The study, aimed to investigate the impact of the large-scale integration of hydrogen electrolysers to the grid, points to hydrogen as complementary to electrification for decarbonisation targets rather than a target in itself, with the first applications likely to be for substituting grey hydrogen in present industrial processes.

However, electrolysers will progressively become an additional system element, which implies that it should be planned and operated synergically with the rest of the energy system.

The report identifies four key issues, i.e. the relationship between supply and demand, the use cases and their impact on the grids, flexibility and the impact on system planning.

Have you read?
Renewables connection times higher than desired in Europe – E.DSO
Why hydrogen is the right-time-right-place electricity delivery option

As a new system component, the recognition of green hydrogen requires an ad-hoc scheme, valid across jurisdictions, for the infeed electricity encompassing the additionality principle, in order to avoid double counting and greenwashing as well as cannibalisation of other decarbonisation processes.

In addition, there needs to be both geographical and time correlation to ensure the utilised renewable energies are not impaired by grid congestion.

At the grid operation level, in order to better exploit the variability of renewable energies, the flexible operation of the power system requires to decouple as much as possible the profiles of green hydrogen production from hydrogen consumption.

This means having enough storage elements both in the power system and in the hydrogen system.

With this, the hydrogen system also can provide long-term flexibility, through storage of excess renewables in gas reservoirs, as well as adequacy support.

Short-term flexibility services also are possible via demand response and balancing from electrolysers.

In terms of planning hydrogen projects should be designed and assessed starting from the end use case, volumes and costs, not from the supply side, which must follow the needs of the end user.

From the energy system point of view, the deployment pace of electrolysers should match the increase of the large amount of additional renewables volumes required for producing green hydrogen, in order not to cannibalise other decarbonisation processes.

Other infrastructure, such as pipelines and storage facilities, also need to be coordinated with grid developments as well as end user needs.

The report also notes ‘hydrogen valleys’ as a promising configuration for starting the development of comprehensive use cases.

In conclusion, the report highlights the need for a ‘one system’ view, noting that the viability of hydrogen projects is both case and country-dependent.

Win-win solutions matching business needs with system requirements must be found in order to maximise the benefits for all stakeholders.

For a smooth but fast transition phase, repurposing the gas grid, also through initial blending, is suggested as a viable and smart option to enable a gradual phase-out of natural gas and set-up of a hydrogen market.

The project EDGE (Energy from Distributed Resources for the Management of the E-Distribuzione Network) aims to test and establish the most appropriate solution for the procurement of local ancillary services and related remuneration in Italy.

The project will initially cover areas in four provinces, Cuneo and Venice in the north of Italy and Benevento and Foggia in the south.

Have you read?
Europe’s grids need anticipatory planning and investment – Eurelectric
Energy Transitions Podcast: Enabling flexibility with district self-balancing

“We are incredibly excited to launch this new market alongside E-Distribuzione, which is setting a new, leading standard for what can be achieved through DSO flexibility markets,” says James Johnston, CEO and co-founder of Piclo.

“This unparalleled development across Europe marks a new era for these markets including short-term flexibility services, greater integrations and end-to-end automation and ultimately improved network decarbonisation and resilience. We can’t wait to get going.”

The EDGE project is focussed on providing active power regulation services, in order to comply with network constraints in both normal operating conditions and reconfigurations caused by failures or scheduled works.

Potential resources that can participate include production and consumption units, battery storage units and electric vehicle charging systems with delivery from both residential and non-residential users.

Piclo Flex as an independent marketplace will provide the end-to-end solution to acquire and dispatch the flexibility services to E-Distribuzione’s networks.

For Piclo the project marks a further step in the growing use of the platform around the world by network operators, including four DNOs and the TSO in the UK as well as others in Ireland, Portugal, Lithuania and New York state in the US.

As of 2022, Piclo Flex had 55,000 registered flexible assets representing 16.6GW of flex capacity, with flexibility contracts awarded totalling £58 million (US$73 million) and 1.1GW+ of flexible capacity procured.

E-Distribuzione is part of the Enel Group and is the largest DSO in Italy.

The EDGE project was initiated in response to the EU’s Clean Energy Package and the growing need for flexibility in Italy, with the government’s plan to add at least 70GW of renewable energy capacity by 2030 to cover 30% of the gross energy consumption.

The Dutch companies are calling it the first ‘capacity restriction’ contract, which will see Eneco gear electricity supply from a wind project in Farmsum to meet the load on the power grid, a technique to avoid peak demand periods known as congestion management.

During peak moments, Eneco will temporarily reduce the production of this wind energy and Enexis will pay a fee.

The wind farm in question is Farmsum, located in the Dutch province of Groningen, which is connected to one of Enexis’s medium-voltage stations in Weiwerd.

Have you read:
Gridlock: how the Netherlands hit capacity
Dutch utility coordinates flexibility contracts for continuous EV charge

The station’s power grid, states Eneco, has virtually no room left for more capacity and through the contract Eneco will make the wind farm available to produce less electricity during peak moments, freeing up room on the grid.

This is the first time either Enexis or Eneco has concluded this type of contract, which has been signed at a time in the Netherlands when increasingly flexible means of managing consumption are being used to balance an at-capacity grid.

The wind farm has a total capacity of approximately 25MW; Eneco will make 10MW of flexible capacity available to Enexis to open grid capacity for connecting roughly 30,000 solar panels.

The contract takes effect on 1 September 2023. The contract has no fixed end date; it will remain in place until the local power grid has been upgraded.

Commenting on the contract in a release was Lucien Wiegers, director of Eneco’s trading division EET, who stated: “We are pleased to have secured this first deal with Enexis, and we expect to sign several more of these contracts, not only for our own wind and solar farms, but also for farms that we manage for others.”

Added Karin Mathijssen, director of large business customers at Enexis: “We are transitioning to an energy system where these types of flexible contracts are becoming increasingly important. At the same time, this is a new concept – not only for us, but also for our customers.

“I am confident that we will sign more of these types of contracts in the near future. To serve as many of the customers on the waiting list as possible, Enexis will continue to look for parties that can supply flexible capacity and that follow Eneco’s excellent example.

The UK market researcher’s report, The power of flex: Rewarding smarter energy usage, outlines the importance of enabling household flexibility, which has the potential to benefit individual households, the national energy system and the environment.

The report highlights four key findings:

• Smart meter-enabled flexibility can cut peak consumption by 3GW;

• Household flexibility could deliver annual savings for consumers and the energy system of £14.1 billion/year ($17.9 billion/year) in 2040;

• Individuals engaged in flexibility could save 52% in wholesale electricity costs in 2040;

• Carbon savings increase 45% with the engagement of household flexibility.

Smart meters crucial for enabling flexibility

According to Cornwall Insight, the research focussed on the system-facing benefits that can be realised by managing and deploying the flexibility potential in household electricity use.

The flow of relevant data between different parties engaged across the energy system is essential to delivering opportunities, states the company, and smart metering infrastructure is a core component in ensuring this information is available to all relevant parties when they need it.

Using the half-hourly data from smart meters, customers can also be rewarded for reducing their use of electricity at certain times, in a way that would not be possible with a traditional meter. With a traditional meter, suppliers typically do not have visibility of consumption at different times of day, states the research, and therefore could not reward customers for making a change in their consumption pattern.

Have you read:
Flexibility record set in GB
UK energy regulator investigates domestic demand side response

Enabled by the presence of smart meters, household flexibility was found to support substantial reductions in peak consumption, the equivalent of four new gas-fired power stations.

Specifically, states the research, managing flexible demand technologies like EV charging, heat pump operation and solar and storage activities to market prices and system requirements equates to 3GW of peak demand on the network avoided overall in 2030.

This reduction is equivalent to saving almost £1 billion ($1.3 billion) in spending on the electricity network, including wires and other infrastructure which delivers electricity to homes.

Further savings are seen in 2040, with a 1.5GW reduction in peak demand facilitated by household flexibility, saving £1.7 billion ($2.2 billion) in avoided network upgrades and the building of new gas-fired power stations.

£14.1 billion saved by 2040

According to the study’s comparison between two scenarios, one with enabled flexibility and one without, the flexibility scenario sees consumers and the energy system benefit from £14.1 billion in savings in 2040.

This arises from three key areas, states the report:

• Lowered wholesale electricity prices accounting for £12.3 billion ($15.6 billion);
• Lowered peak demand, reducing the need to build additional power stations, delivering savings of around £1.2 billion ($1.5 billion);
• Reduced need to build additional network assets, equating to a saving of around £500 million ($634 million).

These financial savings relate to single-year scenarios modelled for 2025, 2030 and 2040. The scenarios are stand-alone and are not cumulative for the time periods between the scenarios, states the research.

Also of interest:
EU flexibility requirements to increase significantly towards 2050 finds JRC
Energy Transitions Podcast: Enabling flexibility with district self-balancing

Looking nearer term, in 2030 the research finds overall savings of £4.6 billion ($5.8 billion) and by as soon as 2025, the ability to shift some consumption out of expensive peak periods supports wholesale power price savings, with overall power costs £21 million ($26.6 million) lower.

Flexible households could save 52% in wholesale electricity costs in 2040

According to the research, for households with EVs, heat pumps and other smart-capable assets that are managed in line with flexibility incentives, wholesale electricity costs are 52% lower in the Flexibility Scenario, saving £3755 ($4759) in 2040.

These savings take account of the additional electricity demand required to transition to electrified heating and transport and come from these households being rewarded for moving the flexible parts of their electricity consumption into cheaper periods. This means these customers won’t face additional costs from petrol and gas, states Cornwall Insight.

45% increase in carbon savings

According to the report, engagement with household flexibility results in a 45% increase in carbon savings compared to the no flexibility scenario, the equivalent of planting 630,000 trees, states the research.

By engaging with flexibility, households can have a positive environmental impact, shifting consumption from peak times when gas-fired power stations are often used to meet demand, to other times of day when renewable energy is generating more.

The ENA states its figures show that more than 70% of the contracted capacity is made up of low-carbon technologies, including stored energy accounting for about one-third, solar and water.

It is also the highest amount of the service tendered in Great Britain.

Compared with 2021-2022, the 2022-2023 year was 1GW up on tendered flexibility, although only marginally up on the contracted.

Have you read?
UK network operators collaborate on new DER route to market
Energy Transitions Podcast: Enabling flexibility with district self-balancing

Moreover, the current year is on track to record similarly high levels at around 4.6GW of tendered flexibility, with 2.4GW contracted.

Dr Avi Aithal, Head of Open Networks at the ENA, said these statistics show just how far flexibility has come.

“We believe these figures make Great Britain one of the biggest flexibility markets in the world. But today’s success is history tomorrow, so we need to keep pushing on and maximising flexibility across the networks.”

The figures indicate that of the network operators, UK Power Networks was the most active in terms of flexibility connections in the year.

Alongside the release of the figures, the ENA reports launching a new framework and benchmarking to give market participants greater visibility on the implementation of the ‘Open networks’ programme to deliver a standardised flexibility market and to provide greater transparency and highlight progress.

Current key focuses of the programme, now in its sixth year, are on making it easier for service providers to participate by standardising products and processes, improving the operational coordination between networks and companies and improving the transparency of processes, reporting and decision-making.

The Piclo Flex platform has emerged as the flexibility service procurement platform of choice in Britain, now being used by four of the six leading network operators – UK Power Networks, Electricity North West, SP Energy Networks and Northern Powergrid – as well as the TSO the Electricity System Operator (ESO).

