The paper published summarises five key considerations that need to be addressed to ensure that distributed energy resources (DERs) can provide services in a way that improves network coordination and reduces system costs. It looks at how our system can maximise the use of DER assets, deliver access to markets, encourage new business models, and maximise the benefits of competition and third-party involvement.
Greater innovation and competition in the markets keeps the costs of operating and maintaining the energy networks down. The benefits can be shared with customers both through cost savings but also through new technologies and services that allow them to benefit directly from a smarter electricity grid. In the current energy network price control period (2015-2023), local electricity networks are forecast to deliver almost £1billion of savings as result of innovation.
The paper also looks to develop the Distribution System Operator (DSO) role by outlining different models for how the DSO will interact with the transmission operator and DERs. The evolution of the DSO role will be a crucial part of the smart energy system, a platform for new technologies, and is a priority for the Open Networks Project.
CEO of Energy Networks Association David Smith comments:
“The smart grid transition has the potential to create a whole new range of market opportunities for new technology and service providers, many of whom will be participating in the UK market place for the first time. Our energy networks increasingly need to access the latest technologies and services in order to ensure continued reliable and cost-effective electricity supply as part of a decarbonised system. This paper is about ensuring they have the access to those things, but also about how we can ensure that we make the most of the smart transition for those companies providing them.”
Leonie Greene, Head of External Affairs at Solar Trade Association who are on the Open Networks Advisory Group comments:
“When it comes to smart power, the STA and its members are especially keen to see progress on creating new local markets that make full use of the multiple services that solar power and storage have to offer. Change cannot come fast enough for our industry which needs the electricity system to catch up with the rapid pace of technology change in clean power generation and storage. The consultation is a crucial first step towards defining the system change needed and therefore particularly important and welcome.”
