Ofgem, the UK energy regulator, has hired a consultant to help coordinate a strategy to deliver the new government’s scheme to generate most of the UK’s power from renewable sources.
Elexon will be a 'market facilitator' for local energy flexibility to help coordinate usage, i.e., EV battery charging when wind is generating a lot of electricity.
The government hopes that flexibility in generation will enable savings of up to £70 billion by 2050.
Electricity demand is set to rise by 50% by 2025, and Ofgem has also launched a consultation on a new system to provide a single point of registration for flexible consumer assets, such as EV chargers, heat pumps, and home battery storage.
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 co-ordinate and align local and national energy markets to unlock the full value of flexibility.
Ofgem’s announcement came as the head of British Gas owner Centrica PLC (LSE:CNA) warned the UK faces a ‘real risk’ if it focuses too much on wind power rather than a balanced spread of energy sources.
In a Linkedin post, Chris O’Shea said that UK windfarms used only 15% of their power-generating capacity on average last week.
“Whilst wind power is great, we run a real risk if we focus too much on new wind as we look to decarbonise the energy system of the future.
“A net zero future requires a range of technologies and a good balance.”