Known as High-Density Hydro, Mercia Power Response and RheEnergise will work together to identify suitable sites for additional HD Hydro storage projects.

The initial focus will be the feasibility of getting 100MW of HD Hydro in commercial operation by 2030 by using Mercia’s existing grid connections.

Have you read:
Netherlands funds consortium to electrify logistics sector and drive flexibility
Australian smart buildings trial to test flexible demand response tech

Stephen Crosher, RheEnergise’s chief executive commented on the announcement: “Mercia PR’s experience in flexible power response and its deep knowledge of the UK energy system will be hugely beneficial to the RheEnergise team.

“Our HD Hydro technology can provide medium and long duration energy storage, which is becoming increasingly important as the UK moves towards net zero and with a UK energy system that is increasingly reliant on intermittent renewables.”

The existing 40 sites have a combined capacity of 263MW and several sites are under development and construction over the next 5-10 years, according to RheEnergise.

The HD Hydro system uses an environmentally benign fluid, 2.5 times denser than water, which can provide 2.5 times the power when compared to a conventional low-density hydro-power system.

The developer states how this enables HD Hydro to be deployed beneath the surface of hills rather than mountains, opening up opportunities in the UK and globally.

Said Graham White, CEO at Mercia PR: “It is very exciting to explore how we can engage with RheEnergise’s HD Hydro technology, applying our expertise in finding the right locations, developing sites, getting grid connections and operating within the Capacity Market.

“We see enormous potential for HD Hydro deployment as a future low-carbon alternative to our existing gas-powered assets.”

Added Sophie Orme, commercial director of RheEnergise: “Given the growing pressure to speed up the decarbonisation of the UK’s energy system, our HD Hydro system can be consented in months rather than years, so we are able to make a meaningful and positive impact on the energy transition over the next decade.

“With our partnership with Mercia PR, we will have a better understanding of the feasibility of deploying 100MW of long duration storage capacity by 2030.”

The Digital Infrastructure Energy Flexibility (DIEF) pilot project will bring together a consortium of project sponsors responsible for funding, research outcomes, coordinating artificial intelligence competitions and onboarding buildings onto a digital platform in the hopes of developing flexible demand tech.

Flexible demand, states CSIRO, is an alternative to the traditionally rigid energy network infrastructure, offering a way to lighten the load on the grid during busy periods. However, the flexible demand approach is still nascent and requires new technologies, market processes and ways of engaging with energy users.

The DIEF pilot will address these issues, whereby up to 200 buildings, selected by the consortium will be connected to CSIRO’s Data Clearing House Platform (DCH), which will act as the digital infrastructure for the project.

DCH is a software platform for owners and operators of existing or new commercial, industrial, government and mixed-use developments to connect with service providers to solve common data-related problems.

Have you read:
EU flexibility requirements to increase significantly towards 2050 finds JRC
Netherlands funds consortium to electrify logistics sector and drive flexibility

CSIRO’s energy director, Dr Dietmar Tourbier, said the DIEF project would help improve the viability and uptake in flexible demand, delivering benefits to consumers and industry alike:

“Flexible demand is critical because it ensures grid stability, reduces costs, supports increasing renewable energy integration and enables a more sustainable and efficient energy system.”

The project will allow property owners within the pilot to share data and build innovative software applications for sophisticated management of building carbon emissions.

Property owners will be able to identify opportunities for energy flexibility and productivity improvements resulting in reduced operating costs and energy use.

The data collected during the trial will be used to inform Government on the creation of a flexible demand policy and asset register.

Commented CSIRO chief research consultant for energy, Dr Stephen White: “This technology will not only allow people to get data out of their buildings and make it accessible to their service providers, but they will also be able to receive data from external providers such as the electricity market and the Bureau of Meteorology.”

Of the 200 buildings to be connected, the DCH expects to gain access to devices that consume over five megawatts of power from the grid, up to 0.08% of total demand in NSW. The power usage of these devices can be intelligently controlled to match up with periods of high renewable generation.

The DCH Platform forms part of CSIRO’s developing Smart Energy Mission which is focused on building Australia’s next generation of integrated and equitable energy systems.

Members of the NSW consortium who are sponsoring the project include CSIRO, the NSW Government, Amber Electric, DNA Energy, EVSE Australia, Nube iO, Property and Development NSW, RACE for 2030 CRC, UNSW, UOW, and Wattwatchers.

The project was funded with an AU$3.75 million ($2.43 million) grant from the NSW Government, under the Net Zero Plan Stage 1: 2020-2030. The remaining funding (cash and in-kind) was provided by consortium members and in-kind funding from CSIRO.

The partnership will see the fast-growing Octopus Energy team up with the UK’s largest electricity distribution network operator to help the grid exploit excess renewable power.

Participating customers will get free electricity when there is excess available on the local grid from abundant renewables. Based on UK Power Networks’ forecasts, Octopus will send customers a notification of the times they can ‘Power-ups’ their homes for free a day in advance.

Octopus Energy, in a release announcing the partnership, comments on how recent years have seen the transmission grid face challenges of imbalance when energy supply exceeds demand.

The partnership with Octopus Energy comes as grid operators like UK Power Networks are looking into alternative means of balancing the grid, to avoid turning off these renewable generators during times of surplus.

This marks the latest in a series of partnerships between the two. In 2019 the pair launched Powerloop, a vehicle-to-grid trial where participating customers were paid each time they discharged energy from their electric car back to the grid.

Have you read:
Octopus Energy backs Xlinks: ‘world’s longest’ interconnector
Spot the robotic dog sniffs out faults in National Grid’s interconnectors

Alex Schoch, head of flexibility at Octopus Energy Group, commented: “Thanks to Octopus’ proprietary technology rewarding ‘demand turn up’, we no longer need to switch off bountiful solar and wind power when consumers can use it up for free instead.

“It’s good for the grid and good for the planet – a win for everybody. ‘Power-ups’ is yet another arrow in the quiver of ‘demand flexibility’ and it’s great to work with an innovator like UK Power Networks.”

Sotiris Georgiopoulos, UK Power Networks’ director, added: “In response to growing volumes of renewable power, UK Power Networks is the first distribution system operator to call for ‘demand turn up’.

“Tapping into customer flexibility means we can connect more renewable energy, keeping costs down for our customers.”

UK Power Networks owns and maintains electricity cables and lines across London, the South East and East of England.

Power Ups sign up opens on 9th August 2023 and dates/times of ‘Power-ups’ will vary.

However, writes Alan Greenshields, director of ESS Inc, as this transition accelerates it is broadly recognized that challenges associated with connecting wind, solar and battery technologies to the grid present significant impediments to achieving global climate and clean energy goals.

Understanding and overcoming these impediments will be critical if net zero targets are to be achieved. 

The energy epiphany

The war in Ukraine destabilised global energy markets and led to significant cost increases across Europe and worldwide, shocking the Western world into the realisation that the slow transition from fossil to renewable energy needs to accelerate significantly.

The epiphany has come with an understanding that this will require substantial investments in infrastructure as we transition the grid from big, centralised fossil power plants to distributed renewable infrastructure.

To deliver the transition, the US has passed the $370 billion Inflation Reduction Act, the EU is set to match the US with its Green Deal, and the UK has deployed a new Security Energy Strategy with promises to go further.

Beyond funding, a number of regulatory hurdles remain to realizing the potential benefits of these ambitious programs.

The UK strategy was announced in April 2022 and promised to slash through red tape so that solar, wind and battery infrastructure can be deployed and renewable goals met. One year later, reports by the Financial Times and others are documenting the ongoing challenges posed by interconnect issues, posing a significant barrier.

These issues have led to a queue for renewable deployments that can involve a 15 year wait in the UK to connect new renewable power projects to the grid. These delays pose severe headwinds to Britain’s ambitious decarbonization targets.

The challenge primarily lies in an outdated grid and an outdated bureaucracy. The UK’s National Grid, with its architecture designed for a small number of large fossil fuel generators, has historically had 40-50 applications for connections a year.

With the increase in new renewable projects, this has risen to about 400 a year, representing ~234GW of renewable energy waiting to be connected to the grid.

Grid infrastructure has not kept pace with the rapid growth in renewable projects. One way to accelerate renewable deployment while enabling grid upgrades will be to prioritize new projects that include long-duration energy storage (LDES) technologies. These projects can ease transmission congestion by storing excess energy during periods of over-generation and deploying it when needed.

Have you read?
Xcel Energy to deploy private LTE network to support grid modernisation
Why long duration storage could be the solution to the energy crisis

Overcoming the connection queue

Addressing a multifaceted problem will require multifaceted solutions.

First, clearly the bureaucracy that manages grid interconnections to evaluate and approve new applications needs reform to keep pace with the volume of requests.

A predominantly renewable grid will look different than the fossil-based system upon which we have relied to date, and our regulators must enable, not hinder, that transition.

In the short term, one potential reform that could accelerate approvals would be to prioritize project viability instead of simply “first come, first served” when evaluating proposed projects. This can lead to nonviable projects wasting limited public resources despite the fact that they are unlikely to ever be built at the expense of viable projects that could move forward quickly.

For example, the initial application doesn’t require a letter of authority for a parcel of land. Projects without a clear claim to a specific physical location can hold up projects on which construction could begin immediately.

Delays are worsened by other administrative issues, such as demands for cumbersome environmental assessments for each project, and the increasing cost of booking grid capacity in advance. In fact, a grid connection tied to a piece of land could be worth more than £1 million ($1.3 million).

The National Grid has addressed this issue in a recently published report saying it is carrying out “a major programme of reform to redesign the existing connection process”, which includes ensuring inactive projects are not blocking the pipeline.

Hopefully, this makes a positive impact, but we still need to go a step further to address the backlog. A good starting point would be to update the regulatory regime and remove planning blockers as well as changing to a first ready, first serviced basis and making sure that companies that put in applications have viable projects. 

Allowing greater flow of electricity

Transmission system upgrades are also needed to expand the capacity of existing high-voltage transmission lines to allow greater flows of renewable electricity, carry electricity long distances and better connect regions and communities. This will ensure people can access power when they need it, providing affordable and abundant clean energy.

In the long term, upgrades are likely to require more cables, poles, wires, and transformers to transport electricity, skilled workers, investment, and specific materials, all of which will be in high demand as many countries are facing the same challenges at the same time.

Grid reform

The UK can’t continue to react to one electricity/energy crisis at a time until the growing complexity of the grid and its reliance on fossil fuels brings it to breaking point.

Instead, the government must proactively put measures in place to ensure the grid can harness and accelerate the amount of renewable energy needed to meet climate targets.

Fortunately, grid issues can be mitigated in the short term by deploying new energy storage technologies to support the accelerated deployment of renewables.

Battery storage enables energy from renewables to be stored and then discharged when customers need power most, even if the wind is not blowing and the sun isn’t shining.  By integrating storage both into the grid and giving priority to those new renewable projects with storage components, it will be possible to improve the flexibility of the grid while also reducing emissions.

By re-examining not only the procedures for project approval, but the components that make up the grid, it will still be possible for the UK to meet our ambitious climate and energy goals, accelerate renewable deployment and avoid further reliance upon natural gas. We just need to get the rules right and allow ourselves to fully take advantage of new innovations that are commercially available today.

