The Energy Networks Innovation Taskforce has estimated that localised system management and optimised asset operation could deliver £36 billion in savings by 2050.
A new innovation charter is being developed to explore how the UK could balance its electricity system in a more decentralised way as renewable generation increases.
An Innovation Delivery Group (IDG) will examine international approaches, engage with industry and assess potential balancing mechanisms before developing a roadmap for future innovation projects.
The IDG is chaired by National Grid Electricity Distribution’s DSO managing director Cathy McClay, who believes that the evidence the work provides could make a huge difference for customers.
She said: “Working across the industry, we want to understand where local balancing can create real value, what it could unlock for the network and the wider energy system and, importantly, how we turn that into action.”
Currently, the National Energy System Operator (NESO) is responsible for balancing supply and demand nationally. However, growing renewable generation is making the system more complex, while increasing flexibility procurement by distribution and transmission networks is creating a greater need for coordination.
The work is being funded through Ofgem’s Strategic Innovation Fund and is one of five innovation groups established in response to challenges identified by Ofgem and the Energy Networks Innovation Taskforce.
The completed charter is due to be published in January and is said to be the most cost-effective route to a decarbonised energy system.
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