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Utility Week 28th June 2019

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UTILITY WEEK | 28TH JUNE - 4TH JULY 2019 | 21 Operations & Assets Another said that although the way in which the transmission system was used in the future was going to change radically, the fundamental need for a transmission system would remain. "Even in situations where you have a highly decentralised, decarbonised energy there are still going to be occasions when the sun doesn't shine and the wind doesn't blow," they added. Delegates were also keen to share their views of what they thought would be the impact of a localised energy approach on customers regarding security of supply, decarbonisation and affordability. One attendee said they believed that mar- ket engagement had to be accessible. Delegates further discussed consumer engagement, with one suggesting customers may not be engaged with a localised energy market so long as their household bills are kept to a minimum. Another said that each household is dif- ferent and that while it is right to consider what consumers want, it would be wrong to expect a single answer. Frameworks The discussion would up with an exploration of the role of frameworks and whether they are fit for purpose or if the industry should instead be "looking further ahead". An attendee suggested looking at the use of data, saying that by digitalising network, operators could access more real-time infor- mation and better understand what the net- work is doing and what its capabilities are. "That to me is unlocking part of the opportunity that comes about and having to deal with uncertainty in better ways, that we can flex different solutions and see what comes out best," they said. Another added: "We're doing a lot of work at the moment to allow us to create a model of the network, right down to the end user, to allow us to start running scenarios. Once we get those models in place we can start under- standing what this all means." Delegates were asked what one thing they thought could be done in the short term to support a whole-systems approach to local- ised energy. One said: "Local energy is all about local opportunity, otherwise a central system with scale is always going to be cheaper and bet- ter. What does local bring to the table and are we really focusing on that?" "I think we need to come up with a logi- cal model that allows various communities to come together, as an overall co-ordinated plan, but it is not necessarily driven by the centre," another stated. Duncan Hughes, electricity transmission power systems manager, National Grid. "Being able to take local things but build them around a more national-level policy. I think that will be something to really help get to a genuine whole-system type of position." Maxine Frerk, director, Grid Edge Policy. "I think we should have local energy plans. In Scotland there is legislation going through that would require local authorities to start doing local energy/energy efficiency planning and some cities are thinking about it. "To me that is probably one of the key routes into whole systems in its biggest space. I think some of those conversations are beginning but I don't think we yet have anything that you would pick up off the table." Dhara Vyas, future energy systems, Citizens Advice. "There is quite a lot of research that demonstrates that people like decentral- ised energy systems, but always with something underpinning it to make sure the lights don't go off." Peter Jones, technical manager, Energy Research Partnership. "There is growing evidence that even at a local level you have got to get co-operation to get efficiency. Really we should be looking at what the possible frameworks of regulation should be to deal with a system that is so highly interrelated." • How can whole- system outcomes be driven through incentivisation and frameworks? • What are the regulatory barriers to innovation and what are the right triggers for investment? • How do transmission network investments affect local island supplies? • What are the consumer benefits of a whole-system approach in terms of the energy trilemma? Key questions to take away Brought to you in association with

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