Ofgem and the UK Government have released The Electricity Networks Strategic Framework outlining how the energy network will transform in order to support the decarbonisation of the UK.
According to the document, the network needs to be transformed at an unprecedented scale and pace to accommodate decarbonisation and demand growth.
The strategic framework sets out a shared vision for the transformation of the electricity network and the direction of travel for future policy and regulation. This could reduce regulatory approval gates to support the growth of early projects in addition to provide early funding.
The UK Government has laid out its intention to ensure the electricity network will be planned strategically, led by the independent Future System.
In order to achieve this, the government and Ofgem will ensure an independent Future System Operator will play a vital role in advising key decision makers on maximising the efficiency of the system and take an increasingly significant role in shaping the energy system and driving forward competition.
This intention had been revealed in 2021 with the Department of Business, Energy and Industrial Strategy (BEIS) confirming an independent body will be needed to take over from National Grid to run the electricity system to avoid any perceived conflicts of interest within the industry.
To transform the network and implement more strategic planning, the government and Ofgem will also coordinate onshore and offshore planning more closely as the country accelerates offshore wind deployment.
This could optimise the location of the windfarms and also support its connectivity to the UK’s energy grid allowing renewable energy to take centre stage on the path to net zero. This could help connect 50GW of onshore and offshore wind to the electricity grid by 2030.
Over the next two years network planning will evolve into a single Centralised Strategic Network Plan (CSNP) for both the onshore and offshore electricity transmission network, the report states.
This will support the integration of new innovative technologies to the energy system for carbon capture, utilisation and storage as well as hydrogen and gas infrastructure.
As well as this, providing funding for networks will act as a key enabler for net zero and can support the move to an increasingly self-sufficient energy system in the UK.
“We welcome further recognition from the UK Government and Ofgem of the vital importance of boosting strategic investment in Britain’s electricity networks,” said Alistair Phillips-Davies, chief executive of SSE.
“This will be essential if we are to achieve the scale of transformation required over this decade at the time customers need it to, reach net zero, and deliver a more secure energy system for consumers.”
“To achieve net zero and adequately meet customers’ needs, equally ambitious progress is needed for distribution networks. With Ofgem currently consulting on the critical ED2 price control, the strong signal sent through today’s publication must be reflected in the final determinations later this year to facilitate decarbonisation and support an ever-increasing reliance on electricity networks.”
The plans are part of a mission to cater for the growing demand in decarbonised technologies set to be connected to the grid. When the government published its highly anticipated Net Zero Strategy, many in the energy industry called for more action and which would allow more projects to be scaled as a result.
