Update on the Strategic Spatial Energy Plan – and how industry can shape Regen’s engagement

How will the Strategic Spatial Energy Plan affect grid connections?

Grid connection reform is changing the way electricity generation and storage projects connect to the network. Connection offers are no longer first-come-first-served but instead determined by project readiness – whether proposed developments have land rights and planning permission) – and strategic alignment – whether the project is ‘needed’ to meet national targets.

These national targets were initially set out by the government’s Clean Power 2030 Action Plan (CP30) published in 2024. They were based on NESO’s Clean Power 2030 analysis, with further targets for 2035 adopted from their existing Future Energy Scenarios Holistic Transition scenario, recognising that new projects will still be needed after 2030 and that a placeholder was needed until a longer-term government pathway could be developed.

Development of that longer-term pathway is happening now, with NESO currently modelling different options, from which the Secretary of State will select one pathway to become the first SSEP (for more details on this process, see our previous blog). Once published at the end of 2027, the SSEP will set new targets for electricity generation and storage technologies beyond 2030, including for 2035 and extending out to 2050.

What are the opportunities?

For the energy system, the SSEP presents an opportunity to make sure we deliver the projects we need to achieve our goals of clean, secure and affordable energy.

For developers, the SSEP targets present an opportunity to get projects currently at Gate 1 into the connections queue. Connections reform results show that the ‘pots’ for some technologies in particular regions are now oversubscribed. If the SSEP increases those capacity targets for 2035 and beyond, it could create a clear investment signal for new projects.

What are the risks?

Alternatively, the SSEP may leave 2035 targets unchanged or even reduce them for certain technologies and zones. While the CP30 connections reform annex states that such reductions would not alter connections agreements already issued based on the FES-derived 2035 targets, this could still put the brakes on further developments for some technologies and zones.

The SSEP can only deliver its intended system benefits if it is designed and implemented in a way that is genuinely practical, realistic and deliverable. If developers and industry do not think the technology types and locations put forward by the plan are investable, this blueprint for our energy system will remain on paper only. Deliverability will be largely influenced by other factors, including reformed national pricing, contracts for difference and other market signals, but ensuring industry feedback shapes the SSEP and following robust appraisal and consultation processes will be key.

How is Regen ensuring industry voices are heard?  

With such a crucial role to play in determining the future of our energy system, it's critical that the SSEP is a plan everyone has bought into, including industry. For this to happen, it needs to understand what data and assumptions are being used to develop the SSEP.

Regen has been pressing this point alongside other industry bodies, and in response NESO has begun sharing data transparency updates online, the most recent of which was published last week.

The SSEP modelling process is looking to answer some significant questions about the role of different technologies in our future energy system. Regen has been drawing on our existing body of research and commissioned reports to provide insight on some of these key areas, including:

• Repowering: our recent paper A Second Wind: Unleashing the potential of repowering revealed that repowering could provide an additional 690 MW of onshore wind capacity by 2035, increasing to a possible 6 GW by 2050 as more projects face end-of-life decisions. We've shared this paper with NESO and called for it to treat repowering as a core component of the SSEP.  

• Biomethane: our paper Making the Most of Biomethane considered supply projections for biomethane and concluded that, while it could make a significant contribution to future gas demand, it will not become a ubiquitous fuel and should be prioritised for hard-to-decarbonise uses, such as providing peaking/back-up power generation. With the SSEP modelling biomethane as a potential ‘green gas’ alongside hydrogen, we have been building on our findings to urge NESO to make realistic assumptions about availability, and factor in sustainability considerations.

• Location of renewables: our report Go West! found that a more geographically diverse offshore wind fleet would improve energy security, resilience and operability by reducing our vulnerability to different weather patterns. We have reflected the importance of geographically diverse renewable generation in our feedback to NESO.

• Balancing the system: our previous work with National Grid ESO on the 2022 report A Day in the Life of 2035 considered how a decarbonised power system with a very high proportion of variable renewable energy and new sources of demand from EVs and heat pumps could be balanced and operated effectively. We know storage and flexibility will play key roles in balancing our future energy system and are reflecting insights from the Electricity Storage Network in our engagement on the SSEP.

Have your say

Regen continues to engage with NESO and share the views of our members through our role in the Strategic Energy Planning Industry Working Group. We have recently shared an update from NESO with our members on the pathway options they are currently modelling for the SSEP and will be collating feedback to share with NESO by 13 March. We will also seek member input at our upcoming planning working group – register here.

To read more Regen insights on strategic network planning click here, or for more information about our work on the SSEP you can speak to Holly Hoban. To learn more about the benefits of Regen membership, click here.  

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