BEAMA responds to the BEIS/Ofgem Call for Evidence for the development of a Smart, Flexible Energy System
BEAMA has pledged full support for the review of the market frameworks and associated policy for a smart flexible energy systems, stating that the consultation is a good step in the right direction to establishing a value proposition for all parties involved in delivering the market for flexibility, including the end consumer.
In the launch for the call for evidence, Greg Clark affirmed the need to maximise the ability of consumers to play an active role in managing their energy needs.
Commenting on BEAMA’s response, Dr Howard Porter (BEAMA CEO) said ‘BEAMA members are already delivering solutions into the market that will empower consumers to manage their energy better and more efficiently. The innovation I have witnessed in our sector over the past few years has been unprecedented and I have no doubt we are entering into a period of significant change for the whole energy market. Innovation spend over the past 5 years has ensured market momentum for smart devices and technologies, and arguably positioned the UK as leading the European and international agenda. However, we need to exploit this momentum with robust export policy support as well as collaboration and support for standardisation work. This will lead to the development of integrated energy systems, and establish the unique UK IP formed off the back of innovation trials into international standards, thus expanding export potential for UK companies. This is a huge growth area and the BEAMA board fully endorses the support from BEIS and Ofgem to get to grips with this agenda and involve industry in developing a market led approach’.
BEAMA has developed a comprehensive response to the call for evidence and has flagged a number of key areas that need further consultation with industry to fully evaluate the best way forward. These include the regulatory approach for grid connected storage and policy for smart appliances, and BEAMA has made a series of recommendations for this in its response, calling for:
- A known market framework for domestic Demand Side Response (DSR) by 2020
- A clearly quantified value proposition for each level of the flexibility market from generator to customers
- A market that remains open to new entrants to offer a range of service propositions to consumers
- Targeted regulation, including required reforms in new build policy
- A whole buildings approach to evaluating flexibility
- An EU wide collaboration approach - the UK should not be isolationist, especially because of emerging new EU relationships underpinned by the recent EU Clean Energy package which touches on many related topics raised in the call for evidence.
- Mapping of the timeline for delivering specific solutions and broader industry transitions i.e. the move to Distribution System Operators (DSOs)
- A focus on developing regional market mechanisms - BEAMA has provided an additional report within its response entitled ‘Galvanising the supply chain’ for smart flexible energy systems.
- Promotion of storage - nothing should be written into Network regulation or primary legislation that will prohibit future business cases, technology applications and the full range of scaled storage applications including LV and building energy storage. Any definition of storage needs to account for vector substitution.
- A level playing field for the full range of players in the market, furthermore operators of storage and aggregators need to be able to better stack the services they can bid into.
- A mechanism that enables all stakeholders to determine together what additional processes can sit alongside 30 minute settlements in the wholesale market to support energy flexibility.
- Recognising not all appliances can provide all functions of flexibility. We need to define the smart elements of flexibility in order to classify appliances. This would be the basis for any market led label for smart appliances - as defined by their ability to deliver flexibility services.