The ten ‘demonstrator’ projects have secured new funding under the beta phase – demonstrating their application after successful feasibility studies and proofs-of-concept – within Ofgem’s Strategic Innovation Fund (SIF).

Led by energy networks alongside partners in research, tech and innovation, the UK projects include technologies delving into hydrogen integration, flexible use of energy, AI and weather data systems to predict risks and faults to enable connections to the grid for increasing amounts of offshore renewable power.

The projects include:

1. CrowdFlex

The CrowdFlex project, led by National Grid ESO, aims to explore household energy flexibility as a national resource to help decarbonisation.

The project will evaluate the use of flexibility over when and how energy is used to help align demand to generation, improve network coordination and reduce stress on the system.

The project aims to build a forecasting model of domestic demand and flexibility, based on large-scale consumer trials, with the objective of establishing flexibility as a resource and informing new product design.

Project partners include Amazon Web Services, Octopus Energy, OVO Energy, Element Energy, National Grid Electricity Distribution, Southern Electric Power Distribution, Centre for Net Zero and OHME Operations UK.

Under the beta phase, the project has been awarded £18.6 million ($23.9 million).

Have you read:
The #SmartEnergyCluster – 19 EU projects collaborate
US announces funding opportunity for AMI-enhanced grid reliability projects

2. Digital Platform for Leakage Analytics

The Digital Platform for Leakage Analytics project, led by Cadent with Guidehouse as technology delivery partner, aims to demonstrate a prototype for how data, analytics and innovative sensors can be used to identify, locate and predict gas leaks in the gas distribution network.

The system is hoped to enable real-time alerts about critical leaks, more accurately analyse and model leakage data across the network and take quick and effective action.

Project partners include Northern Gas Networks, Wales & West Utilities, National Gas Transmission and Southern Gas Networks.

Under the beta phase, the project has been awarded £9.5 million ($12.2 million).

3. HyNTS Compression 

Led by National Grid Transmission, the project will investigate the compression of hydrogen for use in energy networks.

It will test repurposing of existing compression equipment to determine if it could be used for 100% hydrogen transmission. 

Project partners include Cardiff University, Siemens Industrial Turbomachinery, Northern Gas Networks, Southern Gas Networks, DNV Services UK, Premtech and Cullum Detuners.

Under the beta phase, the project has been awarded £33.3 million ($42.8 million).

4. Intelligent Gas Grid

Led by Southern Gas Networks, the project will investigate the use of weather data and AI to monitor and control gas networks, including the optimisation of pressure management, detection of faults and assisting the injection of green gas into the network.

Project partners include Cadent Gas, Northern Gas Networks, Wales & West Utilities, National Grid Gas, Utonomy and DNV Services UK.

Under the beta phase, the project has been awarded £6.1 million ($7.8 million).

Smart Energy Finances: Funding for autonomous EV charging and GridBeyond’s acquisition of Veritone Energy
Technology Trending: Cybersecurity labelling, EV charging vulnerabilities, vortex rings

5. Predict4Resilience

Led by SP Transmission, the project will investigate using data from historical faults, land cover, weather and surveys to improve the forecasting of network faults and risks.

Project partners include the University of Glasgow, SP Distribution, SIA Partners UK and Scottish Hydro Electric Power Distribution.

Under the beta phase, the project has been awarded £4.5 million ($5.8 million).

6. Predictive Safety Intervention

Led by Southern Gas Networks, the project will investigate the use of AI and data to prevent safety incidents.

Project partners include Cadent Gas, Northern Gas Networks, National Grid Gas and FYLD.

Under the beta phase, the project has been awarded £1.1 million ($1.4 million).

7. Velocity Design with Hydrogen

Led by Southern Gas Networks, the project will investigate the use of hydrogen in gas distribution networks.

Project partners include Cadent Gas, Northern Gas Networks, Wales & West Utilities, National Grid Gas, Institution of Gas Engineers and Managers and DNV Services UK.

Under the beta phase, the project has been awarded £5.9 million ($7.6 million).

8. HyNTS Deblending for Transport Applications

Led by National Grid Gas, this project will investigate the blending of hydrogen for heavy transport refuelling stations into the gas network.  

Project partners include Element Energy, Cadent Gas, Northern Gas Networks, Wales & West Utilities, Southern Gas Networks, DNV Services UK, Element 2 and HyET Hydrogen B.V.

Under the beta phase, the project has been awarded £9.9 million ($12.7 million).

Also of interest:
Why Europe mustn’t be short-sighted on long duration energy storage
Energy Transitions Podcast: The cost of Europe’s copper crunch

9. Network-DC

Led by Scottish Hydro Electric Transmission, Network-DC is investigating the connection of offshore wind to DC (direct current) networks in coastal communities.

The project will look at the use of DC breakers to allow many wind farms to connect to a DC network, reducing the number of coastal converter stations for economic and environmental benefits.

Project partners include the University of Edinburgh, Carbon Trust Advisory, National Grid ESO and the SuperGrid Institute.

Under the beta phase, the project has been awarded £5.5 million ($7 million).

10. Incentive

Led by Scottish Hydro Electric Transmission, the Incentive project looks at technologies for managing offshore wind generation.

The project will investigate innovative control and energy storage for ancillary services in offshore wind, coupling storage with offshore wind farms to provide grid stability services, such as inertia i.e. when turbines are not generating.

Project partners include the University of Strathclyde, National Grid ESO and the Carbon Trust.

Under the beta phase, the project has been awarded £922,333 ($1.2 million).

The SIF is a five-year programme from Ofgem for projects in the UK, with up to £450 million ($577.4 million) available to promote projects driving energy network innovation.

Projects are funded progressively in three ‘agile’ stages – discovery, alpha and beta – to ensure focus on the right areas and minimise risk.

Discovery projects are short feasibility studies, alpha are longer proof-of-concept projects and beta projects are large-scale demonstrators.

The SIF programme’s second round of projects is currently underway; 53 feasibility studies have completed their initial Discovery Phase. A third round is due to open for feasibility study proposals in the autumn of 2023.

Funding will be provided incrementally and is dependent on key milestones being met.

The current flexibility requirements in the EU correspond to 11% of the total electricity demand but the study indicates the need for growth to 24% in 2030 and 30% by 2050 in order to balance supply and demand with the increasing levels of variable renewable energies to meet the region’s ambitions.

In absolute terms the average requirements for the EU resulting from the modelling for 2030 are 0.79TWh/day, 4.93TWh/week and 14.39TWh/month respectively for the daily, weekly and monthly flexibility requirements.

For 2050, these numbers increase to respectively 2.52TWh/day, 14.6TWh/week and 41.68TWh/month. Summed across all timescales, this corresponds to 2,189TWh – approximately 30% of the estimated 7,300TWh 2050 demand and about 80% of the current (2020) demand of around 2,750TWh.

Have you read?
Storage key for the flexible energy system of the future – EUSEW
Energy Transitions Podcast: The value of circular asset management

The report states that the study has indicated evidence for significant correlations between the daily flexibility requirements and the share of solar PV production on the one hand and between the weekly and monthly flexibility requirements and the share of wind production on the other.

While electricity generated from solar PV plants typically follows a specific daily generation profile, wind production profiles more tend to follow the monthly seasonality. Efficiently integrating both sources of renewable energy sources in the power system thus requires an adequate evaluation of both short-term and long-term flexibility solutions.

Flexibility technologies

In terms of technologies offering flexibility solutions, the study finds that interconnections play a dominant role in addressing the flexibility needs in 2030 on all timescales but particularly on the longer-term timescales.

Storage solutions like batteries, electrolysers and pumped hydro also play a significant role, with the former almost exclusively targeting daily flexibility needs but the latter also targeting long-term flexibility needs.

Demand response from households and industry will also play a role in the flexibility mix and thermal units, of which production can be dispatched, also remain an important contributing factor.

This shows that to address the flexibility needs in the future a combination of technologies is required, including new storage solutions as well as more conventional assets.

Regarding storage specifically, the study suggests that compared to other technologies, it would only be able to recover a modest fraction of capital expenditure from market revenues gained on the spot market by 2030, and would thus exhibit a strong reliance on income streams from other market segments or further sorts of economic incentives.

Looking towards 2030, a relatively limited increase of storage capacity is projected, with additional capacity requested mainly when member states experience congested interconnector capacity over considerable periods of time.

If this interconnector capacity were lower than the current targets, lithium-ion batteries would be a key source of flexibility by balancing short-term system deviations. Further interconnection constraints would increase the importance of longer-duration batteries.

Among the consumer-related amendments proposed with the current price volatility in mind, consumers should have the right to fixed price contracts and dynamic price contracts, as well as more key information on the options they sign up to and a banning of suppliers from being able to unilaterally change the terms of a contract.

It also was advocated that EU countries should prohibit suppliers from cutting the electricity supply of vulnerable customers, including during disputes between suppliers and customers, and prevent them from requiring these customers to use prepayment systems.

The Committee also backed wider use of ‘Contracts for Difference’ (CfDs) to encourage energy investments and suggested leaving the door open for equivalent support schemes after approval by the Commission.

Have you read?
Flexibility and power system operation top European TSOs’ research agenda
Renewable energy communities and energy storage: A match made in heaven

The importance of power purchase agreements (PPAs) was also highlighted in providing consumers with stable prices and renewable energy providers with reliable revenues.

The European Commission is tasked with setting up a marketplace for PPAs by the end of 2024.

Commenting on these outcomes, rapporteur Spanish MEP Nicolás González Casares said that with the agreement, “the parliament is putting citizens at the centre of the design of the electricity market, promoting the right to share energy, reducing price spikes and promoting affordable prices for citizens and companies”.

“We turned CfDs into the reference system for encouraging the electricity sector to transition towards a renewable-based zero emission system. A system that will improve make companies more competitive through clean electricity at competitive and stable prices.”

System flexibility

The other key focus of the Committee was system flexibility, with it advocating in favour of ‘non-fossil flexibility’ and flexibility on the demand side, for instance via the use of home battery systems to help balance the grid and to empower consumers to adapt their consumption to prices and needs.

These provisions have been welcomed by the European Association for Storage of Energy (EASE), which said in a statement they would give investors confidence in energy storage technologies to provide the flexibility needed to integrate further renewable energy.

Member states would now have the powers to set up non-fossil flexibility support schemes, which provide energy storage a solid business case.

Additionally, EU countries must now assess the flexibility needed in the electricity system to deploy further sources of renewable energy in line 2030 climate goals, and set a national objective for energy storage.

The Commission is expected to introduce a strategy for energy storage from 2025, to ensure a harmonised approach across the EU.

The reform package will now go to the Commission and Council.

During a webinar discussing the report’s findings, Lauren Stuchfield, energy analysis and insights manager for ESO, commented: “Policy is not always enough. We must see the action on [the] back of this policy in order to achieve net zero.”

Added Fintan Slye, executive director of the ESO: “The world is heating up and the clock is ticking; the time for action is now.”

The 2023 report makes the following recommendations:

1. Policy and delivery

Net zero policy: The Government must continue to reduce investment uncertainty around the business case for net zero-critical technologies such as Long Duration Energy Storage (LDES), transport and storage of hydrogen and CO2, low carbon dispatchable power and negative emissions technologies. A clear plan is needed for the funding and development of hydrogen and CCUS projects beyond delivery of the first industrial clusters.

