Issue link: https://fhpublishing.uberflip.com/i/736974
NETWORK / 41 / OCTOBER 2016 Why do you believe that distribution system operators should have the option of being able to own and operate storage? DNO's are in the best position to manage the development and operation of distributed resources within their own territory because they can really get the full value out of those resources. My suggestion would be for DSO to stand for distribution system orchestrator, because an• orchestrator does more than just operate. Is the right approach being taken by Ofgem to enable the UK's grid to be used to its full optimisation? The current regulatory framework has been developed for the central system. Now we are tweaking that framework a little bit, but that will only get you so far. We are trying to regulate how distributed solar and storage should be handled, but what you actually have to do is stand back and design a new regulatory framework that is geared towards a much more distributed cleaner grid infrastructure. It's a big step. What are the risks of sticking to the current market framework? A distributed system can become very complex and very expensive to manage, it could result in lots of costly ineƒ ciencies and lower reliability. Ultimately customers are going to pay for that. The number of stranded assets is going to be bigger than we have ever seen in the history of mankind, they will not be at the end of their lifetime but can only run at 50% capacity because of things like renewables during the day. I think actually the objectives of a competitive market structure that were the original intent 25 years ago are at risk. I would caution any regulator within a country to really take a hard look at that because the last thing you want is all this new technology leading to a higher price of power and lower reliability. Ofgem is about to issue a call for evidence on smart systems, how should DNOs take advantage of this opportunity? My advice would be engage with the regulator and have that discussion. There are some very strong business case examples of how DNOs can manage community solar or microgrids better than having them as standalone isolated resources that are not being optimised as total grid. ConEd in Chicago is one example, they are a DSO so they cannot own generation but a discussion with the regulator has resulted in them being allowed to build microgrids. "The last thing you want is all this new technology leading to a higher price of power and lower reliability." Jan Vrins, global head of energy at Navigant, warned in September that storage "risks competitive market objectives". Read more on networks.online J A N V R I N S N AV I G A N T