Electricity Generation: Carbon Emissions

Department for Business, Energy and Industrial Strategy written question – answered on 9th November 2021.

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Photo of Anne Marie Morris Anne Marie Morris Conservative, Newton Abbot

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to ensure that the National Grid has the capacity to manage a potential increase in demand for electricity as a result of the UK's transition to net zero.

Photo of Greg Hands Greg Hands The Minister of State, Department for Business, Energy and Industrial Strategy

The Department works closely with National Grid Electricity System Operator (NG:ESO) to ensure there is adequate capacity available to meet peak demand in a range of scenarios, now and in the future.

The Capacity Market (CM) is at the heart of the Government’s plans for a secure and reliable electricity system. Through the CM, the government secure, the capacity needed to ensure security of supply through a competitive, technology-neutral auction process. The volume of capacity the government procures is based on advice from NG:ESO in the annual Electricity Capacity Report. NG:ESO model a wide range of possible scenarios when producing their advice, including levels of electricity demand. The methodologies and analysis provided by NG:ESO are scrutinised by an independent advisory group appointed by government, the Panel of Technical Experts.

The CM incentivises the necessary investment to maintain and refurbish existing capacity and to finance new capacity, ensuring the transition to net zero happens in a managed way that does not compromise security of supply. This year’s auctions have already secured the majority of Great Britain’s capacity needs out to 2024/25 and we will continue to work with the NG:ESO to make sure that the transition to net zero is delivered in a manner that ensures the stability and security of the electricity system.

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