Issue link: https://fhpublishing.uberflip.com/i/895363
NETWORK / 8 / NOVEMBER 2017 O fgem's justification of the move to block DNOs from owning and operating stor- age was that it sees network operators increasingly in the role of buyers of flexibility services, and as such, does not want them to operate their own storage. It believes that as DNOs transition to becoming distribution system operators (DSOs), their impartial - ity must be guaranteed, and that this will not be possible if they have an interest in a particular option. Trade body the Energy Networks Associa- tion (ENA) says it agrees with the govern- ment that networks should not participate in markets with storage. However, since DNOs are going to have increasing amounts of storage on their networks, it foresees that they will move to procure services to oper - ate this from third parties. DNOS AND ENERGY STORAGE This summer's decision by Ofgem and the government to block DNOs from owning and operating storage was seen by some as a blow. Network looks at how they are finding ways to adapt and use existing assets to identify future business opportunities. A growing number of companies such as AEF and Gravitricity can provide storage to DNOs, according to Randolph Brazier, head of innovation and development at the ENA. These companies are investigating all types of battery technology, including using liquid salt or hydrogen, he says. "If a market is created for flexibility ser - vices, these are the sorts of companies that we would expect to help us out," he says. Procuring storage services from third- parties is already happening on a small- scale, according to Brazier. For example, UK Power Networks (UKPN), the DNO for the South, South East and East of England, has tendered for up to 35.4MW of flexibility ser- vices in the south of England, rather than use the traditional approach of upgrading or reinforcing the network in a particular area. "Procurement of third party storage services is not happening as standard yet as it's still early days, but we very much see it as being standard methodology across networks," he says. One DNO that is expecting to buy in storage services is Western Power Distribu - tion (WPD), which covers the Midlands, the South West and Wales. "Market based storage operators are starting to emerge from whom we will be able to procure grid support services," says Roger Hey, WPD's future networks manager. WPD always anticipated that it would not own or operate energy storage on the distribution network other than in very exceptional cases, he says. The DNO says that it has not bought, nor does it own any battery storage. However, the DNO believes that its customers will connect storage on their own properties to help them become more self- Adapting to the new reality