DBEIS and Ofgem’s call for evidence on a smarter, more flexible and user friendly energy system
On Thursday 10 November, the Department of Business, Energy & Industrial Strategy (DBEIS) and Ofgem published the long-awaited call for evidence on a smart, flexible energy system.
The call for evidence reflects the UK Government’s priorities in designing a future electricity system that incorporates smart energy technology and innovation, such as energy storage, and helps to deliver lower bills for consumers, greater security of supply and increases competition for buyers and sellers of energy. It is estimated that the proposals contained in the call for evidence could help save the UK energy system up to £40bn by 2050.
The call for evidence seeks responses on a number of market barriers currently facing energy storage with the aim that energy storage systems are able to compete on a level playing field with other forms of generation and flexibility. These challenges include:
• how storage connects to the network - greater clarity is needed on how the connection process works for storage and the document sets out options for achieving this
• how storage is charged for using the electricity network - charging methodologies applied to storage by network operators may not accurately reflect the value and costs storage imposes on the network
• the absence of a definition of storage in legislation – this is currently leading to a lack of clarity when storage interacts with other legislation and regulations, including the planning framework
• how final consumption levies are charged to storage – the absence of a statutory definition of storage means that storage assets can be charged as an end user of electricity (even when this electricity is exported and used a second time), known as ‘double counting’
Responses to the call for evidence are due by 12 January 2017.