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"Our broad strategy is to encourage the networks to be as effi cient as they can possibly be on running costs and the cost of capital, so we make some space on the energy bill for this new investment while keeping bills affordable for consumers." AKSHAY KAUL, DIRECTOR OF NETWORK PRICE CONTROLS, OFGEM: CONFERENCE REPORT Network's Future Networks and Future of Heat conferences resoundingly demonstrated the determination of multiple energy system players to step up to the net zero challenge. Jane Gray reports. L ast year's momen- tous commitment from UK government to delivering net zero emissions by continues to rever- berate across the energy system. It has challenged key actors in the decarbonisation of power and heat to dig deep and • nd ways to deliver the multi-faceted investment and innovation, in infrastructure, operations and services that the target undoubt- edly demands. At Network magazine's Future Networks and Future of Heat Conference, the willing- ness of the UK's regulated energy networks as well as other players, from energy retailers to local authorities to take respon- sibility for answering this chal- lenge was resoundingly clear. Speaker a„ er speaker showed that strategy and practice in the sector have become sharply focused on mobilising for net zero and tackling the issues that could prevent it becoming a reality. Most notably, these issues included: • nding appropriate ways to support major injections of investment in critical infrastructure and technology development, and coordinating a decarbonisation journey which, it was unanimously agreed, will rely on local and regional actions. The investment challenge dominated morning sessions at Future Networks, where Ofgem's director of network price con- trols, Akshay Kaul, provided the opening keynote. Kaul articulated the regula- tor's determination to play a NETWORK / 26 / MARCH 2020 Mobilising for Net Zero positive and proactive role in the UK's decarbonisation journey, pointing to its recently published Decarbonisation Action Plan and the explicit "equal commitment" that this set out to protecting the interests of both current and future consumers – a balance which many in the industry had recently complained was not evident in Ofgem's approach. Providing "concrete" evidence that Ofgem will now overtly regulate for future generations, Kaul highlighted the ambition set out in the new Action Plan to "regulate the energy networks so they can support ten million electric vehicles on our roads by "" as well as "proactively" considering how the o• shore transmis- sion grid could be expanded to enable a four-fold increase in o• shore wind generation by ". He also said the regulator is exploring how innovation funding might be targeted to create greater clar- ity around low carbon heat options, including hydrogen. Signi• cantly however, Kaul was clear that Ofgem's dedica- tion to enabling net zero would not distract its concern for a• ordability today. For this rea- son, he said the "broad strat- egy" for regulation of energy networks going forward will be to "encourage" maximum e– ciency in terms of running costs and cost of capital in order to "make some space on the energy bill" for sup- porting necessary invest- ment in decarbonisation. With speci• c reference to the RIIO framework, Kaul also said that the upcoming price control will be "materially di• erent" in terms of its founding principles of "™ exibility and coordination" which are designed to deliver net zero at lowest cost. These principles have led to the creation of a Net Zero Advisory Group, including participation from the National Infrastructure Commission and Committee on Climate Change, in order to ensure regulation is aligned with the evolution of net zero policy. It will also include a new "suite of net zero investment and innovation mechanisms" which will allow Ofgem to "dial allowances for investment or innovation up or down as policy for net zero continues to evolve." A panel of industry execu- tives, including UKPN's CEO Basil Scarsella and SP Energy Network's head of distribution system operations, Graham Campbell, responded with cautious positivity to Kaul's comments – though Campbell caveated that there was "only so much" opportunity for ef- • ciency in business-as-usual operations. There was also a keen interest from many speakers and delegates in seeing more detail around exactly what the ™ exible investment and innova- tion mechanisms will look like and how these can be leveraged to support antici- patory investment in things like EV infrastructure. With a speci• c focus on investment for low carbon heat solutions, the Future of Heat conference turned the spotlight on policy mak- ers with recurring calls for an ambitious low carbon homes standard. One speaker also advocated policy to mandate that all gas boilers installed in homes should be "hydrogen-ready" by , so that options for bio-methane or hydrogen can be le„ open in the short term and at a "marginal" cost to consumers compared to natural gas boilers. Looking local The second major conference theme of increasing "localism" in net zero solutions fuelled discussion on a number of panel debates. Time and again the growing importance of Local Area Energy Plans, in keeping bills affordable for consumers." AKSHAY KAUL, DIRECTOR OF NETWORK PRICE CONTROLS, OFGEM: sion grid could be expanded to enable a four-fold increase in o• shore wind generation . He also said the regulator is exploring how innovation funding might be targeted to create greater clar- ity around low carbon heat options, including hydrogen. Signi• cantly however, Kaul was clear that Ofgem's dedica- tion to enabling net zero would not distract its concern for a• ordability today. For this rea- son, he said the "broad strat- egy" for regulation of energy networks going forward will be to "encourage" maximum e– ciency in terms of running costs and cost of capital in order to "make some space on the energy bill" for sup- porting necessary invest- ment in decarbonisation. Heat conference turned the spotlight on policy mak- ers with recurring calls for an ambitious low carbon homes standard. One speaker also advocated policy to mandate that all gas boilers installed in homes should be "hydrogen-ready" by that options for bio-methane or hydrogen can be le„ open in the short term and at a "marginal" cost to consumers compared to natural gas boilers. Looking local The second major conference theme of increasing "localism" in net zero solutions fuelled discussion on a number of panel debates. Time and again the growing importance of Local Area Energy Plans, in Sponsored by