The UK energy system is undergoing significant transformation to meet the 2050 net zero target and enhance energy independence and security. Over the past decade, government policy has aimed to shift the country from a fossil-fuel-based system to one powered largely by renewables such as wind and solar. As part of this transition, most space heating will come from electricity via heat pumps, with the remainder supplied by low-carbon heat networks.
Local authorities now play a central role in this transition, supporting local area energy planning and the development of heat networks, while working alongside the National Energy System Operator (NESO) and contributing to Regional Energy Strategic Plans (RESPs).
This virtual event, held on 3 April 2025, explored how councils are coordinating local energy system efforts to create aligned local and regional strategies that support the UK's net zero goals. It was delivered by the LGA, in partnership with and funded by the Crown Commercial Service.
Jonny Sadler, Regional Energy Strategic Plans (RESP) Engagement & Governance Manager, National Energy Systems Operator (NESO)
The National Energy System Operator (NESO) is a newly established, independent, not-for-profit organisation, created in partnership with or by the UK Government in October of the previous year. Its central mission is to lead the way towards a sustainable energy future.
NESO is responsible for a wide range of functions, including balancing the electricity system in real time to ensure a reliable supply for homes, businesses, and communities. This marks the first time a single organisation has been given responsibility for all key aspects of Great Britain’s energy system.
There has been a growing trend of local authorities proactively collaborating with local networks. This has led to the development of hundreds of local area energy plans involving local authorities, Distribution Network Operators (DNOs), Gas Distribution Networks (GDNs), and other stakeholders, all working together to shape regional energy visions. DNOs and GDNs now increasingly recognise the importance of aligning their network planning with the priorities of local areas and authorities.
Ofgem, the energy regulator, identified a lack of coordination and accountability in electricity and gas distribution network planning following a 2022 call for input. In response, in 2023, Ofgem introduced the concept of Regional Energy Strategic Plans (RESPs) as part of NESO’s responsibilities. By July 2024, Ofgem had published a final policy framework following a consultation process. This initiative, developed over three years, aims to build regional plans from the ground up, shaped by local needs and realities rather than imposed from above.
A core principle of the RESP approach is the “whole system” perspective, which acknowledges that the energy system must be planned in an integrated manner. This involves considering electricity, gas, and in future, hydrogen networks collectively, rather than in isolation, to meet societal needs and support decarbonisation and growth. RESP ensures energy networks can be developed ahead of demand, preventing infrastructure from becoming a bottleneck.
Ofgem has added transparency and collaboration as key objectives, emphasising the importance of open, inclusive, and fair planning processes. Scotland and Wales will each be treated as distinct RESP regions, while England will be divided into nine regional RESP areas. The framework outlines the components and outputs expected from NESO’s regional plans, which will offer a comprehensive view of energy requirements at a regional level for the first time.
These plans aim to support coordinated network development, instil confidence in investment decisions, and empower local stakeholders to progress energy projects requiring network connections. Additionally, RESP introduces consistent planning assumptions across all network types, ensuring unified and reliable approaches to infrastructure planning, marking a significant change from historical practices.
Q&A
Q: If a local authority hasn't yet undertaken a local area energy plan, would a completed regional one supersede the need to prepare one?
A: One type of plan doesn’t override the other. Local authority-led plans—such as Local Area Energy Plans, growth plans, and spatial plans will all serve as inputs into the development of a regional plan.
The more detailed you can be about the projects you want to deliver—what they are, where, and when—the more influence you'll have over the development of Regional Energy Strategic Plans (RESPs) and, in turn, the energy infrastructure delivered by your distribution network operator and gas network.
It doesn’t matter whether your document is formally called a Local Area Energy Plan; what matters is the level of detail. The more comprehensive your information, the more likely it is to shape network investment.
Q: Will the national energy systems operator integrate new heat network regulations and heat zoning into the regional energy strategic plans?
A: Heat network zoning is something we’ll need to consider in the development of regional plans. However, our specific role with heat networks is still to be determined. It will ultimately be a design and policy decision.
Currently, NESO does not have a formal role regarding heat networks. That said, any local-level heat network plans will be important inputs into the development of Regional Energy Strategic Plans (RESPs).
