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Utility Week 24th June 2016

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utILItY WeeK | 24th - 30th June 2016 | 25 Sponsored report: CGI energy flexibility Key FINDINgS: l Respondents believe that the flexibility in the power system must more than double in the next 14 years, from a current level of 4 out of a possible 10 to 8.4 by 2030. l There is little doubt of the strategic signifi- cance of flexibility by 2030, rated 9.1 out of a possible 10. l The key drivers for greater flexibility in the power system are: • constraints management; • new business opportunities; • balancing the system; • demand-side flexibility, which is seen as the most important aspect of flexibility. l The greatest opportunities arising from flexibility in the power system are: • Demand-side flexibility o demand-side flexibility sharing be- tween DNOs and the system operator; o selling industrial and commercial demand-side flexibility; o the creation of a more central market platform for trading demand-side flexibility. • Storage o the ability to manage intermittent generation patterns and demand vari- ability; o grid stability services; o the ability to provide an alternative to traditional network performance. l The greatest barriers to flexibility in the power system are: • Demand-side flexibility o lack of a commercial/market frame- work to optimise demand-side flex- ibility; o commercial and regulatory barriers in the existing market arrangements for demand-side flexibility; o policy framework. • Storage o the cost of storage solutions; o the structure of balancing services; o the classification of storage as a gen- eration activity; o there is a strong belief that intercon- nection will play a significant role in energy security by 2030 – 82 per cent of respondents agreed. Brought to you in association with Do you think interconnection will play a significant role in energy security in 2030? 20% 80% 25% 75% Aggregator energy company 18% 82% 12% 88% overall Dno n Yes n No 4.4 8.5 Average rating out of 10, where 10 is extremely flexible n Current level of flexibility n Required level of flexibility by 2030 how woulD you rate the current level of flexibility in the system anD where Does it neeD to be by 2030? 4.0 8.4 3.8 8.1 3.9 9.0 overall Dno Aggregator energy company Brought to you in association with To read Energy Flex- ibility: Transforming the Power System by 2030 in full go to the downloads section of utilityweek.co.uk

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