Question

To ask the Secretary of State for Energy and Climate Change, what comparative cost-benefit analyses her Department has made of electricity storage and constraint payments.

The Network Options Assessment (NOA) was introduced as a result of Ofgem’s Integrated Transmission Planning and Regulation project.It is an holistic, forward-looking analysis of the options for the development of the transmission system.The NOA has a 10-year outlook and will be published annually.In developing the annual statement, National Grid as System Operator must work closely with the three GB transmission operators to propose network solutions which facilitate an efficient, coordinated and economical system of electricity transmission. As part of this process, National Grid is required to consider the merits of solutions other than transmission build, such as storage. A cost-benefit analysis of storage compared to other assets is performed by National Grid as a part of this assessment, in which constraint payments form a part.