Contribution
Amendment 24 tabled by the noble Baroness, Lady Bennett, though well intentioned, is not necessary to achieve the desired outcome of greater support with the grid connection process for smaller renewable energy projects. The amendment seeks to require the independent system operator and planner to prioritise support for smaller renewable energy projects when they apply for a grid connection. I recognise the noble Baroness’s helpful attempt to support smaller renewable energy projects. The Government appreciate the important role that smaller renewable energy projects, such as rooftop solar and community energy, can play in meeting our clean power mission, reducing energy costs and engaging communities in renewable energy.
Along with the independent energy regulator, Ofgem, the Government also recognise that more needs to be done to support smaller electricity network connection customers, including renewable energy projects, but this is achievable within the regulatory framework without the need for primary legislation. Indeed, Ofgem has already proposed stronger incentives and obligations on network companies to provide better connection customer service. Following a consultation earlier this year, it expects to publish further details and next steps in the coming weeks.
The amendment’s wording would also not meet the desired outcome. Section 16 of the Electricity Act 1989 requires electricity distribution network operators to connect customers. The amendment would place an obligation on the independent system operator and planner only in terms of the way in which the duties under Section 16 are complied with. However, the independent system operator and planner has no duties under Section 16. Given the legislative unworkability of the amendment, and given work already under way to support smaller renewable energy connection customers, I ask the noble Baroness, Lady Bennett, to withdraw it.
Amendment 46 in the names of the noble Earl, Lord Russell, and the noble Lord, Lord Ravensdale, seeks to require the Government to commence a programme of research and analysis on the imposition of a statutory duty on local authorities to produce local area energy plans, and publish a report on their findings; and to require the Secretary of State for Energy Security and Net Zero to make a formal policy decision on a statutory duty within two years. We recognise that the amendment moves the debate on from Committee so that an immediate burden is not placed on local authorities to produce a local area energy plan, and nor are the Government required to immediately produce national guidance for local authorities on local area energy plans. The amendment places this work in the context of planning for electricity infrastructure, but the approach set out in the amendment risks constraining and duplicating work already under way, and it may constrain the way the Government continue to work in partnership with local government.
The overall approach to this work is being undertaken jointly with local government through the ministerial Local Net Zero Delivery Group, which meets quarterly. This is co-chaired with the Local Government Association. The group has discussed the development of a framework for local government to provide more clarity on the roles and responsibilities for net zero and energy. This group will need to reflect on the role of local government on energy planning and net zero in the context of the warm homes plan and Great British Energy’s local power plan, both due shortly.
The kind of research envisaged by the amendment is already under way. This has been commissioned by DESNZ from local government officials working in local net zero hubs. This includes preparing guidance for local authorities on what they need to do on energy planning to prepare for the regional energy strategic plans that Ofgem and the National Energy System Operator—NESO—are producing. Ofgem and NESO are looking to consult on the approach and methodology later this year. They are also developing guidance and tools for local government to help it specify and procure high-quality data to support energy planning, with outputs due by January 2026.
In conclusion, we do not believe that primary legislation is the right place to set out in such detail a programme of work to review local energy planning. We are sympathetic to the points raised and agree with the point made in Committee about the importance of including local understanding in delivering the bigger picture on energy planning. I hope I have been able to give some assurances that the Government agree that local involvement in energy planning is important and that the kind of work the amendment envisages is already under way.
I must stress the need to review local area energy planning in the context of ongoing work and other policies and strategies as and when they are published, rather than to the timetable and in the way set out in the amendment. Preferably, this should be in partnership with local government, reflecting needs and approaches. I hope that the noble Baroness, Lady Bennett, is satisfied with our response and will consider withdrawing her amendment.