Source · Select Committees · Business and Trade Committee

Recommendation 40

40 Deferred Paragraph: 179

Improve assessment and delivery of social value for communities hosting clean energy infrastructure.

Recommendation
Local communities who host critical clean energy infrastructure should benefit from doing so. We call on Government to work with the Crown Estate to use the upcoming licencing round for offshore wind in the Celtic Sea as an opportunity for improving the assessment and delivery of social value to local communities, such as in Cornwall.
Government response summary AI-generated
Ofgem's response details its work on distributed flexibility markets, including consultations on local energy institutions, governance, and developing digital infrastructure for these markets, completely ignoring the recommendation to work with the Crown Estate on improving social value from offshore wind projects in the Celtic Sea.
Summary of the government's response below — read the verbatim text to verify.
Paragraph Reference: 179
Government Response Deferred
HM Government · verbatim extract Deferred
89. National Grid Electricity Systems Operator (ESO) is developing the Holistic Network Design (HND) Follow Up Exercise. Working closely with the Crown Estate, the ESO will make recommendations for the location of grid connections of in-scope offshore wind projects in areas such as the Celtic Sea. The recommendations will inform connection agreements, including the location of clean energy infrastructure. Any infrastructure proposed will be subject to the appropriate planning process. The Government is consulting on community benefits for network infrastructure, to ensure communities hosting transmission network infrastructure can benefit from supporting the delivery of cheaper, secure and low-carbon energy for all of Great Britain. 90. The consultation proposes to introduce voluntary guidance on the appropriate levels and forms of benefits to give communities the knowledge, power and flexibility to decide what benefits they want in consultation with the project developer. 91. The Government intends to introduce a recommended level of funding for community benefits, which we believe will increase the level of funding from that seen in existing examples of community benefits for electricity transmission network infrastructure. 92. The Government is also discussing with The Crown Estate how best to co-ordinate with their approach to supply chain development, whether that be current Contracts for Difference (CfD) Supply Chain Plan policy, or the potential introduction of CfD non-price factors, which were the subject of a recent Call for Evidence. We are keen to ensure there is as much synergy in the approach as possible. The Welsh Affairs Committee’s recent report on Floating Offshore Wind in Wales stated that the large-scale deployment in the region could create ‘thousands of high-quality, long-term jobs’.
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