaluating" evidence from last year's call for evidence on marine energy.