Source · Select Committees · Welsh Affairs Committee
Recommendation 29
29
Accepted
Paragraph: 142
The UK Government should use National Grid ESO’s Future Energy Scenarios to work with energy...
Recommendation
The UK Government should use National Grid ESO’s Future Energy Scenarios to work with energy companies and grid infrastructure owners to determine areas where anticipatory investment in grid infrastructure would be justified to achieve net zero targets. Where anticipatory investment in grid infrastructure is deemed justified, the UK Government should encourage the development of multi-connection substations in order to establish local supply chains, which can then support the connection of future renewable energy projects.
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:
142
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