Local residents put first in regional energy plans
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Energy plans for every part of Great Britain will be put in place by the end of 2027, mapping out what’s needed to upgrade the energy networks in every city, town and village in Britain.
Under plans revealed today (Wednesday 2 April), energy regulator Ofgem has given the green light for the plans to be drawn up for Scotland, Wales and nine regions in England, by the independent National Energy System Operator (NESO).
Each plan will set out what needs to be done in each area to protect security of supply, meet rising electricity demand and help to deliver a cost-effective route to net zero.
The Regional Energy Strategic Plans (RESPs) will coordinate the rapid expansion of local energy, scaling up clean power generation. Not only this, the plans will also look at the building infrastructure needed for decarbonising heating and transport, industrial clusters and hydrogen plants. They will also assess how local areas have different needs in terms of security of energy supply in response to extreme weather events such as storms.
This is the first time Britain has integrated national and regional energy planning – in doing so, it should ensure there is enough capacity available on the network, when and where it is needed to support decarbonisation of industry, transport and heat, alongside new economic activity, such as data centres.
Akshay Kaul, Director General of Infrastructure at Ofgem, said:
“The Great British energy system is experiencing unprecedented change as it transitions towards net zero. Regional Energy Strategic Plans (RESPs) are a vital part of this change and will ensure local priorities and communities are put first.
“This is the first time that national and regional planning will be fully integrated – city by city, town by town, neighbourhood by neighbourhood – putting the right networks and generation in the right place, cutting duplication and delivering the best value for customers.
“Coordinating in this way will end the disconnect across regional economies that has held back ambitions; target and unlock investment; fast-track building; create jobs and drive new low-carbon technology.
The scale of work needed to upgrade Britain’s energy infrastructure means electricity and gas network companies, planning bodies and the private sector all need to work together to achieve the ambitions set out by government.
Ofgem identified a lack of co-ordinated and standardised planning between these groups, which was leading to delays; RESPs are aimed at preventing these by ensuring all the relevant organisations are considering how different energy types such as gas, electricity, heat networks and hydrogen can co-exist in a regional system.
The transitional regional energy plans will be in place from 2026, and the first full plans delivered by late 2027.
RESPs will involve significant engagement with stakeholders to make sure the voices, needs and aspirations of local residents, businesses and communities are heard so the right energy system investments can be made. NESO will set-up arrangements in each RESP area to ensure stakeholders and local communities can participate effectively.
Notes to editors:
To mobilise clean power by 2030, Great Britain will need to mobilise and deploy an average of over £40bn investment annually in energy infrastructure in the next five years. Without coordinated planning, it is likely that we will end up with higher costs and less affordable energy.
Strategic planning: RESPs will coordinate national, regional and local energy planning by modelling how to meet projected generation and demand in each region over a 10-year period, with multiple long-term options to reach net zero in 2050 – based on the national blueprint (the Strategic Spatial Energy Plan) being drawn up by NESO. This will be based on, not replace, existing energy policy and plans drawing on robust network, government and cross-sector data, including demographics.
Network expansion: the plans will set the direction for smart, real-time, flexible networks to decarbonise heating and transport; build net zero industrial clusters and hydrogen hubs; scale-up retrofitting buildings and expand power generation and storage connected to local networks from 30GW to between 80GW and 140GW in 2050 – with NESO reporting 29% of onshore wind and 90% of solar capacity connected to the distribution networks.
Affordable energy: the plans will accelerate demand side flexibility, keeping costs of the energy transition as low as possible across the country by cutting network constraints, speeding up connections accelerating low-carbon technologies. The spatial plannings will drill down to set neighbourhood areas, to an average of 1500 people or 650 households, so all consumers can cut their costs from using excess clean electricity, when renewable generation is high.
All 11 RESPs will be overseen by a Strategic Board (one board per RESP area) drawn from devolved, regional and local government, with a mandatory 80% vote required to sign off the final document. Ofgem will make the final decision if a super-majority is not reached. The boards will also include representatives from gas and electricity distribution operators and other cross-sector bodies involved in spatial planning or investment. The RESP will have an annual data refresh and full update every three years, alongside targeted reviews of electricity and gas network plans.