Powering forward

1. Upgrade the planning system

On average, construction of new transmission infrastructure takes 10 years, with the first seven years bogged down in planning. It's time to introduce robust strategic spatial planning of energy infrastructure while streamlining and expediting the planning system to accelerate development of new projects and upgrades to existing infrastructure.

• How to get it done
  • Permitted Development should be allowed for straightforward upgrades to our energy infrastructure without the burden of lengthy planning delays and bureaucratic processes, as is currently the case. A range of changes should also be made to the Electricity Act to speed up the processes for securing necessary approvals.
  • Align planning policy to the forthcoming spatial energy plans, endorsing the Centralised Strategic Network Plan (CSNP) in a future update of the energy National Policy Statements (NPS) and National Planning Policy Framework (NPPF), giving it weight in planning law. Alongside this, consideration should be given to the development of ‘simplified planning zones’ where a concentration of network infrastructure is needed.
  • Further reform the Nationally Significant Infrastructure Projects (NSIP) regime, by driving more effective, outcomes-focused pre-planning application engagement and clear guidance on best practice consultation. In addition, formal Government guidance should be issued to Planning Inspectorate (PINS) officials which provides a clear guidance on the advice and handling of NSIP applications.
  • In Scotland, decisions and consents for transmission infrastructure should be time-limited to 12 months, with or without a Public Local Inquiry. A total project development period of over five years is not uncommon. For projects which are subject to a Public Local Inquiries, this can frequently extend existing processes by at least another two years before a determination is made.
  • Take action to streamline access to land for new critical energy infrastructure, ensuring the process is as smooth as possible and benefits landowners and customers.
  • Increase and focus resource for planning authorities by implementing a framework and a template for Planning Performance Agreements (PPAs) and increase resource and capability within government expert bodies and statutory consultees, prioritising decision-making for Critical National Priority (CNP) applications, to ensure timely decisions.
  • Consolidation and streamlining of rights for both transmission and distribution networks to access the land their assets are situated on for business-as-usual activities, such as inspections, maintenance and repairs.

2. Reform the connections process to accelerate clean energy projects

Over the last five years, almost 10GW of clean generation and interconnection have been connected to the transmission network in England and Wales alone. However, as the result of an outdated process, the connections pipeline now sits at more than 12x what is needed to hit our net zero targets. We have seen significant progress through government and industry initiatives, but further action is needed to ensure the quick connection of viable clean energy projects.

• How to get it done

  A connections reform solution must definitively reduce and reorder the electricity connections pipeline, while also ensuring that it contains the right mix of technologies that the UK needs to hit its decarbonisation target. As a minimum, the new government must:

  • Strengthen the criteria needed to enter and maintain a place in the pipeline to make sure that unviable schemes can no longer block the way for credible clean energy projects.
  • Be aligned to the upcoming Strategic Spatial Energy Plan (SSEP) and Centralised Strategic Network Plan (CSNP) to allow for strategic investment that increases system efficiency and secures the UK’s supply of clean energy.

3. Create a stable policy and regulatory environment to unlock investment and supply chain capacity for the long term

Our networks have driven more than £150bn in investment since the early 1990s. Now, our members are set to invest £33bn more into the system—£22bn into electricity distribution (2023-2028) and nearly £11bn into transmission (2021-2026). For sustained investment and to give a clear signal to the supply chain, we need a clear, consistent and enduring policy and regulation environment.

• How to get it done
  • Clear and consistent policy and regulatory frameworks allow us to plan ahead for future needs, allowing earlier supply chain engagement and commitment. Policy decisions should be made in a clear and timely manner so that customers can adapt and the most efficient solutions can be found.
  • Ensure alignment between the government’s strategic plan, connections reform initiatives and the Review of Energy Market Arraignments (REMA), with a focus on concrete steps for delivery. This includes the development of local energy plans that detail the change required from Britain’s local distribution networks, as well as alignment with proposed Regional Energy System Planners (RESPs).
  • Accelerating delivery of network infrastructure will require a different approach to supply chain development and engagement, including a need to consider the skills required in parallel, collaborate across industry and create greater standardisation to drive efficiency.
  • Ensuring that, where appropriate, we have alignment with our neighbouring nations. The move towards an EU Carbon Border Adjustment Mechanism and the lack of movement towards linking the UK Emissions Trading System (ETS) with the EU ETS will create a tariff barrier on electricity exports from the UK to the EU. This could reduce GB electricity exports, increase GB wind curtailment and significantly reduce broader benefits for consumers on both sides of the Channel.

4. Support evolution of regulation

We back the current model for network regulation, RIIO — it’s been great for customers. But evolving the framework is crucial to meet future goals like net zero, decarbonisation and economic growth. The next government should ensure our regulatory regime can continue to deliver a grid fit for 2050 by ensuring our networks are financeable and maintain the gold standard of investability.

• How to get it done
  • The regulatory framework should evolve to be reflective of the heightened risks that will be faced by networks in the next price control period, including the scale and pace of investment programmes, competing supply chains and workforce availability, and the risks posed by climate change and cyber-crime.
  • For the next regulatory price control period, RIIO-3, we believe in a principle-based approach that generally looks to “touch the network once”, with a focus on planning for the electricity network of 2050. That does not rule out alternative approaches, where they are shown to have greater benefits e.g. the phased development and release of capacity for motorway service areas and electric vehicle charge points. Adoption of this approach will enable the networks, and relevant stakeholders, to better achieve benefits around establishing stability of supply chains, creating jobs for the present and future and increased efficiencies for customers as networks plan their investments over the longer-term.
  • Readiness for net zero also requires adaption of the networks for the changing climate. While our electricity networks are currently amongst the most reliable in the world, recent weather-related events have highlighted the need to adapt to meet increased incidence of high and gusting winds, flooding, and threat from fire. Investment in our networks needs to be planned with climate change resilience and adaptation in mind. In general, the investment needed to enable net zero will bring synergistic benefits to the resilience of the network but alone this will not deliver the resilience of the network to a changing climate

About our energy networks

Our energy networks power the UK. From your mobile phone to your heat pump, to our biggest manufacturing plants, our ports, airports and the small business down the road.

We’re getting ready for the future. We’re working hard to improve reliability, connect customers faster, to upgrade our networks to support more renewables, more solar and heat pumps, more electric vehicles and a more sustainable future.

We’re supporting the economy. We employ 26,000 people in the UK, and tens of thousands more through our supply chains. We employ 1,500 apprentices and trainees, with plans to recruit 700 more this year alone.

And it all happens with the flick of a switch.