Western Power Distribution (WPD) has called for responses to its new roadmap for the evolution of the network into a distribution system operator (DSO).
The company has invited to stakeholders to submit feedback to its DSO transition plan through its website and at consultation events.
"Throughout 2017 and beyond, we will be undertaking a number of further activities to transition towards operating as a DSO."
"Ultimately, we want to see an energy system built and managed in the best interest of our customers," said WPD operations director Phil Swift.
"At the high voltage level, where there is most congestion from the increase in distributed generation, there is scope for using smart grid technologies to create additional flexibility in the network.
"At the low voltage level, there will be greater requirement to build and modernise physical infrastructures to accommodate technologies such as electric vehicles."
The plan includes the rollout of active network management across the entire grid by 2021. Starting in 2017, the company will offer new connection options to customers, allowing them to get quicker and cheaper access to the network in exchange for accepting some curtailment.
As part of the proposals, a "localised visibility platform" will be created to show where there is congestion or capacity on the network and inform localised tariffs. The platform will be made accessible to customers to help cultivate a local energy market, including for the provision of demand side response.
New monitoring technology will be installed to enable enhanced visibility, and complex analytical tools will be used to interrogate the data and produce forecasts. WPD will continue to develop and update regional energy scenarios to establish future network needs.
"Throughout 2017 and beyond, we will be undertaking a number of further activities to transition towards operating as a DSO," said Swift.
"We will be building up our technical forecasting capabilities and continue our significant programme of fitting additional measurement and control equipment across our networks, laying the foundations for active network management."
The company has estimated the one-off set up cost for the transition programme at roughly £75 million. The total cost over the current RIIO price control period, including recurring expenses such as licenses and extra wages, is expected to be in the order of £100 million to £125 million.
WPD will be taking feedback on the plan until the 29 September and will hold a consultation event in Birmingham on 14 September.
The firm operates the distribution networks for the Midlands, South West England and South Wales, which between them serve roughly 7.8 million customers.
UK Power Networks recently launched of a new active network management scheme alongside National Grid to boost connection capacity in South East England.
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