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Ofgem’s draft determinations on RIIO2 next month must “send the right signals on the central role electricity networks have in delivering net zero”, according to Scottish Power.
The company says that a price control framework that stimulates green economic opportunities could allow it to double the £1.4 billion baseline investment plan SP Energy Networks submitted for the five years from 2021.
The regulator will publish its initial response to business plans from gas and electricity transmission companies – as well as gas distribution firms – on 9 July. Scottish Power said this “should be seen as an important test case for the scale of the UK’s ambition”.
The plea is included in the company’s “10 practical steps for a green recovery”, published today.
Launching the strategy, chief executive Keith Anderson pointed out that seven of the 10 steps would come at no additional cost to the government and would create a swathe of new jobs. He cited previously published research that the UK’s journey to net zero could support over 100,000 jobs each year between now and 2025, and over 200,000 annually between 2026 and 2030.
The company is also calling on the government to back up its commitment to 40GW of offshore wind by 2030 with action. It wants the removal of the cap on how many offshore projects can be deployed at any one time.
The report setting out the company’s proposals also stresses the need for “thinking ahead now about the most effective ways to integrate new renewables into a smart, low-carbon energy system”. It suggests a greater focus on co-locating battery storage and solar projects alongside onshore windfarms and says it is also considering opportunities to use technologies such as battery storage and green hydrogen as part of its offshore projects.
Scottish Power also joins the chorus of voices asking for an acceleration of the electric vehicle rollout and for the ban on new diesel and petrol car sales to be brought forward to 2030.
It says that a clear funding network is needed to deploy public chargepoints across the UK.
“Funding some of the costs of the EV charging infrastructure, such as the connection costs, over the long-term in much the same way as network companies are already repaid for investing in upgrading and reinforcing the grid, this programme would give a real boost to a new EV industry in the UK and give consumers the confidence to go electric by tackling range anxiety.
“It could set DNOs (distribution network operators) milestones to meet in terms of penetration levels to ensure timely installation. A networks-based programme like this could be supplemented by building on other existing schemes, such as the On-street Residential Chargepoint Scheme.”
Anderson said the 10 steps could provide “immediate, inexpensive actions that can be taken now to give an immediate boost to the economy and provide long-term environmental benefits”.
He added: “We don’t need over-ambitious new programmes or giant innovations to deliver the necessary transformation. We need to build low carbon homes, get people into electric cars and construct new wind farms. We can do all these things, and do them quickly, with just small changes to existing government rules and regulations. It really is a no-brainer.
“The time is now and there isn’t a moment to waste if we want to achieve a better future, quicker. Scottish Power has worked hard during this crisis to keep power flowing to homes and businesses, generate clean energy, support our customers and keep our colleagues safe. Now we need to start building our future and we are demonstrating just how easily that can be done.”
The 10 steps are:
- Build on success of existing Contracts for Difference scheme with ambitious programme of uncapped future auctions
- Prioritise climate change mitigation and support the planning process to speed up the net zero transition
- Ensure the right framework is in place to attract the investment in network infrastructure needed to meet net zero
- Unlock additional private investment through a more ambitious approach to the RIIO T2 and ED2 price controls
- Bring forward the petrol and diesel vehicle phase-out date to 2030
- Maintain grant funding for EVs and home chargers
- Support the roll-out of a comprehensive network of public EV chargepoints
- Speed up action on energy efficiency and bring forward the Future Homes Standard to 2022
- Increase grant funding for the roll-out of heat pumps and support heat pump-based heat networks
- A new approach on smart metering to accelerate rollout
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