Source · Select Committees · Business and Trade Committee
Recommendation 3
3
Deferred
Paragraph: 28
Lack of overarching delivery plan for power decarbonisation causes siloed decisions and systemic issues.
Conclusion
An overarching delivery plan for the decarbonisation of power, with clear milestones and contingencies, will help the Government bring a complex set of interrelated tasks together. At the moment, decisions are taken on specific technologies or issues in silos without a roadmap for the whole system. This has led to sequencing problems and a failure to take ownership of whole system costs. This was illustrated by National Grid ESO confirming significant constraint payments, largely stemming from a failure to upgrade the transmission grid between Scotland and England. A comprehensive plan will give investors more confidence to deploy new, low-carbon infrastructure in the UK because they will have a clearer understanding of how their projects, and the reforms these depend on, will fit into a decarbonised energy system.
Government response summary AI-generated
The government, through HM Treasury, focuses on monitoring the impact of international subsidies and leveraging capital allowances to support green industries, committing to engage with industry on tax incentives. It does not commit to developing an overarching delivery plan with clear milestones and contingencies for power decarbonisation as recommended.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference:
28
Government Response
Deferred
HM Government · verbatim extract
Deferred
4. The recent Energy Security Plan sets out many of the actions the Government is taking to deliver a secure, low carbon electricity system. 5. The Government recognises the benefit of a more overarching approach to reporting on progress towards decarbonisation of the power sector, and towards how the Government plans to deliver this important commitment. Therefore, the Government plans to report on its delivery, and overall plan to deliver the commitment, on an annual basis. 6. The Department for Energy Security and Net Zero is therefore strengthening its portfolio management approach, as a core element of its delivery of power sector decarbonisation. This includes bringing together relevant measures across the department’s delivery work to provide a ‘whole system’ view and help manage the significant uncertainty towards 2035. The department will use analytical and portfolio management techniques to consider potential options, measure uncertainty and manage the risks, issues, assumptions and interdependencies.
Read the full response on Parliament ↗