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Network June 2017

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NETWORK / 10 / JUNE 2017 A major new industry initiative being led by Energy Networks Association (ENA) will set out how the changing roles and responsibilities of network companies can deliver the greatest bene t to energy customers in the UK. Last year ENA and its members committed to a new long-term project that will help to deliver a smart, • exible, integrated energy system. The TSO-DSO project was launched in line with the BEIS/Ofgem smart power call for evidence and will bring together the parties fundamentally responsible for our energy future: the UK's energy network operators, government departments, Ofgem, NGOs, academics and other key stakeholders. With a collaborative approach and commitment at the highest level, it will help deliver the smart grid in our country in a way that meets the economic, sustainability and energy security requirements of customers. Network companies are adapting their operations to ensure aŒ ordable, reliable energy in an increasingly decentralised system. The networks have already connected 28GW of generation to the distribution networks, allowing a rapid increase in intermittent renewable energy, which has presented challenges in parts of the country where renewable penetration has been highest. Our approach towards innovation and funding support has enabled network companies to trial smart network projects and transfer innovative solutions into business as usual. This has provided a level of technical S H A P I N G T H E S M A RT E N E R GY F U T U R E T O D AY understanding that puts the UK in a strong position to develop our energy future, as well as delivering almost £1 billion of savings in electricity distribution. The challenge now is to scale up active management of the network and progress towards a distribution system operator (DSO) role, with distribution networks carrying out some of the system operator functions traditionally seen at the transmission level. This change will let network operators optimise the use of their infrastructure alongside the use of distributed energy sources. It will promote competition in markets, give households and businesses greater control over their electricity, and ensure the cost of operating and maintaining the energy networks is kept down All of these things have an important role to play in ensuring that the UK has access to the kind of energy and services that will help underpin economic growth, attract investment and deliver long-term economic bene ts. The TSO-DSO project is the key forum for delivering these changes. The four work streams are: de ning the DSO transition; exploring the challenges at the interface between transmission and distribution networks as roles and responsibilities evolve; reviewing the charging requirements of enduring transmission and distribution systems; and considering the customer experience as we move to a more • exible energy system. The rst phase of the work will take place this year and involves a complete review of the parts of the electricity system that need to change, proposing solutions by the end of the year. Network companies are taking a blank sheet approach, not designing around speci c technologies or existing processes, but to advance the public interest. The DSO role will be that of a neutral market facilitator to allow • exibility services such as demand-side response to connect to the network and provide services to whoever requires them. Another key task will be to identify how improvements to processes for connections and service provision can be taken forward and how the system can adapt to re• ect changes to the diversity of customer behaviour. The aim is to ensure that customers retain the same high level of service and performance from their networks that they enjoy today, but also to make sure the network can act as a platform for new technologies and economic opportunities. Greater access to • exibility services for networks will enable the networks to save money in investment and operational processes. We are entering a crucial period in the development of our energy future as we shape the practical delivery of a system to unlock the potential of new technologies and oŒ er the greatest bene ts to customers. The government and Ofgem have identi ed industry as best placed to pick up the development work to deliver this transition. Through the TSO-DSO project and work across both electricity and gas networks to deliver a whole system approach, ENA and its members have demonstrated that we are responding to the challenge and leading the way, overcoming barriers to • exibility and shaping an exciting future. "The challenge now is to scale up active management of the network and progress towards a distribution system operator role." DAVID SMITH CHIEF EXECUTIVE ENERGY NET WORKS ASSOCIATION w

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