Focus on heat: There is a need to accelerate both the uptake of heat pumps and the decision on whether hydrogen will be used for large-scale heating. While some progress is being made through the Boiler Upgrade Scheme, further policy support and incentives are needed to increase the uptake rates of heat pumps. Alongside this, a clear decision on hydrogen for heating should be accelerated and heat pump targets and incentives reviewed accordingly.

Negative emissions: Negative emissions technology is required to enable a net zero energy system. Robust emissions accounting standards are needed to ensure both investor and public confidence in a negative emissions market. Further demonstration of innovative emissions removal technologies is required to reduce uncertainties over technology and commercial readiness.

Although these movements in policy are needed, caution should also be taken to look beyond. So stated Lauren Stuchfield, energy analysis and insights manager for ESO: “Policy is not always enough. We must see the action on [the] back of this policy in order to achieve net zero.”

Have you read:
Time running out for UK to meet net zero commitments – Climate Change Committee
National Grid and SSEN launch UK’s ‘largest ever transmission project’

2. Consumer and digitalisation

Empowering change: There is a need to instil trust for consumers and they must be advised on how they can best engage in the energy transition. This could be delivered through an information campaign, supported by a national advice service.

Digitalisation and innovation: Innovation and smart digital solutions are required to enable consumers to further benefit from energy savings at times when they are not able to manually adjust their demand.

Mandating technology manufacturers to include smart capability in their products is key to the delivery of smart homes. Further incentives and grants can encourage greater innovation and implementation of smart digital solutions. Successful delivery of Market wide Half Hourly Settlement will enable consumers to participate more readily in demand flexibility.

Energy efficiency: Further emphasis is needed to harness the potential of efficiency improvements in reducing energy demand. Energy efficiency improvements to the construction and technology within our homes must be accelerated. Radical overhaul is required to achieve this both in new build and existing housing stock. Targets for minimum energy efficiency standards should extend beyond the private rented sector. Additional incentives and grants must be considered to ensure energy efficiency improvements are available for more consumers.

3. Markets and flexibility

Distributed flexibility: The growth of distributed flexibility (flexible energy demand resources, such as storage, EVs, heat pumps and thermal storage, connected at distribution level) is a key enabler to achieving net zero. A market-wide strategy, including government targets, policy support and market reform is required to facilitate the significant growth in distributed flexibility. This can also provide incentives for consumers to provide Demand Side Response, such as smart charging of EVs.

Transport flexibility: Across all future scenarios, cars are primarily electrified, increasing electricity demand and requiring strategies to manage how they are charged and how system costs are recovered. Increasing implementation of smart EV charging is a no regret action to help reduce the impact on peak demand and reduce curtailment of renewables.

Commercial trials of Vehicle-to-Grid (V2G) business models are required to explore their viability and contribution system services. It also requires current challenges to be addressed, such as the slow rollout of charging infrastructure.

Locational signals: Market reform is needed to provide the real-time locational signals required to optimise decisions on when and where flexible energy sources are used. Improving locational signals has the potential to deliver significant cost savings to consumers and support the delivery of decarbonisation targets.

4. Infrastructure and whole energy system

Strategic network investment: Strategic and timely investment across the whole energy system is critical to achieving decarbonisation targets and minimising network constraints. Accelerated coordinated planning and delivery of strategic, whole system investment through Centralised Strategic Network Planning (CSNP) will require continued collaboration and engagement with the Government, Ofgem, local communities, industry and the supply chain. Strategic network investment should be enabled through reforms to the planning system, while also balancing social and environmental impacts.

Connections reform: Connections reform is required to facilitate quicker, more coordinated and efficient connection to the GB electricity system to deliver net zero. Continued collaboration between Government, Ofgem and industry is critical. The process must be future-proofed to facilitate potential prioritisation of connections for delivery of whole system benefits and net zero in line with strategic network planning.

Location of large electricity demands: New large electricity demands, including electrolysers to convert electricity to hydrogen, will be required for net zero. This demand has significant potential to deliver whole system flexibility and reduced network constraints alongside decarbonisation. A coherent strategy is required to ensure large electricity demands are located where they provide the biggest benefit to consumers and the whole energy system.

Industry response

Responding to the report, Jon Ferris, head of flexibility and storage at LCP Delta, commented: “The report is a transformation from a few years ago, where scenarios largely failed to meet the net zero target. Three scenarios describe three different, plausible pathways to get there by 2050, but also highlight the risk that we don’t – electrification of heat and heavy industry, grid reinforcement, market reform and supporting demand side flexibility remain challenges that need to be addressed.”

“EVs are clearly winning in transport decarbonisation, but only a small proportion of the capacity is seen as providing flexibility…It confirms the direction of travel in some areas (especially EVs, storage and flexibility), but also highlights outstanding questions (such as for hydrogen, LDES and market design).

Also commenting was Energy Savings Trust, whose head of policy Stew Horne said:

“Crucially, alongside enabling renewables and storage technology, people must be actively engaged with the energy system and incentivised to use energy more flexibly. The success of the Demand Flexibility Service last winter shows that people are willing to change their everyday behaviour to reduce their own energy demand, in turn helping to deliver flexibility in energy demand on a large scale.

“But this must be sustained. As we’ve highlighted in our new research for the Climate Change Committee with Green Alliance, behaviour change campaigns and the provision of impartial advice seen around the world are empowering people to understand how to best manage their energy use and insulate their homes. They are proving successful in reducing energy demand.

“While the solutions outlined in the scenarios today raise questions over who pays, when, and how to ensure it’s fair for all, we do know that a clear, long-term plan is needed to create certainty for industry and consumers to enable the net zero transition. There are still opportunities for the UK Government to provide such clarity this year, not least in its Autumn Statement.”

The Netherlands-based fast-charging developer Heliox is leading the Charging Energy Hubs Project, which consists of 29 consortium stakeholders, including Shell, Prodrive, DAF, DAMEN, Scholt Energy, Firan, ElaadNL, Dynniq Energy and TNO, among others.

The project, which has been approved for an unannounced amount of funding from the Dutch government’s National Growth Fund, aims to accelerate the electrification of the logistics sector through collaboration, research and innovation.

Additionally, it aims to focus on “an efficient use of smart energy systems to maximize grid efficiency through smart energy solutions”, according to a press release.

The project will look at the development of decentralised energy systems that act as a link between electricity consumers and suppliers.

Heliox states that “by seamlessly integrating charging infrastructure, renewable energy and other energy sources, energy storage, and local consumers, these charging energy hubs allow flexibility during peak demand or grid balancing issues.

“This solution alleviates grid congestion while ensuring a solid business case for charging infrastructure investments.”

Have you read:
2022 tripled Dutch electricity demand: Stedin calls for large-scale flexibility
TransnetBW & Tesla: Germany’s redispatch ready for flexibility

Michael Colijn, CEO of Heliox, commented on the funding support: “We are thrilled to receive the support of the National Growth Fund as we accelerate the transition to sustainable mobility, reinforcing the Netherlands as a powerhouse in the logistics and e-mobility sector. Cooperation among stakeholders in the value chain is crucial, and as Heliox, we are eager to lead the charge in this transformative project.”

Paul van Nunen, director of Brainport Development, commented on the hurdles in the way of the logistics sector to sustainability: “The transition to battery electric vehicles requires an additional capacity of the Dutch electricity grid, which is already increasingly subject to balancing and capacity problems.”

Adding to this was Thomas de Boer, president of Shell Commercial Road Transport, who stated how “electrification of the heavy-duty transport sector is crucial to decarbonising the sector. We are proud to participate in the ‘Charging Energy Hubs’ project in the Netherlands, a market that has been a shining star, leading the energy transition charge.

With zero-emission zones set to transform urban logistics by 2025, the demand for electric transport is expected to exponentially increase, states Heliox. However, the challenge lies in the limited capacity of the electrical grid to withstand the increasing demand for high-powered charging infrastructure.

The grid situation in the Netherlands has been one of over-congestion and recurring bottlenecks in several cities. This marks the latest flexibility initiative coming out of the country; a week before the announcement from Heliox, the Dutch government also announced the appointment of a flexibility coordinator.

During a storage solutions session at European Sustainable Energy Week (EUSEW), experts in the field discussed how policy has been developing when it comes to storage and how it will need to continue to develop as the tech becomes more recognised for its role in a net zero future.

“The energy system of the future, which delivers on targets for climate neutrality, is a system that is going to have new needs, special needs. It’s a system that is going to need stability, flexibility and reliability in a different manner than the system that we know.”

Have you read:
Battery storage installations expected to snowball to 400GWh by 2030 – report
UK energy storage pipeline incompatible with net zero grid – report

So said Beatriz Sinobas, team leader for energy security and electricity at the European Commission, DG Energy, who was joined in the session by moderator Patrick Clerens, Secretary General of The European Association for Storage of Energy (EASE), CEO of SolarPower Europe Walburga Hemetsberger, European Affiliates’ Managing Director for Malta Inc. Michael Geyer, Head of Policy and Regulation (Brussels office) at Iberdrola Marta Navarrete Moreno and Chief Policy Officer for WindEurope Pierre Tardieu.

The needs for flexibility, reiterated Sinobas, are going to increase significantly, “particularly if we have a higher penetration of variable renewables, for which we have very ambitious targets. There are studies that suggest the need for flexibility increases exponentially as the penetration of renewables passes 74%.”

Storage for flexibility

According to Sinobas, there are several tools that can deliver flexibility, energy storage being prime among them.

And for Hemetsberger, this is especially true when we look at how “renewables are catching up with fossil fuels very quickly.”

Earlier this year, the International Energy Agency released their World Energy Investment 2023 report, which found that low-emissions power is expected to account for almost 90% of total investment in electricity generation this year, surpassing fossil fuels for the first time.

Increasing renewables equate to an increased need to balance intermittency and Walburga spoke on the needs of energy storage when it comes to future-proofing the grid:

“We need to have all those renewables 24/7 and we need to integrate them into the grid with solutions [for intermittency].”

Specifically, she states, “we need massive assets – flexibility and storage.”

According to Walburga, for PV specifically, 200GW of energy storage will be needed in the EU by 2030.

She referenced a whitepaper from SolarPower Europe, Electricity Storage for EU Renewable Deployment and Energy Resilience, which calls for the 200GW, that they state would cover 18% of REPowerEU renewable capacity.

According to the whitepaper, which was released earlier this year in January, key policy actions that would be needed for this include the setting of non-binding EU electricity targets for 2030 and development of storage strategies.

When it comes to grid stability, there is also the need for large co-located solar and storage installations, which Walburga refers to as ‘grid-intelligent solar’.

“We have seen the European Commission in the market design regulation proposing to have DSOs establishing flexibility needs and demand response targets, which is great.

“We also see improved rules when it comes to the participation of flexibility into capacity mechanisms and the development of prosumer models with a new right of energy sharing.

“So what’s missing? Two things: [To remove the] double charges for battery storage…This is really something that needs to be urgently tackled. The second is to allow solar and storage and wind and storage to charge from the grid. And to fully live up to this functionality, we [also need] to have proper metering.”

According to the organisation’s white paper, a behind the meter, co-located storage system that forms part of a renewable generation unit receiving financial support is prohibited from withdrawing electricity from the grid.

A consequence of this, they add, is that such a unit, “cannot provide grid services that involve charging from the grid, such as bi-directional frequency response.”

Also of interest:
Project InterSTORE to simplify energy storage technology
How much GWh storage capacity is needed for a resilient energy system?

A matter of policy

This, as well as the role of flexibility and how much it is utilised, has become a matter of policy in Europe.

