National Grid ESO has reached a “critical milestone” in its transition to the UK’s National Energy System Operator (NESO) in summer 2024.
When ESO becomes NESO, it will be responsible for planning Britain’s electricity and gas networks while continuing to also operate the electricity system.
A key element of this milestone was the appointment of Kayte O’Neill as the network provider’s first-ever chief operating officer (COO).
O’Neill will chair the operations executive committee (OpCo), which is responsible for the delivery of operational transformation within the organisation and will focus on aspects of NESO’s business plan such as key performance indicators, objectives, full-time equivalent and costs.
The organisational redesign also introduced the executive committee (ExCo), which will be chaired by the current chief executive officer (CEO), Fintan Slye.
This committee will be responsible for setting the shape and goals of NESO and allocating resources to deliver against these goals.
Speaking on the redesign, Slye said: “I am really pleased that Kayte is taking up the role of chief operating officer (COO) at the ESO, leading our newly formed Operational Executive Team as we prepare to become the National Energy System Operator this summer. I know she will deliver real focus on meeting our customers’ needs.”
The new COO, Kayte O’Neill, has said she views this as an “exciting opportunity” and that “leading the operations executive team will allow me to focus on meeting our current and future customers’ needs while continuing our commitment to ensure that Britain’s energy system is secure, affordable and forges a sustainable future for everyone”.
She added: “To mark the start of my new role, I’m meeting our customers to outline how these organisational changes will benefit them and discuss how we can decarbonise Great Britain’s energy system together.”
The journey so far
The idea of a version of NESO was first birthed in April 2022, when the UK government identified the need for a new fully independent system operator, suggesting it should be built on the capabilities of the ESO as well as, where appropriate, National Grid Gas.
The Energy Act, which was passed into law in October 2023, solidified this transition as the legislation made mention of establishing a Future System Operator (FSO), in addition to highlighting the nation’s net zero duty and a need for new business models for hydrogen transport and storage.
Finally, last month (January), ESO announced the name of the potential FSO, dubbing it the National Energy System Operator (NESO), after it had been made a key component of the Energy Act.
ESO has also been making advances in its flexibility services, including introducing a new Balancing Reserve (BR) service that allows for day-ahead procurement for energy reserves and aims to save consumers £639 million over four years.
The new BR service, recently approved by energy regulator Ofgem, will allow the ESO to procure Regulating Reserve on a “firm basis” day ahead, with daily auctions running on its Enduring Auction Capability (EAC) platform with a minimum contract size of 1MW.
Also, in September 2023, ESO began a new trial as part of the firm’s Power Responsive programme using electric vehicles (EVs) to help balance Britain’s electricity grid.
The trial allowed households with smart EV charging capability to adapt their charging habits in response to instructions sent from the ESO, thus incorporating the charge of EVs into it grid flexibility services.