Enabling sustainable electrification of the UK economy
Environmental Audit Committee
Closed
Inquiry
The Environmental Audit Committee (EAC) is to launch a new inquiry examining the challenges and opportunities arising from the increasing use of electricity to power the economy of Net Zero Britain. Read the call for evidence for more information about this inquiry.
28
Recommendations
25
Conclusions
1
Report
5
Oral sessions
5
Events
Activity timeline 12 events
31 Dec
2024
2024
24 May
2024
2024
Report published
12 Mar
2024
2024
Oral evidence
12 Mar
2024
2024
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
7 Feb
2024
2024
Oral evidence
7 Feb
2024
2024
Formal meeting (oral evidence session) · Room 8, Palace of Westminster
17 Jan
2024
2024
Oral evidence
17 Jan
2024
2024
Formal meeting (oral evidence session) · Room 6, Palace of Westminster
15 Nov
2023
2023
Oral evidence
15 Nov
2023
2023
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
19 Jun
2023
2023
Oral evidence
19 Jun
2023
2023
Formal meeting (oral evidence session) · Room 15, Palace of Westminster
Oral evidence sessions 5 sessions
12 Mar 2024
View on parliament.uk
Eleanor Warburton · Ofgem
Emily Bourne · Department for Energy Security and Net Zero
Rt Hon Graham Stuart MP · Department for Energy Security and Net Zero
7 Feb 2024
View on parliament.uk
panel one; panel two
Chris Hewett · Solar Energy UK
Ed Porter · Modo Energy
Kate Gilmartin · British Hydropower Association
Olivia Powis · Carbon Capture and Storage Association
Peter McCrory · RenewableUK
Professor Sir Chris Llewellyn Smith · University of Oxford
Susie Elks · E3G
17 Jan 2024
View on parliament.uk
panel one; panel two
Barbara Hammond MBE · Low Carbon Hub IPS Ltd
Councillor Bridget Smith · District Councils Network
Craig Dolan · Heat Pump Association
Dan Stone · Centre for Sustainable Energy
Dr Rebecca Windemer · Regen
Rachel Fletcher · Octopus Energy
Tom Glover · RWE Generation
15 Nov 2023
View on parliament.uk
panel one; panel two
Akshay Kaul · Ofgem
Claire Dykta · National Grid Electricity System Operator (ESO)
Craig Dyke · National Grid Electricity System Operator
Eleanor Warburton · Ofgem
Gareth Hislop · Scottish Power Energy Networks
Roisin Quinn · National Grid Electricity Transmission
Susana Neves e Brookes · Scottish and Southern Electricity Networks (SSEN) Distribution
19 Jun 2023
View on parliament.uk
panel one
Joanna Campbell · National Infrastructure Commission
Nick Winser CBE · Independent Government Advisor
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Sixth Report - Enabling sustainable electrification of the econo… | HC 278 | 24 May 2024 | 53 | Responded |
Recommendations & Conclusions
23 results
1
Conclusion
Accepted
Sixth Report - Enabling sustainabl…
Government's ambitious 2035 decarbonised electricity targets require substantial capacity increase and urgent planning.
The Government has set stretching overall ambitions for the generating capacity required to supply the GB electricity grid with decarbonised energy by 2035. To meet these, current capacity will have to increase by 250% in a little over a decade. …
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Government Response
The government has established the 2030 Clean Power Unit and commissioned NESO for independent advice on the pathway to clean power. They will review this advice and publish a Clean Power 2030 Action Plan by year-end, with further strategic plans from NESO in 2026 and 2027.
2
Conclusion
Accepted
Sixth Report - Enabling sustainabl…
Lack of unified overall approach to energy system delivery planning risks suboptimal outcomes.
While we welcome the commissioning of a Centralised Strategic Network Plan and a Strategic Spatial Energy Plan, the relationship between the two is unclear: unless they are developed in tandem, in an environment where the relationship between the two is …
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Government Response
The government agrees and is establishing a 2030 Clean Power Unit, reviewing NESO's advice, and will publish a Clean Power 2030 Action Plan by year-end. NESO will produce the CSNP in 2027, which will be informed by the Strategic Spatial Energy Plan expected in 2026, addressing the need for a unified approach.
