Post: National Grid agrees £630M sale of ESO to UK Government

National Grid agrees £630M sale of ESO to UK Government

National Grid has reached an agreement to sell the Electricity System Operator to the government for £630M.

This means that from 1 October the UK will launch the new National Energy System Operator (NESO), a publicly owned organisation tasked with overseeing the planning and operation of the UK’s electricity and gas networks. The NESO’s role will also be expanded to include network planning, market development, security of supply and providing insights on achieving net zero energy goals. It comes in addition to the launch of Great British Energy, lifting England’s onshore wind ban, approving four major solar farms and launching the Clean Energy Mission Control Centre.  

Here’s the aims and what they mean for you: 

• Supporting clean energy and lower bills: to enhance energy security but also help keep bills down over time, NESO aims to play a key role in the UK’s shift to clean energy. By co-ordinating electricity and gas network planning, it will help connect new renewable energy projects to the grid, supporting the government’s goal of delivering clean power by 2030
• A unified approach: a single organisation will oversee the planning and design of the UK’s entire energy network. This integrated approach aims to reduce inefficiencies, accelerate the transition to renewable energy, and make it easier for new projects to fit into the broader energy plan
• Public ownership: by being publicly owned, NESO should work independently and in the best interests of consumers. It will provide expert advice on how to build a resilient, cost-effective energy system that meets our future needs
• Improving infrastructure and reducing costs: NESO will create strategic plans to optimise the placement of energy projects across the UK, which will help reduce grid connection times and minimise the costs of transporting energy, ultimately aiming to reduce bills
• Future planning: over the coming years, NESO will publish important reports, such as the Strategic Spatial Energy Plan and the Future Energy Pathways report. These documents will guide the development of the UK’s energy infrastructure to meet net-zero goals, enhance energy security, and support local job creation

On 13 September, when the deal was announced, energy secretary, Ed Miliband, said:  “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. The new National Energy System Operator has a huge role to play in delivering our mission to make Britain a clean energy superpower […] this is how we reduce bills in the long term, strengthen our energy independence and support skilled jobs across the country.”