RE: Back in after reading this article15 Jun 2022 16:39
just got this reply back from the cabinet office not going to stop constraint payment I'm afraid
Thank you for your email of 27 May to the Cabinet Office regarding renewable energy constraint
payments. Your email has been forwarded to this Department as the matter falls within our
portfolio.
Constraint payments remain by far the most efficient option for National Grid Electricity System
Operator to balance supply and demand across the transmission system. They are only used on
occasions where there is excess electricity supply or when the network is constrained, and are
not a viable long-term income stream for wind developers. On occasions, electricity generators
are compensated when their output needs to be constrained, but only through competitive market
arrangements. This guarantees long-term energy security and the best value for money for
consumers.
The Government committed within the British Energy Security Strategy to ensure the security of
Great Britain’s energy supply while keeping energy bills as low as possible. To do this, it is key
that we support renewable generation which are cheaper than carbon alternatives, while
supporting smart and flexible technology such as storage, which can lower peak demand.
Electricity storage can enable us to use energy more flexibly and de-carbonise our energy system
cost-effectively e.g. by helping to balance the system at lower cost, maximising the usable output
from intermittent low-carbon generation e.g. solar and wind, and deferring or avoiding the need
for costly network upgrades and new generation capacity. The Government is facilitating the
deployment of storage at all scales through the joint Ofgem and Department for Business, Energy
and Industrial Strategy Smart Systems and Flexibility Plan, a new version of which was published
in July 2021. In addition, the Government committed to ensuring the deployment of sufficient
large-scale, long-duration electricity storage to balance the overall system by developing
appropriate policy to de-risk investment.
Thank you once again for taking the time to write. I hope this response is helpful to you.
Yours sincerely
Lauren Wood
BEIS CORRESPONDENCE UNIT
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