Decarbonisation of the power sector
Business and Trade Committee
Closed
Inquiry
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 …
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44
Recommendations
21
Conclusions
1
Report
5
Oral sessions
14
Letters
5
Events
Activity timeline 26 events
14 Jul
2023
2023
28 Apr
2023
2023
Report published
25 Apr
2023
2023
25 Apr
2023
2023
21 Mar
2023
2023
Oral evidence
21 Mar
2023
2023
21 Mar
2023
2023
Formal meeting (oral evidence session) · Room 8, Palace of Westminster
7 Mar
2023
2023
Oral evidence
7 Mar
2023
2023
Formal meeting (oral evidence session) · Room 8, Palace of Westminster
7 Feb
2023
2023
7 Feb
2023
2023
Oral evidence sessions 5 sessions
21 Mar 2023
View on parliament.uk
Adam Bell · Stonehaven
Adam Berman · Energy UK
Laura Sandys CBE · Energy Digitalisation Taskforce
Rachel Fletcher · Octopus Energy
7 Mar 2023
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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
24 Jan 2023
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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
22 Nov 2022
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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
1 Nov 2022
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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
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Eleventh Report - Decarbonisation of the power sector | HC 283 | 28 Apr 2023 | 65 | Responded |
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, …
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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 …
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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 …
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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 …
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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 …
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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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Correspondence 14 letters
25 Apr 2023
To committee
Letter from TotalEnergies relating to the decarbonisation of the power sector inquiry, 19 December 2022
Parliament page
25 Apr 2023
To committee
Letter from Shell UK relating to the inquiry on the Decarbonisation of the power sector, 06 March 2023
Parliament page
21 Mar 2023
To committee
Letter from UK Power Networks relating to network losses, 14 March 2023
Parliament page
7 Feb 2023
To committee
Letter from Chair of Equinor relating to the Decarbonisation of the power sector inquiry, 08 December 2022
Parliament page
7 Feb 2023
To committee
Letter from BP relating to the Decarbonisation of the power sector inquiry, 20 December 2022
Parliament page
7 Feb 2023
To committee
Letter from Harbour Energy relating to the Decarbonisation of the power sector inquiry, 05 December 2022
Parliament page
10 Jan 2023
To committee
Letter from REA relating to evidence session on biomass in the power sector, 8 December 2022
Parliament page
6 Dec 2022
To committee
Letter from the Chair to Shell regarding decarbonisation of the power sector, 29 November 2022
Parliament page
6 Dec 2022
To committee
Letter from the Chair to Equinor regarding decarbonisation of the power sector 29 November 2022
Parliament page
6 Dec 2022
To committee
Letter from the Chair to Harbour Energy regarding decarbonisation of the power sector, 29 November 2022
Parliament page
6 Dec 2022
To committee
Letter from the Chair to Total Energies regarding decarbonisation of the power sector, 29 November 2022
Parliament page
6 Dec 2022
To committee
Letter from the Chair to BP regarding decarbonisation of the power sector 28.11.22
Parliament page
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
Parliament page
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
Parliament page