Select Committee · Business and Trade Committee

Decarbonisation of the power sector

Status: Closed Opened: 20 May 2022 Closed: 18 Jul 2023 44 recommendations 21 conclusions 1 report

The Business, Energy and Industrial Strategy (BEIS) Committee has launched an inquiry into the Government’s plans to decarbonise the UK’s power supply sector. The inquiry will scrutinise proposals unveiled in the Government’s Energy Security Strategy earlier this year, and the heavy emphasis it placed on scaling up the supply of electrical energy from nuclear power … Show more

Clear

Reports

1 report
Title HC No. Published Items Response
Eleventh Report - Decarbonisation of the power sector HC 283 28 Apr 2023 65 Responded

Recommendations & Conclusions

5 items
10 Recommendation Eleventh Report - Decarbonisation of th… Acknowledged

Ensure a stable policy environment to de-risk investments in low-carbon energy infrastructure.

Recent policy and regulatory uncertainty has undermined investor confidence at precisely the time when the UK is looking to attract private investment in clean energy infrastructure. The Government should do its utmost to create and maintain a stable policy environment, which de-risks investments in low-carbon technologies. (Paragraph 53) Decarbonisation of … Read more

Government response AI summary
The government is looking into arrangements to support repowering renewable assets, considering planning frameworks for upgrading onshore wind farms and CfDs for repowering, with consultation responses due shortly or in due course.
Read full response →
Department for Business and Trade
50 Recommendation Eleventh Report - Decarbonisation of th… Acknowledged

Introduce rigorous annual performance processes for network owners and publicise information for engagement.

We recommend that Ofgem consults on how best to address the asymmetries in resources and knowledge between network companies and other stakeholders, such as consumer groups, which influence processes such as price controls. We recommend that Ofgem introduces a more rigorous annual performance process for network owners, and that this … Read more

Government response AI summary
Ofgem acknowledges the importance of addressing asymmetries in resources and knowledge, outlining its sustained engagement process in price controls and future measures in the Energy Bill. However, it does not commit to consulting on the issue or introducing a new rigorous annual performance process for …
Read full response →
Department for Business and Trade
52 Recommendation Eleventh Report - Decarbonisation of th… Acknowledged

Require National Grid ESO to provide clearer signals on future energy constraint location, value, duration.

Despite welcome progress by National Grid ESO to develop and implement new initiatives to harness flexibility, there is still more to be done to ensure that clear signals are provided regarding the location, duration and value of future constraints. We recommend that National Grid ESO sends stronger identifying when and … Read more

Government response AI summary
The ESO understands the importance of integrating low carbon technologies and will consider how markets must evolve to facilitate more low-carbon technologies contributing to system balancing and stability, while actively monitoring the carbon intensity of the Balancing Mechanism.
Read full response →
Department for Business and Trade
55 Recommendation Eleventh Report - Decarbonisation of th… Acknowledged

Accelerate National Grid ESO IT upgrades to handle sub-1MW flexibility and report progress to Parliament.

To unlock the potential role that flexibility can play in better synchronising supply and demand, National Grid ESO will need to improve its digital capabilities. We recommend that National Grid ESO speeds up progress on making sure its IT upgrades mean that it can handle flexibility from assets smaller than … Read more

Government response AI summary
The ESO acknowledges the need for investment in systems and states it is modernising balancing capabilities through its Open Balancing Program. However, it does not specifically commit to handling assets smaller than 1MW or reporting progress to Parliament.
Read full response →
Department for Business and Trade
64 Conclusion Eleventh Report - Decarbonisation of th… Acknowledged

UK electricity sector investment proposition has significantly deteriorated amid global competition.

The UK investment proposition for the electricity sector has deteriorated since the launch of our inquiry. The global race for capital in low-carbon projects has intensified. Meanwhile developers of renewables projects in the UK are experiencing substantial cost inflation and are subjected to a windfall tax less generous than that … Read more

Government response AI summary
The government states it will not engage in a distortive subsidy race, but expects current capital allowance changes to support green industries and will engage with industry on incentives. It is also considering using Contracts for Difference for operational generators as part of the wider …
Read full response →
Department for Business and Trade

Oral evidence sessions

5 sessions
Date Witnesses
21 Mar 2023 Adam Bell · Stonehaven, Adam Berman · Energy UK, Laura Sandys CBE · Energy Digitalisation Taskforce, Rachel Fletcher · Octopus Energy View ↗
7 Mar 2023 Akshay Kaul · Ofgem, Alice Delahunty · National Grid Electricity Transmission, Basil Scarsella · UK Power Networks (UKPN), Chris Burchell · Scottish and Southern Electricity Networks (SSEN) Distribution, Claire Dykta · National Grid Electricity System Operator (ESO), Kayte O’Neill · National Grid Electricity System Operator (ESO), Lawrence Slade · Energy Networks Association (ENA), Rebecca Barnett · Ofgem View ↗
24 Jan 2023 Dame Sue Ion, Dr Jonathan Radcliffe · University of Birmingham, Dr Paul Dorfman · Nuclear Consulting Group (NCG) and Associate Fellow, Science Policy Research Unit (SPRU), Sussex Energy Group, University of Sussex, Lincoln Hill · Nuclear Industry Association, Merlin Hyman · Regen (Electricity Storage Network), Nick Lawson · Ocean Wall, Sarah Honan · The Association for Decentralised Energy, Will Mezzullo · Centrica View ↗
22 Nov 2022 Catherine Raw · SSE Thermal, Dr Daniel Quiggin · Chatham House, Dr Nina Skorupska CBE · REA, Matthew Williamson · British Petroleum (bp), Olivia Powis · The Carbon Capture and Storage Association, Phil MacDonald · Ember, Sandy Hore-Ruthven · Severn Wye Energy Agency, Will Gardiner · Drax View ↗
1 Nov 2022 Chris Hewett · Solar Energy UK, Dan McGrail · Renewable UK, Dr David Joffe · Climate Change Committee, Guy Newey · Energy Systems Catapult, James Richardson · National Infrastructure Commission, Richard Arnold · Marine Energy Council, Robert Buckley · Cornwall Insight, Tom Glover · RWE Generation View ↗

