National Grid has reached an agreement with the UK government to sell its Electricity System Operator (ESO) for £630 million.
The deal is an important milestone for the creation of a new publicly owned National Energy System Operator (NESO).
The Department for Energy Security and Net Zero (DESNZ) said the NESO will help connect new generation projects to the electricity grid, and work alongside GB Energy to deploy renewable energy projects.
DESNZ said the NESO will start work on 1 October, with former E.ON chief executive Dr Paul Golby as chairman and Fintan Slye as chief executive officer.
UK energy secretary Ed Miliband said the NESO has a “huge role to play” in delivering the Labour government’s mission to make Britain a “clean energy superpower”.
“Today marks a milestone for Britain’s energy system as we bring the system operator into public ownership to provide impartial, whole-system expertise on building a network that is fit for the future,” Miliband said.
© Fred Duval/SOPA Images/Shutterstock“We need to move Britain off expensive, insecure fossil fuel markets, and onto clean, cheap homegrown power that we control.
“This is how we reduce bills in the long term, strengthen our energy independence and support skilled jobs across the country.”
DESNZ said the NESO will fill a gap created by the lack of a single body responsible for overseeing the strategic planning and design of the UK electricity and gas networks.
The new body will have independent oversight for the design of all Great Britain’s energy networks, DESNZ said.
Alongside electricity and gas networks, DESNZ said NESO will oversee planning for renewable generation, storage and emerging technologies like carbon capture and hydrogen.
“The move will enable investors to build out new energy infrastructure with confidence in how their project will fit into the country’s wider clean energy plan,” DESNZ added.
Clean power by 2030
The government’s Mission Control body, headed up by former Climate Change Committee chief Chris Stark, has already tasked the NESO with giving advice on how the UK will reach Labour’s goal of delivering a decarbonised electricity grid by 2030.
Golby said the deal with National Grid is a “pivotal moment” ahead of launching the NESO in October.
“NESO will support a more integrated and coordinated strategy to meet the unprecedented challenges of climate change, ensuring security of energy supply and keeping bills as low as possible,” he said.
© Supplied by National Grid“NESO brings together critical roles and responsibilities under one roof, creating an environment that is essential for success.
“We will have a broad strategic oversight of both the electricity and gas systems, managing system planning, market operations, and ensuring that our energy infrastructure is secure, resilient, flexible, and future-proof.”
Ofgem chief executive Jonathan Brearley welcomed the transfer of the National Grid ESO into public hands.
“The setup of NESO is a huge step forward in ending Britain’s exposure to volatile energy markets and getting clean, renewable power to every single one of us,” he said.
“Its work is central to long-term energy security and to running the system day to day.
“We look forward to working with NESO to ensure Britain gets the clean power system it needs at the lowest possible cost to consumers and taxpayers.”
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