Anchor Asset
The Anchor Asset model facilitates the connection of multiple energy assets to deliver lower carbon and lower cost end service to the end users. Examples include combination of storage and EV charging enabling the charging of public sector fleets. Or solar and storage helping optimise a heat network to be lower carbon. The service becomes more cost effective by utilising upstream trading and flexibility services.
Why is it better for Net Zero?
Investment in assets and infrastructure that delivers low carbon services to locals
What makes it a SLES?
Physical connection of low carbon infrastructure (e.g. heat network with solar and storage)
Main Low Carbon Interventions
Heat, EV Charging, Supported by other vectors (solar, storage, hydrogen)
Key Benefits
Financial
- Revenue opportunities from investing in energy assets.
- Reduce public money (including grants) required for net zero.
- Lower bills for end users.
- Price certainty / protect against future price rises.
Economic
- Increase local employment and skills.
Net Zero
- Faster roll out of low carbon technology.
- Improves access to net zero for local area.
Health and Wellbeing
- Reduce air pollution.
- Better health outcomes and reduced illness.
Considerations
Finance and Investment
- Large capital investment required.
Creating Value
- Reliant on wholesale trading or flexibility and those markets are subject to risk.
Policy and Regulatory
- The future of gas pricing.
- Reliant on market rules outside of SLES remit.
- Vertical integration – current Ofgem rules don’t allow a power network provider to also sell energy services to end users.
Delivery Complexity
- Long lead time on planning and delivery.
- Complex to integrate different.
Where could local authorities fit into Anchor Assets?
Energy Service Provider – local energy service contracts for heat and transport. Need capability to bill and collect from local residents and businesses.
SLES Designer / Operator – owner of the SLES design and making the system run effectively. Complex role so would need partners to support.
Invest in Energy Assets – ownership of major energy assets and infrastructure like heat networks and EV charging.
Customer of heat network – Public sector buildings or social housing are an offtaker from the heat network.
Charge your EV fleet – public sector fleets are a main customer of any EV charging / fuelling.
Procure SLES Operator – delivery of local network is delivered by a 3rd party but procured by Local Authority. Allows SLAs and community obligations to be built into the contract even if no capex invested.
Planning – Heat Networks and EV infrastructure can be encouraged as part of new build planning applications. Heat network zoning likely from 2025.
Recruit for Heat Network or Public Charging Network – Working with private sector local authorities can add credibility and trust to projects. Need high utilisation from local area to encourage investment.
Smart Local Energy Systems
Supporting the creation of Smart Local Energy Systems to attract innovative low carbon businesses, infrastructure, investment and jobs
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