Ofgem and the government have estimated that the UK could save £40bn with a smarter and more flexible energy system.
The Department for Business, Energy and Industrial Strategy (BEIS) and Ofgem have published a joint letter to the Energy Networks Association regarding the implementation of the Open Networks Project and the progress that has been made.
The letter states that a smarter, more flexible system could result in national savings of between £17bn and £40bn by 2050. Ofgem & the BEIS released their Smart Systems and Flexibility Plan in 2017, followed by a progress update in 2018, this new publication follows on from these findings.
As energy in the UK emits less and less carbon and moves away from centralised power plants, the network must move with it to fully optimise new technology and methodology.
The two organisations state they are pleased with the proactive approach taken by the Open Networks Project and are “keen that the progress continues and tangible changes are implemented”.
Despite this progress, the letter advises on a number of additional measures that could be implemented by network and system operators.
These measures include:
- Standardised flexibility procurement across all operators.
- Demonstrating transparency when evaluating flexibility tenders.
- Providing clear information on current and future system needs.
- Setting out a clear roadmap for data transparency.
The letter emphasises the importance of providing sufficient support to the development of flexibility markets and systems, while providing long-term benefits to consumers. The availability of network data also needs to be improved and made accessible between all systems.
The letter is available to read here.