So, for now, it’s a case of watching this space and waiting for DESNZ’s decision on how heat networks will be handled
Q: The level of engagement that Ofgem is looking for will be in part dependent on the resourcing support available to help equip local authorities. But when do you think there will be more information on this?
A: The main document we’ll be producing at this stage is the RSP Methodology. Development of this has already begun, slightly ahead of yesterday’s announcement. We plan to release it for public consultation in November this year.
I’m hopeful we’ll be able to share something publicly before then, to allow for co-design of the methodology with local authorities and other key stakeholders. While November is our firm target date, earlier engagement may be possible.
If you want to influence the kind of support we’ll be offering, this is the key document to engage with. We’ll share details through our usual channels, and we’ll also make sure information is distributed via the LGA and other local authority networks.
Alex Ivory, Climate Change Team Manager, Bristol City Council
Bristol is the largest city in the Southwest, with a population of around 480,000. It's among the fastest-growing UK core cities, with strong natural assets including the Severn Estuary, which has one of the highest tidal ranges in the world. The city benefits from high solar potential and is home to both onshore wind installations and the community-owned turbine at Lawrence Weston.
Bristol hosts many leading environmental organisations such as the Soil Association, the Environment Agency, and the BBC Natural History Unit, contributing to a large environmental network. The city operates a 'One City' approach, fostering collaboration between public, private, and community sectors on strategic issues, including climate change. An independent advisory committee provides expertise on climate matters.
Bristol has two world-class universities and boasts a £15 billion economy, and the council declared a climate emergency in 2018—the first local authority to do so—followed by an emergency action plan in 2019 and a city-wide climate strategy.
The council promotes a mission-led approach to climate action, aiming to empower organisations, businesses, and residents. Actions include staff training, heat decarbonisation planning, and public engagement. External funding supports this work, including £5 million from Innovate UK and backing from Horizon Europe.
Bristol has developed a Climate City Contract outlining commitments, an action plan to cut emissions by 80 per cent by 2030, and an investment strategy. The Bristol City Leap partnership with Ameresco UK is a 20-year concession to drive green energy investment and estate decarbonisation, including social housing.
The city’s heat network, featuring a water source heat pump in Castle Park, is expanding under City Leap. The Mission Net Zero project integrates energy planning, local investment strategies, and community climate planning, with three pilot communities creating their investment plans. A neighbourhood finance model and digital platform support storytelling, data sharing, and community-led investment initiatives.
Key recommendations include using a clear framework, planning for implementation early, building delivery partnerships, and leveraging public funding to attract additional investment.
Q&A
Q: Alex, how big is your team?
A: Including me, our team consists of seven people, which might seem large compared to most local authorities, though it originally started much smaller. I joined around five years ago when there were just a couple of people working on climate change within the Sustainable City team. We developed business cases and applied for funding to expand our capacity.
It’s very much a team effort, involving many people beyond just the climate change team. The two main projects are each led by dedicated project managers and their respective teams, with multiple partner organisations involved. For example, the Transition Team includes 27 different organisations.
Within the council, there’s also the client team for Bristol City Leap—a small, focused team. In addition, there are various other council departments, such as property, facilities, and transport, that are actively demonstrating how this work can be embedded across the organisation.
It’s truly a whole-council, collaborative effort.
Q: Alex, what model or methodology are you using for the Community climate action planning?
A: Within Mission Net Zero, our goal is to move towards developing Community Climate Investment Plans. These plans build on the earlier Community Climate Action Planning work, which took place before this project and was led by the Bristol Climate and Nature Partnership
Initially, the focus was on both geographical communities and communities of interest, for example, an organisation working with refugees in the city was treated as a community in its own right. The geographical communities carried out a baseline assessment to understand their emissions profile and then designed engagement activities that suited their local context. This could be something like setting up a stall at a local fête to raise awareness.
The approaches taken were quite individualised, and there’s more detail available via the link provided.
In the investment planning phase, we brought key partners into the project partnership—specifically the Bristol Climate and Nature Partnership, the Centre for Sustainable Energy, and the Bristol Energy Network. These organisations worked together with three communities to build on the original work, using a refined methodology to take things a step further.
