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Insight
Introduction
A transformation in consumer behaviour will be key to unlocking national decarbonisation targets, which demands the widespread adoption of new low carbon technologies and innovative ways of interacting with the energy system.
While many people will be willing and able to change their behaviour and adopt smart products and services, others are in danger of being left behind simply because of where they live, how much they earn or how digitally engaged they are.
Such inequality between the net zero ‘winners’ and ‘losers’ threatens to undermine the legitimacy of the legally-binding transition to net zero, which is focusing minds on the idea of a Just Transition and strategies designed to ensure that a decarbonised future is fair and equitable for all.
As organisations responsible for energy network planning and investment, with detailed data on network interaction and usage, Distribution System Operators (DSOs) are in a unique position to facilitate and influence the development of infrastructure and services in the interests of inclusivity and fairness. Most DSOs are now working proactively to ensure they understand in Just Transition challenges across their license areas and are ready to make meaningful interventions to benefit everyone connected to their networks.
“If we get [decarbonisation] right, we can tackle fuel poverty through lower bills, create healthier homes and generate new social economic value.”
Fraser Stewart, Just Transition lead, Regen
SSEN is a pioneer in this field, it published a dedicated Fair Energy Future Strategy[OS(1] in 2023, building on the SSE Group Just Transition Strategy in 2020. SSEN has also led a range of industry-leading projects, such as developing the first ever code of conduct for how flexibility service providers should engage with domestic consumers and innovative distribution network scenario modelling designed to support more equitable planning for net zero.
But the drive to embed fairness into decarbonisation of the energy system will not come easily and experts have called for more active engagement by industry stakeholders, public awareness campaigns designed to win back trust, and regulatory and policy support.
Fraser Stewart, Just Transition lead at sustainable energy think tank Regen, which has worked closely with SSEN on chunks of its Just Transition strategy, tells Utility Week: “Decarbonising the energy system is a once in a generation opportunity to make things better, which includes groups at risk of exclusion. If we get it right, we can tackle fuel poverty through lower bills, create healthier homes and generate new social economic value, across the board. But that doesn't happen naturally, or without putting the idea of fairness at the heart of the transition itself, it is fundamental to delivering net zero, full stop.”
In this report, produced in association with SSEN Distribution, we explore Just Transition challenges and early responses, from SSEN and other prominent actors. We also consider the demand for early successes in tackling inequality to be scaled up. These issues are covered across three chapters:
The factors which pose the biggest risks for inequality and unfairness in the energy transition and emerging codes of conduct for inclusive flexibility service provision
Advances in the integration of inclusivity and fairness perspectives into network design and investment planning
Building on success and the scope for better public engagement and standards campaigns
in association with
