Source · Select Committees · Welsh Affairs Committee
Recommendation 28
28
Accepted
Paragraph: 141
Without an established system of anticipatory investment in grid infrastructure the significant opportunities for renewable...
Conclusion
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.
Government Response Summary
The government highlights Ofgem's work to create a price control framework that enables strategic investment ahead of need, along with efforts to accelerate strategic transmission network infrastructure and protect consumers. They state they are already working with National Grid ESO, Ofgem, and network companies on the HND, which identifies key strategic transmission projects.
Paragraph Reference:
141
Government Response
Accepted
HM Government
Accepted
We welcome Ofgem’s work to create a price control framework, through which network projects are approved, which enables strategic investment ahead of need, and its work to accelerate strategic transmission network infrastructure, through speeding up network approvals where appropriate, exempting certain projects from competition to add certainty to network companies so they can prepare their supply chains to deliver these projects, and protecting consumers in doing so. A coordinated and efficient approach to network planning is key to strategic network delivery, and the Government is working with Ofgem and industry to enable this. For example, as outlined above, the Government is working with National Grid ESO, Ofgem and the network companies on the HND, which identifies key strategic transmission projects for connecting new offshore wind specifically. This is the first step towards coordinating planning across the British electricity network and the coordinated, strategic approach is expected to bring significant amount of savings for consumers. Network plans which set out coordinated solutions will inevitably drive demand for the