Source · Select Committees · Business and Trade Committee
Recommendation 31
31
Deferred
Paragraph: 151
Develop cross-sectoral hydrogen infrastructure strategy and finalise business models this year
Recommendation
Hydrogen looks set to be an important part of a decarbonised power system, both as a source of low-carbon dispatchable power to replace gas and as a source of energy storage which can take advantage of excess supply of renewables. However, given supply constraints, the Government needs to determine the sectors of the economy in which use of hydrogen will be prioritised. We recommend that the Government takes forward the recommendations of the Climate Change Committee to develop a cross-sectoral infrastructure strategy that narrows the space for future hydrogen uses and finalise the business models for hydrogen this year.
Government Response Summary
The government's response details Ofgem’s streamlining of regulatory approval for Accelerating Strategic Transmission Investment projects and the appointment of an Electricity Networks Commissioner, without addressing the recommendation on hydrogen strategy or business models.
Paragraph Reference:
151
Government Response
Deferred
HM Government
Deferred
100. The Government welcomed Ofgem’s response to their consultation on Accelerating Strategic Transmission Investment (ASTI) in December. This detailed the streamlining of the regulatory approval and funding process, by reducing the number of regulatory assessment stages and allowing the transmission operators earlier access to project funding for accelerating the delivery of ASTI projects, worth nearly £20bn. 101. The Government appointed Nick Winser to the role of Electricity Networks Commissioner to advise the Government on how to reduce timelines significantly for delivering strategic onshore transmission network infrastructure, with an aim of reducing the development times by three years initially, and an aspiration ultimately to halve the end-to-end process, which is 12–14 years. He will submit his recommendations to government in June. As stated in the Energy Security Plan, Government will publish an Action Plan this year in response.