Asked by: Roger Gale (Conservative - Herne Bay and Sandwich)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment her Department has made of the value for money of the National Grid's Sea Link Project in the light of the reduction in the Grid's projected shortfall in output capacity from 2000 MW to 352 MW.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Sea Link project has submitted its Development Consent Order application. Given the Secretary of State’s quasi-judicial role in taking consenting decisions for energy infrastructure proposals approved by Ofgem, it would not be appropriate to comment on specific matters related to the project, as this could be seen as prejudicing the decision-making process.
Electricity network reinforcements are only approved where they are in the interests of consumers. Ofgem reviews proposed project costs and ensures that network companies spend efficiently.
Asked by: Lord Moynihan (Conservative - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government, in light of the work undertaken by the Severn Estuary Commission and other recent assessments of tidal range energy, whether they will develop a national tidal range strategy setting out a pathway for technology demonstration, environmental assessment, financing, grid integration, supply-chain development, and commercial deployment.
Answered by Baroness Curran - Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)
Whilst there are no current plans to develop a national tidal range strategy, the Government remains open to considering well-developed tidal range proposals, including barrages and other alternatives. Any proposal must demonstrate value for money, wider energy system and economic benefits, effective mitigation of environmental impacts, and suitable financing arrangements, while limiting risks to taxpayers and billpayers. Analysis by the National Energy System Operator of the system impacts and value of tidal range will help inform consideration of future proposals.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Business, Innovation, Science and Trade:
To ask His Majesty's Government what steps they are taking to offer AI data centre investors shorter wait times for electrical grid connections.
Answered by Baroness Lloyd of Effra - Parliamentary Under-Secretary of State (Department for Digital, Culture, Media and Sport)
The Government is reforming the electricity grid connections process to reduce waiting times and accelerate connection offers for strategically important projects, including AI infrastructure and data centres. Working with Ofgem and the National Energy System Operator, we are moving to a more efficient connections regime that prioritises viable projects which are ready to progress. These reforms will remove stalled schemes from the queue and make better use of available network capacity while maintaining a fair and robust process for all users of the network. Through the AI Energy Council, the Government is exploring resilient, sustainable and scalable grid connections.
Asked by: Lord Frost (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government when they expect the National Energy System Operator report submitted to Ofgem on grid system stress in the week of 22 June to be published; whether it will be published in full; and whether its findings will be subject to a formal external review independent of government.
Answered by Baroness Curran - Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)
This report was commissioned by Ofgem as the independent regulator. It is therefore for Ofgem to decide when and in what form the report will be published.
Great Britain has one of the most reliable energy systems in the world and maintaining system security and resilience is a top priority for Government.
Asked by: Ben Spencer (Conservative - Runnymede and Weybridge)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether the Government intends to require data centres above a specified capacity to provide a minimum level of demand flexibility as a condition of grid connection.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government is considering whether some very large electricity users, including data centres, should provide a defined minimum level of demand flexibility. This could be delivered through measures such as energy storage, low-carbon generation or shifting suitable workloads.
The Government is working with Ofgem, NESO and industry to ensure that any approach supports a secure and efficient electricity system while remaining proportionate and investable.
Asked by: Ben Spencer (Conservative - Runnymede and Weybridge)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, on what date Ofgem and NESO will publish final decisions on demand connection reform; and when the list of strategically important demand projects will be published.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
We are working with Ofgem and NESO to introduce demand reforms to manage speculation, accelerate viable demand connections and enable strategically important projects to be prioritised.
Government consulted on measures to prioritise strategic demand and will publish its response shortly. Alongside this, Ofgem consulted on measures, including a Data Centre Commitment Fee, and will publish its decision in due course.
We intend to publish the Strategic Framework setting out the scope, criteria and process for identifying projects for prioritisation in due course.
Asked by: Ben Spencer (Conservative - Runnymede and Weybridge)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what consideration has been given to the potential merits of requiring new data centres above a threshold capacity to provide on-site dispatchable generation or storage as a condition of connection, as adopted by the Commission for Regulation of Utilities in Ireland.
Answered by Martin McCluskey - Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)
The Government has considered a range of international approaches, including Ireland’s, as part of its work on integrating growing data centre demand securely and efficiently. Officials are working with industry, NESO and Ofgem to explore a range of options for ensuring large electricity users support a secure and efficient electricity system, including the potential role of on-site storage, low carbon generation and demand-side measures.
Asked by: Ben Spencer (Conservative - Runnymede and Weybridge)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what criteria will be used to designate strategically important demand projects for prioritised grid connection; and whether all sites within AI Growth Zones will be so designated.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
As set out in the Government’s recent consultation on “Accelerating electricity network connections for strategic demand”, the criteria used to designate projects includes national objectives such as growth, jobs, social value and net zero.
Sites within publicly announced AI Growth Zones will be considered for grid connection support on their individual merits, in line with the relevant assessment processes.
Asked by: Ben Spencer (Conservative - Runnymede and Weybridge)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what the average industrial electricity price in the UK was in the latest year for which figures are available compared with (a) France, (b) Germany, (c) the United States and (d) Sweden; and what assessment has been made of its potential effect on data centre investment decisions.
Answered by Martin McCluskey - Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)
The Department publishes data on international comparisons of non-domestic electricity prices on GOV.UK. The Government recognises that electricity prices are an important factor in data centre investment decisions, alongside access to power, grid connection times, planning and wider infrastructure considerations. The Government continues to work with industry, Ofgem and the National Energy System Operator to improve electricity system efficiency, accelerate grid connections and support investment in strategically important digital infrastructure.
Asked by: Steve Barclay (Conservative - North East Cambridgeshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether National Grid (a) has sought or (b) plans to seek any increase in funding or budget allowances for the Grimsby to Walpole project.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Ofgem assesses electricity transmission investment through its price control framework and decides the efficient costs that can be recovered from consumers. The Government does not assess project costs.
Network companies must manage cost pressures and justify any proposed expenditure or changes to Ofgem, who scrutinises these costs and considers them alongside the benefits of investment, including increased network capacity and lower constraint costs.
The Government and Ofgem are committed to ensuring that the investment needed for a secure, reliable and clean electricity system is delivered at the lowest reasonable cost to consumers. This approach supports timely delivery while maintaining rigorous regulatory oversight.