Utility Week

20 | FEBRUARY 2022 | UTILITY WEEK Electricity Roundtable You've got to have a plan The Future System Operator will be responsible for strategic planning for the entire energy sector. A Utility Week/ MottMacDonald discussion asked, what should it look like? G iven its perceived role in unlocking the true potential of the UK's energy system as it transitions to net zero, the conversation around the Future System Operator (FSO) no longer centres on "if ", but "when" and "how". With less than 340 months to go until the UK's 2050 net-zero target, the general con- sensus in the energy industry is that the FSO would already be in place and operating to provide a uni† ed but independent strategic vision for the industry. But regulator Ofgem, in conjunction with the Department for Business, Energy & Industrial Strategy (BEIS), is still only in the consultation phase for a "central sys- tem architect", so many questions remain unanswered. Although it plans for the new FSO to lead on a "centralised strategic network planning model", how it will go about ensuring such a body has the necessary independence from physical assets, while also having the exper- tise to make both short and long-term strate- gic decisions that will a" ect all levels of the energy market, is yet to be decided. Similarly, the full scope of the FSO in terms of its roles and responsibilities has not been de† ned. Must strategy and system balancing be kept together? Should its deci- sions be based on a top-down or bottom-up view? And how will it in– uence local deci- sion making? These, and the most pertinent question of all – how to achieve a functional FSO as soon as possible – were the questions posed at recent roundtable convened by Utility Week and Mott MacDonald and attended by a group of smart grid and system operation leads from across the energy system. There follows some of the highlights. Li and shi , or start from scratch? In its initial views on the roles and respon- sibilities of the FSO, which were published ahead of the consultation in June last year, Ofgem proposed transferring all the roles currently undertaken by National Grid Elec- tricity System Operator (ESO) because of synergies between balancing the system and analysing its future needs. However, for gas it plans to leave the real- time operation of the network with the asset owners to ensure safety is maintained. While all around the table agreed that the key priority for the FSO is to bring true inde- pendence to strategic system planning, opin- ions diverged as to whether a straight "liœ and shiœ " of the ESO would result in a body that was truly impartial and representational of all market players. One participant said: "If we were start- ing with a blank sheet of paper you wouldn't instinctively think that we need the physi- cal system operation and energy balanc- ing in there as well – it just doesn't make any sense. The only reason it's being talked about is because we aren't starting with a blank sheet of paper and it's easier to liœ and shiœ the whole thing. "If you want to move quickly it's probably easier to set up a new whole systems strate- gic planning activity without bits in it that aren't really necessary and that will make it unbalanced. It won't immediately have that balance of knowledge and skills but that will grow. The key is starting from a balanced position." Others disagreed, saying that while start- ing from scratch may be preferable "time- scales would just go out and out", and the more pragmatic approach would be to "liœ and shiœ " from the ESO and re† ne roles and responsibilities later. Participants also voiced concern that split- ting strategic planning and system balancing into separate organisations could potentially muddy the waters around who was ulti- mately responsible for supply security. Although Ofgem speci† cally mentioned the FSO as a vehicle for ensuring hydrogen can reach its maximum potential, one energy expert felt that both hydrogen and heat net- works should be allowed to play out further before any responsibilities are given to a FSO. The FSO will need to consider its interre- lationship with other sectors not least trans- port via the EV charging infrastructures. What in uence can the FSO have on local planning? Although the FSO will be responsible for

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