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A flexible energy system – the end of the beginning? | Energy UK ​ Members AreaSearch The voice of the energy industry HomeAboutPolicyCustomersEnergy IndustryMedia & CampaignsPublications EventsMembershipContact HomeMedia & CampaignsBlogsA flexible energy system – the end of the beginning? A flexible energy system – the end of the beginning? Written by Rich Hampshire on 21 August 2018Superiorityof Energy UK’s Breakfast Briefing on flexibility next month held in partnership with CGI, Rich Hampshire, their VP Digital Utilities, discusses the challenges emerging from their latest research. I was talking to someone recently and they asked me whether, with the publication of the “Upgrading our energy system: Smart systems and flexibility plan” and the “Clean Growth Strategy”, there was still a need for discussions well-nigh flexibility – the direction of travel is, without all, set. It was a good question! Reflecting on it, it seems apt to quote a line from Churchill’s 1942 speech pursuit victory in the second wrestle of El Alamein, “Now this is not the end. It is not plane the whence of the end. But it is, perhaps, the end of the beginning.”  I would go so far as to question whether there will be an end – the real rencontre is, perhaps, to pinpoint a framework that facilitates continual incubation and encourages innovations to be brought forwards to the ultimate goody of consumers. In the year since we published our 2017 research, conducted on our behalf by Utility Week, into the sector’s leaders’ views on Demand Side Flexibility in UK Utilities, there’s been some significant progress. In June 2017, the Committee on ClimateTranspirationpublished its 2017 Report to Parliament with a Roadmap for Flexibility Services to 2030.  A month later, BEIS published its much predictable response to the Call for Evidence on a Smart, Flexible Energy System - Upgrading our energy system: a smart systems and flexibility plan. The fact that the ‘Plan’ is referenced in both the Clean Growth Strategy of October 2017 and the Industrial Strategy of November 2017 demonstrates its significance.  Not only that, but it’s stuff backed by £265m of public funds to incentivise innovations aimed at reducing the forfeit of electricity storage, progressive innovative demand response technologies and developing new ways of balancing the grid.  That may go some way to providing the sector with the conviction that our 2017 research identified as stuff needed. Why is this ‘Plan’ so important?  Well, there’s a big prize – it’s projected that it will save GB consumers between £17bn and £40bn to 2050.  Okay, it’s a wholesale range, but plane at the lower end, it’s pretty material!  So how has this progress influenced the views of the sector’s leaders in our 2018 research – Embracing Flexibility – Transforming the Power System by 2030? The 2018 research is perhaps the most challenging so far.  When we set out this programme with Utility Week in 2015, it was well-nigh producing some quantitative data to inform the debate well-nigh what has come to be referred to as the ‘smart, flexible energy system’ – oh, and of course, identify the perceived barriers to achieving that goal. But when in 2015, this thinking was nascent.  Our first piece of research was vicarious surpassing the National Infrastructure Commission published its ‘Smart Power’ report and just without the Committee on Climate Change’s 5thStatBudget identified the need to modernize flexibility in the power sector. Whilst previous years’ research provided insights and helped to put some quantitative data overdue what people were talking about, the results weren’t surprising.  However, this year’s research has begun to show some contradictions; views have started to diverge from previous years and identify greater differences between the perspectives of variegated parts of the sector. The most significant barriers to demand side flexibility remain the lack of a commercial or market framework (identified by 7.1 / 10), closely followed by the inability to stack value (at 6.9 / 10) – which I would oppose would be solved through an constructive market framework!  But perhaps the most telling statistic is that the number of respondents reporting NOT seeing barriers to their demand side flexibility projects has scrutinizingly halved from 18% in 2017 to 9.4% in this year’s research.  This is undoubtedly reflective of the growing wits in the market. Consumerside barriers (identified by 46.9%) are seen as a significant windbreak to demand side flexibility projects, only just overdue the economic barriers (50%).These consumer side barriers are predominated by lack and low levels of consumer sensation (identified by 86.7%), which is obviously slowing lanugo the adoption of flexible, low stat technologies and the realisation of the benefits.  