5 things you need to know about the Ofgem Smart Systems Plan
Ofgem’s Smart Systems Plan is the latest salvo in a number of reports, which all highlight coming changes to UK energy, and attempt to set in place measures to bring us towards a more sustainable energy system.
But what essential changes are earmarked by Ofgem, and how might your businesses be affected?
1. New technologies are coming
Consensus is here, new tech will play a key role in tomorrow’s UK energy. That means understanding what such tech is, what it actually does, whether you can get involved with it, and what the opportunities are is key.
Energy storage is one top tech businesses could get to grips with. Ofgem promises it will play a vital part in the future.
But there are others. Renewable technologies across the board are big news. So are demand response innovations. These will provide and manage more and more UK power, and corporates should look at their portfolios and consider what scope is there for improvement and integration.
2. The flexible UK grid
All this technology is needed for one reason; we are switching to more flexible grid systems. In them, energy can be stored, renewables can provide a greater and greater supply; the simple, fossil based, always-on network is on the way out.
In future, demand and supply will be more intelligently managed. There will be more and more chances for UK firms to alter how and when they use, or supply energy, both to make money and to help the UK grid become better balanced, more resilient and more sustainable.
Smart metering, adaptive energy behaviours; all offer opportunity, but all must be learned and, if necessary, invested in.
3. Energy markets
It makes sense that with all these new technologies, and with a new type of grid system, the market mechanisms that relate to UK energy too must evolve.
So how companies access such markets, and how the overall costs of energy are determined, metered and paid for is changing. This is an essential area for businesses to understand as controlling energy costs is vital.
Again, it makes sense that with such a shifting playing field, energy regulation must change. This might affect licensing and planning for renewables for example, or how connections are controlled and how charging is applied for energy storage.
Ofgem is looking at how to embed the most useful, fairest systems. Every business has to be aware of where the potential lies and the pitfalls to avoid.
5. Cash in hand
Finally, Ofgem notes that a study for the Government estimates the benefits of this new, smarter energy system to be up to £40 billion to 2050.
That’s a huge sum, and reveals why so much work is going into redeveloping our grid for the future. Every business deserves a chunk of that cash; so getting up to speed with the changes is urgent.
How will the Ofgem Smart Systems Plan affect your business? The Energys Group team would love to hear from you and have a conversation.
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