The government has been urged to get on with moves, outlined in its Smart Systems and Flexibility Plan more than a year and a half ago, to change the legal status of electricity storage.
The National Infrastructure Commission (NIC), in its annual monitoring report published today (22 February), identifies the issue of legal status as the “biggest remaining barrier” to enabling storage to compete on a level playing field with generation.
But it points out that the government has not found parliamentary time since the plan’s publication 19 months ago, to amend the Electricity Act 1989 legal status of storage.
It says the implementation of the plan should remain an “ongoing priority” and its impact monitored with parliamentary time being made available at the “earliest opportunity” to amend the act.
But the commission says “good progress” has been made by government, Ofgem and industry to implement its recommendation to remove many of the barriers that impede storage from competing fairly with generation, such as the regulator’s review of the charging code and consultation on modifying the generation licence to include storage.
It urges the government, Ofgem and the Energy Networks Association to conclude these processes and ensure their findings are implemented as quickly as possible.
The report says that the recommendation on storage is one of 32 in its National Infrastructure Assessment, published last year, which have yet to be completed with ten fully implemented.
The NIC also concludes there has been partial progress on its recommendation on becoming a “world leader” in demand flexibility by ensuring that large users are aware of the potential savings they can make.
The infrastructure adviser’s second annual monitoring report, published today, says that progress on the total of 42 recommendations accepted by government has been “varied”.
And it finds there are many areas where “significantly increased momentum” is required to meet the Commission’s recommendations.
It concludes there has been partial progress on creating an independent System Operator with National Grid “on track” having commenced the separation of its activities last August.
And it says Ofgem should encourage network companies to identify opportunities to invest in electric vehicle charging infrastructure by this summer.
Sir John Armitt, chairman of the NIC, urged ministers to adopt the NIA’s recommendations when it publishes its National Infrastructure Strategy, which is due later this year.
He said: “There is a real and exciting chance available to ensure the UK benefits from world-class infrastructure, particularly through the forthcoming National Infrastructure Strategy – a first for this country. We cannot afford for ministers to take their eye off the ball.
“With this issue at the heart of the Industrial Strategy, I would urge the government to adopt the recommendations from our National Infrastructure Assessment, and use this to offer industry the long-term, fully-costed infrastructure plan they need.”