Net zero will only be possible if we realise the full potential of flexibility
By taking action now, flexible technologies will be an enabler of net zero, explains RenewableUK’s Yonna Vitanova
Reaching net zero by 2050 will require a step-change in how we govern and operate the electricity system. As the deployment of renewable generation increases over the coming years, flexible technologies will be vital for the future functioning of the grid.
The past year has been unprecedented in many ways, including periods of extreme volatility in the power market. At the beginning of the year, we saw National Grid accepting bids of £4,000/MWh in the Balancing Market as a result of extreme market tightness during the day. The current high gas prices have highlighted the need to invest in technologies which can store power as part of building a more resilient, renewables-based system which can wean us off fossil fuels. This will bring us closer to achieving the overarching ambitions set out in the government’s Energy White Paper published last autumn, as well the publication of the Smart Systems and Flexibility Plan in the summer. Flexible technologies are vital to meeting the government’s targets, including integrating 40GW of offshore wind by 2030, as well as helping to deliver 5GW of hydrogen and 18GW of interconnector capacity.
I’ve just written a new policy paper which sets out a series of principles and recommendations on how to build a more flexible modern energy system which maximises the benefits of renewables for consumers. We need to ensure that we have rules and regulations which can speed up the transition to a low carbon system, including a fair approach to the way charging for access and use of the network operates, and a framework which encourages consumers to adapt the way they use power in homes and businesses to save money.
It is now more important than ever to ramp up our efforts to enable greater levels of flexibility which will allow the grid to make the most of greater renewable generation on the system, reducing or perhaps avoiding the curtailment of non-synchronous generation. Much of the system flexibility in the past has been provided by fossil fuels. This cannot continue if we are to operate a zero-carbon system by 2025 and meet UK’s target to decarbonise the electricity system by 2035 in which most of the flexibility will be provided by cheap renewable and low carbon sources of energy. The key priority for the government, the regulator and network companies is to design all flexibility markets and services with the aim of making a material contribution to achieving the net zero target, so that zero carbon storage solutions can take over from gas. System services such as frequency response and inertia will actively support the growth of non-synchronous generation such as wind and solar as they continue to expand. The industry is working with National Grid to ensure more renewable generators can enter these markets.
The system benefit of flexible technologies should not be overlooked. For decades, transmission charges have penalised generators for being connected in remote locations, but this is now where many are based as they have the best wind resources. The industry needs greater assurances from Ofgem that any reform to the network charging arrangements will provide a more stable long-term environment which supports growth in the provision of flexibility in areas of network congestion as well in areas of high demand.
Consumers can participate by charging up electric vehicles and feeding power into the grid when needed. The transition towards local energy markets is starting to get underway and increasingly these markets will enable us to decarbonise faster. Microgrids will help to manage local production and consumption better and alleviate constraints on the main grid. By taking action now, flexible technologies will be an enabler of net zero.
Yonna Vitanova is senior policy analyst at clean energy trade association RenewableUK.
