The Regulation and Policy team within SP Transmission are focused on delivering Net Zero by 2050 and Clean Power by 2030. We do this by working with government and industry stakeholders including the regulator and the National Energy System Operator (NESO). Developing and delivering evidence based regulatory and policy frameworks to deliver cost effective transmission investments for consumers and the economy.
This blog focusses on how we are ‘Moving the Grid Forward’ to Clean Power 2030 through our RIIO-T3 Business Plan. Watch this short video to hear more and read the full blog - or click here to scroll to the 3 key takeaways.
Two days after we submitted our RIIO-T3 Business Plan to Ofgem, on the 13th of December 2024, the UK government published their ‘Clean Power 2030 Action Plan: A new era of clean electricity’. Our RIIO-T3 plan is mission focussed to deliver the transmission investment needed to meet and exceed the government’s targets. Outlining our investment plans to:
The Prime Minister has made it clear that Clean Power is an urgent priority. CP2030 sets out the government’s pathway to work together with industry, trade unions and investors to tackle today’s cost of living crisis caused by exposure to volatile fossil fuel markets by “sprinting to clean, homegrown energy”.
Having recently returned from parental leave, securing a more sustainable future for the next generation including my two little ones is at the forefront of my heart and mind every day. At SP Transmission we’re transforming our network to decarbonise the power system and the whole economy for consumers today and for the next generation by connecting and transporting the clean power we need.
This transformation represents the most significant upgrade in the electricity grid since the 1960s and is central in the governments’ plan. CP2030 will ensure the economy is built on Clean Power for a more sustainable future for all. The government targets for Clean Power 2030 are:
How does this impact our RIIO-T3 Business Plan?
Accelerating Transmission investment alongside re-ordering the connections queue has been a key focus area for government, industry and Ofgem over recent years overturning decades of delay in investment. The government’s CP2030 plan was informed by the NESO in their first formal advisory role to government and Ofgem: “Build all planned transmission network on time, which involves twice as much in the next five years as was built in total over the last decade.”
This included Clean Power Capacity Regional Targets of how much of each clean power technology is required to connect to meet CP2030. The targets are subject to being re-freshed but as they stand today our RIIO-T3 Business Plan’s best view sets out the mission focus expected by government of £10.6bn of investment to exceed the NESO’s regional targets for Central and Southern Scotland by 2GW .
We note that the NESO has not included Offshore wind in the CP2030 Regional Clean Power Capacity caps. Given the impact of large offshore wind projects on the transmission system and the criticality of this technology for meeting net zero we’ve included our ‘T3 best view’ on offshore wind here exceeding the NESO’s regional targets by c6GW. The chart below displays our RIIO-T3 best view Vs CP2030 Regional caps.
Moving the Grid Forward
Our lives are more reliant on electricity than ever. Upgrading our power grid will unlock Britain's renewable potential and deliver cleaner, homegrown energy. Think of the grid as a motorway system for power, carrying energy from where it's made to where it's needed. It delivers power from wind farms, solar farms and power stations to your community.
As our lives become more reliant on electricity, we need to grow our grid to carry power to where people need it. Without this expansion, we can't make the most of our growing renewable energy production. Ultimately, upgrading our grid unlocks opportunity.
With this opportunity comes increased challenges. These can include challenges around the financeability of strategically important projects, their system access and a number of additional challenges such as land and consenting concerns. We need to ensure that in moving the grid forward we are tackling these challenges head on and at the appropriate level to ensure we delivery Britain's renewable potential as well as cleaner, homegrown energy.
The three transmission owners (TOs) in the UK - SP Energy Networks, National Grid, and SSEN Transmission - supported by the Energy Networks Association (ENA), have come together to launch a new campaign laying out the importance of the UK’s journey towards the creation of a national energy network that will enable it to become self-sufficient in homegrown, affordable energy.
Our campaign, Moving the Grid Forward, recognises that the UK needs to ensure our grid can handle the increasing demands of a digital world, with electricity demand set to double by 2050.
Watch the video below and find out more at www.movingthegridforward.co.uk
We’re upgrading our electricity system to support the transition to cleaner energy and enable homes and businesses to adopt low-carbon solutions across the country. But it’s not just about improving the infrastructure, it’s about people too. We want to take our communities on this journey with us and that’s why we have developed our community funding plans as part of our RIIO-T3 Business Plan. This is where we have outlined how we will support our communities to help them find solutions to local challenges, turn their ideas into feasible projects and unlock long-term benefits through funded projects. Find out more and register as a stakeholder for updates.
The top 3 takeaways from this blog are:
Delivering our RIIO-T3 business plan will deliver the economic benefits to grow the economy, near double the amount of renewable connections on our network and reducing constraints in the long term. We expect a decision from Ofgem’s ‘Draft Determination’ by summer with a 'Final Determination' by the end of the year. The NESO will re-fresh the regional targets following the connection queue re-order, moving to from ‘First to contract’ to ‘First Ready and Needed’ expected Summer 2025.
We’re ready to lead the way to Clean Power 2030 (CP2030), to a more sustainable future, using our proven track record, extensive experience, innovation and collaboration.
If you have any enquiries about our RIIO-T3 Business Plan, please email us on riio-t3pmo@spenergynetworks.co.uk