Recommendations & Conclusions
14 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 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 …
Government response. The government recognises the challenges faced in Wales and evidence provided and states that network regulation is a matter for Ofgem.
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 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 …
Government response. The government recognises the challenges faced in Wales and evidence provided and states that network regulation is a matter for Ofgem.
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, 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 …
Government response. 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 …
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 grid infrastructure necessary to enable industry, communities and businesses in Wales to decarbonise heat and transport in line with net zero targets.
Government response. 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.
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. 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.
Government response. 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.
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 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 …
Government response. 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.
Wales Office
11
Conclusion
First Report - Grid Capacity in Wales
Larger companies have a financial advantage linked to scale, whereas smaller energy projects are often reliant on the development of larger projects and the availability of spare capacity once these have been completed.
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 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 …
Government response. 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.
Wales Office
17
Conclusion
First Report - Grid Capacity in Wales
The planning consent process has created a queue of renewable generation projects in Wales to which grid capacity has been reserved before planning permission has been granted.
Wales Office
18
Conclusion
First Report - Grid Capacity in Wales
The UK Government should work with National Grid ESO, NGET, the DNOs and Ofgem to revise consenting processes to align the allocation of grid capacity with the application for planning permission. National Grid’s work should be expedited on reviewing commercial contracts with developers reserving grid capacity, where those projects have …
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 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 …
Government response. 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.
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 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 …
Government response. 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 …
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 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 …
Government response. 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.
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, 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 …
Government response. 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.
Wales Office