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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

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Reports

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

Recommendations & Conclusions

5 items
11 Conclusion First Report - Grid Capacity in Wales Rejected

Larger companies have a financial advantage linked to scale, whereas smaller energy projects are often...

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.

Government response AI summary
The government rejects bringing forward legislative proposals to address the financial advantage of larger energy companies, stating there are no legislative barriers for community energy, but is considering wider retail market reforms.
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Wales Office
19 Conclusion First Report - Grid Capacity in Wales Rejected

Ofgem, as the market regulator, must ensure that the regulatory environment enables the decarbonisation of...

Ofgem, as the market regulator, must ensure that the regulatory environment enables the decarbonisation of energy markets. Whilst ensuring the best value for consumers is important and should remain one of Ofgem’s primary considerations, this should be balanced against achieving net zero targets. Read more

Government response AI summary
The government does not consider an amendment to Ofgem’s primary duty necessary, as they believe the existing duty to protect consumers' interests already includes the reduction of greenhouse gases.
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Wales Office
20 Recommendation First Report - Grid Capacity in Wales Rejected

We recommend that the UK Government amend Ofgem’s primary duty to include both ensuring the...

We recommend that the UK Government amend Ofgem’s primary duty to include both ensuring the best value for consumers and achieving net zero targets, by bringing forward government amendments to the Energy Bill. This would provide strong signals to developers and grid infrastructure owners. Read more

Government response AI summary
The government does not consider an amendment to Ofgem’s primary duty necessary, as they believe the existing duty to protect consumers' interests already includes the reduction of greenhouse gases.
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Wales Office
24 Recommendation First Report - Grid Capacity in Wales Rejected

We recommend that the Government engage directly with community energy projects in Wales to understand...

We recommend that the Government engage directly with community energy projects in Wales to understand the difficulties they face connecting to the grid. The UK Government should lead a working group made up of the Welsh Government, grid infrastructure owners, energy companies and communities to explore how access to the … Read more

Government response AI summary
The government states that the Welsh Government has responsibility for renewable energy projects under 350 MW and community energy schemes, and that the Community Energy Contact Group (CECG) has been re-established with a representative from Community Energy Wales. They decline to establish a separate working …
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Wales Office
25 Recommendation First Report - Grid Capacity in Wales Rejected

We recommend that the UK Government strengthens the legislative framework to support the growth of...

We recommend that the UK Government strengthens the legislative framework to support the growth of community energy schemes. The Energy Bill provides a potential opportunity to do this.

Government response AI summary
The government states there are no legislative barriers to community energy groups, and so has no plans to bring forward legislative proposals at this time.
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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