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Network November 2016

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accessible to entrepreneurial technology suppliers. Using this link, Ofgem will welcome innovative ideas about the way in which the energy system might operate in the future and o er "candid" advice on how to take those ideas forward. Nolan also previewed the contents of the smart systems consultation, which will be published soon. Industry has been waiting for this information for several months. The consultation will begin with a call for evidence from both Ofgem and the new Department for Business, Energy and Industrial Strategy (BEIS) and will explore unwarranted barriers to energy storage, the role of aggregators in enabling DSR markets, changing DNO-TSO relationships and focal points for innovation activity. The challenge of transforming the energy system, and its supporting regulatory and policy frameworks, is not going away or getting any easier. But statements from the regulator and the government at LCNI show that it is a challenge that now has their attention to an extent that has, arguably, been lacking in recent years. "Whole energy" thinking is on the rise In 2015 Innovate UK, the UK's innovation agency, launched the Energy Systems Catapult, an innovation accelerator with a remit to enable "multi-vector" and integrated thinking about energy systems. It was a topic that, just a year ago, many considered interesting, but still in the realms of theory and far from the market. But speakers at LCNI this year showed that the need for whole system thinking is now common in energy innovation project outputs. In some cases, debates revealed an appetite to push beyond traditional energy vectors in an e ort to improve the eŽ ciency of energy transfer. Opportunities for exploiting the "energy-water nexus" as well as crossovers with the waste and transport sector were also mooted. In spite of this increased interest, though, few network innovation schemes actively explore multi-vector energy opportunities. Some say this is because the structure of the Low Carbon Networks Fund (the forerunner of the NIA and NIC) made it diŽ cult to get such projects o the ground by blocking the transfer of customer value between networks. Such barriers seem to have been lowered, however, and this year Western Power Distribution launched Hydrogen, Heat, Fleet: an ambitious multi-vector energy project focused on uncovering synergies between a low carbon gas network, power and transport. Another project at National Grid Gas Transmission has found that enormous system eŽ ciencies can be made by linking up the production of Bio-SNG with black bin waste streams. Gas networks are embracing their role in a diverse future for heat Gas networks are arguably the leaders when it comes to calls for whole system thinking about energy – and it's no surprise when you consider the struggle they have had in the past decade to maintain a place in low carbon visions of™the future An LCNI session on the future of gas in the UK made it clear, however, that there is now a signiš cant body of evidence that shows why gas must continue to play a role, particularly in the delivery of heat and, to a lesser extent, in powering transport if hydrogen networks are implemented on a large scale. Reports from bodies including Policy Exchange, the Energy and Utilities Alliance, Imperial College London, KPMG and ENA have all come to this conclusion and show that an energy system including a modernised gas grid o ers the most a ordable and least disruptive route to decarbonisation. However, all of these reports also warn that there is no silver bullet to decarbonising heat. Gas networks should play a role, but so too should district heating, the much maligned electric heat pump and a range of other technologies including hybrid and gas-powered heat pumps and microCHP boilers. The BEIS consultation on critical issues for energy networks was initially expected by industry in April, but at the time of the LCNI conference was running six months behind schedule. It was the unavoidable elephant in the room during the keynote presentations and opening discussions, as the consultation is expected to provide the solutions to many of the industry's ongoing problems. Now that recent political turmoil is out of the way, Nolan told delegates he is "genuinely hopeful it will be out shortly", while BEIS offi cial David Capper assured LCNI delegates that secretary of state Greg Clark is closely engaged in its "imminent" publication. "He wants to launch it personally," said Capper. Sources have told Network that Clark is keen for the publication to "mean something to real people", which could be the reason for its continued delay. At the time of going to press, industry is still waiting. "The programme has succeeded in encouraging DNOs to innovate and moved the level of innovation from a low base to a moderate base." DERMOT NOLAN, CHIEF EXECUTIVE, OFGEM NETWORK / 19 / NOVEMBER 2016 DELAYED

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