Source · Select Committees · Business and Trade Committee
Recommendation 35
35
Deferred
Paragraph: 159
Establish policy framework for long-duration energy storage investment and ensure sufficient staffing
Recommendation
We recommend that the Government establishes an appropriate policy framework to support investment decisions in long-duration energy storage this year, to enable projects to be completed by the end of the decade. This includes setting out a target range for long-duration energy technologies and putting in place a revenue stabilisation mechanism. We recommend that the Government ensures that there is a sufficient number of staff within the Department working on this crucial policy area. In response to this report, we ask that the Government sets out how many staff are working on developing this policy and how this compares to other teams such as those working on civil nuclear energy.
Government Response Summary
The government welcomes Ofgem's consultation on the future of local energy institutions and governance, stating it will engage with Ofgem to ensure appropriate arrangements are implemented, potentially legislating. However, it does not directly address the recommendation for a policy framework, targets, revenue stabilisation, or staffing for long-duration energy storage.
Paragraph Reference:
159
Government Response
Deferred
HM Government
Deferred
109. As the energy system transitions to net zero, the Government recognises that enabling a more strategic and evidence-based approach to distribution network planning can unlock a wealth of benefits for customers, reduce costs and facilitate a more consistent and better-quality service. This will be essential at a local level to accommodate the expected significant increase in uptake of electric vehicles and heat pumps and growth of local generation of power. 110. This needs to be underpinned by appropriate institutional and governance arrangements at a local as well as national level. Ofgem have recently published a consultation on the future of local energy institutions and governance, including the proposal to create Regional System Planners (RSPs), who would be responsible for undertaking regional energy system planning activities, as well as co-ordinating the input of other actors to the process. 111. The Government welcomes this consultation and will engage with Ofgem over the course of the review to ensure appropriate arrangements are implemented, including legislating if appropriate. It expects Ofgem to publish a decision later this year, and will consider any proposals to improve co-ordination between actors, including distribution network operators, across the energy system at a sub-national level, and to standardise Decarbonisation of the power sector: Government Response 23 regional approaches to delivering network infrastructure. These will build on measures to incentivise better performance, for example around speed of connections and flexibility set out in Ofgem’s RIIO ED-2 price control, along with Ofgem’s Guaranteed Standards of Performance, which place service level requirements to ensure all Distribution Network Operators meet customers’ needs.