Earlier this year in March, the European Commission announced revision of the electricity market design, alongside a set of comprehensive recommendations for storage systems, with flexibility a driving theme.

Stated Moreno: “As said by Beatriz, there will be a tipping point where flexibility needs are huge and where storage will be important.”

Specifically, she states, there is one key need: “the need to have a stable and predictable regulatory framework.

“Unfortunately, during the last year we have seen a multiplication of uncoordinated interventions across member states in the EU and this has fragmented the international energy market…and eroded investment confidence.”

Moreno related this to project bankability and the difficulties of financing projects without a stable framework to work off of.

“The international energy market is the backbone in which companies like ours operate. In Europe, most of the investments (85%) will come from the private sector. We can only get those projects through if we have a stable regulatory framework.

“We are looking at a lifetime of 20, 30, sometime 50 years for these projects. When we go to ask for money, we need to make sure that we can see where the regulatory framework is headed and that there are no sudden changes.”

This is especially true for major storage projects and it is here, where the European’s proposed market design can be seen, added Moreno, as a major positive:

“From this point of view, the Commission’s proposal on the market design gives us a lot of very good elements.

“It restores investment confidence, builds on the good points we have already developed over the 20/30 years of the liberalisation of the markets…and now’s the time to adopt this legislation and ensure the negotiations get it right and move ahead.”

Elia’s 2024 – 2034 Adequacy and Flexibility Study for Belgium outlines how the expected spread of electrification across society is happening both earlier and at a faster speed than anticipated, namely in the mobility, heating and industrial sectors.

However, the transmission system operator for Belgium states that the speed of change is not synchronous across the electricity system, which is causing tension both on the supply and demand side.

According to Elia, as electricity needs rise, a number of structural measures will be needed to complement the country’s Capacity Remuneration Mechanism (CRM), which is a short term measure that EU countries can introduce to remunerate power plants for medium and long-term security of electricity supply.

Over the coming decade, they state, extensive electrification will change the very nature of the Belgian electricity system.

Have you read:
EDF joins Landis+Gyr and LCP Delta to test flexibility tech in UK
Netherlands to appoint flexibility coordinator as grid bottlenecks recur

Specifically, the study espouses four key messages:

1. Electrification is spreading across society both earlier and at a faster speed than predicted.

The war in Ukraine and rising gas prices have resulted in new targets and action plans linked to ensuring an independent, resilient and climate-neutral energy system.

This is creating additional capacity needs, which can be addressed by the CRM. Electrification combined with the accelerated expansion of low-carbon electrons will be one of the main levers for decarbonising society over the next 10 to 20 years. The implementation of these two measures is gaining momentum in three key sectors: mobility, heating and industry.

This is having a direct impact on the country’s supply and adequacy needs. The expected spread of electrification across society will create additional capacity gaps from 2027 onwards, which can be addressed by Belgium’s CRM.

The rules and principles to this mechanism are governed by national and European regulations, and are rightfully aimed at avoiding over-procurement. Against the background of electrification and Belgium’s increasing electricity demand, the CRM process involves yearly adjustments to auctions and the stepwise contracting of required capacities

2. Flexible consumption has the potential to flatten consumption peaks and manage RES variability, so directly contributing to security of supply.

Until now, flexibility has mainly been used as an in-the-moment ancillary service that helps grid operators address imbalances between supply and demand.

For example, it has been used to manage operational security challenges linked to the variability of RES and large-scale generation unit outages. In the future, the intrinsic flexibility of new electrical appliances will deliver new opportunities for end users, without adversely impacting their comfort levels.

By primarily consuming and storing electricity when it is abundant and re-injecting it back into the grid when needed, consumers will lower their energy bills whilst delivering benefits for the overall system: consumption peaks will be flattened, meaning flexibility will contribute to adequacy.

End user flexibility is therefore an important lever for improving the efficiency and affordability of the energy transition.

3. Electrification reduces primary energy consumption levels whilst maintaining consumer comfort.

This significant efficiency improvement therefore delivers large benefits in terms of CO2 reduction – an effect that will become even more prominent as the share of renewable energy in the energy mix grows.

Electrification, combined with the accelerated integration of renewable energy into the system, creates the opportunity to reduce the consumption of fossil fuels. This, in turn, leads to significant reductions in direct domestic CO2 emissions.

In addition to these climate-related benefits, electrification will deliver economic and geopolitical advantages.

Industry will be given access to affordable electricity, meaning that it can be anchored in Europe, and jobs can be preserved. Moreover, the shift to an energy system with a high amount of renewables will make this system more independent and resilient.

4. Any delay in unlocking flexibility or realising grid infrastructure will result in additional capacity needs.

If Belgium’s security of supply is to be achieved in the most (cost-)efficient way possible, investing in accelerated digitalisation is as important as investments in the timely build-out of grid infrastructure.

Accelerated digitalisation and the timely realisation of grid infrastructure will have a major impact on the volume of new capacities that need to be contracted in future CRM auctions. Further delays in implementing these will place Belgium’s approach to electricity policy in a state of constant crisis management.

If Belgium fully harnesses industrial and residential flexibility and realises its planned grid investments, capacity needs in 2034 will decrease by 3,000MW compared with a situation where these key moves are delayed.

Digitalisation covers both the necessary IT infrastructure and end-to-end connectivity between assets and service providers, which are linked to an adapted market design. Successfully implementing these will make the system more resilient in the face of electrification and renewable integration, will have a significant effect on CO2 reduction and will allow system costs to be kept under control.

Minister Jetten made the announcement during an update to the House of Representatives on the situation of the Netherlands’ electricity grid and on the country’s National Network Congestion Action Plan (LAN) to reduce the scarcity of transmission capacity.

Although the Netherlands has seen billions of euros funnelled into grid management – the final tender was awarded for the €1.5 billion ($1.6 billion) network upgrade at the same time as Jetten’s update – demand for transmission capacity in the country continues to climb faster than operators can build.

Said Jetten in his room letter: “Flexibility is the key to prevent the Netherlands from being locked down during the renovation of the electricity grid. The transition from permanent use to more flexible use of the electricity grid does not happen automatically.

“That is why I am appointing a special flexibility coordinator this Summer to solve the bottlenecks and uncertainties in investing in flexibility, so that we can connect companies to the grid much faster than now.”

Have you read:
Improving congestion management on the Dutch grid
Monetising flexibility as a fix for grid congestion

In responding to Jetten’s announcement, Dutch association for electrical and gas grid operators Netbeheer Nederland applauded the appointment, citing how grid congestion will remain a concern in the coming years.

According to the association, “the transition from ‘use when you want’ to much more flexible use, like the expansion of the grid, will not be achieved overnight. Flexible use requires major adjustments from everyone: network operators, governments, industry, companies and social organisations.

“These parties are working together to realise grid expansions more quickly and to look for smart solutions to make better use of the existing grid. This is crucial for a sustainable, affordable and reliable electricity system and a strong economy.”

According to Jetten, who cited Netbeheer Nederland, the country has 5,600 companies on a waiting list in need of a larger connection to the grid.

However, in areas in the Netherlands with congestion, he adds, there is still room for flexibility, whereby a user agrees to only use the grid outside peak times, enabling new users to connect despite the grid being full at certain times.

The project, which is being supported with funding from the UK government’s Alternative Energy Markets innovation programme, is aimed to design an engine that can generate optimised time-of-use tariffs for households based on their energy usage patterns.

The ‘Intelligent Smart Energy Engine’ (ISEE) is planned to be built based on similar principles used by tariff comparison mechanisms.

Using half hourly smart meter data, to be carried out by SMS’s energy data company n3rgy, the engine will combine household consumption information with the operational data associated with individual appliances such as battery storage, heat pumps, electric vehicle chargers and white goods that are already installed or plan to be installed in the home.

Have you read?
EDF joins Landis+Gyr and LCP Delta to test flexibility tech in UK
Think smart; act smart; win smart

With this, the engine can then create an optimised time-of-use tariff structure to maximise the potential cost savings available to the consumer, which will then be enabled by aligning the tariff offer with intelligent control of the home’s appliances, delivered via SMS’s FlexiGrid flexibility platform.

Once developed, the new smart tariff and flexibility design will be made available to participating energy suppliers Shell Energy and Rebel Energy to pilot with a group of consumers.

The project will run for around six months, with the findings due to inform how the product could be commercialised for mass market adoption.

“Combining the creation of optimised electricity tariffs and domestic smart energy appliances with the intelligent deployment of demand side flexibility offers incredibly exciting potential to bring benefits to consumers, suppliers, and grid operators alike,” states Tom Woolley, Smart Product and Strategy director at SMS.

“The ISEE pilot marks a milestone for the energy sector as it aims to revolutionise the way tariffs are designed to empower and engage consumers and will identify and support future models of our energy system. We believe this project could unlock significant opportunities for the adoption of domestic renewable technologies and other energy smart appliances.”

Other partners in the project are Samsung Research UK, Engage Consulting, MyUtilityGenius, Hugo Technologies, Evergreen Energy and Solo Energy.

In addition to the ISEE project, SMS is participating in a second Alternative Energy Markets funded project with Chameleon Technology, Evergreen Energy, Solo Energy and the Energy Systems Catapult to design and test flexibility propositions.

The other projects funded in this round focus on the design of alternative energy market options, which is led by the Energy Systems Catapult and OVO Energy, and the EDF Energy-led FLASH (Flexibility Assets and Smart Homes) focussed on storage product bundling and how it can impact the grid and consumer energy bills.

Two whitepapers were recently published on the topic, exploring the use cases of Electric Vehicles (EVs) as grid assets in V2X systems.

The electrification era, scaling up electric vehicles was published by GridBeyond, a company that develops energy services for industrial and commercial sites, examining the concept of V2X and the opportunities it represents for businesses to grow revenue while helping the grid cope with increasing levels of renewable energy.

And in EV smart charging provider ev.energy’s whitepaper, Unlocking Industry Barriers to Providing Vehicle-to-Everything Flexibility, their research underscores the key challenges on the growth map for V2X, namely that of consumer acceptance.

The topic is being widely discussed and researched as a means to integrating the much needed low carbon technology into grid planning as it has demonstrated repeatedly its use for driving the energy transition home.

V2X

In their whitepaper, GridBeyond defines V2X as “the overall term for different forms of bi-directional charging and discharging of the EV battery, including Vehicle-to-Grid (V2G), Vehicle-to-Building (V2H) and Vehicle-to-Load (V2L).

“V2X systems use a combination of hardware and software, including vehicle controllers, inverters and communication protocols to enable the bi-directional flow of power and data between EVs and external systems. This mechanism permits the grid to draw on EVs’ stored energy to accommodate sudden surges in power requirements. The EV battery power is then replenished when the demand on the system is low.”

This proven concept takes the EV technology and transforms it into a flexible asset for grid operators to leverage for grid operations and management.

A ‘smart’ form of charging, the different iterations of V2X has been gaining ground and the two whitepapers explore the concept, discussing how we as industry can create and proverbially drive the technology to market.

Have you read:
India to get its first V2G system
Octopus Energy and National Grid demonstrate first V2G in Great Britain

The electrification era

Crediting policy interventions and rising fuel/petrol costs, GridBeyond touts how global sales of EVs last year increased by an estimated record-breaking 60%, with projections showing the market will make only more headway in the years to come.