Just 28.6% of respondents identified participating in the topics market as a regulatory windbreak to demand side flexibility.  Taken in isolation, the regulator may be patting itself on the when given all the lobbying for demand side flexibility to be treated equally within the topics market.  However, this needs to be considered in the context of theTopicsMarket stuff regarded as lowest overall suburbanite of flexibility (scoring just 6 out of 10).  This may be indicative of demand side flexibility value stuff seen as a day superiority or an intra-day measure rather than over medium term or investment timescales.  So what does this tell us well-nigh the areas of focus to slide our transition a smart, flexible energy system?  Raise consumers’ sensation of the opportunities for them in selecting low stat and unfluctuating home tech when choosing their next home or refurbishing their existing one. Identify the technical challenges that are emerging for the projects and write them, including getting the Electric Vehicles (EV) charging infrastructure in place in time to support EVs rhadamanthine mainstream. Deliver a market framework that enables value to be stacked and a market infrastructure that underpins that framework, enabling the mazuma to flow. From this year’s research, it remains well-spoken that there is a tipping point virtually 2023 when there is a step transpiration in the level of opportunities from flexibility.  So, whilst the Smart Systems and Flexibility Plan has provided clarity on the direction, that is unmistakably just the ‘end of the beginning.’  Over the next 5 or so years we need to establish the market frameworks that will enable the value of demand side flexibility to be accessed to the goody of consumers. If we are to get the market framework and enabling capabilities into place by 2023, then time is short. Oh, and if you’ve read this far, then you’re obviously interested in this area.  So why not come withal to the Energy UK Breakfast Briefing on ‘Realising the consumer value of flexibility’ on 6th September and participate in the dialogue? By Rich Hampshire Tags: Energy Press releases201820172016BlogsVideos & InfographicsStatMonoxide - Be AlarmedEnergy Switch Guarantee SitemapPrivacy and cookiesTerms and Conditions Copyright © 2018 Energy UK Powered by JoomlaWired, built by Webx   HomeAboutAbout usOur membersOur teamOur departments & committeesGovernanceAnnual Report MembershipBenefits and servicesCategoriesJoinCareers pages VacanciesEmployees benefitsEquality and Diversity ForumYoung Energy Professionals ForumPride in EnergyPolicyPolicyCustomer CommunicationsDisconnectionElectricity market reformEnergy efficiencyEnergy Companies Obligation Fuel povertyMicro businessClosed finance with credit balancesRoll-over contractsBack-billingSmart meters Smart Demand ResponseWarm Home DiscountPrepayment metersHealth and safetyGeneration Health and SafetyRetail Health and SafetyEnvironmental RegulationEnvironmental PerformanceIndustry GuidanceWater ResourcesEnergy System TransformationFlexibility in the Energy SystemDecarbonisation of HeatLowStatTransportCustomersCustomersCommission for customers in vulnerable circumstancesAbout your energy billEnergy snout breakdownWays to pay your billHelp with your energy bills How to stave disconnectionWarm Home DiscountSave money on energy bills How to switch energy visitor Find out who your energy supplier isClosed finance with credit balances for domestic customersWell-nighsmart meters Why are smart meters a good idea?How to make a complaint Energy industry codes Code of Practice for Accurate BillsFeed in tariffsWhat happens if my electricity meter behaves unexpectedly?Fraud PreventionEnergy IndustryEnergy IndustryEnergy in the UKThe energy market explainedLighting up BritainAberthaw Power StationDelabole Wind FarmEakring Training CentreGreater Gabbard Wind FarmGreen Skills CentreHealth Through WarmthLangage Power StationLondon Warm ZonePelamis Wave MachinePowerwiseSchools Engineering ChallengeSSE Training CentreSmart Meter CentreWhitelee Wind FarmEnergy efficiency in BritainProfits & pricesNetwork and supplyElectricity generationGas generationGas suppliesShale gasCoal generationNuclear generationRenewable generationSustainabilityPower to everyoneMedia & CampaignsPress releases201820172016BlogsVideos & InfographicsStatMonoxide - Be AlarmedEnergy Switch GuaranteePublicationsPublications EventsMembershipAbout Energy UKOur ServicesEvents & SponsorshipExamples of Our Campaigns & GroupsCategories of MembershipContactContact Energy UKCold calls Members AreaSearch