The UK energy system needs an overhaul to make it fit for the future, and a new report from the UK Government and energy regulator Ofgem explains how this will be achieved.
A report, ‘Upgrading Our Energy System,’ sets out 29 actions the government, Ofgem and the industry will take to give homes and businesses more control over their energy use and to support smart technologies such as storage and demand-side response.
According to Ofgem, the plan will deliver a smarter, more flexible energy system and reduce costs for consumers.
It includes the roll-out of smart meters, which the report describes as “a critical building block, creating new opportunities for new services and business models which benefit consumers and the overall system”.
The report also recognises the role that energy storage can play in a smart energy grid, by enabling the integration of low carbon generation, reducing the costs of operating the system, and helping to avoid or defer costly reinforcements to the network. The government and Ofgem said they have committed to removing barriers to the introduction of this technology into the UK power network.
Andrew Wright, Senior Partner of energy systems at Ofgem, commented: “The way we are generating and using energy in Britain is changing rapidly. Today’s plan sets out how Ofgem, the government and the industry will work together to modernise the energy system and make sure consumers get the benefits of the changes.”
“We want to open the door to new technologies and services so that they can help to reduce bills for consumers in the long term. It is vital that we get the changes in place as there is potential for a smarter system to save consumers billions between now and 2050.”