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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.

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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