Virtual Network Manager
The creation of a virtual balancing system that optimises local generation and demand. Most commonly used in constrained areas to enable new connections, or an area where curtailment is impacting generators. Energy assets are deployed behind the meter at low cost to the user. By aggregating assets to provide flexibility, any revenue generated or savings made are used to offset the technology costs. An energy service contract or licence arrangement would need to be in place with users.
Why is it better for Net Zero?
Service Provider helps virtually manage local constraints that allows faster roll out of low carbon technology
What makes it a SLES?
Platform that virtually manages network at an agreed grid supply point
Main Low Carbon Interventions
Solar, Storage, EV Charging and Heat.
Key Benefits
Financial
- Lower bills for end users.
- Improved businesses case for local asset owners.
- Reduce public spending required to meet net zero.
Economic
- Reducing constraints enables local economic growth.
Net Zero
- Accelerates roll out of low carbon technology.
System Resilience
- Reduce need for network reinforcement.
- More diversity and flexibility in network.
Equity and Social
- Funded projects can be targeted at vulnerable / fuel poor.
Considerations
Community Interests
- Making sure local interests are protected and virtual network is not just focused on revenue generation
- Handling data of participants on the virtual network ethically and safely
Policy and Regulatory
- Need to understand relationship with regional and national system operators.
- Longer term energy contracts required to roll out low carbon technology.
Creating Value
- Virtual network needs to be funded either through increased value for Local Authority or Local Network Operator.
- Revenue of virtual network is subject to merchant price risk.
Where could local authorities fit into Virtual Network Managers?
Be a Local Energy Service Company – joint venture with private investment to create a Local Energy Service Company.
Invest in the virtual network manager – working with partners to improve local balancing and constraints.
Decarbonise Buildings – benefit from renewable assets installed for free on public buildings.
Procure a Local Service Provider – bring in a private sector service provider to provide energy services into the local area.
Promote offer – add credibility and trust to service provider looking to roll out energy assets in the local area.
Co-ordinate Local Stakeholders – bring together key stakeholders to ensure maximum benefit from the solution (e.g. networks, housing, business, community).
Planning and Consent – reduce legal or planning restrictions for licensing energy assets on buildings.
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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Find out more about how Energy Systems Catapult can help you and your teams