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NETWORK / 11 / DECEMBER 2019 / JANUARY 2020 in higher prices for customers. The rise of renewables brings a new level of complexity to energy trading and forces decision-mak- ing closer to real-time, where forecasts are more reliable. Energy traders now need to manage diverse portfolios with more complexity, less predictable assets and value streams. In fac- ing lower trading margins, they must operate more efficiently to improve risk-adjusted returns, which drives a need for technol- ogy. Enabling the coal-free transition Transitioning away from coal without a new dash for gas is viable, but requires an ap- propriate fusion of policy and technology. The capacity gap can be filled by a combination of renewables, energy storage and harnessing valuable untapped energy flex - ibility through the use of new technologies with no recourse to new large gas plant. Demand is set to increase with the electrifica - tion of transport and heat, which will require a shi• in how we view and value energy flexibility. In order to enable the growth of renewable energy and manage increased volatility, we need to ensure our energy systems become smarter. Using smart technology will help to keep our energy systems in balance and the lights on, partly by enabling new cleaner assets to replace the flexibility and inertia of large thermal plant. We can maximise use of green energy, by providing greater real- time visibility of clean genera - tion and demand, while better controlling demand to meet clean generation. We also need to harness all useful flexibility at our disposal, including smaller assets located at the grid edge. Growth of these smaller assets is deemed by some to be a problem, but should be considered as part of the solution, rather than the problem. As today's energy grid increas - ingly moves to enabling smaller, distributed generators and increasing demand and new asset types, National Grid is enabling a programme called "Wider access to the Balancing Mecha- nism (BM)" – one of the ways it balances supply and demand in close to real-time – so that smaller distributed assets can more easily participate. This ap- proach will enable it to continue to meet its obligations, reliably and efficiently. Historically, the BM has been a means of National Grid calling on major power generators, such as large thermal power stations and pumped hydro facilities, to change their generation sched- ules to produce more – or less – energy. The BM's current contrac- tual and operational mechanisms were designed for these legacy energy systems. Ultimately, National Grid wants to see the wider access pro - gramme deliver more flexibility, lower carbon, increased competi- tion and reduced transmission costs for consumers. New strategies, new opportunities Fundamentally, the new energy landscape requires that we manage assets as efficiently as possible, ensuring that they are used for their most valu - able applications and to their maximum potential by stacking use cases or value streams on the same assets. Reducing energy trading risk will help to reduce energy costs and create a fairer and more reliable energy system. Energy companies can do this by ena - bling real-time visibility of energy assets and markets alongside the tools (eg better forecasts, decision support and automated control) to make and execute decisions as efficiently as possible. We need new strategies to accommodate the real-time vari - ations in renewables output and increased volatility in energy trad- ing as we continue to eliminate coal from the energy mix. New technology is the key to enabling many of these strategies. As well as addressing the challenges we face, technology will create new opportunities to unlock value in our energy systems. FUTURE OF FLEXIBILITY Han Xu, research and design engineer at the University of Strathclyde's Power Networks Demonstration Centre (PNDC), on its unique capabilities to support the need for a flexible network. The transition of Distribution Network Operators (DNO) to Distribution System Operators (DSO) will support the further integration of widespread renewable energy generation, storage facilities, demand side response services and the electrification of heat and transport. To address the challenges associated with this transi- tion, such as the vital need to respond to growing demand placed on the network by the growth of distributed energy resources, DNOs are looking to harness flexibility resources for network services in order to maintain a secure and reliable supply to customers. At the PNDC, we have a collaborative research programme, formed of academia and industry, which is supporting our DNO members with their transition to DSO. A recent project commissioned by the Energy Networks Association (ENA) as part of their Open Networks Project, identified gaps and opportunities in current DNO innovation activity. Our findings fed into their Network Innovation Competition (NIC) call to creators and innovators to inform future developments in the energy sector. We are currently underway with the development of a DSO testing platform in order to support evolving DSO operation. The platform can control and dispatch real network flexibility assets in real-time and demonstrate the impact and operational effectiveness of flexibility services on the distribution network. The DSO testing platform will join the range of on-site assets at the PNDC including our: PHIL capability, HV/LV network, communication infra- structure, fast data acquisition system, control room and SCADA system. These assets, partnered with our collaborative research programme, provides our members with the only com- prehensive site for supporting and accelerating solutions for future DSO requirements. Find out how we can support you at: pndc.co.uk I N D U S T RY I N S I G H T A collaborative approach to delivering Distribution System Operators DIGITALISATION