Life in a post subsidy energy market,
and the impact of grid operators
actions on trying to create a low
carbon power environment
Low Carbon Innovation in Energy Systems
Bath Innovation Centre
July 2018
Ecotricity
• Renewable energy company
• Supplies > 200,000 energy
accounts
• >80 MW of onshore wind
• ~1MW of solar PV and 700
rooftop installations
• All of it is in receipt of some
form of subsidy…
• Electric vehicle charging
• Manufacture of small wind
• Vegan football club
• Energy storage
• Grid
• Business
• Home
• Green Gas
• Wave and Tidal
• Smart Grid…
Subsidy – ROCs, FiTs and CfDs
The Good:
• ROCs provide support
to anyone who meets
the requirements
• FiTs provide known
revenue for the life of
the project
• CfDs provide a fixed
price for 15 years
The Bad:
• But revenue is
uncertain and
fluctuates
• But tariff degression
rules cause the
market to lurch
• But infrequent
auctions and limited
budgets make it
difficult to access
The Ugly:
• Always at risk of
Government
intervention
• Perceived high costs
are used to damage
public opinion
Subsidy free world
presents new
challenges but free of
baggage
Post Subsidy World
One approach…
• Try to make more impact from a
smaller investment
• Efficiencies and better use of
existing infrastructure
• E.g. distributed energy is now a
significant part of the grid, but is
it being optimised?
• Imitate success of social media?
Smart Grid
• Launched Partnership
with Next Kraftwerke in
May 2018
• Taking decentralised
units (our own and 3rd
party) and connecting
them
• More efficient dispatch
• Services to the network
Grid Operators – TSOs and DSOs
• 7 different parties to
offer services to
• Network wide services
vs. location specific
services
• Challenging incumbents
and monopolies to level
playing field
EBS
Network wish list
1. Co-ordination between TSO and DSOs
• Compatible services that don’t solve a TSO
problem but then cause a DSO problem or
vice versa.
• Joined up procurement of services over
same periods and tender dates.
2. Sign posting for where support is
needed
3. Equitable treatment between single
large power plant and distributed units
• Open Networks Project
• UKPN and WPD flexible
services and power
• Project TERRE
Conclusion…
What can be done?
• Interest in optimisation
• Early engagement
• Collective influence
Or more specifically…
• Join our Smart Grid!
• Partner with us in research projects?
• Approach us with brilliant ideas

Peter Dennis

  • 1.
    Life in apost subsidy energy market, and the impact of grid operators actions on trying to create a low carbon power environment Low Carbon Innovation in Energy Systems Bath Innovation Centre July 2018
  • 2.
    Ecotricity • Renewable energycompany • Supplies > 200,000 energy accounts • >80 MW of onshore wind • ~1MW of solar PV and 700 rooftop installations • All of it is in receipt of some form of subsidy… • Electric vehicle charging • Manufacture of small wind • Vegan football club • Energy storage • Grid • Business • Home • Green Gas • Wave and Tidal • Smart Grid…
  • 3.
    Subsidy – ROCs,FiTs and CfDs The Good: • ROCs provide support to anyone who meets the requirements • FiTs provide known revenue for the life of the project • CfDs provide a fixed price for 15 years The Bad: • But revenue is uncertain and fluctuates • But tariff degression rules cause the market to lurch • But infrequent auctions and limited budgets make it difficult to access The Ugly: • Always at risk of Government intervention • Perceived high costs are used to damage public opinion Subsidy free world presents new challenges but free of baggage
  • 4.
    Post Subsidy World Oneapproach… • Try to make more impact from a smaller investment • Efficiencies and better use of existing infrastructure • E.g. distributed energy is now a significant part of the grid, but is it being optimised? • Imitate success of social media?
  • 5.
    Smart Grid • LaunchedPartnership with Next Kraftwerke in May 2018 • Taking decentralised units (our own and 3rd party) and connecting them • More efficient dispatch • Services to the network
  • 6.
    Grid Operators –TSOs and DSOs • 7 different parties to offer services to • Network wide services vs. location specific services • Challenging incumbents and monopolies to level playing field EBS
  • 7.
    Network wish list 1.Co-ordination between TSO and DSOs • Compatible services that don’t solve a TSO problem but then cause a DSO problem or vice versa. • Joined up procurement of services over same periods and tender dates. 2. Sign posting for where support is needed 3. Equitable treatment between single large power plant and distributed units • Open Networks Project • UKPN and WPD flexible services and power • Project TERRE
  • 8.
    Conclusion… What can bedone? • Interest in optimisation • Early engagement • Collective influence Or more specifically… • Join our Smart Grid! • Partner with us in research projects? • Approach us with brilliant ideas