Local authorities need government support to develop energy plans

Local authorities need national-level support to produce the local energy plans that will inform the development of wider regional plans.  

Regen says the national government should “mandate and provide financial resources and guidance for all local authorities” to produce energy plans for their areas.  

The independent National Energy System Operator (NESO) that will shortly replace the Electricity System Operator at National Grid has been tasked with creating a series of Regional Energy Strategic Planners (RESPs). These RESPs will work with local authorities, energy networks and various stakeholders to develop strategic energy plans for each region of the country.  

In a new report exploring the role of RESPs, the not-for-profit consultancy Regen says Local Area Energy Plans (LAEPs) will be critical to the development of the strategic regional plans, “capturing regional energy ambitions and progress.”  

However, LAEPs are currently “produced on an ad-hoc basis and vary in the information included.” Regen says the RESPs are expected to provide guidance on shared standards and processes, but these bodies “will take some time establish”.  

In the meantime, the report says the Department for Energy Security and Net Zero and the Department for Levelling-up, Housing and Communities should “provide non-competitive funding for all local authorities” to produce LAEPs to “consistent outputs and standards.”  

The report also calls for the creation, initially on a trial basis, of regional boards comprised of elected officials and relevant stakeholders. These boards would provide democratic input and scrutiny, particularly in areas not currently served by devolved or combined authorities. One of their main functions be setting common regional objectives identifying specific priorities in each region.  

Regen notes that regional stakeholders will sometimes disagree or have competing interests and says RESPs are expected to play “a hands-on role” in resolving these conflicts. But it says more clarity is needed over what decisions they can realistically take.  

The report, which is sponsored by Scottish and Southern Electricity Networks, says network planning processes must become more iterative and transparent. There should be more clarity and consistency on the criteria for triggering anticipatory investment and more opportunities for stakeholders to provide early feedback on investment plans. 

Network planning should be better integrated with LAEPs, and across gas, electricity, transmission and distribution, to provide a solid foundation for RESPs to build upon. Network companies should continue to work with local authorities to provide technical advice, data and planning tools.  

The report additionally recommends the creation of an ‘in-development’ register to provide visibility over and track energy projects that are at an early stage of development and have not yet submitted a connection request.  

Regen says unlocking the value of RESPs will require “establishing mechanisms for broad regional input and participation; fostering open, transparent and dynamic energy planning processes; and coordinating meaningful strategic collaboration across gas and electricity networks, transmission, local authorities and other infrastructure and energy organisations”. 

Ahead of their creation, the report says there are clear opportunities for Ofgem, NESO, energy networks and local authorities to “evolve existing energy planning, investment and regulatory processes to unlock regional value in the interim”.  

It says it is important that these processes are leveraged to “avoid duplication, build momentum” and allow RESPs to “hit the ground running”. 

Utility Week recently launched a campaign called Make it a LAEP Year urging the government to mandate, and provide funding for, all local authorities to develop LAEPs. The Energy Systems Catapult has estimated the cost to the Treasury at £40 million.  

To sign up to the campaign, please email our editor James Wallin at jameswallin@fav-house.com.