Ofgem approves regional energy plans

Energy plans for every part of Great Britain will be put in place by the end of 2027, mapping out what’s needed to upgrade the energy networks in every city, town and village in Britain.
Under plans revealed this week, energy regulator Ofgem has given the green light for the plans to be drawn up for Scotland, Wales and nine regions in England, by the independent National Energy System Operator (NESO).
Each plan will set out what needs to be done in each area to protect security of supply, meet rising electricity demand and help to deliver a cost-effective route to net zero.
The Regional Energy Strategic Plans (RESPs) will coordinate the rapid expansion of local energy, scaling up clean power generation. Not only this, the plans will also look at the building infrastructure needed for decarbonising heating and transport, industrial clusters and hydrogen plants. They will also assess how local areas have different needs in terms of security of energy supply in response to extreme weather events such as storms.
This is the first time Britain has integrated national and regional energy planning – in doing so, it should ensure there is enough capacity available on the network, when and where it is needed to support decarbonisation of industry, transport and heat, alongside new economic activity, such as data centres.
Akshay Kaul, director general of infrastructure at Ofgem, said: “The Great British energy system is experiencing unprecedented change as it transitions towards net zero. Regional Energy Strategic Plans (RESPs) are a vital part of this change and will ensure local priorities and communities are put first.
“This is the first time that national and regional planning will be fully integrated – city by city, town by town, neighbourhood by neighbourhood – putting the right networks and generation in the right place, cutting duplication and delivering the best value for customers.
“Coordinating in this way will end the disconnect across regional economies that has held back ambitions; target and unlock investment; fast-track building; create jobs and drive new low-carbon technology.
The scale of work needed to upgrade Britain’s energy infrastructure means electricity and gas network companies, planning bodies and the private sector all need to work together to achieve the ambitions set out by government.
Ofgem identified a lack of co-ordinated and standardised planning between these groups, which was leading to delays; RESPs are aimed at preventing these by ensuring all the relevant organisations are considering how different energy types such as gas, electricity, heat networks and hydrogen can co-exist in a regional system.
The transitional regional energy plans will be in place from 2026, and the first full plans delivered by late 2027.
RESPs will involve significant engagement with stakeholders to make sure the voices, needs and aspirations of local residents, businesses and communities are heard so the right energy system investments can be made. NESO will set-up arrangements in each RESP area to ensure stakeholders and local communities can participate effectively.