Local Electricity Network Coordination Group minutes: November 2023

Attendees and apologies

• Onshore Electricity Policy, Scottish Government

• Heat in Buildings, Scottish Government

• Heat Networks and Non-domestic Buildings, Scottish Government

• Transport Scotland (TS)

• Scottish Power Energy Networks (SPEN)

• Scottish and Southern Electricity Networks (SSEN)

• Scottish Wholesale Association

• Winchburgh Developments

• Highlands and Islands Enterprise

• Confederation of Passenger Transport Scotland

• Last Mile UK

• Scottish Futures Trust

• Energy Saving Trust

• WarmWorks

Apologies

• Community Energy Scotland

• COSLA

Items and actions

Add Master Plan issues to Challenge Document. (SG)

Substation legals to be a standing agenda item.  Request for members to send examples of issues regarding substation legals to DNOs. (All)

Last Mile UK slides shared with group. (SG/Last Mile UK)

Organise separate discussion on wayleaves / land rights. (TS)

Consideration of a flow/process chart illustrating differences between dual generation challenges in commercial and domestic settings. (DNOs and SG)

Transport Scotland seeking examples of what has worked well and hasn’t, to assist local authorities in the process of completing Infrastructure Strategy and Expansion Plans. (All)

Slides to be shared on the ESO 5 Point Plan – also suggested as a standing item to monitor progress on. (SPEN and SSEN)

Opening remarks

The Chair gave an overview of the agenda and welcomed new attendees.

Minutes from the meeting on 18 August were approved.

Actions from the last meeting were reviewed, all actions were complete.

The Chair gave brief opening remarks and highlighted some of the key policy developments since the last meeting in August.

This included the UK Government’s response to the Nick Winser report and the Connections Action Plan both of which are relevant to the transmission and distribution networks.

The Connections Action Plan was highlighted as an important set of measures to tackle the growing connection queue and reduce the time it takes projects to connect from 5 years to 6 months.

Challenge document and next steps

The challenge document that was compiled after the last meeting was discussed.

The problem of on-going master plan development was highlighted. The Winchburgh development was discussed as an example of grid connection shortfall despite a connection having been paid for and laid down already.

The need for future facing work between the DNOs and the Scottish Government’s Heat in Buildings (HiBs) teams was discussed.

It was suggested that a more joined up approach could help improve stakeholder awareness and help ensure a better understanding of constraints and when capacity will be enhanced.

It was noted that SPEN has undertaken work to increase public awareness around constraints.

DNOs are considering further work in this area, and the potential to work with local authorities to improve local understanding.

Electricity substation legals were discussed. Members reported lengthy delays in agreeing legals. It was suggested that standardisation of leases could help streamline the process.

DNOs shared insights on substation legals, emphasising need for a risk-based approach.

DNOs highlighted ongoing efforts to address delays and improve communication.

DNOs stressed that the legal provisions are put in place to reduce risk and protect all parties including consumers. As substations are long-term assets the legal processes need to be robust.

Discussion on the challenges of whole house retrofit, and the need for a comprehensive system approach.

Information was shared on land rights completion times which showed variations between the DNOs across the UK.  

The issue of land rights and wayleaves was discussed. It was noted that the recommendations in Nick Winser’s report and had been accepted by the UK Government and included in the Transmission Acceleration Action Plan.

The Chair also noted that the UK Autumn Statement included reference to the National Infrastructure Commission undertaking a study on making the electricity distribution network fit for net zero.

The need to expedite processes was highlighted, especially given the growth of local-level networks. TS keen to identify areas where policies can be streamlined and emphasised the need to address red tape within clear timescales.

It was noted that there are significant delays for Solar PV and battery installations in homes, which is hindering schemes in East Lothian, Borders, Fife and West Lothian.

The complexities of dual-generation elements within a single property or community area were noted.

It was noted that similar issues exist regarding solar PV in commercial premises, but it was highlighted that there is a lack of information on the impacts on the commercial sector.

The requirement to insulate commercial buildings before integrating heat pumps and solar panels was also highlighted as a key challenge, which needs to be considered further. This was highlighted as a particular problem for distilleries.

Emphasis on the need to understand the differences between domestic and commercial sectors.

The need for further work on charging infrastructure, particularly for commercial PV/solar energy requirements, was noted.

The DNOs highlighted that there is a non-domestic Solar PV strand in the Distribution Future Energy Scenarios process (D-FES) and welcomed any further detailed information on plans.

The DNOs stressed the need for plans to be bankable, going beyond ambition, in order to secure investment through uncertainty mechanisms or through the regulatory framework.

Transport Scotland update

Transport Scotland gave updates on recent work and key policy developments.

This included noting the Vehicle Emissions Trading Scheme is currently going through UK Parliament, to be voted on in December, and the recent announcement for UK Public Transport Regulations to be implemented over two years.

EV charging infrastructure was discussed, including onshore charging infrastructure for vessels in port.

Rail colleagues continue to address power supply issues, while TS focuses on replacing rolling stock and rural area rail electrification.

Heat in Buildings team update

The Heat in Buildings team provided an update on recent work and key policy developments.

This included the Green Heat Finance Taskforce report and forthcoming Heat in Buildings Bill consultation.

DNOs' general strategic overview

The DNOs provided an update on connections.  

The recent discussion at the UK Parliament’s Environmental Audit Committee, on the need to improve the 2-step connection process and address both contractual and physical aspects of connections was highlighted.

The ESO’s 5 Point Plan was highlighted as an important set of measures to help speed up the process for connections to the transmission system and the distribution network.

The DNOs stressed the need to move away from a ‘first come, first served’ approach to grid connections to a ‘first ready, first to connect’ system, and highlighted the Strategic Connections Group (SCG) plans to publish details on policy and regulatory actions for DNOs.  

Regional Energy Strategic Planner discussion

The DNOs gave an overview of Ofgem’s recent decision for the FSO to take on the role of Regional Energy System Planner across GB and noted that one or two RESPs have been proposed in Scotland.

DNOs indicated they are broadly supportive of the plans but noted that the RESPs must take a whole system approach and add value rather than duplicate existing functions.

DNOs said Ofgem’s intends to implement RESPs in 2025/26.

DNOs noted the need for a transitional model to enable in-price control investment and RIIO-ED3 planning.

The importance of strategic planning and coordination between vectors and national policy was raised.

Members emphasised the need for place-based engagement and coordination to avoid duplication and ensure holistic approach.

Members raised concerns about implementing RESPs during the current price control.

Distribution Future Energy Scenarios (D-FES)

DNOs provided an update on the D-FES process.

The DNOs confirmed that the D-FES process is well underway and that they are engaging extensively with stakeholders, including local authorities in their regions, ahead of publication in early 2024.

Members emphasised the importance of keeping a record of contributors to the D-FES process.

Members emphasised the importance of the DNOs keeping a record of contributors to the D-FES process and in particular engagement with LAs.

DNOs reported that they have been engaging with LAs in their regions and encouraging them to participate in the process.

The priority on ‘Our Heat’ was mentioned with regard to the Highlands and Islands Lands, who are utilising a geospatial tool to support initiatives.

A number of resources were highlighted that members may find useful, these are:

1. D-FES North of Scotland report: D-FES 2022 North of Scotland Report
2. Local Area Energy Plans: Local energy plans · Local Energy Scotland
3. Council Climate Action Scorecards: Council Climate Action Scorecards | Climate Emergency UK (councilclimatescorecards.uk)