Recommendation 51

National Grid ESO’s markets for balancing the system and addressing constraints continue to be dominated by fast-acting gas plants. More flexible and responsive low-carbon assets, such as batteries, could lead to greater competition in National Grid ESO’s markets and offer more cost-effective services. We recommend that National Grid ESO opens up its markets to more participants and that it is transparent about the choices it makes when selecting which technologies will be used to balance the system. We further recommend that National Grid ESO reports on the carbon footprint of all its markets. In response to this report, we also ask that National Grid ESO sets out its transition plan to ensure that its markets align with the Government’s target to decarbonise the power system by 2035. (Paragraph 215) Decarbonisation of the power sector 109