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OFGEM consulting on network charging, including a consultation on embedded benefits, with major impact on many storage installations. 

Exciting future’ - UK Electricity Storage Network ‘rejoicing’ as government seeks answers - 23 Nov 16

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The Electricity Storage Network Energy

Policy and Issues                   

ESN Policy Priorities

ESN calls for:

  • recognition in regulations and legislation of electricity storage as a separate activity to generation and demand
  • fair network charges such that electricity is not charged twice for using the same asset
  • the elimination of the charging of Consumption Levies on storage facilities when those levies are then charged again at point of use of the energy
  • a level-playing field for the procurement of services by the System Operator and by the transmission and distribution network companies
  • a policy framework for the commercial deployment of short, medium, and long-duration storage that offers best value to the GB consumer both now and in years to come

We work on these issues with expert input from our membership.  If you are not a member, join us and we look forward to hearing your views.


On Monday 23rd October, several members and staff from the ESN attended the launch of the Smart Power Industry Alliance which sees a collaborative call from representatives across the industry to support and invest in emerging and low carbon technologies, including energy storage to promote a flexible and secure energy system.

Speaking at this event, Energy Minister Richard Harrington pledged his support for our industry, saying he would be delighted to hear from the experts in the room.

We may well take him up on that!

Putting our feet back on the ground of everyday, you may have seen the consultation on the draft legislation to govern assessment and design fees for new connections.

The principles of assessment fees are sound in that they reduce the number of speculative applications being processed. This often uses time and resources within the DNOs that would be better deployed in delivering a secure and reliable network. However, from speaking to members, the response to this consultation has not been unilaterally enthusiastic. I have been hearing from different parties that there was a lot of work undertaken a year or so ago, which people feel has been ignored. That predates my personal involvement in the network/generation side of the industry but this reflection has come from several parties so it seems a shame.

The draft text can be found in the members section of the website so please let us know if there is anything you would like to add. We are also happy to listen to alternative points of view; particularly if you come from a very different perspective as you could highlight something very important which we have thus far missed.

We will be also pulling our responses together for the consultations on licencing of storage and ownership of storage in the next couple of weeks. For anyone who wants to get involved with this, there will be a conference call on Tuesday 7th November at 11:00. If you are unable to make this time, let us know or drop through your thoughts separately.


BEIS / OFGEM announce the Smart Systems and Flexibility Plan - Upgrading our energy system...

The BEIS / OFGEM Smart Systems and Flexibility Plan action plan puts electricity storage at the heart of our future energy system.  Addressing the regulatory hurdles by introducing a new licence for electricity storage based on the Electricity Storage Network’s  definition of storage is good news for us, and for the whole electricity storage industry.  Addressing these issues now will improve the market for new storage technologies, introduce new business models and bring benefits to the nation from a more secure and sustainable energy system.  It will be a showcase for British expertise and will support our industry in its home and in valuable export markets.

The ESN has issued a press release today 24 July 2017.

For the BEIS / OFGEM report link: Smart systems and flexibility plan - Upgrading our energy system 


Regulating Electricity Storage

The UK is behind many other countries in its adoption of modern electricity storage. We are involved in responding to a consultation by BEIS and Ofgem to promote 'A Smart, Flexible Energy System'. Our intention is to promote electricity storage whilst highlighting the existing regulatory barriers to its implementation in the UK.

Questions that need answering are:

  1. Should electricity storage be classed as generation or storage?
  2. Does electricity storage need to licensed?
  3. How should electricity storage be defined?

In addition to activities in the UK we are working in Europe, through the European Association for the Storage of Energy, and the Commission are busily assessing their approach to storage.

If you have any comments on these proposals please contact us:
ku.oc.egarotsyticirtcele@ofni 

Electricity Storage in the National Interest

We propose that the UK power system should have a minimum of 2,000 MW of new network connected electricity storage by the year 2020. This represents just less than 10% of the predicted increase in renewable generation capacity over the same time period.

You can download our proposals in "Development of Electricity Storage in the National Interest".

We will press government to include support for new storage in the electricity market reform process - whether as targeted actions within the capacity market or contracts for differences, or in a specific targeted action. 

Our definition for Electricity Storage

The Electricity Storage Network has an agreed definition for electricity storage:

"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.

Electricity Storage Facility” in the electricity system means a facility where Electricity Storage occurs.

Principles:

Any definition should not include terms that refer to other asset classes or licensed activities, such as supply or generation (or demand).

The definition in the DECC Consultation: Consultation on amending the CfD contract and regulations (page 21, section 47) is not appropriate as it also includes "generating unit".

This definition is published in the BEIS / OFGEM call for evidence (November 2016) on page 34, paragraph 32.

Responses to Past Consultations

Documents

Consultation document on electricity market reform
Click here (links to DECC consultation page - so follow the links)

UK Government Consultation on Electricity Market Reform
We submitted our response to the consultation on the Electricity Market Reform. You can download our response here (PDF file for download).

The Government’s White Paper “Planning our electric future” is now available for download. Go to the DECC website here to download this and the supporting documents.

National Grid - seven year statement consultation
Please download the document from
www.nationalgrid.com/uk/Electricity/SYS/
We will be consulting members and preparing a response to these documents.

National Grid: Operating the Electricity Transmission Networks in 2020
We submitted our response to this consultation document. You can download our response here (PDF file for download).

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