Significant Code Review
In March 2017, the energy regulator Ofgem announced a consultation around holding a review of the way electricity system users such as generators and storage operators are charged for using the grid. This can be seen as Ofgem taking another step forward in leveling the playing field for electricity storage operators.
The Significant Code Review is proposed because the rapid pace of change and innovation – for example, rapid increase in small-scale renewable generation, increasing numbers of electric vehicles, and greater deployment of electricity storage – was not anticipated when the current charging approach was set up.
There are many different charges and fees depending on which part of the electricity system is being used when and by whom. In general, network users are charged for initial connection and then for their continuing use. This is to cover the costs incurred by network operators in maintain their systems, such as replacing cables.
One particular element that Ofgem intends to look at is how these charges affect operators of electricity storage. As ICE pointed out in their Realising the Potential report; because grid-connected storage both imports and exports electricity, they get charged twice whereas a generator which only exports electricity gets charged once.
At first this might seem fair – storage is using the system twice so should be charged twice.
However, one of the charges leveled is to cover the cost of balancing the transmission grid, that is, making sure the supply of electricity matches the demand. As providing this balance is one of the main functions of electricity storage – it can either take or generate electricity as the system requires – it is actually unfair and is holding back greater use of storage.
Why does this matter?
One reason is that an increasing amount of renewables on the system means more intermittency – fluctuations in the amount of power being generated as wind and sunshine varies minute-to-minute.
At present, gas power stations are generally relied on for back-up when there is too little power from renewables and curtailing wind generation when there is too much. This is very inefficient.
A better way, according to ICE, would be to store the excess power generated for times when there isn’t enough. The more storage, the more renewables the system can accommodate and the more efficiently they can run, keeping costs down for consumers. Ofgem’s proposals will hopefully result in removing a barrier to more storage.
This article was originally published here on 28 Mar 2017 by ICE. It was written by Gavin Miller, ICE Policy Manager.
--The Institution of Civil Engineers
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Tackling the lack of knowledge or confidence in heat pumps
The CICV Green Home Festival part of the Edinburgh Fringe.
Home improvements swapped for green energy upgrades
As applications down since and desire to reduce bills up.
Eco apprenticeships continue help grow green workforce
A year after being recognised at the King's coronation.
The Use of Natural Insulation Materials in Retrofit
New paper from STBA with support from SDF.
National Retrofit Hub in partnership with InstallerSHOW.
Permitted development rights for agricultural buildings
The changes coming into effect as of May 21, 2024.
Biodiversity and the built environment digital series
The nature of building, with CIOB and CWP.
A call for prevention and sensitive re-use.
Risks to the long-term effectiveness of the BNG scheme
National Audit Office publish review of Biodiversity Net Gain.
The CIAT principal designer register
Providing assurance and verification of the capability and competence of registered ATs.
Building Safety recommendations and Northern Ireland
The NI roadmap to improving safety in high rise residential.
Specifying rendered external wall insulation for fire safety
How to interrogate the evidence provided to the specifier.
The benefits of writing articles for your organisation
How to create a profile for your organisation and publish for free.
No Falls Week. The importance of safe working at height
What to expect and what is on offer to avoid accidents.
Scottish Government action to reach net-zero targets
Retrofit expert group highlight critical actions needed.
A forward thinking, inclusive global community of members.