The UK, Scottish, and Welsh governments have commissioned the National Energy System Operator (NESO) with drawing up a strategic plan to establish new energy infrastructure locations.
This initiative aims to support the governments’ ambition to become a clean energy superpower by providing investors with long-term certainty and stability, fostering growth in the UK’s clean energy sectors, generating employment and enhancing community life across Britain.
The NESO has been jointly commissioned by the three governments to create a Strategic Spatial Energy Plan (SSEP) up to 2050 that will encompass Great Britain’s land and sea areas. Initially, the SSEP will focus on electricity generation and storage, including the integration of hydrogen assets, with the possibility of expanding to cover additional energy types such as natural gas in future iterations. The first iteration is expected to be published in 2026.
NESO’s creation of the plan will involve the establishment of a governance structure, including the formation of a SSEP Committee consisting of representatives from NESO, the UK, Scottish, and Welsh governments, and the energy regulator, Ofgem. By the end of 2024, NESO is expected to develop and consult on a methodology for creating the SSEP, incorporating economic modelling, environmental assessments, and public consultation, subject to approval by the energy secretary and Ofgem.
Different “pathway options” for the future energy system will be developed and then reviewed by the governments before submission to the energy secretary. Following this, one pathway will be selected for further assessment and public consultation before finalising the SSEP.
The ultimate aim is for the plan to receive endorsement from the UK, Scottish, and Welsh governments, alongside Ofgem, facilitating a cooperative approach to planning the energy system’s future.
The SSEP will not only guide strategic planning but will also be integral to the upcoming Centralised Strategic Network Plan, aiming to provide a cohesive framework for transmission network infrastructure and plans.
This initiative supports the broader objectives of the UK, Scottish and Welsh governments in transitioning to low carbon energy, bolstering energy independence, and securing long-term energy supplies. By providing a comprehensive and public-endorsed pathway, the SSEP is set to accelerate the construction of necessary electricity generation and storage facilities throughout Britain, according to the government.
It added that the structured spatial approach will ensure environmental considerations, cross-sectoral demands and public preferences are accounted for, promising a robust plan that aligns with the public and industrial expectations.
As the plan progresses, it will provide an actionable guide aiding the UK, Scottish, and Welsh governments and industry stakeholders in making informed decisions about future energy projects. The government believes that this coordinated approach will ensure that Great Britain’s energy transition is both efficient and effective, meeting the governments’ goals for clean, affordable and secure energy.
Minister for energy Michael Shanks said: “To help drive growth and investment in our clean energy future, we need to provide investors with the long-term certainty and stability that they have been crying out for.
“That’s why we need a more strategic approach to our energy system, ensuring we can quickly scale up investment in the right infrastructure where we need it, to keep costs down and speed up our transition to clean power.
“Delivering the country’s first ever spatial plan will be a major milestone for our new public energy body.”
Welsh Government cabinet secretary for economy, energy and planning Rebecca Evans, said: “We welcome this strategic approach to the energy system, which should reduce overall costs and bring certainty to communities.
“In Wales we have been developing plans to meet our energy needs at the local, regional and national level for some years and look forward to working collaboratively with the NESO and others to feed into these UK-wide plans. Getting this right will help ensure we deliver the best possible outcomes for our communities and our industries through the considered development of the clean energy they will need to power them.”
Scottish government acting cabinet secretary for net zero and energy Gillian Martin MSP said: “I am committed to working collaboratively with other governments where it can accelerate progress towards Scotland’s economic and net zero targets.
“Key to the plan’s success will be ensuring that investor confidence is maintained throughout.
“It is also vital that it takes into account the nature of devolved policies and ambitions, delivers real benefits for the people and communities of Scotland and supports our ongoing efforts for a just transition.
“I look forward to working with the UK and Welsh governments on the plan as it develops.”
NESO chief operating officer Kayte O’Neill said: “We are delighted to receive this formal commission as NESO to develop this plan and bring together our expertise and that of our partners to develop this critical blueprint for Great Britain’s energy system of the future.
“By setting out pathway options, engaging across government, the regulator, wider industry, interested parties and with communities as well as exploring the needs at a more zonal and regional level we can then identify where and what type of electricity and storage technologies we need to meet our future demand and decarbonisation ambitions.”
SSE chief executive Alistair Phillips-Davies said: “As one of the largest investors in clean power in the UK we are very supportive of the strategic spatial energy plan. Having long-term stability through spatial plans and policy mechanisms will be critical to unlocking billions of pounds of investment across the country, supporting good jobs and building a homegrown energy system that is cleaner, more affordable and secure.”
Ofgem CEO Jonathan Brearley, said: “I warmly welcome and strongly support this commission to create the first national energy blueprint for Britain’s future energy system.
“It will be a real gamechanger in unlocking growth and investment, accelerating new infrastructure build, and speeding up innovation and technology. It will be a big stepping stone in delivering government’s mission to provide clean power by 2030 and accelerate the transition to net zero.
“Ofgem will work closely alongside the UK, Scottish and Welsh governments, as well as NESO, to protect consumers and to deliver clean power at the lowest possible cost.”
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