Strategy

What are we aiming to achieve?

A holistic, integrated view across all energy vectors and sectors that supports efficient and effective system planning, development and operation.

What is informing our approach?

The ongoing conversation around the decarbonisation of heat and transport, combined with electricity systems’ increased reliance on gas for flexibility (particularly on the distribution networks), present us with a crucial opportunity to consider the energy system as a whole, across multiple vectors (i.e. electricity and the multiple gas types) and the sectors this supports (e.g. heat, power, transport, industry).

What are some of the opportunities for innovation?

• The ongoing conversation around the decarbonisation of heat and transport, combined with electricity systems’ increased reliance on gas for flexibility (particularly on the distribution networks), present us with a crucial opportunity to consider the energy system as a whole, across multiple vectors (i.e. electricity and the multiple gas types) and the sectors this supports (e.g. heat, power, transport, industry).

What are we aiming to achieve?

Efficient digital processes established across GB energy system; the power of Big Data and associated technologies fully leveraged; new insights created and shared; and new services developed and accessed.

What is informing our approach?

Rapid digitalisation and decentralisation of the energy sector comes with many challenges:

• On the electricity system, there is a huge increase in the data available through the proliferation of market players. New decentralised assets are often inherently unpredictable, so being able to harness this data is extremely important. Legacy systems and processes struggle to cope with the rapid increase in participants, emerging Internet of Things (IOT) data and technological advancements.
• As the electricity networks become more reliant on data and aging ICT, the risk of cyber-attacks becomes greater.
• The ESO is also increasingly a custodian of data on the electricity networks. We have a responsibility to ensure this is collected, analysed and shared with consumers in a transparent, responsible way, allowing everyone to extract the most value.

What are some of the opportunities for innovation?

• Address the recommendations of the Energy Data Taskforce

• Work with distribution network colleagues to facilitate more open data across the whole electricity system
• Explore technology platforms to effectively store, use and exchange much higher volumes of data and services, such as portals and cloud computing

What are we aiming to achieve?

Competition everywhere, with greater market participation on the supply and demand-side, including all participant types and sizes.

What is informing our approach?

As we transform to a zero-carbon electricity system, it is increasingly important to explore markets for new services that can meet changing system needs, as well as markets for new products. It is also critical that we facilitate a level playing field for all participants, both traditional and emerging to further promote competition.

What are some of the opportunities for innovation?

• Continue to level the playing field for non-traditional participants, increase participation and competition in existing markets and develop new, whole electricity system markets
• Accelerate ways to move to day-ahead procurement of response and reserve

What are we aiming to achieve?

Sophisticated and accurate energy forecasting in both operational and planning timescales.

What is informing our approach?

This considers both, short as well as long term forecasting. Lack of visibility of intermittent embedded generation on electricity networks, combined with more complex usage patterns, makes short-term forecasting of electricity supply and demand increasingly difficult. Long-term supply and demand forecasting are becoming harder to carry out as new technologies and global market forces emerge. These could lead to dramatically different end-user behaviours. 

What are some of the opportunities for innovation?

• Improve visibility and granularity of embedded wind and solar data to better forecast their output and impact on the wider system
• Drive an open innovation approach to forecasting distributed energy resources through cloud-based platform
• Improve understanding of changes in energy demand, such as from increased uptake of EVs or electric heating

What are we aiming to achieve?

Efficient and effective planning and operation across transmission and distribution.

What is informing our approach?

New decentralised energy resources are connecting to distribution networks, turning them into active networks and transforming the role of Distribution Network Operators. Many of these new resources can provide valuable services to us, increasing competition in our markets as well as to those of emerging Distribution System Operators (DSOs). In addition, smart technologies mean many consumers won’t just passively use power – they can become active players of the system too.

What are some of the opportunities for innovation?

• Achieve greater visibility for all network and system operators across transmission and distribution
• Work with DNO colleagues to understand the impact of a rapidly changing distribution network on the whole electricity system
• Address how new markets to provide distribution network flexibility can work efficiently alongside transmission level markets .
• Test new roles and rules for market players in whole electricity system markets

What are we aiming to achieve?

Optimised management of networks across transmission and distribution with minimal curtailment of renewable generation and at minimum overall cost to consumers.

What is informing our approach?

Understanding the risk of constraints occurring and managing these effectively is becoming increasingly difficult due to more uncertainties in supply and demand patterns. If constraints can’t be avoided or managed in the most efficient way, costs for consumers can increase dramatically.

What are some of the opportunities for innovation?

• Explore and test new ways of managing constraints across transmission and distribution
• Explore sophisticated new tools and techniques for forecasting constraints of all types and in different scenarios of supply and demand
• Develop new tools and processes for decision making under uncertainty
• Understand the opportunity for long-duration storage

What are we aiming to achieve?

Ability to restore GB from total or partial shutdown, with zero carbon sources, by 2025, at minimum cost to consumers.

What is informing our approach?

The availability of conventional Black Start service providers will decrease as part of the shift away from conventional thermal generation.

What are some of the opportunities for innovation?

• Deliver Distributed Restart project to facilitate Black Start from DER.