S
Almost as high profile but just as significantly, the Energy Networks Association’s Open Networks Project has seen some incredible wins this summer. Open Networks has been engaging with stakeholders from across the industry to power the way forward to a smarter, low-carbon energy system and we have reached a number of key milestones.
The first win in June came with a commitment to further develop flexible energy markets. The electricity networks realise the obvious benefits of encouraging flexibility services and came together to further commit to help shape the way we develop the future direction of the networks.
Building on the 2018 commitment by all distribution networks to test the market for flexibility services against all significant reinforcement projects, the ‘Six Steps for Delivering Flexibility Services’ sets out how flexibility markets will work in practice on all electricity networks in Britain. It ensures that they are open and transparent for all to participate in, creating new opportunities and a level playing field for energy suppliers, aggregators and customers to procure and deliver clean energy.
With the 2050 net zero target being put into law by the UK government, it is more important than ever to get the fundamentals of our new energy system right. Expanding local energy markets will bring big economic and environmental benefits, and continue to deliver the world-class energy system we rely on every day. The commitment itself further demonstrates the networks’ focus on finding innovative, customer-led market solutions to decarbonise the grid and drive down costs.
The energy system netted another win more recently with strong agreement across the energy sector on the next steps to deliver a smarter grid. In response to the Open Networks Project’s consultation on the Future Worlds Impact Assessment, the sector came together and agreed a shared vision. This showed strong agreement to building closer co-ordination between distribution system operators (DSOs) and the electricity system operator (ESO) to further encourage distributed energy resources to provide support for electricity networks.
With more than 30 responses, 84 per cent of non-network respondents agreed that DSO-ESO co-ordination of procurement and dispatch was the best place to start this vital transition, one that will enable and encourage more renewable energy into Britain’s energy system.
Respondents also agreed that price signals would also be a core part of any future electricity system developments. Ofgem has highlighted the importance of its Future Charging and Access programme in the government and its letter on Open Networks, which ENA has welcomed.
The evolution of the networks is already well under way, with active networks seeking to build on the incredible success seen in recent months with record amounts of solar energy in Britain’s energy system, leading to longer periods without burning fossil fuels.
In order to keep momentum going it is vital that we keep working with stakeholders from across the sector through the Open Networks Project. We were grateful for the continued support and involvement of the Department for Business, Energy and Industrial Strategy (BEIS) and Ofgem as well as their recognition of the value that the Open Networks Project has provided for delivering change as part of the energy transition. In their open letter to the Energy Networks Association, they also outline areas of focus, which we will reflect in our current and future work.
The amount of renewable energy connected to the grid is at an all-time high, while costs and power cuts have fallen. Never before has our grid been so capable and Britain now has some of the smartest, most innovative electricity networks in the world.
The accomplishments we have seen this summer are only half of the story, and there is still a long way to go to deliver net zero. In order to keep the networks and the service they provide for the public at record levels, we need a regulatory regime that allows networks to deliver. RIIO-2 should therefore be recognised as a key enabler of this wider strategy for delivering investment, innovation, the whole energy system transition and meeting public and stakeholder wants and needs now and in the future.