As part of its proposals, Ofgem has put forward a view on Regional Energy Strategic Plans (RESPs) footprints. This will mean different network companies across electricity and gas will interface with a different number of RESPs, one as many as eight, some with as few as two. The number of RESP interfaces a network will have to manage will amplify the operational challenges we think network companies will face across (1) engaging with RESPs they will be part of, (2) taking RESP outputs to inform their network business plans, and (3) developing a coherent view of investment activity across their licensed areas.

In the future, Ofgem expects Regional Energy Strategic Plans (RESPs) to inform the investment plans put forward by energy network companies. While there is currently not much detail on the proposed contents of the RESPs, we believe building on approaches developed for Local Area Energy Plans (LAEP) can be a useful starting point. At the same time, it is critical to consider the ultimate purpose of RESPs (i.e. to inform network company business plans) which means for RESPs to be effective, they need to be reflective of network company’s needs, and ultimately align with expectations Ofgem seeks to impress on those companies when they come to put forward their investment plans across RIIO3 and beyond.  

On 8^th October, Ofgem is closing the window for stakeholders to respond to its consultation on detailed policy design of the Regional Energy Strategic Plan (RESP) framework. If implemented, these proposals will mean a significant shift in the way we plan the GB’s energy system. For the first time, investment planning at a local level will take place across all current and potential future energy vectors (electricity, gas, hydrogen, heat, etc.), reflecting anticipated local needs in a holistic manner. The ultimate aim is to ensure investment is targeted at right-sizing network infrastructure. 

Across a short series of blogs, Complete Strategy will be assessing the potential implications of Ofgem’s proposals, and discuss any (missed?) opportunities we see arriving from the proposals.