Accelerating the transition to net zero

Today we have published our final RIIO-2 Business Plan 2 (BP2) submission, which sets out our commitments from April 2023 to March 2025 as we look to accelerate the transition to net zero. In April, we shared a draft version of BP2 for consultation and our final plan reflects the stakeholder feedback we received as part of that process.

The opportunity for society and the wider British economy to benefit from the transition to net zero is significant – attracting inward investment, creating regional growth and jobs, improving our economic productivity and providing benefits to communities and the environment. Britain’s energy system is the cornerstone of this transition and, in 2021, the UK Government confirmed its ambition to fully decarbonise the electricity system by 2035. As the Electricity System Operator (ESO) for Great Britain, we hold a unique position at the heart of the energy industry. We have an unparalleled opportunity to work with government and industry to realise the benefits of the energy transition, solve the challenges that lie in our path and accelerate progress towards a net zero future. 

However, at the same time as stepping up to lead the energy transition over the longer term, we must also recognise the needs of energy consumers in the shorter term. We are submitting this plan against the backdrop of a major cost-of-living crisis, with energy costs at an unprecedented level. It is therefore vital that we minimise the cost and maximise the value of our operations wherever possible and redouble our efforts to keep costs down for consumers in the near term. We must also ensure that we contribute to a “just transition”, where affordability and fairness remain imperatives to a successful net zero outcome. 

Our BP2 plan sets out an ambitious suite of prioritised deliverables to make sure we can effectively fulfil our role in this transition and enable other industry participants to play their part. We have set out 11 clear priorities for BP2 to deliver the outcomes our stakeholders need from us over the next two years, grouped under the themes of delivering excellence in system operation, building efficient and effective markets, driving clarity in our path to net zero and enabling our organisation to perform. Together, our activities will drive over £2.8 billion of benefits for consumers over the 5 years of the RIIO-2 period.

The scale of change we need to deliver will demand a step-change in our own business – further embedding digital, data and technology capability, becoming the net zero employer of choice, driving rigour in our delivery approach and maintaining the agility and flexibility to adapt as the energy system continues to change at pace.

A big part of this step-change will be our growth into the Future System Operator (FSO) for GB, transitioning out of National Grid plc, accelerating the evolution and expansion of our role within the industry and establishing a new relationship with Government. We are hugely excited about the contribution we can make through BP2 and as we transition to the FSO.

You can learn more about our final BP2 plan at our webinar on Thursday 22 September by signing up here. We will be presenting a summary of what our stakeholders fed back to us on our draft submission and how we have used this feedback to shape the final plan.