States the company on the growingly interconnected relationship between EVs and the electric grid:

“With the power grid transitioning from a conventional, unidirectional energy delivery model to a more decentralised one, where consumers actively contribute to the generation of electricity, the significance of flexible solutions at the consumer level, such as EV batteries, is critical. It provides grid-connected storage for overall flexibility.”

Additionally, there is immense dispatch value behind the EV, which can be used as a power plant planning asset, coordinating power flow to and from the grid as a flexible resource.

According to GridBeyond, although V2X tech shows such promise for flexibility, its development and implementation are currently region-specific, relying on the availability of charging infrastructure, grid capacity and supportive policies.

To fully realise the potential of EVs in grid stability, policymakers and industry stakeholders need to work together to create a supportive regulatory framework, states their report, and incentivise fleet owners to participate in grid programmes.

This includes providing clear guidelines on technical requirements and compensation structures, as well as addressing issues related to data privacy and security.

To fully tap the dispatch potential of EVs and promote their more extensive participation in the power system, the report finds that an optimised dispatching strategy, based on the dynamic electricity price mechanism, would be required.

And with the right policies and incentives in place, they add, EVs can become an even more valuable asset for a sustainable and stable energy system.

Also of interest:
Ending the ICE age to put EVs in the fast lane
Does V2G pose a cyber threat to the grid?

So how can we actively bring this tech to market?

According to ev.energy, consumer acceptance is the critical factor in bring V2X to the table as a compelling grid asset.

Widespread buy-in from consumers, they state, will be vital and a convenient and compelling value proposition will ensure the technology’s success:

“The ideal offering is a set-and-forget solution that requires minimal behavioural change from end users while reminding them of the value they’re unlocking.”

Attractive compensation, affordable and available charging equipment, safe operation of battery and vehicle, seamless user experience and trust and transparency of automated control are the five essentials within ev.energy’s ‘set-and-forget’ solution, although this is easier said than done.

Electric mobility and grid management are key talking points at this year’s Enlit Europe, happening in Paris, France, from November 28 to 30.

Getting to this solution, developing a roadmap to industry action for V2X, will need collaboration between automotive companies, tech providers, utilities, governments and regulators.

Namely, according to the report, the industry will need to come together and:

1. Improve access to power markets for EV energy flexibility

Collaboration is needed alongside hardware manufacturers to re-design capacity and energy market qualification requirements to match the response and metering capabilities of EVs and chargers.

2. Enable service stacking between different flexibility markets

Networks, system operators and flexibility providers must work together to harmonise market and operational procedures. Collective focus, they state, will be needed to consolidate the ‘wins’ where domestic flexibility is working so that monitorable and controllable EV flexibility can scale up.

3. Develop new electricity rates/tariffs to incentivise smarter energy consumption

Static Time of Use rates restricts flexibility, states the report, while dynamic rates are overly complex for consumers.

Innovative Type of Use rates should be developed and the report cites the case of the UK, which is beginning to tackle the challenge, although government and energy suppliers must accelerate the rollout of smart meters to enable better tariffs based on when consumers use electricity.

4. Offer consumer-centric V2X propositions

Software providers, automakers, charger manufacturers and energy suppliers must develop consumer-centric V2X propositions, which would involve both technology and business model innovation.

5. Develop a faster, simpler process for grid connection

Electricity networks need to work with charger manufacturers and software providers to develop better interconnection/grid code processes so that V2X chargers can be installed quickly and easily, while ensuring grid safety and maintaining stability.

6. Certify battery warranties for V2X operation.

EV charging platforms must work with automakers and regulators to establish approved use cases and standardise duty cycle parameters for V2X applications. V2X operation needs to be covered under the conditions of a battery warranty to be accepted by consumers.

7. Set standards that help industry scale

All parties must work to establish standards for interoperability, data sharing and cybersecurity. Standards should be proportionate to the importance and scale of the service, and not be so rigid or burdensome as to stifle innovation or block new entrants.

8. Communicate clearly and consistently the benefits of V2X technology.

The industry must use simple, consistent messaging on the topic when communicating with the public, media, government and wider industry.

Additionally, as Europe potentially proceeds with its electricity market reforms, where flexibility and demand-side response will likely gain more ground in the system, it will be interesting to follow how V2X might too develop.

My guess, based on how the technology has already been rapidly testing and developing, is that it will become only more complex as a proven asset for grid operators and consumers alike.

Working alongside smart energy system manufacturer Landis + Gyr, research consultancy LCP Delta and by tapping into expertise from the utility’s customer business, a research and development team from EDF will investigate solutions to absorb and store energy when there is an excess, enabling flexibility and helping to alleviate strain in the country’s electrical grid.

The partnership will look at how the use of new low-carbon technologies such as heat pumps, storage products and Electric Vehicles (EVs) could be supported by bespoke tariffs, reducing pressure on the grid and household bills.

The project will investigate these opportunities for both the short-term and in the future as part of potential Alternative Energy Market (AEM) scenarios of a future energy system.

This project received funding from the UK government’s Net Zero Innovation Portfolio, which provides funding for low-carbon technologies and systems.

Phase One of the project, a feasibility study looking into how lower-income households might be able to participate, has already started.

Have you read:
Ofgem proposes wholesale electricity market reformation
Ofgem funds eight National Grid-led energy innovation projects
Safety as one: Why the UK’s energy transition needs a holistic overhaul of training

Stuart Fenner, EDF Customers director of wholesale market services, commented on the project, tying it to the situation in the UK where, although the energy price cap has been lowered for the first time since the start of the energy crisis, it is “due to remain higher than pre-energy crisis levels” and in need of mechanisms to reduce bills.

Stated Fenner: “With a recent flexibility study carried out by National Grid finding that active households responding to price signals could help reduce peak energy demand by 23%, this project will be key in helping both our customers and the environment. And, by combining our energy market, customer supply and research  and development expertise we are well placed, alongside our partners, to drive change.”

Nick Merricks, head of smart energy at Landis+Gyr, added: “We’re excited to be involved in this project, a vital part of the government’s AEM programme and a key enabler for the development of a smart and flexible energy system.

“Working with our consortium partners, we will help to pull technology through from the government’s Interoperable Demand Side Response (IDSR) project, proving that demand side flexibility can be secure, interoperable and support innovative domestic tariffs in accordance with open standards.

Andrew Turton, Head of Consultancy at LCP Delta, commented: “The energy transition brings a significant change to the interface between consumers and the energy system, where customers dynamically interact through flexibly managing their demand as well as generating and storing energy.

“Together, we aim to uncover ground-breaking approaches that optimise the utilisation of tariffs and pave the way for enhanced energy management. By leveraging this collaboration, we strive to contribute to the advancement of a more sustainable and efficient energy system.”

The German multi-national energy company’s two-prong project will have a capacity of 220MW and a storage capacity of 235MWh.

A total of 690 lithium-ion battery blocks will be installed, involving an investment of approximately €140 million ($150.7 million).

The Battery Energy Storage System (BESS) is scheduled to supply balancing energy to stabilise the electricity grid from the second half of 2024. This will entail the plant taking excess power from the electricity grid and feeding it back into the system when required, to maintain the required grid frequency.

Lars Kulik, member of the board of RWE Power stated: “With this battery storage facility, RWE is providing a major boost to structural transformation in North Rhine-Westphalia. By making practical use of the existing locations and grid connections, we are making the traditional power plant sites of Hamm and Neurath important partners for renewables.”

Have you read:
South Korean emobility majors join forces in US for EV battery gigafactory
Battery Passport content guidance proposals for Europe

RWE: one battery project, two facilities

The storage facilities will also be deployed on the wholesale market – electricity will be taken into the storage system if electricity prices are low and conversely will be fed out when prices are high.

In Neurath, batteries with a total capacity of 80MW (84MWh) will be installed on an area of around 7,500m², the equivalent of about one football pitch, utilising about €50 million ($53.9 million) of the planned total.

The remaining €90 million ($97 million) will be directed towards the facility at Hamm-Uentrop, including batteries with a total capacity of 140MW (151MWh), covering an area of 14,000 m².

Marc Herter, mayor of Hamm, commented: “The construction of the large battery storage facility at the Westfalen power plant once again underlines the tradition and importance of Hamm as an energy location.

“The large-scale battery storage facility secures the energy supply and forms an important foundation for the success of the energy transition. We are pleased that RWE is accompanying us on the way to a climate-neutral economy in Hamm.”

Virtually-managed capacity

The planned BESS can operate at its maximum capacity of 220MW for over an hour. According to RWE, this will be enough to charge the equivalent of about 4,000 EVs.

The facility will also be virtually networked with RWE power stations in Germany, which will make it possible to control whether the storage units work alone or in conjunction with other power stations to supply balancing energy.

RWE will be individually coordinating planning, modelling, system integration and commissioning of the project directly.

Roger Miesen, CEO of RWE Generation commented on the rising need for such flexible systems as clean energy sources continue to increase in number: “They [renewables] balance out fluctuations in the electricity grid in seconds, which means they are the key to a reliable electricity supply. In terms of size and technology, the new large-scale battery storage facility in Neurath and Hamm is setting standards throughout Europe.”

RWE develops, builds and operates battery storage systems in Europe, Australia and the US, currently operating a total installed battery storage capacity of approximately 300MW (380MWh) and implementing storage projects of more than 900MW (2,300MWh) worldwide.

Globally, the company aims to build 3GW of batteries by 2030.

UK Power Networks states that its new DSO will ensure that sufficient electricity capacity exists across London and the east and southeast of England to support the anticipated uptake of electric vehicles (EVs), heat pumps and renewables generation.

The DSO is working to incentivise customers to shift their energy consumption or generation, to maximise use of its existing electricity grid infrastructure and facilitate the lowest cost transition for customers adopting low carbon technologies.

“The DSO marks the start of a new era for electricity networks across the UK,” commented UK Power Networks CEO Basil Scarsella.

Have you read?
ENSIGN digital twin project to model future UK energy system
Flexibility key within new EU electricity market reform proposal

“We are pleased to be leading the way in supporting the energy transition through the launch of our DSO. It is an independent, legally separate entity, which we are confident will bring savings to customers, inform our network investment decisions in the most cost-efficient way and help facilitate the transition to net zero.”

The director of the DSO is Sotiris Georgiopoulos, who has made his career with UK Power Networks and most recently served as head of smart grid development with responsibility inter alia for delivery of the company’s flexibility markets and the DSO capabilities and programmes.

UK Power Networks currently has 7.4GW of renewable energy connected to its network and is preparing for 2.6 million EVs in its regions by 2028, compared to 450,000 vehicles currently charging from its grid.

The role of the DSO will be to make decisions, independent from the DNO, on the most cost-effective way of expanding the capacity of the network.

As different areas decarbonise at different rates, clusters of low-carbon technologies are expected to emerge. The DSO function will assess the most efficient route to providing capacity for these technologies to connect, whether it be building more assets or procuring flexibility.

Overall, the company’s analysis shows that the DSO could deliver wider system savings of between £780 million ($962 million) and £2.6 billion ($3.2 billion) across its service region by 2040.

Earlier this month, UK Power Networks DSO awarded more than 1GW of contracts to flexibility providers to compete to provide a flexibility requirement of 426MW, including the first contracts to increase demand or turn down supply during periods of excess power.

The DSO has committed to saving customers £410 million ($505 million) over the next five years by using flexibility to deliver capacity on the network at lower cost than building new infrastructure.

