Asked by: John McNally (Scottish National Party - Falkirk)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the (a) implications for his policies of the 2018 National Grid Future Energy Scenarios which place all peak demand scenarios above 75 GW compared with one scenario over 70 GW in the 2017 scenarios and (b) potential effect of the 2018 scenarios on the operations of distribution network companies.
Answered by Claire Perry
National Grid’s Future Energy Scenarios 2018 has been used to analyse peak demand scenarios for the Capacity Market. The Capacity Market secures the electricity capacity required to meet peak demand in a range of scenarios. The targets for Capacity Market auctions are set annually for the delivery year four and one year ahead. These targets are based on advice from National Grid and our Panel of Technical Experts, which uses the analysis in the Future Energy Scenarios.
With regard to the distribution network companies, Ofgem’s regulation takes account of potential increases in demand. In addition, BEIS and Ofgem published the Smart Systems and Flexibility Plan in July 2017. This signalled the move to Distribution System Operators where network companies are more actively managing their networks to deal with increasing levels of distribution-connected generation and increasing demand from, for example, electric vehicles and heat pumps.
Asked by: John McNally (Scottish National Party - Falkirk)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps (a) his Department and (b) Ofgem plan to take to ensure that distribution networks are prepared to meet additional demand from (i) high economic growth and (ii) rising rates of electrical vehicle take-up.
Answered by Claire Perry
Distribution Network Operators are investing up to £24.6bn over their current price control (2015-2023) on their networks, including in meeting additional demand. Ofgem have begun consideration of the next price control for the network companies beyond 2023, which will take into account economic growth and the increase in electric vehicles (EVs). There are flexibility mechanisms built into these price controls to enable network companies to respond to unexpected changes.
In July 2017, Government launched its Smart Systems and Flexibility Plan, along with Ofgem, which enables new technologies to increase capacity and the energy system to manage new sources of demand more efficiently. As part of this, smart charging measures are included in the Automated and Electric Vehicles Act which means that Government can now set standards so all new EV chargepoints installed are smart enabled. This will provide benefits to consumers and reduce the demands on the networks.
Finally, as outlined in the Road to Zero strategy, the Government launched the EV Energy Taskforce on 11 June. The taskforce will consider what further actions should be taken so that the energy system is prepared for the uptake of electric vehicles.