Select Committee · Welsh Affairs Committee

Grid capacity in Wales

Status: Closed Opened: 1 Feb 2022 Closed: 16 Oct 2023 15 recommendations 18 conclusions 1 report

The Committee has launched an inquiry which will explore the implications of grid capacity issues for the energy sector in Wales, particularly in relation to Wales meeting its net zero targets. Read inquiry launch and terms of reference

Clear

Reports

1 report
Title HC No. Published Items Response
First Report - Grid Capacity in Wales HC 218 21 Oct 2022 33 Responded

Recommendations & Conclusions

11 items
1 Conclusion First Report - Grid Capacity in Wales Acknowledged

We have heard that there are constraints on both the distribution and transmission grids in...

We have heard that there are constraints on both the distribution and transmission grids in Wales. Julie James MS told us Wales does not have the grid capacity it needs “right now”. However, Rt Hon Greg Hands MP told us that the grid is “fit for purpose today”. We are … Read more

Government response AI summary
The government recognises the challenges faced in Wales and evidence provided and states that network regulation is a matter for Ofgem.
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Wales Office
2 Recommendation First Report - Grid Capacity in Wales Acknowledged

We recommend that the Government explain the timescales of “today” and “tomorrow” in the context...

We recommend that the Government explain the timescales of “today” and “tomorrow” in the context of grid capacity in Wales. Further to this we recommend that the Government explains the evidence for its statement that the electricity grid in Wales is “fit for purpose today” in light of the evidence … Read more

Government response AI summary
The government recognises the challenges faced in Wales and evidence provided and states that network regulation is a matter for Ofgem.
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Wales Office
3 Conclusion First Report - Grid Capacity in Wales Acknowledged

To ensure that communities and business in Wales can decarbonise in line with government targets,...

To ensure that communities and business in Wales can decarbonise in line with government targets, grid infrastructure must be able to meet the projected increase in demand for electricity. The evidence we received suggested that the grid in Wales will not be suitable to facilitate the decarbonisation of heat and … Read more

Government response AI summary
The government acknowledges the importance of grid infrastructure to meet the projected increase in electricity demand. They reference the British Energy Security Strategy (BESS) and the appointment of an Electricity Networks Commissioner but do not commit to specific actions to address the identified issue.
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Wales Office
5 Recommendation First Report - Grid Capacity in Wales Acknowledged

We recommend that the UK Government task the new Electricity Networks Commissioner to determine the...

We recommend that the UK Government task the new Electricity Networks Commissioner to determine the grid infrastructure necessary to enable industry, communities and businesses in Wales to decarbonise heat and transport in line with net zero targets.

Government response AI summary
The government is reducing timelines for delivering strategic onshore transmission network infrastructure and appointed an Electricity Networks Commissioner, who is leading a project to identify areas where improvements could be made.
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Wales Office
6 Conclusion First Report - Grid Capacity in Wales Acknowledged

We recognise the strengths of an electricity grid that serves the whole of Great Britain.

We recognise the strengths of an electricity grid that serves the whole of Great Britain. However, we conclude that there are distinct challenges and opportunities relating to grid infrastructure in Wales that require specific focus and intervention from the UK Government. Read more

Government response AI summary
The Government recognises distinct challenges and opportunities relating to grid infrastructure in Wales and is taking various actions to support stakeholder engagement and coordinated and strategic electricity grid network design with the Welsh Government represented on OTNR governance forums.
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Wales Office
7 Conclusion First Report - Grid Capacity in Wales Acknowledged

The Committee welcomes that Celtic Sea projects have been included in the list of infrastructure...

The Committee welcomes that Celtic Sea projects have been included in the list of infrastructure projects in the UK Government’s Growth Plan and notes the recent decision by The Crown Estate to seek to accelerate the leasing process where possible. This appears only to be possible in Wales if improvement … Read more

Government response AI summary
The Government recognises different regions have different challenges and is taking various actions to support stakeholder engagement and coordinated and strategic electricity grid network design, citing Welsh Government representation on OTNR governance forums and direct engagement with the Welsh Government.
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Wales Office
15 Conclusion First Report - Grid Capacity in Wales Acknowledged

There is a multiplicity of different bodies involved in securing planning consent for grid infrastructure...

There is a multiplicity of different bodies involved in securing planning consent for grid infrastructure and this process needs to be streamlined. We welcome the commitment to cutting processing times by fifty per cent and appreciate the challenge that this constitutes. However, in light of the evidence we received, it … Read more

Government response AI summary
The Government recognizes the need to streamline the planning consent process and is amending the energy National Policy Statements (NPSs) and working with Ofgem to expedite the regulatory approvals process.
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Wales Office
27 Recommendation First Report - Grid Capacity in Wales Acknowledged

The Government should incentivise energy companies and transmission infrastructure owners to provide benefits to communities...

