Issue link: https://fhpublishing.uberflip.com/i/895363
smart grid is to keep bills down. It is not smart technologies for the sake of it. The idea is that through the market, through the aggregators, through the DSR companies, and through the communities we find a cheaper way of managing the peaks in those locations. Q: That's obviously what Ofgem's focus is, and will be even more so in the next round of RIIO. SG: Yes. RIIO is already support - ing us to deliver smart benefits. Our record of delivering £120 million of savings using smart alternatives in the first two years of RIIO is a testament to this. I hope that RIIO2 will build on and strengthen the existing frame- work to reflect the wider system benefits DSOs can deliver in enabling the emerging smarter, flexible energy system. Q: Are you impressed with the level of innovation in the marketplace, and the poten - tial services that are available to the networks? SG: The response we have had is encouraging. I am really looking forward to providers coming forward with solutions. Of course, there is more we can do. We will continue working over the next year to lower the barriers to participation in ten - ders such as this one and bring as many participants as we can forward – whether it is commu- nities, aggregators or our direct customers. The idea is to keep developing the process. We want to move away from the standard network tendering process and make these transactions part of an online marketplace. We are working on this now – it will come to the fore next year. This work is driven by lowering the barriers for participation, and making information transparent and accessible. Q: An online marketplace would be one of the technolo - gies enabling the smart grid? SG: Yes. That would be one of the key technologies. Q: What are the key chal - lenges posed by development of the smart grid? SG: The smart grid is all about opportunities. It is an enabler for all customers to participate either directly or indirectly through technology and automation in more efficient management of the energy system. One of the key outcomes is to keep their bills down. The smart grid is a series of technical and commercial solutions, but the most important thing to remember is that you are selling a service to customers and trying to meet their needs. If you take a step back and look at what UK Power Networks does, we keep the lights on, and we aim to offer the most reliable, safe electricity service we can to our customers. In a world in which technology is changing very rapidly and where distributed generation is now more common, we need a series of tools that al - low you to exploit that opportu- nity. Between 2010 – 2015 we saw a solar boom. In July 2015, we had the first application for con- nection of battery storage. Since then, we have had over 1,000 formal enquiries (over 18GW of capacity) for connection of stor- age. And we see electric vehicles at the forefront of everyone's mind. In addition to all of this we have the introduction of domestic batteries in the home, and the smart meter roll-out. There is a NETWORK / 23 / NOVEMBER 2017