Samuel Pachoud, EY’s Energy Transition Leader, comments on the government’s plans to establish an independent Future System Operator
“The new Energy Strategy to be released on Thursday will outline the UK government’s plan to ensure reliable, affordable, low-carbon energy for UK consumers as both energy bills and pressures on European imports continue to rise. This statement will follow today’s announcement of the government’s plans to establish an independent Future System Operator (FSO) to navigate this energy trilemma, and architect the GB energy system to deliver net zero, bringing together cross-vector operational experience to transform national ambition into national action.
“This new organisation will be at the heart of the GB’s energy transition, balancing and maintaining existing energy systems whilst working with industry partners to co-ordinate decision-making and design a blueprint for the new ecosystem. The transition to net zero will require enormous levels of investment across the UK, not only to scale up low carbon generation but also increase energy storage capacity, enable energy demand flexibility, and improve energy efficiency. Approaching these new challenges with a “whole system” mindset will enable the FSO and its partners to make more efficient, more sustainable, and more equitable decisions, delivering up to £2.5bn in value and securing reliable energy supplies for this and future generations.
“Whilst spiralling energy costs and geo-political uncertainty have understandably focused our attention on energy costs and security, we cannot afford to forget the opportunity that a decarbonised energy system presents, nor the responsibilities that we have to future generations of energy consumers. Our energy system needs an independent organisation to provide direction and confidence to energy markets and investors as we navigate this transition and the many challenges it will bring.”