Measures that include reforming connections and creating capacity on the UK power grid are expected to bring forward £90bn of investment over the next 10 years.
The plans have been set out in the Autumn Statement alongside £960m of investment in green industries.
Launched by the Chancellor and the Energy Security Secretary, the government has published its response to Electricity Networks Commissioner, Nick Winser, accepting his recommendations in all areas.
Energy Security Secretary Claire Coutinho (pictured) said: ”As we move away from unreliable imports to cheaper, home-grown energy, we’re boosting the grid so that it can meet our expanding electricity needs which are expected to have doubled by 2050.
“This will drive down bills while bringing forward £90bn of investment over the next decade.
“We’ll also reward those living closest to new infrastructure with up to £1000 a year off their energy bills, while communities will get at least £200,000 to spend on local projects that matter the most to them.”
The measures being adopted will halve the time it takes to build high-voltage power lines from 14 years to seven.
Building on this, the Connections Action Plan will cut the average delay time projects face to connect to the grid from five years to six months and will end the existing “first-come, first-served” system, which hindered projects connecting to the grid.
Communities hosting new power infrastructure could benefit directly with lower electricity bills and money for projects in their local areas.
They will have the power to decide how this is spent, for example on apprenticeships, energy efficiency measures, local parks or community energy generation.
Properties closest to new transmission infrastructure will potentially receive up to £1000 a year off electricity bills over 10 years.
Chief executive of ScottishPower Keith Anderson said: “A relentless focus on people, planning and the UK pipeline is key to unlocking the massive economic growth of these investments.
“We welcome the government’s plans to support communities who host this vital national infrastructure and raise awareness of the positive long-term impact on society.”
London’s £960m for the Green Industries Growth Accelerator aims to accelerate advanced manufacturing capacity in key net zero sectors, including offshore wind, networks, carbon capture, usage and storage, hydrogen and nuclear.
National Grid chief executive John Pettigrew, said: “A spatial energy plan and accelerated planning consent will bring clarity, authority and urgency to what needs to be built and where, while new community benefit proposals will ensure local people remain at the heart of the energy transition.”