Publication of BEIS & Ofgem Smarty Systems and Flexibility Plan

24 July 2017

BEIS & Ofgem has published the long-awaited report on Smart Systems and Flexibility Plan.  Electricity storage, with a strong focus on electric mobility, is at the centre of the government plan with a quarter of a billion pounds investment promised.

Below are listed the clear decisions and actions:

  • The Government will use primary legislation to explicitly define electricity storage as a distinct subset of generation.
  • The financial treatment of, charges and benefits for storage are being addressed by Ofgem.
  • Each Home Counts work is considering how to incorporate domestic electricity storage within its Quality Mark, Standards Framework and Information Hub.
  • Ofgem will look at the ownership of storage by DNOs from a viewpoint of compliance with EU law.
  • The Government has announced an investment of £246m for the Faraday Challenge, which is focusing on the design and manufacture of better batteries for electric vehicles.
  • Ofgem will decide on the case for mandatory half-hourly settlement (HHS) for all consumers in line with its revised plan, alongside the launch of a Significant Code Review.
  • Smart tariffs – nothing more at present
  • The Government intends to consult on seeking powers to set standards for smart appliances.
  • The Automated and Electric Vehicles Bill, announced in the Queen’s Speech, will include provisions to make regulations for smart electric vehicle charging infrastructure.
  • For cybersecurity work is being undertaken by the Government to review the risks highlighted in the reports it has commissioned and learn from approaches taken in other countries to ensure risks are addressed through appropriate levers.
  • Launch of a £7.5m non-domestic DSR innovation competition in January 2017 and a domestic DSR competition planned for launch in Autumn 2017.
  • The Government will simplify metering requirements for those offering DSR, enable asset reallocation by DSR providers, and allow the stacking of revenues between the Capacity Market and ancillary services.
  • Look at making pricing for network access reflect system constraints in a more dynamic way.  Ofgem will publish a working paper in the autumn and work with industry on developing the options. Ofgem has also launched a Targeted Charging Review.
  • Engineering recommendation P2/6 to be pushed forward.

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