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Network June 2018

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NETWORK / 8 / JUNE 2018 B y 2035 we envis- age a very differ- ent world. We can expect a much more diverse range of heating sources, with significantly lower emissions, and where all new vehicles are low carbon. The energy system of the future will be more decentralised, disaggre - gated and multi-vector, where for each of our needs there will not be just one solution, but many. Creating a balanced energy system In electricity, a number of renewable and low carbon tech- nologies will emerge (nuclear, wind, solar, energy from waste, etc) with some gas for flexibility and peaking remaining. The transport sector will see all new vehicles being low carbon and electric vehicles will offer both a problem and a solution for the system. In heat, the dominance of natural gas will lessen, with some biogas and hydrogen emerging as solutions using a re-purposed network, alongside an increase in district heating and heat pumps. No technology solutions will hold 80 per cent of the market, as natural gas does today. This will make flexibility (in system architecture, system operation and the regulatory framework) essential to achieving the UK government's three objectives of decarbonisation, security and affordability. Achieving this vision will not be easy. The industry is clear that achieving the same success in heat and transport as power generation FUTURE OF ENERGY will require strong leadership from government, a stable pol- icy framework and for system planners and regulators to take a whole systems approach. Becoming our own energy producers We will see a smart meter in every home and business in the next few years which will open up new opportunities to manage the energy system in a smarter, more efficient way - helping keep energy bills down. It will allow households and busi- nesses to play a more active role in their energy management. Combined with half hourly set- tlement, distributed energy and the uptake of electric vehicles – this could revolutionise how energy is produced and used. Essentially the UK will become a nation of energy producers. A host of new technologies paired with the digital revolution will open up opportunities to deploy demand-side response tools and batteries in commercial and residential property – this will shi' the load profile of demand and generation. City wide infrastructure Industrial parks, universities, airports and new towns will develop microgrids to manage their load on the distribution grid. However, this can only be achieved in today's policy framework through the emer- gence of new mechanisms and innovation initiatives, such as How will energy look in 2035? Arup recently unveiled a study that details what the landscape of the UK's energy systems will look like in 2035. In this article, Filippo Gaddo - head of energy economics – makes some predictions for the future. special deregulated enterprise zones for large scale commer- cial trials and by a review of network charging as part of the RIIO2 price control period. The current work around SCR and Charging Future Forum as well as the Energy Revolution chal - lenge as part of the Industrial Strategy are steps in the right direction. A clear vision from government is also required, including a possible revision of where decision-making powers around local energy solutions sit. Funding the future The National Infrastructure Commission estimates the energy sector will require more than £240 billion of investment

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