Recommendation 16

The Department referred us to recent work from National Energy System Operator [NESO] on decarbonising the power system.53 It told us that NESO’s report, which concluded that CCUS was one of two pathways to a low–cost energy system, highlighted that the lowest cost system will include the use of dispatchable low–carbon power generation such as power CCUS.54 CCUS did not feature in the other pathway.55 The Department told us that NESO’s analysis showed that low carbon dispatchable power, such as power CCUS, could lead to lower cost for the power sector than a system just based on renewables.56 But NESO’s report also concluded that CCUS–enabled gas would require more upfront financial support.57 49 C&AG’s Report, para 14 50 Q 21 51 C&AG’s Report, para 3.16 52 Q 58 53 Q 21 54 Q 21 55 Q 21 56 Q 43 57 National Energy System Operator, Clean Power 2030: Advice on achieving clean power for Great Britain by 2030, November 2024. 14 2 Adapting the programme over time Downgrading ambitions