Don’t rule out DNO-owned storage, ENA warns

The option for distribution network operators to own and operate storage must be retained until it is proven that a commercial market can meet the needs of network operators, the Energy Networks Association (ENA) has warned.

16th January 2017 by Networks

Don’t rule out DNO-owned storage, ENA warns

In its submission to the government and Ofgem’s smart systems call for evidence, the ENA said its members support flexibility, including storage, being procured from the competitive market.

However as it is not yet known if a commercial marketplace can provide viable storage in the “highly specific” manner networks need, “[ownership by DNOs] should not be precluded at this stage.”

On launching the call for evidence Ofgem’s Andy Burgess reiterated the regulator’s desire to see “competition thriving”, adding that DNO ownership “might stifle development of competition”.

He also said network companies must “clarify and improve the connection process” to meet the “strong interest” in developing storage.

The ENA said the scale of applications has represented a “significant challenge” to DNOs, and said the current fee arrangement requires change so the allocation of costs is fairer.

It is currently developing an “Energy storage guide for communities and independent developers”. The ENA said this should be available in early 2017.

The ENA has also launched a new project which aims to co-ordinate the development of processes, roles and responsibilities to ensure the best models are taken forward.