NESO pays a visit to E.ON to discuss the energy transition

Towards the end of February, we invited representatives from the National Energy Systems Operator (NESO) to visit E.ON UK in Nottingham. 

NESO plays a vital role in the energy industry. They are responsible for keeping the grid balanced and the nation’s lights on, and since coming under government control in October 2024 have assumed the additional responsibility of planning Britain’s entire energy system. In November, they were asked to brief the Government on what it would take to achieve net zero by 2030, and came back with a report suggesting a massive expansion of renewable generation capacity, grid enforcement, and flexible capacity. 

Among those welcoming NESO to Nottingham in February were E.ON UK Head of Strategy Chetan Lad and Strategist Eileen Gokemre. We sat down with them to talk about how the day went, what E.ON is doing about flexibility, and some of the challenges and opportunities that a more flexible energy system stands to bring. 

E.ON: Hi Chetan, Eileen. So tell us, what was NESO’s visit for, and how did the day go? 

CHETAN: In their Clean Power 2030 report, NESO found that we need 47GW of flexible capacity by 2030 if we’re going to achieve a net zero grid, and about a quarter of that needs to come from demand-side response. In other words, from energy users connected to the low voltage energy system: our customers! 

We wanted to host representatives from NESO’s policy, strategy and customer engagement teams at Trinity House so that we could showcase some of the great things we’re trialling for our customers, and highlight the opportunities that greater customer flexibility can offer in terms of lower bills for energy users. 

EILEEN: The day itself was a mix of engaging content, constructive debate, and giving NESO an inside-look at the work we do by letting them listen in on calls with our Affordability and Vulnerability Team. We’ve already received fantastic feedback from the participants, who said the visit was engaging, informative, and gave plenty of “food for thought” around the challenges they’re facing in building flexible capacity for 2030. 

E.ON: So why is flexibility so important when it comes to energy? 

EILEEN: Renewable power isn’t like traditional sources of energy. It’s much harder to control and predict. What do we do, for instance, when the wind doesn’t blow, or the sun doesn’t shine? 

Greater flexibility provides part of the solution. Battery storage, for instance, can soak up excess power and release it later when less is available. And encouraging consumers to use power at different times of day to reduce peak demand can lessen the need for fossil fuels. There are all kinds of ways energy can be used more flexibly. 

E.ON: How is E.ON working to increase flexibility? 

CHETAN: E.ON already has a solid foundation for enabling flexibility. We have a large base of customers, smart metering and low carbon technology installation businesses, and a trading platform that is delivering flexibility services to NESO via our EIS assets right now. 

At the same time, flexibility is front and centre of the strategy for E.ON Next, which already has plans in place for delivering increased flexibility to customers via various means later this year. 

EILEEN: At E.ON we always look to put the customer at the heart of the propositions we’re developing. 

There isn’t a one-size-fits-all solution for engaging customers in the new energy system, and many of the trials and projects we’re now working on address the difficulties of that. With NESO’s visit, we wanted to emphasise that not all customers are the same and we need to work collaboratively to ensure that they all benefit from greater flexibility in the future. 

E.ON: Of the projects that are in the works, what are you especially excited about? 

EILEEN: I think we’re both particularly excited about the Coventry Battery pilot led by E.ON Next, which is working with the help of government funding to install domestic batteries in fuel poor households to help lower their bills for the long term. 

This really encapsulates E.ON’s goal of using low-carbon technology to provide energy that’s sustainable and affordable for all, and over time it may even deliver additional value by allowing customers with batteries to offer flexibility services to the grid, giving them a role as “flexsumers.” 

E.ON: Exciting stuff! After this successful visit, what do you hope for the future with NESO? 

CHETAN: For the energy transition to happen at the pace and scale required, greater collaboration across the whole energy industry will be crucial. 

We hope this visit will be the first of many, and that we can continue our collaborative relationship with NESO aimed at removing barriers for consumer-led flexibility at scale. That would be a win-win for NESO, the Government, energy companies, and ultimately the end consumer. 

E.ON: Chetan Lad and Eileen Gokemre – thanks so much! 

CHETAN & EILEEN: Thanks! 

To learn more about the importance of flexible capacity and how E.ON is working to build it, take a look at: Bringing greater flexibility to UK Energy