The immediate priorities: enabling electrification during ED2

Against this rapidly evolving backdrop, the current electricity distribution price control period, RIIO-ED2, has taken on a strategic significance that extends well beyond the incremental infrastructure upgrades and operational efficiencies that traditionally defined regulatory settlements for network companies.

What might once have been seen primarily as a framework for improving reliability and managing asset performance is now increasingly viewed across the sector as the critical period in which distribution networks must begin preparing for the structural transformation of the electricity system that electrification will bring.

In practical terms, this means that ED2 has become the phase in which networks must begin enabling electrification at scale while simultaneously building the operational and digital foundations required for the far more complex system that will emerge during the next regulatory period.

“If installing low-carbon technologies becomes complicated or slow, that will inevitably dampen uptake.”

Energy retailer representative

One of the most immediate priorities for distribution network operators is therefore removing the barriers that can slow the deployment of low-carbon technologies across homes and businesses. Electrification will only proceed at the pace envisaged by policymakers if technologies such as heat pumps, solar panels and electric vehicle chargers can be installed quickly, predictably and without unforeseen administrative or technical obstacles. One network specialist argues that simplifying the connections process will be essential if electrification is to scale. “If installing low-carbon technologies becomes complicated or slow, that will inevitably dampen uptake,” says one energy retailer representative.

Yet installers and technology providers frequently report that the current connections process can affect the installation journey, particularly where network assessments or reinforcement requirements delay projects that consumers expect to proceed quickly. “There are still frictions in the connections process, and installers often experience different processes across networks,” says one industry expert. SSEN’s innovation team is working on solutions like the Electricity Supply Checker, which is being trialled in two parts of its network areas. It harnesses a wide range of data and information to inform households on a number of factors, including the estimated capacity available to connect low-carbon technologies and whether upgrades or de-looping will be needed.

“There are still frictions in the connections process, and installers often experience different processes across networks.”

Industry expert

Part of the challenge lies in the historical design of the electricity system itself. Local electricity networks were built around patterns of demand that assumed relatively modest consumption within homes, where electricity powered lighting and appliances while heating relied primarily on gas. The rapid emergence of electrified heating and transport disrupts these assumptions by introducing new loads that can increase peak electricity demand significantly within residential neighbourhoods.

Where multiple households within the same street adopt heat pumps or electric vehicles in a short period of time, local infrastructure can quickly come under pressure. In some cases, this can trigger reinforcement requirements that increase costs or extend installation timelines, raising concerns about uneven access to electrification across different parts of the country.

Industry stakeholders have warned that such variations could create the perception of a postcode lottery in electrification, particularly if households in some areas face higher connection costs than those elsewhere simply because of the condition of the local network.

Addressing this challenge requires not only investment in infrastructure but also a deeper understanding of how electricity flows through the low-voltage network, where visibility has historically been limited. Historically, monitoring and data collection has only been required on higher-voltage parts of the system, leaving large parts of the local distribution network effectively operating without real-time insight into demand patterns.

“Large parts of the low-voltage network still operate without real visibility of what’s happening. That makes it much harder to anticipate constraints or optimise the system.”

Flexibility market specialist

As electrification accelerates, this lack of visibility becomes increasingly problematic. “Large parts of the low-voltage network still operate without real visibility of what’s happening. That makes it much harder to anticipate constraints or optimise the system,” says one flexibility market specialist at an energy services company. Without accurate data on how electricity is flowing through neighbourhood networks, it becomes difficult for distribution operators to anticipate constraints, coordinate flexibility or identify opportunities to optimise the use of existing infrastructure. Improving the digital capability of the network has therefore emerged as one of the central priorities for the remainder of ED2. This shift towards greater digitalisation is widely viewed as a necessary step in enabling distribution networks to evolve from passive asset managers into active system operators capable of orchestrating complex energy systems.

For its part, SSEN has been addressing this challenge in a range of ways. It included a visibility strategy in its ED2 submission, the fruits of which are already providing valuable insights though the use of smart meter data. Though its innovation projects like ‘Pathways to 2050’ and its emerging ED3 plans, SSEN is well-placed to build on this progress.

Alongside improving connections and enhancing digital visibility, ED2 is also about developing the operational capabilities and partnerships that will underpin the future DSO role. SSEN and other distribution networks are increasingly working with local authorities, community organisations and technology providers to understand how electrification may unfold within specific regions, ensuring that infrastructure planning aligns with local housing developments, transport initiatives and economic growth strategies. These collaborations are already shaping a more integrated approach to local energy planning, in which distribution networks act not simply as infrastructure providers but as partners in enabling the transition to a low-carbon economy.

For evidence of this, consider SSEN’s leadership in local energy planning through the LENZA (Local Energy Net Zero Accelerator) tool, which a number of local authorities are now employing to develop their own LAEPs (Local Area Energy Plans), and the publication of Strategic Development Plans for the entire extent of SSEN’s network areas These plans give clear projections of anticipated demand out to the middle of the century, and share how this might be met by a combination of the use of flexibility, and the well-judged building out of the network itself.

“The future network isn’t just about cables and substations, it’s about understanding how energy flows across transport, heating and electricity together.”

Andrew Wainwright, Whole System Manager, SSEN

Taken together, these priorities – removing barriers to electrification, improving network visibility through digitalisation and building new forms of collaboration – reflect the growing recognition that ED2 is not merely a period of operational delivery but the foundation on which the next generation of distribution networks will be built.

And as electrification accelerates across the economy, the progress made during this period will play a decisive role in determining how effectively the sector can move into the next phase of the transition. “The future network isn’t just about cables and substations,” says Andrew Wainwright, SSEN’s Whole System Manager. “It’s about understanding how energy flows across transport, heating and electricity together.”

A Utility Week Intelligence report in association with Scottish & Southern Electricity Networks