The National Energy System Operator (NESO) has quite the task ahead, to build out a suite of strategic plans for our future energy system. By bringing together the future shape of the UK’s energy generation, demand, and infrastructure, these plans will have significant implications for the UK’s large energy users. Industry remains a major player in the energy league, despite a decline in industrial production over the last few decades. In 2023, industry consumed 16% of the UK’s total energy and accounted for 27% of electricity use.
Despite this, the Catapult has heard from our conversations with industrial stakeholders, as well as from events across the sector, that industry can feel left out of the network planning process. There remains a degree of uncertainty over the direction of future choices about policy and network infrastructure – which can make it more difficult for industry to plan its route to decarbonisation. As the UK maps out its future Net Zero energy system, how can industry become better integrated into the planning process?
Network planning is crucial in order to identify investment needs and ensure the UK’s energy system can meet demand. NESO is currently developing several strategic plans, each with a distinct role:
UK industry – and its pathway to Net Zero – will feel the impacts of each of these plans. Decarbonising an industrial plant, site or sector is not just a question of ambition, but also of infrastructure. Whether an industrial site opts to electrify its processes, switch from gas to hydrogen, or install carbon capture and storage (CCS) plants, each pathway will depend on decisions made by network planners about grid connections, hydrogen pipelines and CO2 transport and storage.
Industrial clusters have a head start, as their scale and concentration make them attractive for large-scale infrastructure investment. For clusters, it will be critically important that the RESP process achieves its stated aim of being cross-vector. The UK’s industry stands to benefit greatly from an approach to RESPs which is attuned not only to electricity demand, but also to hydrogen, gas and CO2 networks.
Dispersed industrial sites, on the other hand, could face an even tougher challenge. Located outside of major clusters, they are less likely to secure access to hydrogen or CO2 networks, and might therefore rely more heavily on electrification. Timely and affordable grid connections will be key for dispersed sites to be able to decarbonise, and the recently announced Connections Accelerator Service aims to support industry in securing these.
Industry does not just consume energy – it can also contribute to local energy systems. Waste heat from industrial processes, for example, could become a valuable input for local heat networks. Integrating industrial sites into these networks is a prime example of the type of whole systems thinking that the RESPs aim to deliver.
RESPs are overseen by Strategic Boards, supported by working groups, which ultimately aim to bring together differing energy needs across a region to create a cohesive plan. To do so, they are undertaking significant engagement with stakeholders, including industry. The more detailed the energy consumption data that is provided during this ongoing engagement process, the more accurate the pathway that the RESPs will be able to set out.
Energy Systems Catapult is supporting local authorities through the Ready for RESP programme, helping them to engage effectively in the RESP process. This programme provides learning sessions, toolkits and guides on good practice for local authorities, to help them prepare and prioritise activities to help inform credible and inclusive RESP outputs.
Ready for RESP builds on the Catapult’s pioneering work in Local Area Energy Planning (LAEP), which is a process that enables stakeholders, led by local government, to explore different energy futures for an area and to identify the most promising, cost-effective options for decarbonisation and provide them with a pathway of how to get there. Local Area Energy Plans (LAEPs) are a powerful tool for network operators, providing the foundation for justifying and planning network upgrades. They are also well-suited to incorporating the needs of local industrial sites, supporting opportunities for co-location and co-generation, and making the most of waste industrial heat. There are now over 130 LAEPs in the UK, representing around a quarter of local authorities.
From grid connections to hydrogen pipelines to waste heat, industry needs to be fully integrated into network planning. Its ability to decarbonise will depend on the shape and size of new and upgraded infrastructure. Investments in this infrastructure are currently being decided for Ofgem’s next network price control period from 2028-2033.
By engaging in network planning processes, including NESO’s strategic planning, industry can both shape and better understand what infrastructure will be available when. The Catapult’s expertise in LAEPs, whole systems modelling, policy, regulation, and stakeholder insights can support industrial operators throughout the strategic planning process and identify implications for decarbonising industrial sites. Contact us to explore further how to engage and make a case for your site.
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