Models of governance for energy infrastructure

This working paper is an early output from the ‘Governance of Continuity and Change’ project within UKERC’s theme 4, Infrastructure Transitions.

The paper investigates the importance of governance for energy system change and specifically investigates some of the areas where the UK’s net zero target implies significant infrastructure change or expansion, namely in industry and associated with buildings and transport.

From an infrastructure perspective, specifically, our review highlights the need for:

1. Mass upgrades/electrification transformations of buildings;
2. Increases in electricity generation capacity;
3. Increases in electricity network capacity;
4. The conversion of (parts of) the gas network to hydrogen alongside the potential for decommissioning of parts of the gas network;
5. An expansion in the scale of district heating.

To develop a theoretical baseline, our paper goes on to highlight the various approaches used to govern infrastructure including issues of public versus private ownership, public-private-partnership models, and the use of regulatory asset base models.

Building on the foundations of this working paper, the next stages of this project will involve the mapping of the governance models associated with three case studies: networks, buildings, and offshore wind. We will then test our governance maps using interviews with experts to check whether our maps are correct and to understand where governance may need to change to support goals for net-zero. We would gratefully receive any comments on the paper.