IEEE Power & Energy Magazine - September/October 2016 - 23

Two areas were identified where changes are already happening and there is a need for further actions:
✔ Established actors such as DNOs and industrial/commercial consumers now have greater opportunities to
participate in flexibility and therefore will need to transition to new roles to make the most of these opportunities.
✔ Nontraditional business models, such as aggregators
or storage providers, are likely to play a larger role in
the energy sector.
To address the above, Ofgem has started carrying out the
following work:
✔ Engage with DNOs and other stakeholders in clarifying the future role of DNOs, including the transition
to DSO roles, and the nature of DSO interactions with
the system operator (SO).
✔ Remove any barriers to DNOs transitioning to DSO
functions.
✔ Consider what steps are needed to effect the transition.

✔ Explore how to support more large industrial and com-

mercial consumers to participate in providing flexibility, including in wholesale markets and smart grids.
✔ Engage with stakeholders to raise awareness of the
opportunities and understand the concerns and needs
of industrial and commercial customers.
✔ Explore in greater detail the role of aggregators in providing flexibility and clarify their role in the market
and the relationship with other industry participants.
✔ Clarify the legal and commercial status of storage and
explore whether changes to the prevailing regulatory
and commercial framework are needed to enable its efficient use, seeking input on options from stakeholders.
✔ Consider the interactions and implications of a new regulatory framework for storage on all segments of the market, including interactions with energy efficiency policies.
The U.K. regulatory scene makes it clear that significant efforts are required to ensure the adequate transition

Local Balancing
Consumers could provide flexibility to their local communities. Energy from
small-scale, renewable generation could be used locally to reduce the
need to transport it on the networks when they are full. DSR or local
storage could help communities make the most of the energy they generate
as well as supporting local network management.

Individual Providers
Can Change How Much
They Demand or Supply
in Response to Changing
Prices or Direct Signals
from Flexibility Users
Such as Suppliers or the
System Operator
Conventional
Thermal
Generation
Transmission
Network

Distribution Network

Renewable
Generators
Key

Commercial
Customers

Domestic
Industrial
Customers Customers
(with Solar PV)
Third-Party Aggregation

Solar
Wind
Power Generator

Energy
Storage

Smart
Meter

Consumers, generators, and storage can provide flexibility through an
intermediary, combining their outputs to meet the requirements of those
purchasing flexibility anywhere on the system.

figure 6. The Ofgem vision of flexibility in the future electricity system.
september/october 2016

ieee power & energy magazine

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Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - September/October 2016

IEEE Power & Energy Magazine - September/October 2016 - Cover1
IEEE Power & Energy Magazine - September/October 2016 - Cover2
IEEE Power & Energy Magazine - September/October 2016 - 1
IEEE Power & Energy Magazine - September/October 2016 - 2
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IEEE Power & Energy Magazine - September/October 2016 - Cover3
IEEE Power & Energy Magazine - September/October 2016 - Cover4
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