The National Energy System Operator (NESO) plays a pivotal role in the United Kingdom’s energy landscape, ensuring the seamless operation and strategic planning of the nation’s electricity and gas networks.
Established as an independent public body under the 2023 Energy Act, NESO’s primary mission is to facilitate the UK’s transition to a net-zero energy system while maintaining reliability, efficiency, and security.
An overview of NESO
NESO emerged from the transformation of the National Grid Electricity System Operator into a publicly owned entity on 1 October 2024.
This transition was part of the UK’s broader strategy to decarbonise its energy system by 2030.
As the central coordinator, NESO is responsible for real-time management of electricity supply and demand, long-term infrastructure planning, and advising the government and Ofgem on achieving climate objectives.
Recent developments in grid connection reforms
In February 2025, Ofgem announced its intention to approve a series of reforms proposed by NESO aimed at expediting grid connections for new energy projects.
The existing “first-come, first-served” system has been criticised for contributing to significant backlogs, with some projects facing delays of up to a decade. The reformed approach will prioritise projects based on their readiness and alignment with the UK’s Clean Power 2030 (CP30) objectives.
Energy Secretary Ed Miliband highlighted the necessity of these changes, stating, “Our Clean Power Action Plan will fix the broken ‘first come first served’ system and these changes will mean a targeted approach which prioritises quicker connections for the right projects in the right place, so Britain can accelerate towards a new era of clean electricity.”
The reforms are designed to address the overwhelming queue of projects awaiting grid connection, which has grown tenfold over the past five years, now encompassing a capacity of 739 GW, far exceeding the requirements for 2030 and even 2050.
NESO’s recent implications for talent and recruitment
The accelerated grid connection process is poised to have significant implications for talent acquisition and project delivery within the energy and technical sectors.
Prioritising projects that are “ready” and “needed” will likely lead to a surge in demand for skilled professionals capable of bringing these projects to fruition promptly.
Tim Norford, Head of Renewable Recruitment at Astute People, commented on these developments: “The reforms introduced by NESO and Ofgem are set to revolutionise the energy sector.
“By fast-tracking viable projects, there’s an anticipated increase in demand for technical experts, project managers, and engineers. This shift not only accelerates our path to net-zero but also opens a plethora of opportunities for professionals in the renewable energy domain.”
Moreover, the emphasis on project readiness may influence recruitment strategies, with companies seeking individuals who possess not only technical expertise but also experience in navigating regulatory landscapes and securing necessary approvals.
This holistic skill set will be invaluable in ensuring projects meet the stringent criteria set forth by the new connection reforms.
Impact on project delivery
The transition to a prioritised grid connection system is expected to streamline project delivery timelines significantly.
By focusing on projects that are both necessary and prepared for immediate implementation, the reforms aim to reduce the bottlenecks that have historically plagued the energy sector.
Akshay Kaul, Ofgem’s Director General for Infrastructure, noted, “It will also help speed up connections for public services, including housing, hospitals and EV charging stations, as well as new industries like data centres which are key to boosting economic growth.”
However, this shift also necessitates a robust infrastructure to support the accelerated integration of new projects.
The current grid must undergo significant enhancements to accommodate the influx of renewable energy sources and ensure stability and reliability. This underscores the importance of strategic planning and investment in grid modernisation.
Challenges and considerations
While the reforms present numerous benefits, they also introduce challenges that must be addressed to realise their full potential. One concern is the potential for regional disparities in project approvals, particularly affecting technologies like battery energy storage.
Recent analysis indicates that the capacity of proposed battery storage projects in the queue is already four times greater than what is needed by 2035, suggesting that many may never be built.
Shraiya Thapa, Clean Energy Knowledge Lead at law firm Freeths, highlighted this issue, stating, “For certain regions and technology types in particular (namely battery energy storage) this will create inevitable winners and losers when it comes to projects as the connection queue is currently massively oversubscribed in comparison to the government’s clean power 2030 targets.”
Additionally, the implementation of a Progression Commitment Fee, as proposed by NESO, aims to deter speculative applications and ensure that only serious, ready-to-deploy projects occupy the queue.
While this is a positive step towards efficiency, it may also pose financial challenges for smaller developers, potentially limiting innovation and diversity in the energy sector.
Addressing the skills gap in the UK’s renewable energy sector
The UK’s renewable energy sector has witnessed substantial growth, with employment in green jobs reaching approximately 639,400 full-time equivalents (FTEs) in 2022, marking an 8.4% increase from 2021 and a 19.9% rise since 2020.
Despite this growth, the sector faces significant challenges due to a skills gap. The UK’s ambitious goals to decarbonise the electricity grid by 2030 and increase onshore and offshore wind capacity require a substantial workforce.
Wind Energy
The UK’s wind energy sector has experienced significant growth, both in capacity and employment. As of 2021, the offshore wind industry employed approximately 32,000 people, with projections indicating that this number could exceed 100,000 by 2030.
Despite this growth, the sector faces a significant skills gap, particularly in offshore wind, where an average of 10,000 new workers will be needed annually to meet its expansion goals.
Battery Storage
Battery storage is crucial for stabilizing the grid and integrating renewable energy sources. While specific employment figures for battery storage are not detailed, the sector’s expansion is evident.
The UK’s commitment to increasing energy storage capacity has led to investments in large-scale battery projects, creating job opportunities in manufacturing, installation, and maintenance. However, the rapid pace of technological advancement highlights the need for workers proficient in energy storage technologies.
Solar Energy
Solar energy has become a significant contributor to the UK’s electricity supply, accounting for around 4% of the annual electricity generation.
Despite the sector’s growth, a report revealed that only 7% of individuals receive dedicated green skills training at work, posing a risk to the continued expansion of solar technology.
Anaerobic Digestion (AD)
Anaerobic digestion plays a vital role in the UK’s renewable energy landscape, with over 500 AD plants operational.
The expansion of AD facilities has generated employment opportunities in plant operation, maintenance, and biogas production. However, the sector faces challenges in attracting and retaining skilled workers, underscoring the need for targeted training programmes to address the skills gap.
Shaping the future of the UK’s energy landscape
The National Energy System Operator’s recent reforms signify a transformative period for the UK’s energy sector.
By prioritising project readiness and necessity, these changes aim to expedite the integration of renewable energy sources, thereby advancing the nation’s net-zero ambitions. For professionals in the technical and energy sectors, this evolution presents both opportunities and challenges, necessitating adaptability and a comprehensive skill set to navigate the dynamic landscape.
As the UK accelerates towards a sustainable energy future, the collaborative efforts of regulatory bodies, industry stakeholders, and the workforce will be paramount in realising the vision of a clean, reliable, and efficient energy system by 2030.
