Ofgem has pushed ahead with plans to increase the flexibility of the UK’s energy market as it becomes more reliant on intermittent sources of energy, like wind and solar.
In a statement this morning, the energy regulator launched a consultation on a proposed Flexibility Market Asset Registration (FMAR), which would provide a single point of registration for flexible assets like EVs and heat pumps.
Currently, Flexibility Service Providers must sign up multiple times for individual markets. Moving to a centralised system would eliminate a lot of complexity, Ofgem said.
The FMAR should also help maximise participation in flexible markets, benefiting consumers in the long run by cutting bills.
Separately, Ofgem confirmed that Elexon will be a ‘market facilitator’ for local energy flexibility, helping to enable flexible energy use across the entire electricity distribution network.
Elexon is the code administrator and central systems delivery body for the Balancing and Settlement Code. It will act as a single expert entity and play an important part in addressing the current issues with local flexibility markets.
Enabling more flexible electricity usage is a crucial part of ensuring that the UK can get to clean power by 2030. Electricity usage is expected to rise by around 50 per cent over the next ten years as the number of EVs and heat pumps rises.
Flexible power can help meet increased demand while managing less predictable supplies from renewable sources. It has been estimated that it could save between £30-70bn on system costs between 2020-2050.
Ofgem Director Eleanor Warburton said: “To successfully operate the developing low carbon energy system of the future we need more flexible tools to make the best use of our intermittent wind and solar potential along with network and consumer assets to meet demand.”
“As market facilitator Elexon will be able to coordinate and align local and national energy markets to unlock the full value of flexibility. Meanwhile asset registration will create a streamlined one-stop sign-up point, which will help maximise consumer participation in flexible consumption,” Warbuton added.
ADVERTISEMENT
By CityAM
More Top Reads From Oilprice.com:
- Major Automakers Returning to Gasoline Cars as EV Demand Slows
- Oil Prices Climb Following Saturday's Rocket Attack on the Golan Heights
- Ukraine Targets Russian Energy Infrastructure in Retaliatory Drone Strikes
