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Network June 2018

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NETWORK / 30 / JUNE 2018 O ne of the biggest changes in the energy system is the ex- ibility revolution. Distributed generation, electric vehicles, demand side response and energy storage are transform- ing the sector, giving customers access to new products and services from a new range of providers. To facilitate the shi to a smarter, exible energy system, SSEN is transitioning from a distribution network operator (DNO) to a distribution system operator (DSO). The transition to a DSO will create the potential for new opportunities for energy users through peer-to-peer and exibility trading, creating new markets where supply and demand can be balanced and traded at a local level. SSEN's collaboration with Open Utility will see it trial Open Utility's new 'Piclo' platform, which will provide key learnings to help inform SSEN's ongoing research. Scottish and Southern Electricity Networks (SSEN) has entered into a partnership with leading software company, Open Utility, to learn from and participate in its revolutionary smart grid platform. Alec Peachey speaks to Steve Atkins (DSO transition Manager for SSEN) and James Johnston (CEO and cofounder of Open Utility) to fi nd out more. Piclo helps DSOs procure exible capac- ity from technologies such as batteries and demand-response aggregators to meet the needs of local electricity users. It is a matchmaking and trading platform for local energy which provides opportunities for customers, generators and other exibility providers to register their availability and preferences, which the Piclo platform then matches with opportunities from the DSO. Johnston explains why the provision of exibility services on electricity distribution networks is so important. "There are a number of important emerg- ing use cases for DNO exibility services," he commented. "Firstly, deferral of network reinforce- ment in areas of uncertain demand growth. There are con icting trends of demand increase (from electric vehicles and electric heat) and demand reduction (renewables and energy eˆ ciency) which means the value proposition of investing in assets be- comes less clear and increases the risk that customers lose out through unnecessary reinforcement costs. "Secondly, the DNOs want more tools at their disposal to manage outages (both planned and unplanned). Being able to manage demand in speciŠ c locations of the network at short notice could limit the potential domino e‹ ect of blackouts in abnormal conditions." Atkins agrees with this view, adding: "Historically, DNOs have resorted to the installation of additional assets (reinforce- ment) to provide additional network capacity or solve power quality and fault issues. These solutions (paid for by customers through their bills) can be expensive, disruptive, and have the risk of becoming a stranded asset if generation and demand forecasts prove to be inaccurate. We are keen to explore the utilisa- tion of exible distributed energy resources that can be contracted to provide a lower cost solution to reinforcement." ENERGY SYSTEMS Providing a platform

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