Smart Local Energy Systems (SLES) offer a pathway to deliver the energy system transformation to meet the UK’s target of achieving net zero carbon emissions by 2050. Additionally, Local Area Energy Planning (LAEP) is evolving as a ‘wider view’ decision-making process for decarbonisation in local areas.

Whilst local actors could develop SLES and LAEP independently, an integrated approach to development offers significant benefits to both approaches.

Energy Systems Catapult commissioned Arup to review recent evidence and experience of SLES and LAEP and to prepare a guidance document for local actors on how they can design and deliver SLES in the context of LAEP.

This work builds on the extensive learning on SLES and LAEP across many programmes and research studies. We have drawn especially from the learning on projects supported by the Prospering for the Energy Revolution (PFER) programme and the ESC’s Energy Revolution Integration Service (ERIS).

Our overarching research question for the commission was:

“How can LAEP be an enabler in the design, delivery and policy structure of SLES, allowing benefits of both approaches to be unlocked?”

Key points

What is the difference between a LAEP and a SLES?

LAEPs are concerned with what could be an achievable energy transition pathway for a local area, while SLES focuses on potential delivery of the technical aspects of that transition. ARUP propose the following definitions of SLES and LAEP:

• Local Area Energy Planning is a multi-actor decision-making process designed to achieve a shared vision for cost-effective decarbonisation pathways in local areas. Its end product is an agreed plan for the local area which enables confident decision-making in design and delivery of, and investment in, local energy systems.

• Smart Local Energy Systems are tangible engineering concepts which are operated and managed within local areas. They comprise a set of varied solutions with technological, governance, regulatory, economic and social dimensions which use local assets and actors to form an integrated ‘system of systems’.

These definitions reflect the understanding that LAEP and SLES are interrelated but independent approaches. They can operate at multiple scales and over different time periods.

At a high level LAEP provides the ‘what’ (plan) and SLES is the ‘how’ (implementation). Current barriers to their development include an incomplete policy framework, the complexity of integration, the mismatch of costs and benefits and the significant additional skills and resources required.

Key points of guidance for local actors developing LAEP and SLES approaches across five themes are:

1. Planning
2. Evidence and promotion
3. Connectivity
4. Co-development
5. Learning and discovery

Local actors are expected to play multiple roles in the delivery of SLES and LAEP processes and, in turn, roles are expected to be fulfilled by multiple actors. The success of LAEP and SLES depends on having the roles filled and resources in place for effective performance of those roles. Expansion of LAEP and SLES activity will require new skills and expanded resources for local actors.

The effectiveness of LAEP will depend on the status and legitimacy of the plans which are adopted. The LAEP model could apply a variety of approaches to gain status and legitimacy, including having a formal status in law, exerting influence on funding decisions and using engagement to secure broad-based stakeholder and public support. These mechanisms could be supported through adoption of national authority with an overarching role of LAEP and SLES support, standards and guidance.

SLES and LAEP have the potential to guide local areas on planning and implementing effective energy system decarbonisation pathways. The strong interrelationships have the potential to unlock benefits within each other. This is expected to have a positive knock on effect in terms of achieving ‘total value’ and realising wider benefits to society. This guidance aims to enable this system through targeted advice to local actors on delivering SLES in the context of LAEP.