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Parliamentary Committees and Public Enquiries
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Overhaul to energy network operation called for
The Energy and Climate Change Committee report is recommending a major change in the way the UK energy system is operated, transferring system operation from National Grid to an Independent System Operator (at the national level) and Distribution System Operators (at the regional level).
- Report: Low carbon network infrastructure
- Report: Low carbon network infrastructure (PDF 796KB)
- Inquiry: Low carbon network infrastructure
- Energy and Climate Change Committee
Operating the GB energy system
Chair of the Committee, Angus Brendan MacNeil MP, said:
"National Grid's technical expertise in operating the national energy system must be weighed against its potential conflicts of interest. The Independent System Operator model has worked in the USA. It is time for it to be brought to these shores.
Local energy is here, with astonishing growth in generation connected directly to regional networks. Distribution Network Operators (DNOs) remain somewhat blind to their energy flows and passive in managing them. DNOs must transition to a more active role as Distribution System Operators so that they can use smart technologies to manage ever-more complicated energy flows."
The Committee notes the importance of smart meters and a smart grid to enable this transition, but expressed concerns that the roll-out of smart meters is not progressing quickly enough to achieve the necessary mass to truly create a smart energy network.
New technologies for a new network
The report examines energy storage, Demand Side Response (DSR), interconnection and other smart grid technologies. The Committee recommends that storage be deployed at scale as soon as possible; however, its development is being hindered by archaic regulations.
The Chair of the Committee said:
"Innovative solutions—like storage and DSR— to 21st-century energy problems have been held back by legislative and regulatory inertia. The Government has committed to addressing these issues, and we will hold them to account on making good on this promise. DECC must also learn lessons from these policy lags so as to be better prepared for ongoing changes."
The MPs also supported significant expansion of interconnection to help balance a low-carbon network. However, with transmission charges for generators in the UK remaining high by EU standards, the Committee calls on Government to investigate the disadvantage UK generators may consequently face against other European generators as Great Britain becomes more interconnected.
Connecting low-carbon energy sources
Developing low-carbon electricity is key to the UK’s decarbonisation ambitions. However, the Committee found that small-scale generators faced long and uncertain queues to connect to the grid; at a larger scale, the cost of connections does not always help sourcing electricity where the resource is best. The MPs recommended a review of connection costs.
The Chair of the Committee said:
"The UK needs clean, renewable power, but it won’t be built if it's too costly or difficult for generators to connect to the electricity grid. Distribution networks have been overwhelmed at times by the challenge of integrating small-scale renewables."
Recommendations
Low-carbon gas and heat networks also present challenges. The Committee recommends that the Government:
- set indicative targets for biomethane and hydrogen deployment in the gas grid
- establish a regulatory framework—overseen by Ofgem—to encourage investment in district heating and complement existing voluntary schemes in safeguarding consumers.
Further information
