Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the potential role of artificial intelligence and smart data technologies in modernising energy networks and forecasting operational capacity; and how this assessment informs policy on national energy resilience and industrial competitiveness.
Answered by Lord Whitehead - Minister of State (Department for Energy Security and Net Zero)
Embracing the opportunities that AI offers to drive economic growth and productivity is a core government objective. As per the government funded AI for Decarbonisation Virtual Centre of Excellence’s annual report, AI can support delivery of Clean Power by 2030 by enabling low carbon electricity generation, improving grid access, and enhancing the efficient operation of the energy system. As part of the government’s wider AI-and-decarbonisation programme, we launched a review of the grid by the AI Champion for Clean Energy. This will provide an expert assessment of the opportunities, risks, and enablers for AI technologies, aligning government, regulators, and industry.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of whether curtailment payments create incentives to locate generation in areas with insufficient grid capacity.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The revenue that generators can make from curtailment payments is regulated by Ofgem through the Transmission Constraint Licence Condition. This regulation limits the revenue generators can make from being curtailed to the value of the revenue lost through not being able to generate plus reasonable costs. Ofgem can and does take enforcement action against generators that it believes are not complying with this regulation.
The Strategic Spatial Energy Plan (SSEP) will optimise the siting of new sources of electricity generation across Great Britain. The Government’s Reformed National Pricing programme will have the SSEP at its heart, and reforms will be designed to ensure incentives for generation projects encourage siting and investment in areas that align with the SSEP.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what recent estimate his Department has made of the proportion of curtailment costs borne by domestic consumers.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Data relating to curtailment caused by constraints including costs is provided in the National Energy System Operator (NESO) Annual Balancing Report at this link: neso.energy/document/362561/download. Constraint costs, as with other interventions taken by NESO to balance the electricity system, are recovered from consumers through Balancing Service Use of System Charges. Both domestic and non-domestic consumers pay these balancing costs, in proportion to their energy consumption. Although the most energy intensive industries receive additional support with these costs.
The current extent of grid constraints reflects years of underinvestment, with new network infrastructure development having lagged the expansion of new generation. We are already taking action to reduce constraints with the biggest upgrade to Great Britain’s electricity network in decades.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what measures are in place to limit curtailment costs during the period before new grid infrastructure becomes operational.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government, the National Energy System Operator (NESO) and the Office of Gas and Electricity Markets (Ofgem) are pursuing measures which will reduce constraint costs in the short term. These include making best use of the existing network, deploying smart grid technologies and taking measures to reduce the amount of time networks need to be out of service for essential new build and maintenance. NESO is also progressing other technical measures at pace via the Constraints Collaboration Project. We intend to announce further measures in the Reformed National Pricing (RNP) Deliver Plan which will be published shortly.
Asked by: Dave Doogan (Scottish National Party - Angus and Perthshire Glens)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what estimate his Department has made of the cost of constraint payments and balancing actions in each year since 2020; and what assessment his Department has made of the potential impact of this on domestic energy bills.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The breakdown of curtailment and balancing action costs borne by domestic consumers and other data relating to constraints is provided in the National Energy System Operator (NESO) Annual Balancing Report. The most recent of these reports was published in June 2025 which can be found via this link: neso.energy/document/362561/download. We recognise that actions are needed to reduce system constraints. The current extent of grid constraints reflects years of underinvestment, with new network infrastructure development having lagged the expansion of new generation. We are already taking action to reduce constraints with the biggest upgrade to Great Britain’s electricity network in decades.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the compatibility of his Clean Power 2030 target with current grid capacity constraints.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Clean Power Action Plan set out the actions needed to deliver the Clean Power target, including the generation assets required and the network projects needed to transport homegrown power to homes and business across the country. This was based on advice from the National Energy System Operator that is informed by its analysis of current and expected future grid capacity constraints.
Asked by: James McMurdock (Independent - South Basildon and East Thurrock)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what recent assessment he has made of the role of battery storage in reducing renewable curtailment.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
Electricity storage has an important role to play in decarbonising the power sector by helping to balance the electricity system at lower cost. Electricity storage achieves this by charging when electricity is abundant and discharging when it is scarcer, thereby mitigating the need for grid reinforcement and reducing the curtailment of renewable generation. Efficient use of storage therefore offers opportunities for reducing constraint costs. The Government, the National Energy System Operator (NESO) and the Office of Gas and Electricity Markets (Ofgem) are currently investigating options aimed at maximising the benefits of storage technologies in reducing system costs.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central and West)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, whether he has made an assessment of the potential implications for UK energy grid procurement policies of the Strider report on US grid dependency on Chinese components.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The protection and security of the energy sector is an absolute priority of this Government. My department is committed to working closely across Government and industry stakeholders to take forward the actions needed to develop supply chains that are resilient, sustainable, innovative and secure. Investment in the energy sector is subject to the highest levels of national security scrutiny – we take a consistent, long-term and strategic approach to managing relations with China and will co-operate where we can, compete where we need to, and challenge where we must.
As an open economy, we welcome foreign trade and investment where it supports growth and jobs in the UK, meets our stringent legal and regulatory requirements, and does not compromise our national security.
Asked by: Pippa Heylings (Liberal Democrat - South Cambridgeshire)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 12 December 2025 to Question 96957, when his Department plans to roll out the Connections Accelerator Service.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Connections Accelerator Service became operational in December 2025, entering its pilot phase and meeting the commitment set out in the Industrial Strategy. The Department is now scaling up the service throughout 2026.
Asked by: Wendy Morton (Conservative - Aldridge-Brownhills)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what recent estimate his Department has made of the cost of decarbonising the electricity grid by 2030.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
NESO's analysis confirmed delivering clean power by 2030 is deliverable, more secure, and could see a lower cost of electricity, and lower bills.
We are committed to working with industry to grow our clean energy system with once-in-a-generation levels of energy investment – an estimated £40 billion, the vast majority of which will come from the private sector.
The government is leveraging public finance institutions like the National Wealth Fund and Great British Energy to catalyse private investment.