UK responds to Smart Power Call

UK responds to Smart Power Call


Ofgem and the UK government has finally sent out a response to 2016’s Smart Power Call for Evidence by unveiling a modernized and flexible power system.

Business Secretary Greg Clark says that the smart energy system should increase productivity, reduce the costs of energy and position UK businesses to provide energy services and green tech around the globe.

Here is an earlier comment piece in The Guardian from Clark.

Here are the 4 main points in the big unveil:

Utility Scale Solar

Solar power asset holders will be guided on how they can retrofit their storage while still being able to qualify for subsidy schemes. The latest CfD consultation maps out storage treatment on CfD-eligible assets; Ofgem has sent out an update on RO accreditation amendment processes and guidance on how storage could be co-located. Furthermore, new RO and FiT guidance will be sent out for asset holders who wish to update their battery storage for a later time.

Utility Scale Storage

Double charging has been removed. Solar asset holders are no longer required to pay FiTs, CfD, RO and Capacity Market charges when the stored electricity is utilized. Any electricity used for charging the storage assets are exempted from Climate Change Levy under special circumstances.

Network operators are expected to improve the storage connections process, more importantly on the transparency and clarity aspects in lieu of better queue management. The RIIO Incentive on Connections Engagement will be utilized to see if the DNOs are in compliance.

Ofgem will release a clarification for network operators who are also owners of their own storage assets. Prohibition is necessary to ensure further storage development and a competitive market. New reporting arrangements shall also be set for the DNOs who have their own storage assets to see if unbundling should be carried out in the future.

Commercial and Residential Scale Solar

The UK government has mentioned that policy regarding low carbon generators, including commercial and residential PV shall be reviewed in light of consumer benefits, self-consumption purposes and exporting during peak periods. BEIS has said that there would be allowances given to existing PVs for providing time-of-export tariffs.

BEIS has further mentioned that the new energy system is a good fit for the existing consumer protection on consumer rights and data protection. Both Ofgem and the UK government promise to set code of conduct policies for aggregators. Furthermore, both entities promise more proactive talks with the public regarding the use of smart energy and how they can adopt it for their own energy needs.

Commercial and Residential Scale Storage

Regional DNOs are expected to provide better transparency and clarity regarding the connection process and connecting storage solutions for residents. This could potentially lead to mandatory G59 connections.

The UK government will work with the industry to update, consolidate and review all safety and health standards regarding energy storage. The Institute of Tech and Engineering and the British Standards Institute will have their energy storage guide published immediately.

The government and automotive companies are expected to collaborate to bring in electric vehicles for vehicle-to-grid storage capabilities. Ofgem will assess any network, regulatory or tariff implications in connection with the said vehicles.

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