Issue link: https://fhpublishing.uberflip.com/i/1206576
when there were subsidies, but they've got a lot of money to deploy, and they need to nd places to put it. "In I think you will see a lot more transactions happening across things like battery storage or renewables. Whether they will be built in , I'm not sure, but I think you will see the an- nouncements come out." Q So, you're not chiefl y working with networks? A "We do deal with the networks – we've won a tender from one of the DNOs to supply some ‚ exibility – but the problem you have is there's not enough size in terms of market. I couldn't build a strategy to focus on providing services to DNOs today. "They have this conundrum – can I rely on this distributed ‚ exibility to give the same certainty I need, versus just building up infrastructure?" Q Flexibility auctions as an alternative to reinforcing networks: you only have one contract – does it not work for you? A "They're procuring ˆ‰MW – it's just too small. I think it's worthwhile for us to take part when we have customer assets that are contracted there to do other stu‹ . So, if there's a tender [in a particular area] I don't have to acquire customers, because I couldn't make the cost of the acquisition work against the size of the opportunity." Q But if a customer asset had unused headroom? A "Then it would t into to what we already have going. I think it would be too high-risk to put a commercial team on to selling services into the DNO. "Say the whole market is " to ˆMW, I know there's one out that has maybe ve to ˆ companies chasing it, so even if I'm lucky and I get % of that market, that's like somewhere between ˆ to MW, so the eco- nomics are not quite there yet." Q At what level does it get more interesting for you? For instance, Kaluza is tendering. A "Yes, but Kaluza – that's tiny volumes, I think they're dealing mainly with residential, really small volumes. So, I guess for them they're able to reach into a large customer base to provide those volumes. "Even National Grid is not big enough to be a focus for our business model, there's just not enough liquidity. We know and are convinced that we, at least, could not build a business o‹ trying to sell to the National Grid and the DNOs. We don't do much supply, we do PPAs, and we try to get ‚ exibility attached so it's a much more holistic solution. "Our view is that if I take a solar farm and battery, co- located. We would contract with them to buy their solar power. At the same time, in that same contract, we would be contracting to buy the ‚ exibility o‹ the battery. So, o‹ a single transaction, we take control to fully optimise the value that that customer can get. Thereby, as a business, we make margin on all the value stream and the customer now gets a much more holistic and combined solution." Q What else do you see happening in 2020? A "Brexit could a‹ ect the interconnectors, and TERRE. Anyone trading out of the UK with carbon tax credits in the UK would have to get rid of them, this was the case at least a month or so ago, then what would come into play instead is a tax on carbon. Now that is not a great market mechanism, and it feels like a bit of stopgap, so we'll have to see. "I think that what's happen- ing with the DNOs is getting more exciting. If the DNO to DSO stu‹ happens and National Grid plays its part, then the long- term direction is there and I'm convinced it's going to play out right." NETWORK / 29 / FEBRUARY 2020 For more than 25 years, Cyient has been at the forefront of delivering leading-edge services and solutions for the utility industry. Their solutions leverage application-level tools in conjunction with advanced data management techniques to provide the breakthrough capabilities sought by utilities worldwide today. The following differentiators encapsulate the Cyient advantage: 1. Size and credibility Cyient is a well-established and trusted organisation with constant growth, and it is the largest pure software and data company focusing on utility solutions in the industry. 2. Advanced applications Cyient can transform traditional utility design engineering and operations capabilities through advanced applications combining data, software, and process change. 3. Client focus We work with some of the most recognised and advanced utility clients in the world and pride ourselves on a 98% repeat business rate – a clear indication of the trusting and collaborative partnerships we have built with our clients over the years. 4. Regulatory and security compliance With advanced experience in cybersecurity compliance meeting stringent ITAR and nation-specifi c controls, Cyient maintains the highest levels of security compliance including ISO 27001 across the entire solution footprint. cyient.com I N D U S T RY I N S I G H T Optimise operations with advanced, data-driven solutions for the Digital Utility