Decarbonisation of the power sector

Business and Trade Committee Closed Inquiry
Opened: 20 May 2022 Closed: 18 Jul 2023 Parliament page
The Business, Energy and Industrial Strategy (BEIS) Committee has launched an inquiry into the Government’s plans to decarbonise the UK’s power supply sector. The inquiry will scrutinise proposals unveiled in the Government’s Energy Security Strategy earlier this year, and the heavy emphasis it placed on scaling up the supply of … Read more
44 Recommendations
21 Conclusions
1 Report
5 Oral sessions
14 Letters
5 Events
Activity timeline 26 events
Oral evidence sessions 5 sessions
Adam Bell · Stonehaven Adam Berman · Energy UK Laura Sandys CBE · Energy Digitalisation Taskforce Rachel Fletcher · Octopus Energy
Akshay Kaul · Ofgem Alice Delahunty · National Grid Electricity Transmission Basil Scarsella · UK Power Networks (UKPN) Chris Burchell · Scottish and Southern Electricity Networks (SSEN) Distribution Claire Dykta · National Grid Electricity System Operator (ESO) Kayte O’Neill · National Grid Electricity System Operator (ESO) Lawrence Slade · Energy Networks Association (ENA) Rebecca Barnett · Ofgem
Dame Sue Ion Dr Jonathan Radcliffe · University of Birmingham Dr Paul Dorfman · Nuclear Consulting Group (NCG) and Associate Fellow, Science Policy Research Unit (SPRU), Sussex Energy Group, University of Sussex Lincoln Hill · Nuclear Industry Association Merlin Hyman · Regen (Electricity Storage Network) Nick Lawson · Ocean Wall Sarah Honan · The Association for Decentralised Energy Will Mezzullo · Centrica
Catherine Raw · SSE Thermal Dr Daniel Quiggin · Chatham House Dr Nina Skorupska CBE · REA Matthew Williamson · British Petroleum (bp) Olivia Powis · The Carbon Capture and Storage Association Phil MacDonald · Ember Sandy Hore-Ruthven · Severn Wye Energy Agency Will Gardiner · Drax
Chris Hewett · Solar Energy UK Dan McGrail · Renewable UK Dr David Joffe · Climate Change Committee Guy Newey · Energy Systems Catapult James Richardson · National Infrastructure Commission Richard Arnold · Marine Energy Council Robert Buckley · Cornwall Insight Tom Glover · RWE Generation
Recommendations & Conclusions
5 results
10 Recommendation Acknowledged
Eleventh Report - Decarbonisation …
Ensure a stable policy environment to de-risk investments in low-carbon energy infrastructure.
Recent policy and regulatory uncertainty has undermined investor confidence at precisely the time when the UK is looking to attract private investment in clean energy infrastructure. The Government should do its utmost to create and maintain a stable policy environment, … Read more
Government Response
The government is looking into arrangements to support repowering renewable assets, considering planning frameworks for upgrading onshore wind farms and CfDs for repowering, with consultation responses due shortly or in due course.
Department for Business and Trade
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50 Recommendation Acknowledged
Eleventh Report - Decarbonisation …
Introduce rigorous annual performance processes for network owners and publicise information for engagement.
We recommend that Ofgem consults on how best to address the asymmetries in resources and knowledge between network companies and other stakeholders, such as consumer groups, which influence processes such as price controls. We recommend that Ofgem introduces a more … Read more
Government Response
Ofgem acknowledges the importance of addressing asymmetries in resources and knowledge, outlining its sustained engagement process in price controls and future measures in the Energy Bill. However, it does not commit to consulting on the issue or introducing a new rigorous annual performance process for network owners.
Department for Business and Trade
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52 Recommendation Acknowledged
Eleventh Report - Decarbonisation …
Require National Grid ESO to provide clearer signals on future energy constraint location, value, duration.
Despite welcome progress by National Grid ESO to develop and implement new initiatives to harness flexibility, there is still more to be done to ensure that clear signals are provided regarding the location, duration and value of future constraints. We … Read more
Government Response
The ESO understands the importance of integrating low carbon technologies and will consider how markets must evolve to facilitate more low-carbon technologies contributing to system balancing and stability, while actively monitoring the carbon intensity of the Balancing Mechanism.
Department for Business and Trade
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55 Recommendation Acknowledged
Eleventh Report - Decarbonisation …
Accelerate National Grid ESO IT upgrades to handle sub-1MW flexibility and report progress to Parliament.
To unlock the potential role that flexibility can play in better synchronising supply and demand, National Grid ESO will need to improve its digital capabilities. We recommend that National Grid ESO speeds up progress on making sure its IT upgrades … Read more
Government Response
The ESO acknowledges the need for investment in systems and states it is modernising balancing capabilities through its Open Balancing Program. However, it does not specifically commit to handling assets smaller than 1MW or reporting progress to Parliament.
Department for Business and Trade
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64 Conclusion Acknowledged
Eleventh Report - Decarbonisation …
UK electricity sector investment proposition has significantly deteriorated amid global competition.
The UK investment proposition for the electricity sector has deteriorated since the launch of our inquiry. The global race for capital in low-carbon projects has intensified. Meanwhile developers of renewables projects in the UK are experiencing substantial cost inflation and … Read more
Government Response
The government states it will not engage in a distortive subsidy race, but expects current capital allowance changes to support green industries and will engage with industry on incentives. It is also considering using Contracts for Difference for operational generators as part of the wider REMA.
Department for Business and Trade
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Government Response AI assessment · 65 of 44 classified

Total 44 recs + 21 conclusions
Correspondence 14 letters
25 Apr 2023 To committee Letter from TotalEnergies relating to the decarbonisation of the power sector inquiry, 19 December 2022
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25 Apr 2023 To committee Letter from Shell UK relating to the inquiry on the Decarbonisation of the power sector, 06 March 2023
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21 Mar 2023 To committee Letter from UK Power Networks relating to network losses, 14 March 2023
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7 Feb 2023 To committee Letter from Chair of Equinor relating to the Decarbonisation of the power sector inquiry, 08 December 2022
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7 Feb 2023 To committee Letter from BP relating to the Decarbonisation of the power sector inquiry, 20 December 2022
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7 Feb 2023 To committee Letter from Harbour Energy relating to the Decarbonisation of the power sector inquiry, 05 December 2022
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10 Jan 2023 To committee Letter from REA relating to evidence session on biomass in the power sector, 8 December 2022
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6 Dec 2022 To committee Letter from the Chair to Shell regarding decarbonisation of the power sector, 29 November 2022
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6 Dec 2022 To committee Letter from the Chair to Equinor regarding decarbonisation of the power sector 29 November 2022
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6 Dec 2022 To committee Letter from the Chair to Harbour Energy regarding decarbonisation of the power sector, 29 November 2022
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6 Dec 2022 To committee Letter from the Chair to Total Energies regarding decarbonisation of the power sector, 29 November 2022
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6 Dec 2022 To committee Letter from the Chair to BP regarding decarbonisation of the power sector 28.11.22
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17 Oct 2022 From committee Letter to the Secretary of State for Business, Energy and Industrial Strategy relating to regulation of energy markets, dated 16 October 2022
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13 Oct 2022 From committee Letter to the Secretary of State for Business, Energy and Industrial Strategy regarding the proposed Cost-Plus Revenue Limit and the voluntary Contract for Difference (CfD) scheme within the new Energy Prices Bill dated 13 October 2022
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