Unlocking economic benefits of energy transition only possible with bold action – CEO of NESO on first anniversary

Great Britain will only unlock the economic benefits of the energy transition if bold and sustained action is taken to deliver it, the CEO of Britain’s National Energy System Operator (NESO) has said on the organisation’s first anniversary.

Fintan Slye’s words come at the end of an inaugural year which has seen his organisation providing independent advice to the government on how to achieve clean power by 2030. NESO has also kickstarted a transformation of the grid connections process to unlock up to £40 billion a year of private investment in clean homegrown power, and spearheaded an investigation into one of the most disruptive power outages of recent years, affecting Heathrow Airport.

With electricity demand forecast to triple by 2050, Mr Slye says it is important for those across the energy industry to redouble their efforts to deliver more clean electricity and roll out network expansion. He believes no-one must be left behind, with households and businesses supported to switch to low-carbon heating, adopt energy efficiency measures and harness the benefits of demand flexibility.

Chief Executive of the National Energy System Operator, Fintan Slye, said:

“From our clean power 2030 advice through to our recommendations on protecting power supplies to our key national infrastructure, I am incredibly proud of what NESO has achieved in its first year, and can’t wait to build on this as we move forward.  

“Sitting at the heart of Britain’s energy system, NESO is bringing about historic change and innovation. Our electricity grid is decarbonising faster than almost any other country, we have already run the network at 95% zero-carbon for the first time this year,and seen coal phased out entirely.  

“But we can still go further and faster. If we are to fully unlock the economic benefits of the energy transition, then we need to take bold and sustained action to accelerate the roll-out of clean energy technologies. Together we can deliver the secure, clean and affordable energy system Britain deserves.”  

NESO’s establishment on 1 October 2024 as a not-for-profit, public corporation - operationally independent of the UK government - marked a new chapter in Britain’s energy transition. It is the first time a single organisation has been charged with planning Britain’s electricity and gas networks.  

NESO takes a bird’s eye view of how every part of the country is powered, operates the nation’s electricity network, and is tasked with providing expert independent advice to the UK government on a future clean energy system.

Energy Secretary Ed Miliband said:

"Our mission to make Britain a clean energy superpower is supported by our independent National Energy System Operator - set up to strengthen our energy security, keep bills down in the long term and deliver clean power by 2030.

"In its first year, NESO confirmed our clean power mission is achievable, more secure and could bring down the cost of electricity, and has got to work tackling the grid backlog delaying vital clean energy projects.

"I look forward to continuing to work with NESO to build an energy system fit for the future, that finally frees Britain from the fossil fuel rollercoaster."

CEO of Ofgem, Jonathan Brearley, said:

“The establishment of NESO was a significant step forward in building an energy system for Britain that removes our exposure to volatile energy markets - getting clean, renewable power to every one of us.

“Its work is central to long-term energy security, by developing a strategic network plan to provide the long-term direction on the optimal location of energy infrastructure. We look forward to continuing to work with NESO to ensure Britain gets the clean power system it needs at the lowest possible cost to consumers and taxpayers”

CEO of Energy UK, Dhara Vyas, said:  

“Great Britain can lead the world with clean energy to help bolster energy security. In the first year of NESO, we've seen lots that is worth celebrating. From the Clean Power Action Plan 2030 and how we're going to achieve everything that this Government wants to achieve, to the progress on connections and spatial planning.  

“What's great is that the system operator wants to work with business on this too, with an approach that includes regional energy planning, a transition to further renewables, along with long-duration storage, pumped hydro, CCUS, and hydrogen fired stations. We look forward to continuing to work closely together in the future.”  

Some of NESO’s highlights during year one

Clean Power advice

One of NESO’s first tasks last autumn was to produce far-reaching independent advice to government on what it would take to deliver Clean Power by 2030, having been commissioned by the then new Energy Secretary. NESO concluded that while reaching clean power will be a huge challenge, it was achievable.  

The advice, which followed wide engagement across industry, was used to create the Government’s Clean Power 2030 Action Plan, which set out a pathway to achieving the 2030 ambition. It set out that in order to achieve clean power by the end of this decade, a once-in-a-generation shift in approach and pace of delivery is needed.

This includes a huge clean power building programme, with nearly a tripling of offshore wind, doubling of onshore wind and a quadrupling of solar power. It would also require an historic expansion of the national grid to accommodate the new generation. It concluded that increases in domestic clean energy production would significantly reduce Britain’s exposure to future energy price shocks from spikes in international gas prices.

North Hyde investigation

In the Spring, NESO was commissioned to conduct an independent investigation into the power outage at North Hyde, which caused the closure of Heathrow airport. It reviewed nearly 900 pieces of evidence, including forensic analysis, to conclude that the outage was caused by a fault on an electrical insulator and opportunities to address the fault that led to the fire were missed.

The recommendations and proposed next steps for improving the energy security of Critical National Infrastructure have been broadly welcomed, in the hope that they lead to improvements in the resilience of vital infrastructure across the country.

Reforming the connections process

In the summer, NESO moved to unlock up to £40 billion a year of private investment in clean homegrown power by kickstarting a once-in-a-generation transformation of how energy generators connect to Britain’s electricity network.

For the first time, shovel-ready clean energy projects like new wind and solar farms will be able to connect much quicker, ending a growing gridlock. It has been lauded as an instrumental step in supporting the government’s Clean Power 2030 ambition, while bolstering economic growth.

ENDS