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The ambition of this year’s Autumn Statement is clear – boost business investment, increase jobs and in turn bolster the economy. Without doubt, the message for the energy sector is one of delivery.
This year has seen the 70th anniversary of the supergrid, and today, as we transition to a new era of clean energy, it is fair to say that the UK has made tremendous progress in decarbonising our power system over the past decade. Earlier this year, National Grid launched The Great Grid Upgrade – the largest overhaul of the network in generations – which will see us deliver 17 new offshore and onshore transmission projects. To make it happen, at the scale and speed needed, requires a step change in how we plan, consent, consult and build.
This is why it was fantastic to see networks take centre stage in a raft of government energy announcements last week, with progress being made on tackling some of the big questions facing all those involved in the energy transition. The government’s response to Electricity Network Commissioner Nick Winser’s report, the Connections Action Plan and, of course, the bold plans set out in the Autumn Statement, demonstrate a clear commitment to accelerating the delivery of net zero projects.
The electricity grid plays a central role in all our lives and is a vital part of our net zero future, so we must move at speed with its upgrade. Grid connections reform is a critical part of this. This is why it is so welcome to see a bold connections plan to reform and accelerate the way that clean energy projects plug in to the network.
The current unconstrained connections market with its low barriers to entry and queue allocation, on a first come first served basis, has resulted in a transmission connections pipeline which currently stands at more than 300GW in England and Wales – that’s almost three times as much new capacity as we need to achieve net zero by 2050.
Proposals to remove stalled projects from the connections pipelines and raise entry requirements for new projects looking to connect to the grid are important moves and will help to accelerate connections. However, it may be that collectively we need to do more to re-prioritise the queue to make sure the right projects deliver value to GB customers.
The government’s response to the Winser report set out some clear recommendations including a commitment to deliver a strategic spatial energy plan and streamlined consenting process for vital net zero infrastructure. These measures are particularly welcome and together with a networks plan, which is hardwired into planning law, will bring urgency to what needs to be built where. We all need to work together to deliver these plans as soon as possible.
Crucially, balancing the need for infrastructure and its impact on residents is essential and our approach has always been to consult with communities as much as possible. Communities have a fundamental role in the energy transition, and we believe those that host energy infrastructure should receive fair and enduring benefits for doing so. It is excellent to see the proposals for community benefits being published in tandem with the broader energy announcements. The finalised benefits strategy needs to be flexible enough to meet the needs of the local communities, as well as bring broader socio-economic and regional legacy benefits too.
The intent from government and Ofgem is clear; now it’s about delivery. With a shared commitment the UK can move from ambition to action and capture the economic opportunity of the energy transition to keep Britain on target to achieve its climate goals.
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