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Network April 2018

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Power Potential is a joint project between National Grid and UK Power Networks. This new initiative aims to create a new reactive power market for distributed energy resources and release additional capacity on the distribution network, allowing more renewable energy to connect. Power Potential is a world first project and could save energy consumers over £400m as well as generating up to an additional 4 GW in the South East region of the UK by 2050. A regional power market will facilitate coordination between the Great Britain (GB) System Operator, distribution network operators (DNOs) and distributed energy resources (DER) connected to the distribution network. The market will be enabled by a Distributed Energy Resource Management System (DERMS) operated by UK Power Networks. It will allow energy resources on the distribution network to offer their services to National Grid as System Operator, without violating any distribution constraints. Improving communication, coordination and developing new commercial frameworks will maximise network capacity by better managing system constraints, giving the GB System Operator access to previously unexploited power and generating new revenue streams for renewable energy resources. Power Potential is funded by Ofgem's Network Innovation Competition. System build and customer recruitment is now underway, with trials planned for 2019. www.nationalgrid.com/powerpotential Box.powerpotential1@nationalgrid.com The Power Potential Project Working together to create new market opportunities for our customers.

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