Recommendations & Conclusions
5 items
10
Recommendation
Eleventh Report - Decarbonisation of th…
Acknowledged
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 …
Government response. 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.
Department for Business and Trade
50
Recommendation
Eleventh Report - Decarbonisation of th…
Acknowledged
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 …
Government response. 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 …
Department for Business and Trade
52
Recommendation
Eleventh Report - Decarbonisation of th…
Acknowledged
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 …
Government response. 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.
Department for Business and Trade
55
Recommendation
Eleventh Report - Decarbonisation of th…
Acknowledged
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 …
Government response. 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.
Department for Business and Trade
64
Conclusion
Eleventh Report - Decarbonisation of th…
Acknowledged
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 …
Government response. 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 …
Department for Business and Trade