Energy strategy and markets
Effective and efficient markets are key to delivering an energy system that supports the ambitions of Clean Power 2030 and wider net zero goals. Our electricity markets must also ensure the growth of Scotland’s burgeoning renewable energy sector, and deliver fairness to consumers, particularly those experiencing fuel poverty.
While electricity market design is reserved to UK Government, the Scottish Government actively engages in all UK Government led reform processes to ensure that the interests of Scotland’s investors, businesses and consumers are heard and protected. In an energy rich country like Scotland, nobody should be struggling to pay their bills.
The Scottish Government is committed to working closely with the UK Government on shared ambitions to decarbonise the power system and drive progress towards net zero.
Strategic Spatial Energy Plan
To support a more deliberate approach to delivering Great Britain’s future energy system, the Scottish, Welsh and UK governments have jointly commissioned the National Energy Systems Operator (NESO) to produce a Strategic Spatial Energy Plan (SSEP) for Scotland, England and Wales.
The SSEP will set out a longterm, wholesystem view of how our future energy system should evolve to accelerate the transition to clean, secure and affordable energy. It will consider the energy sources needed to reach net zero and their most optimal locations across Great Britain on a zonal basis from 2030 to 2050, mapping out locations for potential electricity and hydrogen infrastructure.
We continue to work closely with NESO, Ofgem and the UK and Welsh Governments as the plan develops to ensure Scotland’s interests are represented.
Regional Energy Strategic Plan
In addition to producing the SSEP, Ofgem has also directed NESO to produce a suite of Regional Energy Strategic Plans (RESPs) for Great Britain, creating a new approach to strategic planning at the distribution level.
NESO will produce 11 RESPs, including an individual national RESP for Scotland. The RESPs will consider all energy vectors – electricity, gas, heat networks, and hydrogen networks – as part of one integrated energy system. These different energy systems are currently planned separately. Moving to a whole-system approach will ensure investment is targeted where it is needed, and that progress towards net zero can be accelerated. This new approach will ensure better coordination between national, regional and local planning.
NESO published their transitional Regional Energy Strategic Plan (tRESP) in January 2026 which aims to help with the transition to the new RESP approach
Energy markets
Reformed National Pricing
Reformed National pricing (RNP) is expected to be a package of reforms to the existing wholesale electricity market designed to address the key challenges identified by the Department for Energy Security and Net Zero.
Renewables Obligation Scotland
We also cover the Renewables Obligation Scotland (ROS) scheme which continues to provide vital support to Scottish renewable energy generators. Read more about the ROS.
Energy strategy and just transition plan
We published the draft Energy Strategy and Just Transition Plan for consultation in January 2023, setting out a draft route map of actions to deliver a flourishing net zero energy system that supplies affordable, resilient and clean energy. Read more about this on our consultation hub.
Since we published this, there have been significant changes in the energy sector across Great Britain, including the establishment of the National Energy System Operator (NESO) with responsibility for strategic energy system planning.
The judgements and issues in the draft energy strategy and just transition plan are informed by ongoing developments in UK Government energy policy and recent court decisions.
Scottish Energy Advisory Board
We also provide the secretariat for the Scottish Energy Advisory Board (SEAB), co-chaired by the First Minister and Sir Jim McDonald. Read more about SEAB.