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ESO
Early Competition Plan Project
As we look to achieve net zero carbon operation of the electricity system by 2025, we’re working with the industry to transform the way Great Britain’s electricity system is designed and built.
We know the energy transition must be affordable and that competition is vital for encouraging innovation and keeping prices as low as possible.
What is an 'Early Competition Plan'?
Working with partners from inside and outside the energy industry, we are looking at how Early Competition can be introduced into developing and running our electricity networks.
This means organisations can compete for the design, build and ownership of onshore transmission assets. Early Competition will help encourage new ways of working and deliver millions of pounds in savings for consumers.
Listen to our introductory podcast and earn more about what Early Competition means for the industry. More details about the project can be found in this detailed guide.
The energy landscape is undergoing a revolution, with changing generation and demand patterns driving the need for substantial network investment in order to reach the UK Government’s Net Zero target by 2050.
Find out more about our own zero carbon ambition here.
We’re working with industry stakeholders to identify how competition can be introduced to network investment to make sure this investment is delivered in a way that achieves best value for consumers and opens the door for innovative network solutions.
We are delivering an Early Competition Plan that outlines how competition could be introduced for the design, build and ownership of onshore transmission assets.
Early Competition refers to competition that occurs prior to the detailed design, surveying and consenting phases of asset development.
The plan will describe an end-to-end process of how early competition may work, set out how models for early competition could be implemented and outline the roles and responsibilities of all parties in the end-to-end process.
What are the roles within Early Competition?
Achieving Early Competition requires the cooperation of multiple parties in the industry, each with unique roles and responsibilities.
Find out what our initial views are.
What are we trying to achieve?
Unlocking value for consumers
Competition in network development has the potential to unlock millions of pounds of consumer value by encouraging those who are responsible for transmission assets to use more innovative and cost effective solutions to meet the needs of the electricity system.
Fostering innovation
Competitive pressure and involvement of new parties is likely to drive innovation and generate a wider range of ideas for solutions to system needs.
Depending on the tender model there could be innovation in areas such as technology, design, supply chain management, raising of finance and operations.
Effective competitions should be open to as many potential solutions as possible, including proposals from a full range of network (solutions requiring a transmission licence) and non-network solutions (a service or an asset which doesn’t require a transmission licence).
Early competition supports the transition to a carbon-free network
As the ESO leads Great Britain’s transition to net zero, cost savings achieved through introducing early competition will be important in helping drive lower transmission charges and make investment in low carbon generation more affordable or cheaper
This benefit is particularly important considering the role of the ESO in supporting Great Britain achieving net zero.
We hope that early competition could also encourage sustainability as we are exploring whether this could be part of the criteria for tenders.
What is our approach?
Bringing experts together
The success of the Early Competition Plan hinges on our ability to bring together a range of expertise from across the energy industry and beyond.
Collaborating with a wide range of stakeholders means that we can develop pragmatic proposals that deliver value for consumers while remaining attractive for potential investors.
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Electricity explained
Increasing competition in the markets we operate
At the ESO we have an ambition to enable more competition across the markets that we operate so that, together, we can unlock millions of pounds in consumer value and continue to progress towards Britain's net zero goal
How to get involved
Engagement and feedback from the industry plays a vital role in shaping the Early Competition Plan.
From webinars to consultations, find out how you can get involved in the project.