3
Recommendation
Accepted
Sixth Report - Enabling sustainabl…
Establish multidisciplinary planning cell to develop detailed delivery pathway for decarbonised grid by 2024.
We recommend that the Government, together with Ofgem and the National Energy System Operator, establish a multidisciplinary planning cell tasked with the development of a detailed pathway to the decarbonised grid. This unit ought to be commissioned to produce a …
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Government Response
The government published its decision to introduce a cap and floor scheme for Long Duration Electricity Storage (LDES), with the first application round expected in 2025. They also committed to designing a new business model for hydrogen storage infrastructure by 2025.
4
Conclusion
Accepted
Sixth Report - Enabling sustainabl…
UK's reliance on imported gas highlights benefits of low carbon long-term energy storage.
Currently the UK relies on mostly imported gas for electricity system balancing needs. Low carbon long-term energy storage has the potential to reduce the UK’s carbon impact whilst maintaining or improving its levels of energy security.
Government Response
The government agrees on accelerating clean energy technologies and is taking steps to address barriers to heat pump deployment, including improving affordability, simplifying consumer journeys, and building resilient supply chains. They are also creating a single online access point for consumer advice and funding on clean heat and energy efficiency.
5
Conclusion
Accepted
Sixth Report - Enabling sustainabl…
Long-term low carbon energy storage development faces significant market and policy barriers.
While short-term energy storage has some market drivers, the development of long-term, inter-seasonal storage at the scale expected to be required faces market, policy and regulatory barriers. The UK economy will require a significant level of low carbon energy storage …
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Government Response
The government notes the importance of Market-wide Half-Hourly Settlement (MHHS) for demand-side response and provides a detailed update on its implementation. Ofgem has approved a delay to MHHS completion until July-December 2027, outlining actions to mitigate further risks.
6
Conclusion
Accepted
Sixth Report - Enabling sustainabl…
Government lacks clear strategy for long-term energy storage, hindering private investment.
The form that this energy storage should take has not been made clear by the Government. It is by no means clear to us that Ministers have grasped the scale of the storage facilities likely to be required, nor the …
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Government Response
The government and Ofgem are working to accelerate grid connections by granting urgency status to code modification proposals and intending to legislate for connections reform. NESO will submit proposals by end of 2024, with a decision expected in early 2025.
9
Conclusion
Accepted
Sixth Report - Enabling sustainabl…
Grid flexibility offers substantial benefits through increased use of decarbonised consumer technologies.
The benefits to the energy sector of developing grid flexibility are substantial. These benefits are underpinned and sustained by increased usage of decarbonised consumer technologies such as smart meters, heat pumps and electric vehicles in ways which make best use …
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Government Response
The government is working with DESNZ and ENA to ensure developers can access a full range of connection providers, welcoming industry proposals for transmission level competition. They are also working with Ofgem and NESO to initiate the first competition for onshore electricity transmission network build.
11
Conclusion
Accepted
Sixth Report - Enabling sustainabl…
Slow rollout of flexible energy technologies delays significant cost savings for consumers.
The flexibility in the GB energy system provided by the development of demand- side response and energy storage capacity can provide significant cost savings to consumers. But the current slow rate of rollout and take-up of flexible technologies which can …
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Government Response
The government outlined plans to ensure strategic investment ahead of need in GB's electricity networks, with Ofgem working to make the RIIO-ET3 price control agile and forward-facing. NESO will also develop Strategic Spatial Energy Plans (2026) and a Centralised Strategic Network Plan (2027) to guide major network investment.
19
Recommendation
Accepted
Sixth Report - Enabling sustainabl…
Monitor and publicly report monthly on grid connection queue status and management progress.
We recommend that, in the interests of transparency, Ofgem monitor and publicly report on the status of the queue and its progress in managing it on a monthly basis.
Government Response
The government states that Ofgem has already worked with the Energy Networks Association to collect and publicly publish data on the connections queue status on a monthly basis via the ENA website.
