Gas Storage Levels

Baroness Hayman Excerpts

Tuesday 14th January 2025 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

That is right. NESO manages this with an operating margin, made up of the operating reserve—1,400 megawatts, which it always keeps in reserve. There is a contingency reserve of an additional 800 megawatts on top of that operating reserve. That contingency reserve was tight last week and so an electricity margin notice was issued, as my noble friend suggested. This is a perfectly normal market response to a tightening of the situation, which was resolved immediately.

[Baroness Hayman (CB)]

My Lords, I declare my interest as chair of Peers for the Planet. The Minister’s Statement and his reply to the noble Lord just now are reassuring, as was all the independent analysis of what happened last week. We were not in a crisis. Nevertheless, it is important that, as we move towards more dependence on renewables, we look at the issues of long-duration energy storage and energy efficiency. We do not have a long time until 2030. Can the Minister tell us when we will be able to put some real targets on the amount of long-duration energy storage, which the Science and Technology Committee of this House says that we need urgently?

[Lord Hunt of Kings Heath (Lab)]

My Lords, I was present during the debate on Thursday on the Select Committee’s excellent report on this very subject. I refer my friend the noble Baroness to the action plan that my department issued only a few weeks ago, estimating that between 40 gigawatts and 50 gigawatts of dispatchable and long-duration flexible capacity could be needed by 2030. We are going to take a number of interventions to ensure that this happens. We have already announced a ground-breaking deal with Net Zero Teesside, our first power CCUS project. We are developing a hydrogen-to-power business model to derisk investment in that area. Ofgem will be introducing the cap and floor scheme to support investment in long-term duration electricity storage. We aim to open the scheme to applications in quarter 2 of 2025. We fully take on board the point that the noble Baroness makes and the Select Committee report.