Network

by 2030. The survey found that on average businesses expect the impact of industry trends driving transi on to be 23 per cent higher in five years' me. Key trends considered to be the major drivers for transi on include compe ve pressures (6.4 now vs. 7.0 in five years), changing customer expecta ons or habits (6.1 vs. 7.4), changing policy and regulatory framework (6.1 vs. 7.2), sustainability considera ons (5.7 vs. 7.1), big data (5.6 vs. 7.1), smart meters (4.8 vs. 6.0), electric vehicles (4.2 vs. 6.3) and M&A ac vity (4.1 vs. 4.9). Other trends that are likely to drive transi on include climate change and step changes in sustainability, as well as changes in Government, changes in workforce and convergence of services. Headline trends rela ng to new technologies are likely to include the digitalisa on of energy, the Internet of Things and augmented or virtual reality. "Different people will have different interpreta ons of what the energy transi on means, and this will naturally colour their view of what outcomes are expected and desired," explains Stewart Reid, head of DSO and innova on at Sco sh and Southern Electricity Networks (SSEN). "Clearly there is a pressing need to decarbonise, and to do so in an affordable manner for households and businesses. Our role is to enable opportuni es, iden fying and facilita ng new markets which can accommodate different perspec ves, and aspira ons for delivering a low-carbon, secure and smart energy system." While Reid admits that there remains uncertainty across the industry about what the transi on to a decarbonised, decentralised and digitalised system will look like in prac ce, for SSEN it will almost certainly introduce a fundamental change in the company's rela onship with its customers. "Customers engaging with energy in new and innova ve ways will have greater opportuni es to harness energy, through small scale renewables, balance against peak load, perhaps through their electric vehicle or ba eries owned in the home and provide demand side response," says Reid. "For SSEN it's important to be prepared for, and where appropriate help manage this transi on. It is unclear how these new technologies will interact, which ones may be favoured by households and businesses, and crucially the speed with which they are taken up. Electricity networks must be prepared to accommodate significant and poten ally rapid change during the energy transi on," he adds. Sara Vaughan, director of poli cal and regulatory affairs at Eon UK is confident that the industry's colossal transforma on will deliver a future that is decentralised, decarbonised and digital. "Eon, and indeed the wider energy industry, are u erly unrecognisable from when I joined; and it is not the same industry now as it will be in the next 10 years," says Vaughan. "We've made huge strides in decarbonising the UK economy – to that point, carbon emissions have declined to levels last seen at ASK THE INDUSTRY On a scale of 1-10, to what extent do you think your industry is in a state of transi on? As an industry we are clearly past the point of return on the transition to a flexible network. If a passive network scores 1, and a fully flexible network is a 10, I would put the industry at a 5.II Stewart Reid, head of DSO and innova on, SSEN One of the exciting but also challenging factors is uncertainty about the scale and pace of change. We've already seen quite a lot but there's more to come. As regulator we are challenging the industry to respond and ensure consumers benefit. My view is 8 to 10 and there are many statistics that demonstrate this.II Andrew Burgess, deputy director, electricity network charging and access, Ofgem I would say the industry is currently only at a 4. There are some great things happening with real innovative technologies coming through and some fabulous network developments – that is necessary, but it's not sufficient. I'm still left wondering how these new innovations will be scaled up and rolled out reliably if we haven't got whole system thinking.II John Sco , director, Chiltern Power I would score this as 6 and growing. There is lots of innovation and new ideas, but incumbents (and our beloved gas boilers) are still dominant and looking difficult to shift in many market segments.II George Day, head of markets policy and regula on, Energy Systems Catapult NETWORK / 8 / DECEMBER 2017 / JANUARY 2018 P R E S E N T S NETWORK / 40 / FEBRUARY 2019

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