Select committee: Welsh Affairs Committee
Conclusion 28
First Report - Grid Capacity in Wales
Published 21 Oct 2022
Paragraph 141
Addressed to Wales Office
Welsh Affairs Committee Grid capacity in Wales All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
Without an established system of anticipatory investment in grid infrastructure the significant opportunities for renewable energy generation in Wales will go under- utilised, which will have an impact on the achievement of net zero targets. Were grid infrastructure to be built on an anticipatory basis in areas where there is a high probability of the construction of future energy projects, this would reduce the risks of costly grid infrastructure not being utilised. Furthermore, multi-connection substations, such as the MOS described by Celtic Sea Power, could have an important role in both reducing the costs and delays associated with grid construction and in providing strong locational signals to establish local supply chains. While we are encouraged that Ofgem’s stance has changed in favour of anticipatory investment and that BEIS is looking to strengthen Ofgem’s powers in this area, we consider that this does not reflect the urgency of the situation.
From: Welsh Affairs Committee, First Report - Grid Capacity in Wales (HC 218), paragraph 141, 21 October 2022
Government response
The government responded to the whole report on 24 January 2023 (deadline 21 December 2022).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government welcomes the Committee's report and says it will continue work on strategic planning, regulatory approval, planning consents and streamlining connections, while declining some recommendations on working groups, legislation and Ofgem's duty.
- On Ofgem's primary duty, the government "does not consider an amendment to Ofgem's primary duty to be necessary", saying the duty to protect consumers' interests already includes reducing emissions in line with net zero.
- On community energy, it will not establish a working group "at this time", citing the existing Community Energy Contact Group, and has "no plans to bring forward legislative proposals, at this time".
- On connection costs, it notes that from April 2023 Ofgem will socialise a further proportion of network reinforcement costs for distribution connection customers, which "will reduce the upfront cost".
- On planning, it intends to publish a full NSIP Reform Action Plan and consultations "in due course", and says revised energy National Policy Statements will be published "soon".