UK energy regulator Ofgem and the UK Government have opened a consultation aimed at finding ways to develop “a smarter, more flexible and user-friendly energy system” which includes “looking at what can be done to make it easier for businesses to provide voluntary demand side response, where they turn down electricity use at peak times in exchange for payments” they said in a statement published on Ofgem's website.
That “could lower the energy bills of Great Britain’s homes and businesses” they said, adding that “a wealth of innovative technologies and services could deliver substantial savings, improve the reliability of GB’s electricity supply and support the move to a low carbon energy system.”
This includes “increasing the use of energy storage technologies, such as batteries, in our homes, businesses and networks,” they explained, as batteries can hold excess energy for use at times when the demand is higher or energy is more expensive.
“There is significant demand to develop electricity storage projects in particular” they noted, adding that in recent months over 19 GW of applications have been made to connect electricity storage.
“We are calling on network companies to streamline the process for storage to connect to the grid” they said. “This includes ensuring it can connect in areas where it can ease network congestion and benefit other connecting customers.”
“Local grid operators need to be smarter and work closely with National Grid to work out the best solutions for managing a system with increasing amounts of low carbon generation” they added.
“Having a smarter system will revolutionise how we all interact with the energy market” commented Ofgem's chief executive Dermot Nolan. “A smarter system also makes it far easier for new businesses to enter the market and offer new services. To get there we must make sure the regulatory regime is fit for the energy system of tomorrow and remove any barriers.”
“Giving people access to a smarter energy system that is affordable, secure and puts them in control of their energy costs is an important part of our work to build an economy that works for all” said secretary of State for business, energy and industrial strategy Greg Clark.
The consultation will run until January 12 2017.