Who gave evidence

36 witnesses
WitnessOrganisationSessions
Adam Bell · Head of Policy Stonehaven 1
Adam Berman · Deputy Director of Policy Energy UK 1
Akshay Kaul · Director of Infrastructure and Security of Supply Ofgem 1
Alice Delahunty · President National Grid Electricity Transmission 1
Basil Scarsella · Chief Executive UK Power Networks (UKPN) 1
Catherine Raw · Managing Director SSE Thermal 1
Chris Burchell · Managing Director Scottish and Southern Electricity Networks (SSEN) Distribution 1
Chris Hewett · Chief Executive Solar Energy UK 1
Claire Dykta · Head of Markets National Grid Electricity System Operator (ESO) 1
Dame Sue Ion 1
Dan McGrail · Chief Executive Renewable UK 1
Dr Daniel Quiggin · Senior Research Fellow Chatham House 1
Dr David Joffe · Head of Net Zero Climate Change Committee 1
Dr Jonathan Radcliffe · Reader in Energy Systems and Policy University of Birmingham 1
Dr Nina Skorupska CBE · Chief Executive REA 1
Dr Paul Dorfman · Chair Nuclear Consulting Group (NCG) and Associate Fellow, Science Policy Research Unit (SPRU), Sussex Energy Group, University of Sussex 1
Guy Newey · Chief Executive Officer Energy Systems Catapult 1
James Richardson · Chief Economist National Infrastructure Commission 1
Kayte O’Neill · Director of Transformation National Grid Electricity System Operator (ESO) 1
Laura Sandys CBE · Chair Energy Digitalisation Taskforce 1
Lawrence Slade · Chief Executive Energy Networks Association (ENA) 1
Lincoln Hill · Director of Policy and Public Affairs Nuclear Industry Association 1
Matthew Williamson · UK Head of Hydrogen British Petroleum (bp) 1
Merlin Hyman · Chief Executive Regen (Electricity Storage Network) 1
Nick Lawson · Chief Executive Ocean Wall 1
Olivia Powis · Head of UK Office The Carbon Capture and Storage Association 1
Phil MacDonald · Chief Operating Officer Ember 1
Rachel Fletcher · Director of Regulation and Economics Octopus Energy 1
Rebecca Barnett · Interim Director of Networks Ofgem 1
Richard Arnold · Policy Director Marine Energy Council 1
Robert Buckley · Head of Relationship Development Cornwall Insight 1
Sandy Hore-Ruthven · Chief Executive Officer Severn Wye Energy Agency 1
Sarah Honan · Policy Manager The Association for Decentralised Energy 1
Tom Glover · UK Country Chair RWE Generation 1
Will Gardiner · Group Chief Executive Officer Drax 1
Will Mezzullo · Head of Hydrogen Centrica 1

Correspondence

14 letters
DateDirectionTitle
25 Apr 2023 To cttee Letter from Shell UK relating to the inquiry on the Decarbonisation of the powe…
25 Apr 2023 To cttee Letter from TotalEnergies relating to the decarbonisation of the power sector i…
21 Mar 2023 To cttee Letter from UK Power Networks relating to network losses, 14 March 2023
7 Feb 2023 To cttee Letter from Chair of Equinor relating to the Decarbonisation of the power secto…
7 Feb 2023 To cttee Letter from Harbour Energy relating to the Decarbonisation of the power sector …
7 Feb 2023 To cttee Letter from BP relating to the Decarbonisation of the power sector inquiry, 20 …
10 Jan 2023 To cttee Letter from REA relating to evidence session on biomass in the power sector, 8 …
6 Dec 2022 To cttee Letter from the Chair to Equinor regarding decarbonisation of the power sector …
6 Dec 2022 To cttee Letter from the Chair to Shell regarding decarbonisation of the power sector, 2…
6 Dec 2022 To cttee Letter from the Chair to Total Energies regarding decarbonisation of the power …
6 Dec 2022 To cttee Letter from the Chair to BP regarding decarbonisation of the power sector 28.11…
6 Dec 2022 To cttee Letter from the Chair to Harbour Energy regarding decarbonisation of the power …
17 Oct 2022 From cttee Letter to the Secretary of State for Business, Energy and Industrial Strategy r…
13 Oct 2022 From cttee Letter to the Secretary of State for Business, Energy and Industrial Strategy r…