All of Britain’s network operators are in the process of transitioning to DSOs. The three DSO roles defined by the regulator Ofgem are planning and network development, network operation and market development.

Key activities for the operators for 2023 include making it easier for flexibility service providers to participate in the flexibility market by standardising products, processes and contracts.

The investment programme will see the company ramp up deployment of renewable energy, the vital network infrastructure to connect and transport it around the UK, and the flexible power sources to back it up when the wind isn’t blowing and the sun isn’t shining.

The projected investment, states the British company, will be rolled out over next decade in the UK and was announced alongside strong full-year results, which the company states “underlie the benefit of its balanced, integrated business model”, in a press release issued today.

Have you read:
UK Defence Ministry trials flexibility trading partnership with SSEN
SSEN data available on new UK digital infrastructure map

The plan comes as SSE publishes its financial results for full-year 2022/23, reporting a record investment of £2.8 billion ($3.5 billion) for the year – over 50% more than its £1.8 billion ($2.2 billion) adjusted profit after tax in the same period.  

The results reveal adjusted earnings per share increasing 75% year-on-year, supported by a strong performance from the Group’s flexible generation and gas storage assets.

The Group – whose origins stretch back 80 years – is investing in electricity networks, onshore and offshore wind and solar, as well as developing new power generation and storage technologies including carbon capture, hydrogen, batteries and pumped hydro to back up an increasingly renewables-led energy system.

In announcing the strong financial results and promising investment plans, Alistair Phillips Davies, the company’s chief executive, commented on how the financial results represent “profit with a purpose…They are also testament to the strength of our balanced business mix and net zero-aligned strategy, which sees us investing in the solutions to the energy crisis.

“This is a massive commitment to the UK and, at around £10 million ($12.4 million) every single day, amounts to one of the largest clean energy investment programmes this country has ever seen – helping create and support thousands of new jobs and powering green growth from Shetland to the Isle of Wight.”

Chancellor of the Exchequer, Jeremy Hunt, added: “Investment in Britain’s electricity infrastructure system is key to securing our energy supply as we transition to cheap, clean, home-grown renewables. Today’s commitment from SSE is a further vote of confidence in the British economy.

“We have the second-largest offshore wind capacity in the world, with renewables providing 40% of our electricity and investment like this ensures long-term energy security, lower bills and thousands of jobs in our industrial heartlands.”

UK-first large-scale flexibility product enabling more green power

British system operator UK Power Networks has contracted more than 400MW of flexible capacity through what it labels a national first to increase demand or turn down supply during periods of excess power, alongside the regular demand turn down or generation turn up to manage peak demand constraints.

The operator reports that over one thousand bids for more than 1,000MW of flexible capacity were made – up from just 28 in the first flexibility tender in 2018.

Running from Summer of this year to the Winter 2025, UK Power Networks anticipates being enabled to more efficiently connect more renewable energy to the network and avoid the costs of network reinforcement for capacity that may only be needed for a few hours a year.

Have you read?
Four ways AI could bring us closer to net zero
Energy Transitions Podcast: Cybersecurity innovation at the core of digital transformation

Sotiris Georgiopoulos, DSO director at UK Power Networks, comments that this will be the decade when net zero becomes real for many of its customers.

“That means millions of new electric vehicles, heat pumps and other low carbon technologies like domestic solar and batteries. Tapping into customer flexibility means we can connect more renewable energy and low carbon technologies to the network.”

The UK Power Networks DSO has committed to saving customers £410 million (US$511 million) over the next five years by using flexibility to deliver capacity on the network at lower cost than building new infrastructure.

Making AI more energy efficient

Machine learning and artificial intelligence are becoming more and more ubiquitous in analytics and new digital applications such as ChatGPT and the metaverse.

But while bringing efficiencies, such systems may themselves not be so energy efficient and are contributing to the growing carbon footprint of digitalisation, currently estimated at around 4% of global emissions.

A new £250,000 (US$310,000) project led by Britain’s University of Lancaster, InterNET Zero, aims to tackle this issue and other challenges of these technologies by “by transforming academic knowledge into practice”.

The researchers, together with partners including the Energy Systems Catapult, intend to engage with a range of stakeholders, including technologists, policymakers, and citizens, to rethink current autonomous system design and to co-create new visions and pathways for more resource responsible and trustworthy Internet infrastructures.

“AI and machine learning are making more of the key decisions regards the Internet’s energy use and emissions, with less human oversight,” comments principal investigator Dr Michael Stead from Lancaster University’s design research laboratory ImaginationLancaster.

“There is consequently a growing argument that if society is to successfully transition to a digital net zero future, we should start to consider these technologies as key mediators that must be actively negotiated with, in the same way that we work to build trust between one another.”

Space manufacturing moves closer

Space is considered the next frontier for manufacturing items such as semiconductors with the microgravity environment eliminating the need for highly sanitised clean rooms and opening the way for potential new production techniques that could create smaller chips.

So far the major challenge has been considered as how to return the manufactured products to Earth in a cost effective way with the thermal conditions arising during re-entry but the British start-up Space Forge believes its technology overcomes this problem.

Whereas the ablative heat shields used on SpaceX’s capsule require replacement after each mission, Space Forge’s system, which also includes a water vehicle for soft landing and rapid recovery, is designed to be reused.

Space Forge’s heat shield is made out of a high temperature alloy and while able to fold inside a launcher for the lift-off, is able to unfold and become large enough to radiate away the heat generated in the re-entry.

So confident is Forge Star that the company is offering its ForgeStar platform as microgravity as a service.

Other potential products that could benefit from production in microgravity are pharmaceuticals and new metal alloys with the potential for larger and improved crystal formation and more uniform alloy mixing.

According to SSEN, as a major landowner and energy user within SSEN’s southern England licence area, the MoD (Ministry of Defence) is looking to manage its energy use and maximise its assets to increase energy independence.

This marks the first time, states the British utility, that the MoD has engaged in flexibility trading through SSEN’s TRANSITION project, responding to a request to turn down energy demand to help balance the local network during times of peak demand.

Brian Wann, project manager on the TRANSITION project commented on the importance of flexibility trading, as it allows network operators and customers to optimise use of available capacity:

“This will be essential for regional energy resilience and allow all participants more control over their energy bills. The Ministry of Defence has been the largest organisation to participate in our flexibility trials and a crucial contributor in helping us understand the potential of the fully-fledged markets that we are working to create.”

Have you read:
SSEN data available on new UK digital infrastructure map
Clean tech’s explosive boom demands network growth – SSEN

Commenting on the TRANSITION project, Wann emphasized it will “design, develop and demonstrate the operation of DSO architecture and informed by the ENA open networks project.”

The five year project, initially awarded funding in 2018 through Ofgem’s network innovation competition, the TRANSITION project trials local flexibility in the hopes of facilitating and testing new markets, such as peer to peer trading, he added.

Major General Richard Clements CBE, director of basing & infrastructure, stated that the UK’s defence force, which “has sights set on net zero… By reviewing our energy use through initiatives like the SSEN flexibility trading trial, we can better understand how and where to achieve greater, ‘greener’ efficiencies.

“This will enable us to build a more sustainable Army estate, which protects both our future resilience and the environments where our people live, work and train, as well as supporting the UK Government target of net zero by 2050.”

In a press release announcing the MoD’s participation, SSEN described flexibility as the ability to shift the timing or location of the generation, storage or consumption of electricity in response to a request. They also claim flexibility as crucial for the utility, “because with electricity demand set to increase by 50% by 2035, every part of the existing network must be used as efficiently as possible.

“Recruiting customers who are able to flex their energy use can allow more renewables and balancing technologies – such as batteries – to connect to the network, without requiring network reinforcement.”

DIO’s chief executive Mike Green said: “Having facilitated the first Central Government Department participation in these Flexible Service trials, enabled by SSEN, we have gained useful insight into how we can manage efficiencies through existing assets and build much-needed resilience and independence into our future energy models, at a time when demand is set to increase significantly.”

The trial was undertaken with the support of the Defence Infrastructure Organisation (DIO) at RAF Benson and Dalton Army Barracks, Oxfordshire, during Spring 2023.

Further trials, including in peer-to-peer trades, are being explored, paving the way for improved future energy management across the defence estate.

This was the sentiment shared by Maria Popova, Director for Carbon Neutrality and Renewable Electricity at the European Federation of Energy Traders (EFET), in a discussion with Enlit Content Director, Patrick Bauduin.

Popova weighed in on the European Commission’s recently published proposal for electricity market design reforms and considered the possible implications for the energy system. 

Some parts of the proposal require greater ambition, said Popova. However, for the most part, she believes the proposal does a great deal to restore confidence by improving market functioning, accelerating decarbonisation efforts and protecting consumers.

“I see a clearer direction in the proposal compared to the consultation document,” said Popova, adding that relief was provided around the possibility to make revenue caps a permanent feature and the possibility to extend CfDs.

Have you read?
Sustainability vs energy security: Using one to achieve the other

Targeted evolution of the electricity market

Popova suggested that the proposal supports a targeted evolution of the electricity market design rather than revolutionary changes, which is positive.

She emphasised several aspects of the proposal that drive these evolutionary changes, specifically in terms of boosting renewables and flexibility.

“The proposal incentivises longer-term contracting to create a buffer between short-term markets and electricity bills and also aims to improve the functioning of short-term markets to better integrate renewables, it presents an enhanced role for flexibility and also empowers and protects consumers. These are important elements.”

According to Popova, the proposal addresses the key barriers to the growth of Power Purchase Agreements (PPAs), namely, the credit risk associated with smaller buyers. Member states are now required to ensure credit guarantees for offtakers that are struggling to access the PPA market, she said.

Regarding spot markets and targeted improvements, Popova suggests “this will be helpful as it tries to facilitate trading in the intraday time frame, which is critical for renewable energy producers”. Related to this is the proposal’s emphasis on flexibility and the growth of flexible carbon-free assets which are needed to balance the system with more intermittent renewables.

Also of interest
Nordic TSOs move to dynamic reserve purchasing
Europe’s gas TSOs release draft 10-year network development plan

“In this instance, I think flexibility assessments will be key, flexibility is not just about short-term intermittency, but also longer periods of low output…”

In order to drive renewables uptake regulatory stability is required, something that the market design provides, said Popova. And this, in turn, provides confidence for investors.

Room for improvement

Popova explained that one aspect requiring further attention concerns the flexibility aspects of the proposal. “It’s driven from a system operator perspective, through capacity or flexibility mechanisms, but I think the important market-based mechanisms need to be explored further.

“That would include removing barriers to the participation of demand-side flexibility in different market timeframes and also exploring possibilities for longer-term PPAs”.

Popova also referred to new elements introduced in the proposal, such as proposed virtual hubs for forward trading or peak shaving services. “These proposals don’t seem to have a significant empirical backing and could have a negative effect on market functioning, on forward hedging or the competitive development of demand response.”

“I am concerned that [virtual hubs] could make hedging on behalf of consumers less efficient and more costly.”

“Thinking you could create liquidity out of thin air in virtual hubs that are not backed by economic fundamentals is quite a bet and I think we can see that it failed in the Nordic area in the past decade.”

Empowering consumers

When asked if the market can empower consumers, Popova answered, “I think that it can and I think that consumers have an important role to play in the future decarbonised energy system…” Through behavioural change, consumers can help reduce demand requirements. To this end, the market does provide important demand reduction signals, she added.

