Key takeaways from the Future Networks Conference

The recent Utility Week Future Networks Conference was a great day out for the BFY Group Networks team, and I was joined by Chris Thoms, John Scott and David Watson to catch up with clients, partners, and friends.

As BFY Group were sponsoring the event, we were right in the thick of the discussions – complete with a popular stand and a place on stage. At times my inner geek was over the moon (once an engineer…..) with the detailed explanations of network operations, and the overarching message was clear: we’re at a massive turning point for the sector.

If you couldn't make it, here are the four key areas that stood out to me:

1. RIIO-3 and the Capacity Challenge

Steve McMahon from Ofgem and James Norman from National Energy System Operator made it clear that RIIO-3 is set to be the most consequential regulatory period ever; we’ve got the geopolitical situation, supply chain issues, and CP30 all hitting at once.

• We need to start building a fundamentally different system that’s more coordinated and connected
• Demand is forecast to increase 30% by 2035 (taking aside perhaps over-inflated data centre demand) so we need significantly greater capacity and flexibility
• The connections queue is more fit than it was (having removed 400m homes’ worth of queue!) but it needs continuous improvement

2. Asset Management and Resilience

This is a critical area for the sector and something close to our hearts at BFY Group. We heard from Scottish and Southern Electricity Networks, SP Electricity North West, and EPRI about the changing landscape and how it’s impacting asset resilience.

• Continuous investment leads to continuous improvement for society, not just the networks
• There’s a significant gap between rhetoric and action regarding climate risk as a national security imperative
• Cascading risk means that up to five times the primary asset damage value is actually realised through a failure of resilience
• Increasing demand on aging infrastructure drives risk but this can be managed through sound planning and proactive maintenance

3. Joined-up Strategic Planning

We’re finally seeing planning being joined up across the GB energy sector. Bridget Hartley from National Energy System Operator discussed strategic planning, while Kate Ashworth presented on Local Area Energy Plans (LAEPs) and Project PRIDE.

• Regional Energy Spatial Plans (RESPs) are being prepared to take account of local voices and specific investment needs
• Local Authorities are now informing network investment decisions through LAEPs to reflect the needs of local people regarding heat and transport
• Primacy in strategic planning is still unclear, which is an issue because someone needs to steer the ship or a committee will put us on the rocks
• Innovation is essential to get past blockers, but all networks need to drive the scaling of pilots as they often stall

4. Solving the Delivery and Workforce Challenge

The final session hit the subjects that are the most challenging care of Luke Sweeney from BEAMA and Yuliya Khilko from National Grid. These are core capabilities for our team at BFY Group so it was great to see the focus on the supply chain and the people needed to build and maintain the network.

• Long term, durable partnerships are critical to secure the supply chain and UK energy security
• Decisions made now will affect the workforce for the next decade as 11% of the workforce approaches retirement
• Trainees currently make up only 3% of the networks’ workforce which makes succession planning critical
• We need a whole system approach as power, water, and wider infrastructure demands all grow and clash

Final Reflections

Spending a day with old friends and new to discuss the future of such an important part of our country’s economy was a real privilege. It reaffirmed my commitment to the Networks world, even if it reminded me that acronyms still rule!

At BFY Group, we’re always open to conversations about how we can help you resolve strategic, operational, and technical issues while closing out RIIO-2 and preparing for RIIO-3. If any of these areas resonate, feel free to reach out to Mark Hewett.