Energy industry responds to CCC report on UK grid decarbonisation

The CCC has called for swifter action on decarbonisation – but what does the industry think?

A fossil-free grid by 2035 is not possible and will not happen at current rates of renewable energy and nuclear power deployment, the Climate Change Committee warned earlier today.

The energy industry is calling for bolder government action to ensure the 2035 target to decarbonise the energy grid is reached.

The Energy Networks Association (ENA) has urged for Ofgem to be granted a net zero mandate to ensure that investment decisions made by gas and electricity companies align with the 2035 target.

It also proposes that network operators be granted greater flexibility to invest in infrastructure now to ensure that network capacity is prepared when required.

According to Lawrence Slade, ENA’s Chief Executive, the government must act with greater speed if they are to meet their decarbonisation goals, ensure secure energy investment in an increasingly competitive global market, and safeguard long-term energy security for consumers.

Mr Slade said: “The CCC’s report makes clear that the solution to this challenge must involve both gas and electricity, yet policy progress is lacking. While we welcome the CCC’s assessment of the importance of hydrogen transport and storage infrastructure in delivering decarbonisation, we need to see rapid progress across both renewables and hydrogen deployment to make the 2035 target achievable.”

Ruth Herbert, the Chief Executive Officer of the Carbon Capture Storage Association, has emphasised the critical role of Carbon Capture and Storage (CCS) in achieving a decarbonised electricity system in Britain by 2035.

Herbert’s statement underscores the importance of CCS in providing flexible low carbon generation, either through gas-fired power stations fitted with CCS or CCS-enabled hydrogen used in power generation.

She also notes that the majority of hydrogen production between now and 2035 will be CCS-enabled and calls for a significant increase in the number of CCS-enabled flexible power and hydrogen projects commissioned this decade through the government’s CCUS cluster programme.

Commenting on the report, Jess Ralston, Head of Energy at the Energy and Climate Intelligence Unit, said: “There is a huge investment opportunity in a cleaner, cheaper electricity system that isn’t blown about by international gas markets, but government needs a clearer plan for investors to pile in. The additional costs involved in balancing a renewables grid are minimal particularly when compared to the cost of gas power.

“With batteries building quickly, and the opportunity of demand responding to supply demonstrated by the Demand Flexibility Service, there are obvious routes forwards.”

In reaction to the publication of the CCC report, Tom Greatrex, Chief Executive of the Nuclear Industry Association, said: “The CCC is right that we urgently need planning reform to get critical infrastructure like new nuclear built more quickly.

Sizewell C has taken 50% longer to consent than Hinkley, with thousands more pages of supporting documentation required, even though it’s a replica project. That’s unacceptable. It’s time for the Government to cut the red tape and inject some pace into our drive for energy security and net zero.”

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