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By Rebecca Beresford, director of markets at the UK’s National Energy System Operator
Last year we passed some historic milestones on the road to net zero.
In 2024, 50% of electricity generated across Great Britain came from renewable sources. Wind provided the largest share of Great Britain’s electricity for the first time. And, excitingly, we were able to announce that the United Kingdom became the first G7 country to phase out coal power.
These monumental achievements were the result of technological innovation and industry-wide collaboration, making 2024 the UK’s cleanest year of energy since records began. This is crucial progress towards the Government’s target of clean power by 2030, a mission that is requiring significant change, investment and a collective effort across the energy sector.
A fully sustainable energy system cannot compromise on the security, reliability, and affordability of energy that works for the entire country.
Let’s explore what the path ahead looks like for the energy industry, how collaboration can help us continue the momentum towards a greener future and how we can get to net zero responsibly – forging the path to a sustainable future for everyone.
What does a truly sustainable energy system look like?
In recent years a focused push around sustainability efforts has reshaped Great Britain’s energy generation mix. As industry continues to collaborate on the future of our energy system, it is crucial to keep core principles front of mind to achieve a net zero that works for everyone:
- Security – In such a complex system, it’s hugely important that the integrity and security of our energy isn’t compromised. That’s why we’re working on a whole energy basis to ensure traditional sources such as gas act as crucial stopgaps for weather-dependent renewables.
- Reliability – It’s crucial that we can manage the right mix of energy types with the right properties, so we can continue to deliver a stable and reliable service that can flex with consumer needs and industry demands. Alongside technological advances such as the first grid-forming batteries, our Stability Market Design project will do just this through the long-term development of a stability market.
- Affordability – We can’t compromise on the accessibility of energy for everyone in Great Britain. This will include careful management of network planning, so we’re always considering operational efficiencies and the viability of new innovations.
It also means factoring in the impact on consumers to minimise costs in the long term. By putting the consumer at the heart of planning and implementation considerations, we ensure that we can all feel the benefits of net zero.
How can we best serve a whole energy market?
A core part of our work has been starting to look at energy markets as a whole instead of considering different energy vectors in isolation.
This was a key message in our Clean Power 2030 report, which advised Government on the priorities to help us reach net zero in the next five years. For example, we acknowledged the challenges that come with co-ordinating industry wide collaboration, but recommended the consolidation of digitalisation initiatives, which are often isolated and siloed, into a unified sector-wide prioritised plan.
By engaging key stakeholders across different vectors, we can start to plan not just how each market can play a role in sustainable energy generation, but how markets can come together to realise a single vision.
For this to be successful, the energy industry needs to work towards these common goals together.
Energy markets are used to coordinate both investment in, and operation of, energy resources. However, GB energy markets are currently designed independently of each other. Much like national economies, markets for different vectors are at contrasting stages of maturity, each with their own structures, protocols, language and conventions, which may act as a barrier to effective interactions between them. The transition to affordable, secure, clean energy will require greater coordination across different energy markets.
The first step towards this vision is identifying opportunities for cross-market collaboration. We are conducting industry-wide research to highlight ways to decarbonise the energy system that benefit consumers.
Our initial findings indicate there are multiple areas where greater coordination across different energy markets will support Great Britain’s ability to meet climate change targets affordably, while maintaining security of supply.
This could include further understanding of carbon signals, regulated investment models, better whole system market design and unlocking clean heat. Our strategic role and industry engagement will inform the development of an analytical framework within which a whole energy market can come together to continue building momentum towards net zero.
For example, our Strategic Spatial Energy Planning (SSEP) will provide greater clarity to both investors and consumers on the reformation proposed within the energy system, and assessing the locations, quantities and types of energy infrastructure required to shape the net zero transition and benefit consumers.
How do we make this vision a reality?
To bring industry leaders together, we need a common framework to engage and unite every aspect of the energy system.
That’s the goal of NESO – to take a strategic and holistic approach to energy planning both for infrastructure and markets. A sustainable energy future requires collaboration from every corner of the energy industry and we have an important role to play over the next five years bringing that coordination together to deliver benefits for everyone.
We’re already seeing benefits be realised. For example, our CrowdFlex project is analysing energy data from both historical records and consumer trials to inform thinking in our control room on how to most efficiently manage the system, delivering greater flexibility and cost savings for consumers.
We also advised the Government that concerted efforts will need to be made to modernise and expand grid infrastructure, build out energy storage and plan for potential bottlenecks in supply chains as well as the availability of skilled workers, reflecting a need for strategic planning to engage the entire spectrum of the energy industry.
And we’re reforming how projects connect to the electricity transmission system, incorporating a diverse range of supplies to drive innovation and deliver benefits to consumers as soon as possible.
As we celebrate some historic milestones, it’s important not to lose focus on the goals ahead. Sustainable energy is about connecting people and building a future in which we can all thrive, and we must all come together to make this vision a reality.
The next five years are an important time to maintain momentum towards net zero. Are you ready to play your role in building a future where everyone has access to reliable, clean and affordable energy?
- This article was first published here by the National Energy System Operator. It was republished with NESO’s permission.
