Energy regulator unveils a plan to change the licence and classification of energy storage

In a changing world of energy systems, Ofgem believe that the regulations should change to encourage the deployment of new smart technologies and respond to the emerging issues that they bring.

They want to base its definition of storage as outlined by the Electricity Storage Network. That is:

‘Electricity storage in the electricity system is the conversion of electrical energy into a form of energy which can be stored, the storing of that energy, and the subsequent reconversion of that energy back into electrical energy in a controllable manner.’

Helder Galrinho, Senior Energy Consultant at TEAM, said that:

Helder Galrinho, TEAM Energy ConsultantThe proposed definition of storage will drive an inevitable increase of storage systems in the market. Year after year we can see an increase in energy generated by low carbon technologies. Using reliable energy storage systems, energy can be stored during periods of low demand and released when demand peaks. These kind of systems are essential to support high levels of renewable generation

Ofgem’s proposal is intended to remove regulatory barriers to storage, and the problem of double-charging environmental levies by categorizing storage as a subset of generation.

In the consultation, Ofgem also hope to make changes to distribution network operators’ licences to prevent them from operating storage in the aim to open-up competition in the market. They want a clause in that modification to allow DNOs to operate storage in special circumstances – Uninterruptible power supplies (UPS) at substations, emergency response and maintenance fleets.

Responses to the consultation are welcomed until 27th November 2017.

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Posted by TEAM on 19 October 2017