Electricity and gas network planning is to be brought under one roof, as the new independent National Energy System Operator launches to achieve the clean energy transition.
The publicly owned body will launch on October 1 and support the UK’s energy security, help to keep bills down in the long term and accelerate the government’s clean power mission
The government says the new organisation is part of a new more strategic approach, which will help to deliver clean power by 2030.
The new National Energy System Operator (NESO) will help connect new generation projects with the electricity grid, working alongside Great British Energy to deploy renewable energy, so bill payers can reap the benefits of clean, secure, homegrown power.
The new follows an agreement with National Grid to acquire the Electricity System Operator, which will be transferred to public ownership.
NESO will be chaired by former E.ON CEO Paul Golby, with Fintan Slye as the chief executive officer.
Energy secretary, Ed Miliband, said the news was a “milestone for Britain’s energy system” bringing the system operator into public ownership to provide “impartial, whole-system expertise on building a network that is fit for the future”.
He added: “The new National Energy System Operator has a huge role to play in delivering our mission to make Britain a clean energy superpower.
“We need to move Britain off expensive, insecure fossil fuel markets, and onto clean, cheap homegrown power that we control.
“This is how we reduce bills in the long term, strengthen our energy independence and support skilled jobs across the country.”
Currently, there is no single body responsible for overseeing the strategic planning and design of the country’s electricity and gas networks.
NESO will fill this gap – breaking down the siloes which currently exist between the planning of electricity and gas systems, with independent oversight for the design of all Great Britain’s energy networks.
Government says the move will enable investors to build out new energy infrastructure with confidence in how their project will fit into the country’s wider clean energy plan.
The new independent body will support the government’s rapid action to accelerate to net zero.
The government’s Mission Control – headed up by Chris Stark – has already given NESO one of its first tasks – commissioning it to provide advice on how the UK will hit its goal to deliver clean power by 2030.
It comes on top of launching Great British Energy, lifting England’s onshore wind ban, approving four major solar farms and launching the Clean Energy Mission Control Centre.
Paul Golby, chair of the National Energy System Operator, said: “This is a pivotal moment as we head closer to the launch of the National Energy System Operator on 1 October.
“NESO will support a more integrated and coordinated strategy to meet the unprecedented challenges of climate change, ensuring security of energy supply and keeping bills as low as possible.
“NESO brings together critical roles and responsibilities under one roof, creating an environment that is essential for success.
“We will have a broad strategic oversight of both the electricity and gas systems, managing system planning, market operations, and ensuring that our energy infrastructure is secure, resilient, flexible and future-proof.”
The National Energy System Operator has been established through powers under the Energy Act 2023.
This sets out the responsibilities of the new public body to maintain the UK’s energy supplies, protect energy consumers and plan for an efficient clean energy system that is fit for the future.
As part of this, NESO will take a cross-sector approach to planning the country’s energy system in the best interests of the British public - looking across electricity, gas and hydrogen, as well as renewable generation, storage and other emerging technologies like carbon capture usage and storage.
The independent organisation will map out the country’s future energy networks – helping both the government and Ofgem make informed decisions when considering new infrastructure, speeding up grid connections and progressing the UK’s net zero goals.