Energy and powerNewsPower transmission

UK Community DSO project to develop smart local system framework

A Community DSO project in the UK will develop a framework for enabling Smart Local Energy Systems (SLES) across the low voltage network in a bid to shift value from transmission to local distribution systems.

British Distribution System Operator (DSO) Northern Powergrid is partnering with consultancies TNEI and LCP Delta on the project.

The project, which has received £14.5 million ($17.9 million) in Ofgem funding, aims to enable communities to pursue their decarbonisation agenda and have greater control over their own energy and assets.

This is hoped to strengthen local energy independence and incentives for local decarbonisation, delivering cost and carbon savings, while supporting DSO functionality for distribution networks. 

The project will develop a new framework for enabling Smart Local Energy Systems (SLES) across the low voltage network, emphasising a shift of value for energy systems from transmission systems to local distribution systems.

Usually made up of various distributed Low Carbon Technologies (LCTs) – such as heat pumps and EV charging infrastructure – in mind of a net zero approach, an SLES is a way to bring together different energy assets and infrastructure in a local area, making them operate in a smarter way.

These distributed parts can be joined from design at the start, such as a solar-powered community network, or prior existing energy assets and infrastructure linked together incrementally.

The project will seek to provide a proof of concept of a new replicable local energy market framework, operating on local networks while addressing local network and energy issues, which can be deployed across the majority of network areas.

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Paul Glendinning, Northern Powergrid’s director of policy and markets, commented on how the project would create financial and carbon benefits for communities, giving them greater control over their energy generation and management while unlocking new network capacity.

Said Glendinning: “This project aims to simplify and encourage decarbonisation in local communities; minimising the barriers and maximising the incentives. It is…one that will see modifications to DNO’s (Distribution Network Operator’s) roles; becoming a responsive facilitator of customers’ needs.”

SLES complexities

Northern Powergrid cites the potential of these systems to drive flexibility and efficiency across the energy system by managing electricity demand and availability in hyper local areas.

However, rolling out SLES is a complex process.

Each group of LCTs usually perform differently, in terms of how the owners prefer to use them, economic and technical effectiveness and impact on the broader network.

The Community DSO project will develop and trial different approaches to identify how communities and local stakeholders can best work together, with their local DNO, to deploy SLES.

Trials will take place in four local communities encompassing rural and urban networks.

Northern Powergrid will lead the project and host the trials, in addition to providing Electricity, Safety and Continuity Regulations (ESQCR) oversight.

LCP Delta will advise on delivery and business models, manage customer research and engagement and toolkit development.

TNEI will work with Northern Powergrid to understand network impact, lead the development of technical SLES solution specifications, and undertake simulations for virtual trials.

The learnings from the project will be used to inform future network operation strategies and changes required to regulations to facilitate the approach.

The project is expected to run until 2028.