Energy storage is to be reclassified within the Electricity Act to address issues including double charging. The move is among a raft of government proposals designed to facilitate the shift towards a smart energy system, or smart grid.
As part of those plans, distribution network operators (DNOs) will not be allowed to own storage, as government and regulator feel that would distort market outcomes. Meanwhile, the department for business, energy and industrial strategy (Beis) said it will also set out how storage can be collocated with renewable generation without jeopardising existing subsidies for such plant.
Beis said it will also commission a feasibility study to look at local flexibility markets and how these might work. Potentially, in some cases, without DNOs needing to be involved in providing price signals.
The paper also suggests mandatory half hourly metering and settlement down to household level is on the cards, although the timing on that decision has been pushed back. Such a move would fire the starting pistol for domestic demand-side response markets and Beis plans to launch a domestic DSR competition in Autumn 2017.
To open up the domestic market will require responsive household goods. Beis said it would drive industry to collaborate with the EU and US on standards and interoperability for smart devices, as well as setting standards for electric vehicle charge points.
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