What does NESO’s Clean Power 2030 report mean for renewable developers and generators?

The National Energy System Operator (NESO) recently announced their plans for transitioning Great Britain to a clean power system by 2030. Their Clean Power 2030 (CP30) report, commissioned by the Secretary of State for Energy Security and Net Zero, highlights what is required to meet this goal. It explains that although a significant challenge, it is achievable and will require doing things differently. 

What does a ‘clean power’ system actually mean?

NESO have stated that by 2030, clean power sources will produce at least as much power as Great Britain consumes in total, and unabated gas should provide less than 5% of Great Britain’s generation in a typical weather year.

Key aspects of the report include:

• Nuclear power will play an important and essential role 
• Renewable energy will become the backbone of decarbonising the electricity system
• A major scale up in battery storage is required to increase capacity, as well as system flexibility and optimisation
• There will be major infrastructure investment, estimated at over £40bn per year 

We’re pleased to see this being released and are very supportive of the effort and transition plan being mapped out. EDF are aligned on the same vision and as always, welcome dialogue to discuss with industry partners on how we can work together. 

What could this mean for generators? 

The report highlights a huge deployment of renewable technology is required, with capacity needing to increase significantly. It is estimated annual power generation must double, and low carbon power generation must quadruple in order to reach net zero. 

For developers of new renewable generation sites, arguably the biggest barrier to this growth is the challenge of securing timely grid connections, with some new sites facing connection delays until 2033. Providing greater certainty around connection costs and timelines will mitigate some of the risk involved for project developers, enabling more accurate planning and budgeting. This is sought to be improved by the Connection Reform and EDF are actively engaging with NESO on the proposal.

For generators of existing sites, the key to this will be how NESO seek to manage outages to minimise disruption and costs to the industry while delivering essential grid reinforcement.

There’s a risk that some generators with existing sites could experience varying levels of disruption and outages during times when key improvements are being made. To minimise disruption, the following will be required: 

• As much notice as possible; 
• Minimising outage times; and 
• Planning outages during periods with least impact on operations

By addressing these challenges, the renewable energy sector can continue to operate and grow effectively, while meeting the ambitious targets ahead.

Can anything else be done to improve the Grid for generators? 

We know that network operators in other parts of the world offer certainty around connection costs and timelines, along with compensation for generators when outages occur. These measures significantly enhance investor confidence in new projects and improve revenue predictability. It would be a significant step for NESO to explore how similar commitments could be implemented in Great Britain.

Summary

We’re delighted NESO have taken their first steps in reforming the grid in Great Britain and planning for the essential infrastructure developments that are required. These actions are so important to our network of generators and partners and will make significant difference to investor confidence. 

Significant change is required, and implementing the plan will rely on a close partnership between government, local stakeholders, and industry participants. EDF are actively engaging with industry and government and will be continuing to work with a range of stakeholders to ensure that we’re supporting a sustainable future.

You can read more about how EDF are supporting the Clean Power 2030 vision here.