Issue link: https://fhpublishing.uberflip.com/i/703545
NETWORK / 10 / JULY/AUGUST 2016 INTERVIEW stand back from a number of processes is important for the UK in the longer term. But it would be a "very good thing" if that SO was still National Grid in some form. On this the ECCC is in agreement, recommending that the knowledge held within National Grid is retained in any solution that the government proposes. Luckily National Grid is already making moves to create more separation, so a mutually satisfactory agreement should be possible. And a swi- solution would be ideal to ensure the UK is in a position to fully utilise its interconnectors once the current ties with Europe are cut. National Grid has already moved to advocate a Norway-style post-Brexit model as a way to retain influence and the benefits of interconnection from outside the EU. Whitehead does not share National Grid's confidence. Voting to leave the EU will leave the UK with little prospect of being able to negotiate the levels of interconnection needed in the future to maintain supply, he has warned since the vote. But Brexit has also meant the loss of Whitehead. A fervent Remain supporter, Whitehead wrote that leaving the European Union would be a "grievous and self- inflicted wound on our future as a European nation". A-er the vote, Whitehead resigned from his position, telling Labour leader Jeremy Corbyn that it had been a pleasure championing low carbon energy and combating climate change for the party, but he could not support the party's current leadership. Whitehead may have been shadow energy minister for only a year, but energy politics benefited from his wisdom gained through six years on the ECCC previously. And now, among this sea of change and revolving door politics, is arguably the time when that wisdom is needed most. N LO W C A R B O N N E T W O R K I N F R A S T R U C T U R E The RePORT IN BRIeF The headline finding in this, the first inquiry completed by the Energy and Climate Change Select Committee (ECCC) is the transfer of system operation from National Grid to an independent system operator at national level, and distribution system operators at regional level. The purpose of the enquiry was to investigate what changes are required from today's electricity infrastructure to build a low carbon, flexible and fair network capable of integrating increasing amounts of distributed generation and moving towards a smarter, more localised and diverse system. The report recommends: "Creating an Independent System Operator (ISO). Despite strong efforts by National Grid itself and Ofgem to mitigate the potential for conflicts of interest, it seems intractable and growing. Unnecessary asset development, or giving interconnectors an unfair advantage over existing and emerging balancing tools, could dilute the impact of other efforts to develop low-carbon network infrastructure. We note these concerns may also arise for Distribution System Operators in future. The government should set out its intentions regarding an ISO as soon as possible, and consult on a detailed, staged plan for their implementation, so as to avoid injecting uncertainty into the energy sector. In particular, it will be important to act in a fashion that retains National Grid's considerable technical expertise." ECCC chair Angus MacNeil MP said on the possibility of needing independent DSOs in the future: "We need somebody independent over the whole system and we don't have that at the moment. We've got people with carrots in the game, particularly around interconnectors, and that gives them leverage and muscle. "An ISO is an important thing, we do need to get at a more local level below that. We need to have DSOs that are more responsive and aware of what's going on. Overall we need that independence and if we have that, the chance of having conflicts at a different level will be less. "I don't think I'd discount independent DSOs, but what I would say is it's lesser. The ECCC was quite firm about the need for an ISO." The ECCC also expressed concerns that the smart meter rollout, which it noted is vitally important in the transition to smart grids, is not progressing quickly enough to achieve the necessary mass to truly create a smart energy network. Other recommendations: l The committee supports significant expansion of interconnection to help balance a low-carbon network, but also calls on the government to investigate what disadvantage UK generators may face as a consequence of high transmission charges in comparison with the rest of the EU as Great Britain becomes more interconnected. l A review of connection costs to help source electricity where the resource is best. l Set indicative targets for biomethane and hydrogen deployment in the gas grid. l Establish a regulatory framework – overseen by Ofgem – to encourage investment in district heating and complement existing voluntary schemes in safeguarding consumers. Responding to the report, the Energy Networks Association's chief executive, David Smith, said: "The growth in renewable generation connecting to the distribution network has surpassed all expectations in recent years. Through 'Connections Milestones' and 'Assessment and Design Fees', we want to address the unused capacity and speculative connection applications which tie up room on the network and increase the time and cost of connections that prevent other shovel- ready projects. "We welcome the committee's support for appropriate anticipatory investment too. While the economic signals about the location of connections is important for ensuring best value for money for consumers, allowing DNOs to invest ahead of need in certain circumstances will be beneficial in the long term." The energy and Climate Change Committee has launched an inquiry into the implications for UK energy policy of leaving the eU. The inquiry aims to determine which policy areas will need to be addressed during exit negotiations and assess possible impacts on trading and interconnection. DIARY NOTE