In order to decarbonise the power system by 2035, support energy independence and achieve net zero at the least cost by 2050, we need to transition to a smart and flexible electricity system. This transition will reduce costs by up to £10 billion per year by 2050. Mass uptake of demand side response (DSR) will be key to delivering this potential, but action is needed to enable DSR to grow.

This consultation by the Department for Business, Energy & Industrial Strategy (BEIS) sets out proposals to ensure consumers and the electricity system are protected, and to develop a competitive market for energy smart appliances and DSR. Specifically it proposes to:

• Require all organisations capable of remotely controlling large electrical loads (greater than 300MW in aggregate) to comply with the Network and Information System Regulations, using the Cyber Assessment Framework
• Require energy suppliers to make time-of-use-tariff data openly available in a common format, accessible over the internet
• Ensure that larger domestic-scale energy smart appliances (ESAs), including electric vehicle (EV) charge points, batteries, and heating appliances (such as heat pumps) are interoperable with demand side response service providers, using ESA standards
• Require smart heating appliances and batteries to meet cyber security and grid stability requirements, similar to those already in train for EV charge points
• Require electric heating appliances with the greatest flexibility potential (namely heat pumps, storage heaters and heat batteries) to have smart functionality
• Establish a proportionate and flexible licensing framework for organisations providing demand side response to domestic and small non-domestic consumers.

The consultation also sets out proposals to develop comprehensive governance arrangements between government, regulators, and industry to support implementation of these proposals, and seeks views on ongoing work by government to establish system-level cyber security requirements for energy smart appliances.

It is open to anyone to respond, but will be of interest primarily to:

• Energy and technology companies
• Energy smart appliance manufacturers
• Consumer and environmental groups
• Innovators, and third party intermediaries in energy and / or other sectors.

Key points

Energy Systems Catapult welcomes the consultation and looks forward to working with BIES and other stakeholders to bring this work to fruition.

Demand side response presents significant potential opportunity for consumers and the grid alike and work in this space is an important step. The ideas brought forward in the consultation we view to be broadly positive and have provided detailed answers where we feel we can contribute to the questions set out by BEIS at this time.