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Innovative new technologies will be key in the transition to a Net Zero electricity system. Active Network Management (ANM) systems and associated flexible connection agreements are one such innovation, aimed at enabling better management of constraints at distribution level. Such systems, managed by Distribution Network Operators (DNOs), often seek to enable more connections onto the system in exchange for some form of automated curtailment to manage constraint issues.
This insight paper presents some of the benefits and risks that have been highlighted by stakeholders of current ANM deployment approaches by different DNOs.
These ANM systems have:
ANM development is not prescribed by regulation. It is a DNO-led innovation for which the DNOs have freedom of development and operation (provided they do not breach their licence conditions).
As such, different DNOs have taken different approaches to ANM development, with reported issues emerging:
A Smart Local Energy System (SLES) is a way to bring together different energy assets in a local area and make them operate in a smarter way. They could be connected physically (e.g. a solar farm powering a housing development) or digitally (e.g. a virtual energy marketplace). They will help a local area decarbonise more quickly and cost effectively, and can deliver wider social and economic value for communities.
Find out moreThis has emerged as a topic of high relevance to innovators developing Smart Local Energy Systems (SLES). This insight paper also explores what future trajectories might look like given current developments and ongoing reforms being led by the Energy Networks Association (ENA) Open Networks programme, and in particular Ofgem’s Access and Forward-Looking Charges (SCR) review.
The aim is to inform what ANM, and the connection agreements that accompany them, could mean for SLES propositions in terms of accessibility for alternative flexible solutions and their replicability across different DNO areas. This insight paper raises important questions that policy makers need to consider around how market-based solutions and backstop network actions can be efficiently combined to manage periods of excess generation. This is important for unlocking flexibility at local levels, particularly on the demand side.
Active Network Management (ANM): Opportunities and risks for Smart Local Energy Systems
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The Markets, Policy and Regulation team is our centre of excellence for energy policy and regulatory knowledge. Offering independent and technology-agnostic evidence, analysis and thought leadership to tackle the hardest problems on the way to Net Zero.
Find out moreFind out more about how Energy Systems Catapult can help you and your teams
Find out more about how Energy Systems Catapult can help you and your teams