Ofgem is this week consulting on the next steps in establishing a
more decentralised, decarbonised and dynamic energy system in
Great Britain.
It has published two papers:
-
Future of Local
Energy Institutions and
Governance: a consultation to
create a stronger, clearer allocation of local responsibility
with relation to energy for three key functions: planning,
market facilitation and operation. This builds on many trials
and pilots which showcase how local smart energy systems reduce
system costs, accelerate the take up of electric vehicles and
heat pumps and help ensure we can accommodate more renewable
energy output.
-
The Future of
Distributed Flexibility: a ‘call
for input’ from across industry about building the world’s
first distributed energy 'super’ marketplace. This includes
specific digital concepts that will help unite existing markets
and optimise the demand and supply of renewable electricity.
This common platform will facilitate the buying and selling of
surplus electricity from low-carbon energy storage, generation
and smart devices, like electric vehicles. Our vision is long
term, and is designed to break down market barriers, increase
liquidity and – ultimately – help consumers monetise the
services they can provide the system.
The two papers are part of Ofgem’s wider reform agenda, working
with the Department for Energy Security and Net Zero, to promote
more flexible and efficient use of energy across Great Britain.
Akshay Kaul, Interim Director of Infrastructure and
Security of Supply said:
“We need a radical rethink of the energy system, markets and
grid to establish a net zero power system by 2035 and net zero
economy by 2050. The role of local communities will be critical.
That’s why we’re suggesting ways to make Britain’s
energy systems and markets participatory and transparent.
“The energy crisis underlines the urgent need to shift from
volatile fossil fuels to clean energy. Our economic security
requires us breaking the link between cheaper renewables and
expensive hydrocarbons; accelerating access to homegrown, clean
and secure energy; cutting strain on the grid and freeing
capacity for renewable power.
On local governance
“We are exploring options so net zero networks are planned,
governed and regulated strategically at regional and local level
– so we have flexible, clean generation and distribution systems
right down to street-by-street, town-by-town, home-by-home level.
We are considering new independent regional energy system
planners to ensure plans are cohesive, coherent and clear to
all.”
On future of distributed flexibility
“Currently, energy markets are complicated, fragmented, and
difficult to navigate, making it difficult for small assets like
electric vehicles and heat pumps to join in, and putting off
potential sellers and investors. We are setting out plans for how
we can standardise and open markets – specifically by creating an
ambitious vision for distributed flexibility involving a common
‘digital energy infrastructure’ which will allow more
communities, businesses and organisations to buy and sell surplus
renewable electricity and services when and where they need it. A
single digital platform will allow users to access multiple
markets transparently and simply. The more energy
consumers can help and participate, and be rewarded for doing so,
the more renewable energy we can successfully accommodate and the
more secure our energy supplies.”
Notes to editors
Both calls for input have opened this week and will close on 10
May at 5pm.
The two consultations documents are available here:
Consultation: Future of
local energy institutions and governance | Ofgem
Call for Input: The Future
of Distributed Flexibility | Ofgem
