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Tom Luff Head of Electricity Network Delivery and Access Team, DECC
9 February 2011
Agenda
Electricity grids and climate change Overcoming barriers to investment The offshore coordination challenge Ensuring timely connections Key upcoming milestones
Electricity networks will play a key role in some of Governments top priorities
Tackling climate change and securing energy supply are key Government priorities EU renewables target required 15% of UK energy (30% of electricity) to come from renewable sources) A quarter of existing generation to close by 2020 Urgent need for a diverse range of new energy infrastructure Renewables New nuclear Clean coal and gas Electricity networks are vital to enabling this transition Upgrading New infrastructure to transport new energy sources to demand
The ENSG and the price control framework are helping to ensure the right investments are made
Statutory obligation on National Grid and the Scottish transmission owners to develop and maintain the electricity transmission system Must be efficient, co-ordinated and economic and have regard to amenity Approval for investment governed by Ofgems price control system Framework for the next price control period is currently being developed by Ofgem (RIIO framework) The Government and Ofgem set up the Electricity Networks Strategy Group (ENSG) Identified the strategic network investment required to meet 2020 renewables targets best available overview but not a plan Ofgem has set up a process for approving anticipatory investment identified by ENSG over 400m approved so far
The Electricity Market Reform (EMR) White Paper will have implications for all this work
DECC and Ofgem are working to ensure the new offshore transmission regime develops in a coordinated manner
Offshore competitive regime companies bid to own and manage transmission assets Important that offshore transmission enables delivery of our short- and longer-term targets Key challenges: Non-alignment of interests of individual transmission constructors and network as a whole? Interaction with planning? National Grid produce an annual Offshore Development Information Statement (ODIS) Helps facilitate the achievement of the coordinated development of the offshore and onshore grid Offshore Transmission Coordination Advisory Group (OTCAG) to consider Feasibility of configurations (e.g. integrated and radial) Potential additional measures required
Cost of connection (transmission charging) is currently being reviewed through Ofgems Project TransmiT
February 2011 KEMA / IET independent study into the costs of undergrounding March 2011 Spring 2011 Offshore Transmission Coordination Advisory Group (OTCAG) first meets Revised National Policy Statements (NPSs) laid before parliament for ratification / approval Expected DECC publication of the Ofgem Review Ofgem publication of Project TransmiT Next price control review period starts