Issy Burkitt, Carbon Reduction Project Officer, City of York Council
City of York Council – Local Area Energy Planning Overview
City of York Council is actively progressing its local area energy planning as part of the wider York and North Yorkshire Combined Authority since 2024. York has a population of over 200,000 across approximately 90,000 homes.
The council declared a climate emergency in 2019, committing to becoming net zero by 2030. A dedicated carbon reduction team of seven was established, and a climate change strategy was developed between 2020 and 2022. Initially approved under a Lib Dem–Green administration, the strategy is now being delivered under a Labour-led council, which prioritises equality, affordability, climate, and health. Among the six manifesto projects is the insulation of thousands of homes to reduce bills and emissions.
Ongoing initiatives include:
- planting a micro woodland of 500 trees.
- installing solar panels on 10+ schools in partnership with Solar for Schools.
- developing heat decarbonisation plans for schools.
- committing to build 600 Passivhaus-standard homes by 2030.
- transitioning to a fully electric bus fleet.
- annual internal emissions reporting (currently covering 4% of citywide emissions).
- maintaining a place on the CDP A-list.
York created its Local Area Energy Plan (LAEP) alongside North Yorkshire, despite not receiving direct funding. Developed with Energy Systems Catapult, the LAEP required substantial internal approval, data collection, and stakeholder engagement. The plan identifies nearly £4 billion in required investment, including fabric upgrades for around half the city’s buildings and heat pump installations in an estimated 73,000 homes.
Key challenges include:
- 90 per cent of homes using gas boilers.
- uncertainty around hydrogen deployment (likely not viable before mid-2030s).
- projected growth to 113,000 electric vehicles, with only 50 per cent of homes having off-street parking.
In response, York is investing in hyper hubs for EV charging, avoiding on-street infrastructure. Local electricity demand is expected to rise significantly, prompting efforts to expand solar generation and explore energy storage and flexibility. Grid upgrades worth around £20 million are also anticipated.
The LAEP has already influenced various projects, such as:
- transport planning and zoning for heat networks.
- a recently adopted local plan and forthcoming supplementary planning document.
- funding bids and events like a hackathon to address key challenges.
- feasibility work for onshore wind and large-scale solar near Grimston Bar.
- rooftop solar in collaboration with Your Community Energy and others.
A major Innovate UK-funded project is addressing barriers to domestic retrofit, including upfront costs and public awareness. Findings show that more information alone doesn't always translate to action. A further £3.5 million was secured to develop a “one-stop shop” for retrofit support.
Reflections from the LAEP process emphasise the importance of early understanding of outputs, cross-departmental collaboration, and better engagement with residents and businesses. The council recognises the need for live, updatable versions of the LAEP and stresses the value of consistent baselining to inform strategies and track progress through biennial updates to the climate action plan.
Q&A
Q: The one stop shop with community champions, etc, considering your retrofit work, have you carried out any analysis of residents' trust, perceptions and concerns which present barriers to the take up of grants?
A: We haven’t specifically looked at the perception of grants, but the trust and perceptions around retrofit in general are included in the report (mentioned above). We are doing an ongoing analysis through the creation of the retrofit one stop shop, so this may be something that comes out in conversations. A final report will be created about the whole process of creating the one stop shop at the end of the funding (Nov 25) which will include analysis on perception, finance etc.
Q: Issy, it would be helpful to understand how you have secured both internal and external buy-in to move these future projects forward, to ensure the LAEP isn't a stationary document?
A: Teams internally and organisations externally are aware of the LAEP from the engagement we did when producing the LAEP. We encourage the use of the LAEP as a starting place for projects and build on the information beyond there (it was created in 2022 so data could be slightly out of date now). We got senior level and councillor buy-in when looking to produce a LAEP to help its success when produced. Updates to data will be needed in coming years to keep it relevant but this may come through other projects.
Q: Issy, you mentioned an organisation, which provides grants to schools for investing in solar panels. Which one was it, please?
A: CYC works with Solar For Schools for this. We have 10 schools across York (including maintained and academies) with solar arrays from them.
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