Popova explained that consumers can also participate by providing flexibility and prosumers can benefit from distributed assets and selling electricity back to the grid.

And while the proposal does make important advancements in these areas, in order to maximise consumer empowerment, Popova recommended more transparency and information concerning consumption, costs, tariffs and options for more engagement.

In response to the energy crisis there have been numerous, diverse short-term market interventions over the past year across Europe, said Popova, having a significant impact on market liquidy and investor confidence.

Ultimately, the Commission’s proposal offers greater harmonisation, mechanisms that improve hedging and build a more resilient energy system focusing on renewables and flexibility. According to Popova, this will safeguard Europe against future external shocks.

Listen to the Energy Transitions podcast episode for more about the electricity market reforms in Europe.

Aggregated Distributed Energy Resources (DER), including battery storage, electric vehicles, smart appliances, water heaters and smart thermostats, are increasingly being used by utilities to achieve load control on the grid. Two DER aggregator companies in late April announced milestone achievements in their enrolled devices.

EnergyHub

EnergyHub said it is now the first Distributed Energy Resource Management Systems (DERMS) provider to have more than one million DERs under management. The company works with more than 60 utilities across North America and hundreds of device partners to support DER-based Virtual Power Plants (VPPs), it said in a press release.

“These devices collectively deliver 1.35GW of flexibility across North America’s electrical grid, which is more than the generation capacity of a medium-sized nuclear power plant,” said EnergyHub CEO Seth Frader-Thompson. “One million devices is a key achievement in our mission to help utilities and their customers in their quest for a carbon-free, distributed energy future.”

Maintaining reliable energy service has grown more challenging as the country navigates extreme weather and heavier demand for electricity, but utilities are adapting by using the rapidly growing number of customer-owned DERs on the grid as flexible resources. In 2022, the number of EVs participating in EnergyHub programs increased more than 200 percent and the number of batteries increased more than 80 percent year-over-year. The exponential growth of connected DERs promises much-needed load flexibility as more renewables come online—but only if utilities can harness that flexibility when and where they need it with reliable VPPs.

Have you read:
TransnetBW & Tesla: Germany’s redispatch ready for flexibility
Small flexibility aggregation demonstrated on Equigy blockchain platform

EnergyHub partners with some of the largest utilities in North America, including Arizona Public Service (APS), DTE Energy, National Grid, Salt River Project (SRP), and others, deploying unique, customer-centric support services to scale client programs.

“Over the past five years, we’ve partnered with EnergyHub to build our Cool Rewards program into a key part of APS’s flexibility strategy,” said Kerri Carnes, director of customer to grid solutions at APS. “We can now call on more than 75,000 enrolled thermostats delivering 110MW of reliable flexibility, helping us shift energy demand and incorporate more renewable power onto our smart grid.”

For the US to achieve 100 percent renewable energy by 2035, between one and two terawatts (TW) of power generation must be decarbonised. That transformation will only be possible when massive flexibility—on the order of 500GW—is available to match demand to the variable nature of renewables, said the company.

Uplight

Uplight announced on April 26 that it has reached more than 330,000 grid-connected devices under management — a milestone enabling utilities to scale their decarbonisation journeys and better engage with customers to deliver more affordable, more reliable and cleaner energy.

The company enrolled more than 3,000 devices per week in the second half of 2022, a 150% increase compared to 2021. This is the equivalent of 50MW of incremental flexible load, or one fewer peaker plant, every four months, it said.

The enrollment achievement comes two years after receiving a strategic investment from a consortium of investors and as the company continues to scale and solidify its performance for its utility clients. Uplight launched 34 client projects in 2022, all while achieving a 40% efficiency gain in speed to launch.

Uplight said it responded to a record number of demand response events in 2022, shifting an estimated 766MW of energy to save consumers money while avoiding the use of peaker plants.

Uplight said it added functionality to its unified data platform in 2022, including data ingest traceability, externalisation capabilities and error reporting. With these improvements, the platform is ready to scale by orders of magnitude, it said. Three new insights APIs were also added to Uplight’s developer platform, allowing utilities and ecosystem partners to more easily create or enhance digital experiences to drive enrollments into load flexibility and decarbonization programs.

The finding comes from the TSO’s PV-Shift pilot project, showing that it is already possible today to integrate the smallest of flexibilities into redispatch, when the TSO puts in a request to power plants to adjust power to avoid congestion.

Transnet CEO Rainer Pflaum commented on the importance of such micro-flexibility to stabilise the grid, a concept proven by the TSO’s joint project with Tesla.

“To ensure a stable power grid, we must integrate this flexibility into grid operations intelligently and on a voluntary basis in the future…It is now of central importance to set the legal and regulatory course in order to quickly leverage the proven potential.”

Also of interest:
Germany’s Amprion to expedite transmission projects with €22bn
Germany’s TSOs to tap industrial flexibility
Is Germany’s grid renewables ready?

According to Transnet, a study carried out by the University of Stuttgart on their behalf concluded that in Baden-Württemberg alone, which is Transnet’s operating area, there is high savings potential through the integration of small-scale flexibilities in electricity redispatch.

“This pilot project by TransnetBW and Tesla impressively shows that home electricity storage devices such as the Tesla Powerwall can make a reliable contribution to grid stability and can thus support the transition to 100% green electricity in the grid,” stated Mark Reijerkerk, who leads Tesla’s sales for residential and small commercial energy storage in Europe.

“In addition, it is clear that Powerwall owners are ready to actively support the necessary transformation towards more grid flexibility.”

PV-Shift

With PV-Shift, the two project partners jointly developed a redispatch product tailored to the technology, which could be fully integrated into TransnetBW’s operating processes.

The entire process chain was tested in practice: from the operational processes in the main control room to the activation of the more than 100 decentralised systems (around 500kW in total) by Tesla.

The underlying  principle was that in times of high load or low feed-in, the power grid can be relieved by shifting the charging processes of the Powerwalls. The solar systems would feed electricity into the public grid as required and on the instructions of TransnetBW.

This helps to stabilise the power grid in a cost-efficient, resource-saving and climate-neutral manner.

The pilot project was accompanied by an extensive data analysis, which according to Transnet confirmed the need for a redispatch product.

This analysis also outlined the central challenge of further proving the flexibility service and the forecasts of the potential for providing redispatch from home storage.

Exact provision of such redispatch, they state, is particularly important for the operational planning processes and for the system balance sheet.

Transnet and Tesla‘s results come months after release of the Federal Network Agency’s electricity supply security report of February 1, 2023, which estimates that up to 50GW of shiftable load could be available throughout Germany by 2031 through minimal flexibility.

The need for decarbonisation has been the driving force behind policies like the European Green Deal, while the Russian invasion led to additional policies like RePowerEU to phase out EU dependency on Russian fossil fuels.

The common solution to both crises would be to stop using fossil fuels and shift to renewable energy sources. It is therefore no surprise that renewable energies are the fastest growing source of energy, contributing half of the growth in global supplies and becoming the largest source of power by 2040.* In most regions, wind and solar are also the cheapest source of electricity generation, even without subsidies.**

Pressure to shift to renewables has been high for decades; the current crisis around exploding and volatile energy prices demands action in even shorter time frames.

In France, utility companies are allowed to reduce energy taxes in order to limit the increase of energy prices to a maximum of four percent. In Germany, the price cap for gas and energy — ‘Gas- und Strompreisbremse’ — has been introduced to motivate citizens toward safe energy and to shield energy billing amount for gas, electricity, and district heating for 80% of their consumption the previous year.

“SAP works hand in hand with the German-speaking SAP User Group and other associations to make sure newly passed legislation gets integrated into our systems so that our customers can fulfill obligations toward their end customers,” explains Daniela Sellmann, Global Vice President and head of the Utilities Industry Business Unit at SAP SE.

This shift to renewables also requires a growing number of decentralised energy resources (DERs). Renewables like solar, wind or bioenergy are largely generated by small local generation assets, which feed directly into the distribution grid. The intermittent nature of solar and wind causes challenges for the balancing of demand and supply in the power grids.

The demand side is also changing, with industrial, commercial and household customers increasingly generating their own energy and becoming energy ‘flexumers’ — generators, flexibility providers and consumers of energy.

“This causes a shift in utilities’ business models, from pure selling of energy and water to becoming a full service provider for energy flexumers,” says Sellmann.

Digital transformation

Digital transformation is both an answer to the challenges of the energy transition and driver of new business models and services. This has been recognised in the EU with the creation of the Digitalisation of Energy Action Plan. The action plan defines measures on how modern technologies can help improve the efficient use of energy resources, ease the integration of renewables into the grid and save costs for EU consumers and energy companies.

As nearly everything becomes ‘smart’, utilities need a strategy on how to manage the avalanche of data coming from devices and other sources and use it to feed their intelligence. At SAP, we call this the intelligent enterprise, which is enabled by integration of data and processes and innovation with industry best practices. A cornerstone for this is the SAP Utilities Core solution.

“With SAP Utilities Core, we provide utilities with a proven platform to reliably run their core business processes like meter-to-cash in the cloud,” says Sellmann.

“We are using intelligent technologies like machine learning to further automate core processes and increase efficiency. At the same time, we enable customers to drive innovation and increase speed and agility by leveraging SAP Business Technology Platform and the industry cloud with solutions like SAP Cloud for Energy for managing times series data from meters. Further, we leverage our partner ecosystem to fill white spaces and gaps as well as to scale spread and adoption.”

Utilities-specific innovation topics at SAP cover the entire utilities value chain:

We are undoubtedly moving toward a cleaner and more independent energy future. One problem that remains: time.

To understand how utilities organisations are incorporating a sustainable philosophy into their overall business and technology implementation, read the research report from Oxford Economics Building a Future Beyond the Barrel.

About the author: Markus Bechmann is vice president of the Utilities industry business unit and program lead for SAP Utilities Core at SAP.

In addition, Flexcity, a subsidiary of Veolia, has the opportunity to offer new services to its partners while strengthening its participation in the balance of the network.

Together with the team of Equigy, Flexcity was able to rapidly and successfully prequalify for the aFRR services of Dutch TSO TenneT and integrate this into its flex portfolio.

Equigy, a joint venture between TenneT and other European TSOs, enables the integration of small, decentralised units through its crowd balancing platform and connection to TenneT’s aFRR process.

Have you read?
Swiss TSO-DSO partnership pilots DER coordination
Flexibility key within new EU electricity market reform proposal

The platform is intended to set a new European standard for smaller aggregated flexibility to participate in different TSO markets, thereby enabling the partner TSOs to work together to promote and improve the market for renewable energy.

“There is a big and growing potential of small aggregated flexibility for balancing the grid. In order to effectively unlock that potential, we believe that aggregators should be connected fast and easy,” says Martin van ‘t Verlaat, Equigy Chief Technology Officer.

“The Flexcity and Equigy teams did a great job together to achieve this in a record-breaking time.”

FLEXCITY reports that several of its flexibility partners will participate in this new service.

Jeroen Schut, Netherlands Country Director, says a big portfolio is created and ready to go live.

“For our partners, this market enlargement also represents a new opportunity to enhance the value of their installations and thus reduce their energy costs.”

This balancing process should further encourage the integration of renewable energies into the network’s electricity supply by compensating for their intermittent nature.

In addition to TenneT in the Netherlands the other TSO partners in Equigy are TenneT in Germany, Terna, Swissgrid, APG and TransnetBW,