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Network May 2019

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ROUNDTABLE C reating local energy plans as part of a wider whole system was hot on the agenda as delegates from across the sector came together for a thorough examination of the best ways in which to achieve this. One delegate kicked off the aernoon's discussion at the Charlotte Street Hotel in London by pointing to other areas of the UK, specifically in Scotland where some cities are already talking about implement - ing local plans as part of a wider course of action. "We are seeing different degrees and lev- els of sophistication in different plans from across the different regions," they said. Another attendee said: "I think what strikes me is I don't know whether there is a belief that there will actually be a whole system. I think there is a potential that it will always be gas, electricity, heat. "I am surprised that, unless I have missed a trick somewhere, that actually we are not actively talking now we are actively engaged in looking at whole systems even from a regulator's point of view. It has a feeling of being slightly unprepared. It's clear that there is evidence that these vec - tors will all work together." One delegate said they had been in discussion regarding local engagement with local planning authorities for "many years". They remarked: "The additional com - plexity is that these plans are now very much focused on energy transition. "The question becomes how can the DNOs and the DSOs help the local authori - ties with their energy transition plans and what is the incentive to help the communi- ties to move forward?" Another expressed concerns about local authorities which are facing "immense pres- sure on a number of fronts". They intimated authorities need to see the benefits of spending time and money on localised energy. Considering the impacts of localised energy At a roundtable event organised by Network in association with National Grid, delegates were invited to consider the beneficial impact of localised energy in supporting the whole energy system. Adam John reports. NETWORK / 38 / MAY 2019 "Unless you look at it as a whole system you are not going to achieve the benefits," they said. Incentivisation Delegates were then asked to consider how whole system outcomes can be achieved through incentivisation. One delegate suggested: "I don't know if this is a silly idea but why not, when considering the local potential for de - carbonising heat, provide incentives for spe- cific technologies and resources for those specific areas? In this kind of manner, we can make sure the national policy and also local potential can move together in order to have decarbonising systems." Another proposed asking the govern - ment why there is not a coordinated energy planning authority at national level. One delegate pointed out that "whole systems" means something different to everyone and another agreed saying it was important to create a common understand - ing. For the second part of the aernoon's discussion delegates were asked to consider the effect of regulation, more specifically whether there are any regulation considera- tions to enable, optimise and remove barri- ers to investments. One suggested the new RIIO framework encourages innovation and the range of demand currently in the market means an environment has been created where people are testing out new ideas to cope with new demands such as EV networks. Another spoke about how policy imple - mentations from the government and not just the network regulator Ofgem will bring about the transformation of the networks. One said that in their experience when it comes to barriers to investment it is oen not down to regulatory measures. Instead a combination of cost, technol - ogy and the benefits of change were more likely to be a barrier. Forward planning For the third part of the aernoon's discus- sion delegates were asked about the impor- tance of forward planning for future local energy systems. One pointed out that with a lot of local solutions, when taken on their own, they are not necessarily the right way to create a local energy system. "There is a lot of wind energy up in Scotland which can be produced in a very efficient and effective way so you're going to still need a grid to transmit that energy from that area down to there. "I think there always will be a role for the grid and it's about understanding that right balance and how big those pipes ought to be." Another said they believed the way in which the transmission system is used in the future is going to change radically but there will not be a massive change to the fundamental need for it. "Even in situations where you have a highly decentralised, decarbonised energy background there are still going to be occa - sions when the sun doesn't shine and the wind doesn't blow," they added. Delegates were also keen to share their views on the impact a localised energy approach will have on customers regard - ing security of supply, decarbonisation and

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