National Energy System Operator Plans To Boost Connectivity

National Energy System Operator plans to boost connectivity

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National Energy System Operator plans to boost connectivity

  • Publish Date: Posted about 1 month ago
  • Author: Marketing Team

In recent weeks the Government has announced the introduction of a new publicly owned National Energy System Operator. To achieve this, an agreement has been made with National Grid to acquire the Electricity System Operator (ESO) and transfer it to public ownership, at a cost of £630m. The move, the Government says, will bring gas and electricity network planning under one roof to support the clean energy transition.

Meeting future energy demands

For the UK to realise net zero plans and deliver the scale of green energy projects needed to reduce our reliance on fossil fuels, extensive work is required to make Britain’s energy system ready to connect local projects to the grid.

That’s where the Government hopes the new National Energy System Operator (NESO) will play an instrumental role, when work starts on 1st October. The new entity will provide independent oversight around the design of Great Britain’s energy networks, allowing for better planning of gas and electricity systems.

By dismantling the existing silos between electricity and gas systems, and providing a singular oversight, NESO will facilitate smoother interactions between the various stakeholders in the energy market - from producers to consumers and all intermediaries in between.

Speeding up grid connectivity

For energy providers, the most significant challenge they currently face when building new infrastructure projects such as wind farm is accessing grid connectivity. The growing demand to connect new energy infrastructure to the grid, teamed with an accelerated remit to minimise our reliance on energy providers outside of the UK, is causing a bottleneck. The introduction of the new NESO is a move the Government hopes will allow them to bring more clean energy projects online at a faster pace. It also aims to stabilise long-term energy prices, reducing business exposure to international energy market fluctuations.

Building the new Net Energy System Operator

Key appointments have already been announced, with seasoned energy sector experts recruited to oversee the new operator. NESO chair Dr Paul Golby is the former CEO of E.ON, whilst Chief Executive Officer Fintan Slye previously held positions as Director and Chair of the Board at National Grid’s ESO.

Driving energy costs

The bigger picture for the new Secretary of State for Energy Security and Net Zero, the Rt Hon Ed Milliband MP, will be to bring down the cost of household and business energy bills by building an energy network that is fit for the future.

Achieving net zero

A new Government brought with it reinvigorated appetite to meet net zero energy transition plans. Including in their manifesto and party pledges the promise of new jobs and cheaper energy bills.

In our Net Zero Newsletter on LinkedIn, we reviewed Labour’s detailed plans for the UK’s energy sector, including the introduction of a new publicly owned energy company, Great British Energy (GB Energy), and the regional investments planned over the coming years.

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