23
Conclusion
Accepted
Sixth Report - Enabling sustainabl…
Ofgem's current electricity network regulation model unresponsive to rapid energy system flux.
We consider that the current model of Ofgem electricity network regulation, based around lengthy multi-year business plans, risks not being responsive enough to an energy system which is in rapid flux. The present regulatory model locks in market controls over …
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Government Response
The government agrees with the underlying concern and outlines robust governance and regulatory arrangements for the National Energy System Operator (NESO), including Ofgem's ongoing performance monitoring, biennial reviews, oversight of remuneration, and strict criteria for board appointments, alongside a clear framework document and new independent Chair.
25
Recommendation
Accepted
Sixth Report - Enabling sustainabl…
Encourage anticipatory network investment to meet likely future demands on the electricity system.
A general focus by Ofgem on ‘just in time’ network investment means that limited current network capacity can be a barrier to new connections. We recommend that the Government and Ofgem work together to encourage anticipatory investment where it is …
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Government Response
The Government accepts the recommendation, stating it will work with Ofgem to encourage anticipatory investment through a supportive investment regime and reform of the network price control process. NESO will develop a Strategic Spatial Energy Plan by 2026 and a Centralised Strategic Network Plan by 2027 to guide strategic investment.
30
Conclusion
Accepted
Sixth Report - Enabling sustainabl…
UK workforce skills for energy decarbonisation remain deficient, lacking detailed assessment data.
The UK workforce is currently deficient in many of the skills relevant to several aspects of energy decarbonisation. At present the information available on the scale of the problem is insufficiently detailed to inform good policy making.
Government Response
The government acknowledges skill deficiencies, highlighting existing initiatives like the Green Skills Plan and Green Jobs and Skills Report, and states it is working with ONS to improve green jobs data. It also established the Clean Energy Workforce Office to coordinate skills activity.
32
Recommendation
Accepted
Sixth Report - Enabling sustainabl…
Define 'green jobs' and publish methodology for measuring progress towards green jobs targets.
Despite recognising the electrification skills shortage in the UK, the Government has delayed the publication of its green skills plan. We reinforce the recommendation from our 2021 report that the Government sets out how it will measure progress towards its …
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Government Response
The government published a Green Skills Plan and a Green Jobs and Skills Report with an updated estimate of green jobs using ONS statistics. It states the Office will focus on improving data consistency and availability for monitoring and evaluation, drawing from various sources.
35
Recommendation
Accepted
Sixth Report - Enabling sustainabl…
Develop a plan to ensure planning authorities are resourced for timely energy infrastructure applications.
We recommend that the Government develop a plan to ensure that planning authorities, are sufficiently well resourced, in terms of personnel and expertise, to support the timely determination of planning applications for energy infrastructure and facilities. 48 Enabling sustainable electrification …
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Government Response
The government has established the Innovation and Capacity Fund, appointed the Planning Advisory Service to create an NSIP network for local authorities, and freed up £9.1M for recruitment into planning roles to ensure sufficient resources and expertise for handling energy infrastructure planning applications.
36
Conclusion
Accepted
Sixth Report - Enabling sustainabl…
Planning system design inadequate for balancing local concerns with electricity infrastructure rollout
Despite recent reforms to the Nationally Significant Infrastructure Projects regime in respect of energy infrastructure and to the National Planning Policy Framework, we are not convinced that the current design of the planning system is adequate to balance local concerns …
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Government Response
The government agrees with the importance of supporting renewables infrastructure and states it will accelerate delivery through the Planning and Infrastructure Bill, consult on extra measures in the NPPF, and introduce future standards for new homes to boost clean energy.
37
Recommendation
Accepted
Sixth Report - Enabling sustainabl…
Review planning regulations for electricity infrastructure, aligning provisions and mandating new-build solar
The Government should further review the application of planning regulations to electricity infrastructure so as to bring the relevant provisions of the Nationally Significant Infrastructure Projects regime and the National Planning Policy Framework into full alignment. We recommend that the …
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Government Response
The government agrees and will accelerate infrastructure delivery via the Planning and Infrastructure Bill. They are consulting on measures in the NPPF for onshore wind and solar and revising NSIP thresholds, and future standards next year will set new buildings on a path away from fossil fuels to incorporate solar.
