Background
Transmission networks move electricity over long distances from power generation sites to substations, where it is distributed to consumers through distribution networks. The National Energy System Operator (NESO) is responsible for the day-to-day operation of the electricity system in Great Britain. Ofgem regulates the transmission network operators that own and manage the networks in Great Britain. The Department for Energy Security & Net Zero (DESNZ) is working with Ofgem and NESO to upgrade the electricity transmission network to handle a higher capacity of renewable energy and to improve resilience, as part of its plan to deliver a clean electricity system by 2030.
To connect new generation and meet future demand from sectors like heating, transport and industry, DESNZ estimates that around twice as much new transmission network infrastructure will be needed in Great Britain by 2030 as has been delivered in the past decade. The current network experiences constraints when the electricity system is unable to transmit power to electricity users because the network has reached maximum capacity.
NESO has identified over 80 transmission projects it considers are needed to achieve clean power by 2030. These include upgrades to existing infrastructure and new transmission lines. DESNZ is working with Ofgem to explore the incentives and penalties to increase the delivery of network infrastructure.
Scope
This report will review the extent to which:
- DESNZ, Ofgem and NESO have presented a robust value for money case for upgrading the transmission network
- DESNZ’s approach to designing and setting up the programme to develop the transmission network is effective
- DESNZ, Ofgem and NESO are taking practical steps to support progress with delivering the upgrades
NAO team
Director: Joshua Reddaway
Audit Manager: Terry Caulfield