Welcome to the latest Energy Matters Briefing
This edition of Energy Matters comes as the government and Ofgem readies a call for evidence on stakeholder willingness to shift electricity use patterns over time – or indeed alter electrical demand of flexible assets over the next 30 minutes in response to National Grid’s requirements.
Policy makers are exploring ways to support the ability of customers to provide flexibility in response to market signals, or as an economic way for the National Grid to improve system security. The opportunities are growing, as a result, for businesses to capitalise on demand side response (DSR).
Recent reports on Smart Energy include:
The push for more flexibility comes as the new Department of Business, Energy and Industrial Strategy (BEIS) faces a high number of the nation’s coal, nuclear, and oldest gas-fired power stations reaching the end of their lives. The energy sector is undergoing a historic structural shift as a result, further driven by advances in smart grids and smart meters and the increased role of more intermittent renewable generation in meeting the nation’s energy needs.
As Ofgem puts it: “We are moving away from the linear ‘one-way’ flow of electricity from large generators, through transmission and distribution networks, to passive consumers… to a system where generation is distributed and more variable, where consumers can better monitor and manage their energy use, and where new technologies and business models are emerging."
[1] https://www.ofgem.gov.uk/sites/default/files/docs/2015/09/flexibility_position_paper_final_0.pdf
[1] https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/486362/Towards_a_smart_energy_system.pdf
[1] https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/505218/IC_Energy_Report_web.pdf
[1] https://www.ofgem.gov.uk/publications-and-updates/electricity-system-flexibility-demand-side-response-survey