38
Conclusion
Accepted
Sixth Report - Enabling sustainabl…
Effective community engagement essential for successful energy infrastructure rollout and public acceptance
Early, well-run community engagement is an essential aspect of successful rollout of energy infrastructure. Communities who are engaged and invested, and who can have input into their local infrastructure, are more likely to accept a greater level of infrastructure and …
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Government Response
The government acknowledges the importance of community engagement, stating that existing planning routes (NPPF, NSIP regime) already encourage and mandate pre-application community engagement. They also recently launched updated guidance for the pre-application stage of Nationally Significant Infrastructure Projects in April 2024.
39
Recommendation
Accepted
Sixth Report - Enabling sustainabl…
Develop a major public engagement strategy to communicate economic electrification and infrastructure needs
We recommend that the Government develop a major public engagement strategy to communicate the need for further electrification of the economy, its likely benefits and the infrastructure development it will entail.
Government Response
The government commits to launching an overarching national public awareness campaign in early 2025, developed by the Electricity Networks Association and Transmission Owners, to communicate the need and benefits of electricity network infrastructure.
40
Recommendation
Accepted
Sixth Report - Enabling sustainabl…
Require meaningful developer-led community engagement and develop best practice guidance for operators
The Government must also require meaningful developer-led community engagement at the outset of major electricity infrastructure projects. We recommend that Ministers also develop guidance for operators and local authorities on best practice in community engagement.
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Government Response
The government notes existing planning routes and the NSIP regime already require developer engagement. They further state that new guidance for the pre-application stage for Nationally Significant Infrastructure Projects was launched in April 2024, addressing the request for best practice guidance.
47
Recommendation
Accepted
Sixth Report - Enabling sustainabl…
Establish robust corporate governance and performance review arrangements for the National Energy System Operator
We recommend that Ministers establish appropriate arrangements for review of the role and performance of the NESO against the benefits it is expected to deliver to the GB energy system, including good value for money and high performance. It is …
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Government Response
The government accepts the recommendation and has established robust governance and regulatory arrangements for NESO, including Ofgem's ongoing monitoring and biennial performance reviews, strict board appointment criteria, an independent Chair, and UKGI as Shareholder Representative. These arrangements will be continuously monitored.
50
Recommendation
Accepted
Sixth Report - Enabling sustainabl…
Maintain clear indicators of progress on decarbonisation and energy security for public tracking
We recommend that Government and Ofgem should maintain clear indicators of progress on decarbonisation and energy security to allow simple public progress tracking of the proportion of renewable electricity on the system compared to expected needs, the security of supply …
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Government Response
The government states its mission to make Britain a clean energy superpower and expects to set out more detail on its approach to delivering Clean Power by 2030 by the end of the year, explicitly mentioning how progress will be tracked.
51
Recommendation
Accepted
Sixth Report - Enabling sustainabl…
Actively support renewable energy generation paired with sufficient storage for UK energy self-reliance
Renewable energy generation paired with sufficient energy storage will allow the UK to become more self-reliant, secure national energy supplies and provide a buffer against energy price hikes. This is a future that the UK should embrace, and that the …
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Government Response
The government agrees on the importance of long-duration energy storage, has decided to introduce a cap and floor scheme for LDES with a first application round expected in 2025, and is committed to designing a new business model for hydrogen storage by 2025.
52
Recommendation
Accepted
Sixth Report - Enabling sustainabl…
Establish decarbonisation as a strategic Government priority informing clear industry direction
We recommend that the Government take steps to ensure that decarbonisation, alongside energy security, is at the forefront of all energy discussions. Decarbonisation of the energy system must be established as strategic Government priority, informing clear and unambiguous direction to …
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Government Response
The government states its mission to make Britain a clean energy superpower with a goal of Clean Power by 2030, and is working with industry to produce a plan outlining bold, tangible actions for delivery.