Source · Select Committees · Business and Trade Committee
Recommendation 41
41
Accepted
Paragraph: 186
Inadequate grid network capacity and connection delays are hampering low-carbon power delivery.
Conclusion
A lack of network capacity and delays to securing grid connections are together hampering the delivery of low-carbon power and driving potential investments overseas. For too long, transmission and distribution network owners have been able to delay or avoid the level of anticipatory investment required to deliver a network capable of meeting the needs of the country. Ofgem’s approach to agreeing future investment in previous investment rounds has not been proactive enough, Decarbonisation of the power sector 107 and frequent changes to Government policy have increased investment risk. Together, the system has failed to deliver what is required, and that must change.
Government Response Summary
The Electricity System Operator (ESO) acknowledges the need for investment in its systems and details its ongoing Open Balancing Program to modernise balancing capabilities and IT platforms, aiming to increase flexibility and market participation for a net-zero electricity system. This describes internal ESO work rather than directly addressing systemic network capacity issues or Ofgem's investment approach.
Paragraph Reference:
186
Government Response
Accepted
HM Government
Accepted
135. [Response provided by ESO] The ESO recognises the size of the investment required in our systems to ensure that electricity system operation meets Great Britain’s net zero ambitions. Through its Open Balancing Program, ESO is modernising and transforming its balancing capabilities and associated IT platforms. This will ensure that ESO has the vital flexibility to facilitate future changes, both expected and emerging, across the industry. The ESO’s transformation program will look to increase the number of market participants, adapt faster to changing requirements and innovations on the road to 2035, enable a level playing field for flexibility services, and optimise balancing costs for the consumer. The ESO is engaging with industry across this program and providing regular updates to demonstrate its progress against strategic objectives.