Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether Ofgem considered requiring the National Energy System Operator's new balancing platform to incorporate carbon intensity as a dispatch criterion.
Ofgem does not specifically require NESO to incorporate carbon intensity as a dispatch criterion. However, they do set incentives with regard to the carbon intensity of its balancing actions. NESO now holds three statutory objectives: net zero objective, security of supply objective, and efficiency and economy objective. These create a framework whereby NESO can determine the best way to balance the system considering the factors of carbon intensity and cost.