The Government should incentivise energy companies and transmission infrastructure owners to provide benefits to communities hosting network assets. Communities should be directly consulted on the benefits they would like to receive. A starting presumption 40 Grid capacity in Wales should be introduced through policy that a proportion of all future … Read more

Government response AI summary
The government states that it has already committed in the BESS to review community benefit options for electricity network infrastructure, and is currently engaging with stakeholders to explore a more standardised approach to local community benefit packages.
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Wales Office
30 Recommendation First Report - Grid Capacity in Wales Acknowledged

In order to utilise the opportunities for renewable energy generation in Wales a system of...

In order to utilise the opportunities for renewable energy generation in Wales a system of anticipatory investment in grid infrastructure needs to be created and implemented urgently. In the government response to this report, we request further information on the nature of the changes to Ofgem’s powers and the timeline … Read more

Government response AI summary
The Government is supportive of Ofgem's work to ensure its network price control is more forward-looking and enables strategic investment ahead of need. They regularly engage with Ofgem to understand their work on electricity network price controls and welcome the agile approach to regulation to …
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Wales Office
32 Recommendation First Report - Grid Capacity in Wales Acknowledged

Due to the urgency of the situation the UK Government needs to take control of...

Due to the urgency of the situation the UK Government needs to take control of electricity grid network design by setting deadlines and targets for Ofgem, grid Grid capacity in Wales 41 infrastructure owners and other significant bodies including National Grid ESO. The UK Government needs to provide the leadership … Read more

Government response AI summary
The government states its commitment to delivering a secure, resilient, net-zero network, engaging with stakeholders and speeding up planning processes, but provides no specific commitments beyond ongoing engagement and existing plans.
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Wales Office
33 Recommendation First Report - Grid Capacity in Wales Acknowledged

As well as considering the grid in Wales as part of a Great Britain enterprise,...

As well as considering the grid in Wales as part of a Great Britain enterprise, the UK Government must recognise the distinctive challenges and opportunities associated with the grid in Wales. The UK Government should engage directly and regularly with the Welsh Government to deliver a coordinated and strategic approach … Read more

Government response AI summary
The Government recognizes the distinct challenges and opportunities in Wales and states that the Welsh Government is represented on OTNR governance forums, with ongoing engagement to deliver projects and develop strategic network planning exercises.
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Wales Office

Oral evidence sessions

4 sessions
Date Witnesses
8 Jun 2022 Paul Van Heyningen · Department for Business, Energy & Industrial Strategy, Rt Hon Greg Hands MP · Department for Business, Energy & Industrial Strategy View ↗
18 May 2022 Julie James MS · Welsh Government View ↗
27 Apr 2022 Ben Godfrey · Western Power Distribution, Huub den Rooijen · The Crown Estate, Julian Leslie · National Grid ESO, Malcolm Bebbington · Scottish Power, Peter Bingham · Ofgem, Roisin Quinn · National Grid Electricity Transmission View ↗
16 Mar 2022 Chris Williams · Industry Wales, Jon O'Sullivan · EDF Renewables, Rhys Wyn Jones · RenewableUK, Robert Procter · Community Energy Wales, Tom Glover · RWE Generation View ↗

Who gave evidence

14 witnesses
WitnessOrganisationSessions
Ben Godfrey · Distribution System Operator Manager Western Power Distribution 1
Chris Williams · Head of Industrial Decarbonisation Industry Wales 1
Huub den Rooijen · Managing Director, Marine The Crown Estate 1
Jon O'Sullivan · Director of Onshore Wind and Solar EDF Renewables 1
Julian Leslie · Head of Networks National Grid ESO 1
Julie James MS · Minister for Climate Change Welsh Government 1
Malcolm Bebbington · Head of Future Systems Strategy, SP Energy Networ… Scottish Power 1
Paul Van Heyningen · Deputy Director, Net Zero Electricity Networks Department for Business, Energy & Industrial Strategy 1
Peter Bingham · Chief Engineer Ofgem 1
Rhys Wyn Jones · Head of RenewableUK Cymru RenewableUK 1
Robert Procter · Business Development Manager Community Energy Wales 1
Roisin Quinn · Director of Asset Operations National Grid Electricity Transmission 1
Rt Hon Greg Hands MP · Minister of State Department for Business, Energy & Industrial Strategy 1
Tom Glover · UK Country Chair RWE Generation 1