ED3 will begin in April 2028, a vital time for the network to be supporting initiatives such as Clean Power by 2030 as well as overall increased electrification and decarbonisation of heat. The importance of the Regional Energy Strategic Planners (RESPs) on network planning is also emphasised by Ofgem, along with innovation, digitalisation and supply chain growth.
Ofgem are focussed on four consumer outcomes in ED3:
Networks for Net Zero: Proactive investment in network capacity is needed and that the role of flexibility needs to change.
Responsible Business: Consumers and supply chain protections must be put in place for successful network development.
Smarter networks: The requirement for a more data and digitalisation driven network.
Resilient and sustainable networks: Climate, cyber and deliverability can only be delivered by effective asset stewardship.
Ofgem have set out their preference for a ‘Plan and Deliver’ alongside a ‘Incentive Regulation’ framework for ED3, meaning regulation will be used to incentivise investment and output requirements, with associated rewards and penalties.
Of particular note to members, Ofgem propose to move away from the 'flexibility first' approach that has been encouraged throughout RIIO-ED2, with more consideration being given to strategic network investment as an outcome of increase electrification and associated DER connections.
