Source · Select Committees · Business and Trade Committee
Recommendation 63
63
Accepted
Paragraph: 245
Policy and regulatory barriers impede power sector decarbonisation by 2035 target.
Conclusion
While huge strides have been made by the Government and industry over the last decade to tackle emissions in the power sector, the UK must continue to accelerate its shift away from fossil fuels to clean energy. However, a suite of policy and regulatory barriers are blocking progress to achieving the Government’s target to decarbonise the power system by 2035. Businesses which want to drive the transition forward on the ground are getting caught in red tape. The absence of an overarching delivery plan and lack of ownership of whole system costs has created policy silos and sequencing problems. Low-carbon projects are now facing delays of up to fifteen years to connect to the electricity network, as well as a cumbersome planning regime. The Government has launched a number of welcome consultations across different sectors of the power system which could lead to much needed policy reform, but a resolute focus on delivery is now essential. The Government’s strategy to decarbonise the power sector also includes notable omissions. These include, but are not limited to, policy to deploy onshore wind, measures to reduce energy demand, support for long-duration energy storage, a decision on the use of hydrogen across the economy and clarity on where private finance for nuclear energy projects will come from.
Government Response Summary
The government acknowledges the benefit of a more overarching approach and commits to annual reporting on decarbonisation delivery. It will also strengthen its portfolio management to adopt a "whole system" view across its delivery work.
Paragraph Reference:
245
Government Response
Accepted
HM Government
Accepted
4. The recent Energy Security Plan sets out many of the actions the Government is taking to deliver a secure, low carbon electricity system. 5. The Government recognises the benefit of a more overarching approach to reporting on progress towards decarbonisation of the power sector, and towards how the Government plans to deliver this important commitment. Therefore, the Government plans to report on its delivery, and overall plan to deliver the commitment, on an annual basis. 6. The Department for Energy Security and Net Zero is therefore strengthening its portfolio management approach, as a core element of its delivery of power sector decarbonisation. This includes bringing together relevant measures across the department’s delivery work to provide a ‘whole system’ view and help manage the significant uncertainty towards 2035. The department will use analytical and portfolio management techniques to consider potential options, measure uncertainty and manage the risks, issues, assumptions and interdependencies.