Utility Week

6 | AUGUST 2021 | UTILITY WEEK The Month in Review Government updates on net zero blueprints Smart chargepoint mandate imminent Legislation this autumn to ensure all private electric vehicle (EV) charging points can operate as smart devices was promised in the government's transport decarbonisation plan. The smart mandate would apply to all domestic and work- place chargepoints. However, it would not cover 50kW-plus rapid chargers. The blueprint said a £90 mil- lion Local EV Infrastructure Fund, opening in 2022, would support efforts by councils to roll out larger on-street charg- ing schemes and rapid charging hubs. From April next year, the gov- ernment will shiˆ the focus of its financial support for EV charg- ing infrastructure to supporting leaseholders, renters and those living in flats. Full house: parliamentary time will be pushed to accommodate all the legilsative proposals "The incredible vaccine rollout has shown what can be achieved through innovation and the private sector, government and all of us playing our part. We need a similar collaborative approach to net zero." Jonathan Brearley, CEO, Ofgem Days before parliament rose for recess, the government pushed through a flurry of energy policy announcements. The July publications included a number of follow-ups from the Energy White Paper – on a future system operator, decarbonisation of transport, energy storage, smart systems and flexibility and digitalisa- tion, among others. However, there was concern that the crucial heat and build- ings strategy was delayed yet again. As Utility Week went to press, publication was expected in the autumn. Here is a round-up of Utility Week coverage of the announce- ments. Phased approach for independent system operator proposed A joint consultation from the Department for Business, Energy and Industrial Strategy (BEIS) and Ofgem set out a number of preferred options for what it terms a "future system opera- tor" (FSO). The consultation proposed transferring all roles currently undertaken by National Grid Electricity System Operator (ESO) because of the "synergies between balancing the electric- ity system and analysing its future needs". However, it suggested these synergies are "weaker" for gas and that the potential cost and risk of separating real-time operation from gas asset owner- ship was greater. The document therefore pro- posed that the FSO should take on strategic network planning, long-term forecasting, and mar- ket strategy functions for gas but that real-time system operation should remain the responsibility of National Grid Gas. The consultation proposed a phased implementation of the FSO, which would first take on the functions of ESO before look- ing at further functions. Cap and floor for funding storage? The cap and floor regime, which was developed by Ofgem to encourage investment in inter- connectors, could be extended to long-duration storage pro- jects, BEIS suggested. In a call for evidence on facilitating the deployment of large-scale and long-term elec- tricity storage technologies, such as pumped hydro and hydrogen, BEIS said these projects are not being built at the scale needed to support the transition to a lower carbon. Ofgem proposes taking strategic oversight role for energy codes In another joint consultation between BEIS and Ofgem it was proposed that Ofgem takes on a strategic oversight role for energy code governance. Presenting this as their preferred option for reform, they said the regulator would issue a strategic direction for energy codes on an annual basis and ensure it was delivered by a series of code managers that would take on most of the func- tions currently performed by industry-led code panels. The consultation stressed that the energy codes had done a "remarkable job" guiding the industry post-privatisation, but said many of them were designed to deal with a more predictable energy system and have seen only incremental changes over time. BEIS said: "This has resulted in a code governance framework that is complex, fragmented, and lacks incentives to inno- vate." Smart energy appliances to be regulated The government pledged to introduce regulation for smart energy appliances "when parlia- mentary time allows". The commitment was included in the smart systems and flexibility strategy. Among the proposals were plans to regulate "energy smart" appliances, described as those that can take advantage of cheaper electricity, automati- cally operating when prices are lower, providing balancing ser- vices to the grid and generating revenue for consumers.

• Cover