The Energy Networks Association (ENA) has opened a major conversation about the future of power. As part of its Open Networks Project, the body launched a consultation on how to build a smarter and more flexible energy system. The stakes are high. This shift could save consumers as much as £40 billion by 2050.
This is an industry-wide effort. The project involves Ofgem, the government department BEIS, and all ten electricity network operators in the UK and Ireland. It will also influence how the single electricity market develops in Ireland.
Moving Beyond Traditional Infrastructure
The consultation presents five potential models, dubbed the Future Worlds. These options go far beyond the old way of doing things. In all five scenarios, traditional hardware like pylons and substations must work alongside smart flexibility services.
The grid of the future will rely on consumer technologies. This includes electric vehicles, smart meters, battery storage, and solar panels. Research by Imperial College London and The Carbon Trust backs up the financial benefits of this transition.
David Smith, CEO of the Energy Networks Association, highlighted the scale of the transformation. He noted that the Open Networks Project is unlocking a whole new range of benefits for households and businesses.
Smith explained that these Future Worlds represent a major change from current operations. They pioneer new ways to decarbonize the energy system. He emphasized that the consultation is key to ensuring stakeholders have their say in shaping the network.
The Role of Stakeholders
The consultation creates a profile for 23 key stakeholders in each of the proposed worlds. It describes how their roles will evolve to meet the challenges of decarbonization and digitization.
Randolph Brazier, ENA head of innovation and development, pointed out that many stakeholders will see their jobs change significantly. For some, the changes are consistent across all models. For others, there is a big difference depending on which world is chosen. He invited stakeholders to give feedback on which model works best for them and for consumers.
The Five Future Worlds Explained
The models range from decentralized systems to centralized control. Following feedback, each model will undergo an impact assessment.
Here is a breakdown of the five proposed worlds:
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World A: Distribution System Operator (DSO) coordinates. In this world, the DSO acts as the neutral market facilitator for all distributed energy resources. It provides services on a locational basis to the National Grid, which acts as the Electricity System Operator (ESO).
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World B: Co-ordinated DSO. Here, the DSO and ESO work together. They manage networks efficiently through the co-ordinated procurement and dispatch of flexibility resources.
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World C: Price-driven Flexibility. This world relies on market signals. Changes developed through reform of electricity network access improve arrangements and provide forward-looking price signals for customers.
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World D: ESO Coordinates. In this scenario, the national ESO is the main counterparty for distributed energy resources. The DSO simply informs the ESO of their local requirements.
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World E: Flexibility Coordinator. This introduces a new player. A national or regional third party acts as the neutral market facilitator. They provide efficient services to the ESO or DSO as required.
