conduct a series of reviews into whether the system as a whole is fit for purpose. There needs to be new grid connection and control strategies which use smart meters, smart energy balancing and energy storage in order to accommodate increasing volumes of renewable electricity. Unfortunately, we see that this has been too slow in some regions of the UK, where the grid is now effectively closed to new connections for the next 3-6 years. Yet these reviews and discussions
supporting them are still framed within a centralized energy delivery context and
existing system rules: l When the community energy strategy was published it was stated that take up will only lead to small growth in this business
model across the UK in the next years. l Even this strategy may need to be
www.r-e-a.net
revised as we now see local authorities play “catch up” to the lead smaller communities have shown, as they set themselves up as energy suppliers, enabling them to deliver affordable energy to the local people and
support the vulnerable. l Novel demand management and energy
storage deployment are now more likely to be constrained because of market rules rather than cost of the equipment itself In addition, many cities are looking at cross-cutting approaches that combine low carbon supply with new infrastructure, such as renewable heat networks, smart buildings and low carbon transport. Ofgem are also looking to understand whether current regulation is standing in the way of these NTBMs. Their discussion paper published in February 2015 should act as a catalyst for further action.
REA view: Whilst centralised energy will continue to play an important role, the wide range of renewable energy technologies and energy storage will be key to the transformation of the UK energy system. As a pan technology association, REA is uniquely placed to challenge the status quo. We are clear on the need to support the deployment of decentralised energy. We encourage all to contribute to the Ofgem discussion paper as a starting point for the strategic review of the grid we desperately need.
1
OFGEM Discussion paper: Non-traditional business models: supporting transformative change in the energy industry, 25th February 2015 https://
www.ofgem.gov.uk/publications-and-updates/ non-traditional-business-models-supporting- transformative-change-energy-market
REview Renewable Energy View 2015 45
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