Ofgem’s ED3 rulebook for assessing investment plans and controlling costs for Britain’s regional and local electricity distribution grid into the 2030s reinforces a flexibility-first approach to managing rising demand, which engineered energy and temperature solutions specialist Aggreko says strengthens the case for temporary on-site power solutions alongside longer-term network upgrades.
Published on 21 May, the “challenging but fair” rulebook’s sector-specific methodology decision (SSMD) sets out several principles for how networks should keep pace with surging electricity demand between 2028 and 2033 under the next electricity distribution price control.[1]
It balances the need for urgent investment with stringent requirements on efficiency, accountability and value for money for customers.
A key change is Ofgem’s ‘build and flex’ approach, under which networks are expected to maximise existing capacity through flexible demand management and related technologies, such as demand-side response and battery storage, before a new build is approved where the need is clear and sustained.
Aggreko has backed the need for a ‘flexibility-first’ approach, claiming that well-documented connection delays have left the industry in need of immediate bridging measures to avoid curtailment and downtime.
Alan Dunne, managing director at Aggreko UK & Ireland, said, “As rapid electrification and renewable energy expansion cause demand for permanent connections to surge, grid reinforcement alone will not solve the UK’s – and Europe’s – bottleneck. A growing number of projects are experiencing multi-year delays, leaving businesses without the power they need today.
“Hybrid systems that combine battery storage, low-emission gas generation and on-site renewables, such as solar, can be mobilised much quicker, helping to prevent delays and strengthen energy strategies so that decarbonisation progress doesn’t come at the expense of resilience.”
Ofgem claims the five-year period is a “critical stage for the unprecedented grid investment” required to grow the existing 800,000 km of networks which connect 30 million customers.
Aggreko’s latest white paper, Breaking the Gridlock, reinforces the forthcoming policy shift, highlighting that transmission and distribution network operators are working closer as a decentralised, renewable-style grid operation becomes the norm.
It argues that as grid planning becomes more dynamic, temporary and on-site power should not be viewed as a contingency measure but as a central pillar to keeping operations on track as the grid evolves.
