The paper entitled The Future of Networks – Setting the Scene describes the progress so far in establishing regional flexibility markets, and highlights the key opportunities and challenges for the future.
Key findings of the report are that the distribution network is undergoing unparalleled change; that the transition to an actively managed distribution network is just beginning and that it is essential to maximise the value from the existing infrastructure; and while making the shift is ambitious, it requires all stakeholders to strike the right balance
Flexibility of network users will be crucial
Andrew Enzor, Senior Consultant at Cornwall Insight, said: “Pressures on distribution networks are changing. We already have increasing levels of generation connected to the distribution networks with demand set to rise as electrification of transport and heat progresses. Flexibility of network users will be a crucial element of minimising the cost of accommodating low carbon technologies at scale on distribution networks. Regional flexibility markets are beginning to emerge as a critical tool for network and system operators to procure flexibility services and to manage network constraints. This is set to continue and is essential for networks to maximise value from existing infrastructure and be able to keep costs down for bill payers.”
The transition will require changes
Mr Enzor went on to say, that “policymakers and network operators are recognising that accelerating and deepening the use of local flexibility allows reinforcement decisions to be deferred, until there is much greater certainty that they will be needed. Not only this, but the extra flexibility is likely to increase investment in flexible and smart technologies. The transition is ambitious and will require a complete change to how distribution networks operate. Delivering on this ambition is reliant on a multi-stakeholder integrated planning approach, which is heavily dependent on data, communication and co-operation. Throughout the series of papers, we will be considering the key aspects of the markets in greater detail and monitor developments as they grow.” (mfo)
