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Future Energy Scenarios: The Possibility of a Six-Fold Increase in DSR Volume by 2050 Creates Huge Opportunities for Energy Users

Off-shore wind farm in the distance. Black and white seascape with GridBeyond Motif highlighting areas in colour. Energy expert feature image.

Eamonn Bell, GridBeyond’s Head of Market Strategy, comments on the 2019 Future Energy Scenarios, published today by National Grid ESO.

“All four of National Grid’s future scenarios for the energy market predict a significant increase in the volume of flexibility that the Grid will be procuring from energy users through balancing services. The scenarios, in which the UK is able to meet its 2050 Net-Zero emission target, show close to a six-fold increase in DSR volume compared to the current levels. The Net Zero sensitivity scenario analysed by the Grid predicts the need for DSR volume at a level as high as 13GW (approx. 13 times higher than currently). This creates huge opportunities for energy intensive businesses. We mustn’t underestimate the role end users will play in providing flexibility to the grid, enabling the integration of more renewables and ensuring additional capacity to accommodate the increasing energy demand driven, for example, by things like the mass uptake of electric vehicles.

“As stated by the experts at National Grid, the transition towards a carbon-free economy can be achieved only through technological advancement across all industries and active engagement from the energy consumers. The Government’s role is to lead the transition through adequate policy-making and incentivisation programmes. However, ultimately, how soon the UK meets its Net-Zero carbon target will be decided by energy consumers and their willingness to invest in greener solutions and technologies.
“GridBeyond is committed to working closely with National Grid and other market participants to develop, test and introduce technologies that will enable full decarbonisation of our economy by the 2050 deadline. We are determined to support regulatory bodies in bringing industry standards and governing codes into line with these ambitious targets, and removing the barriers to wider and deeper DSR participation in the market.

“It is reassuring to hear from National Grid that the 2050 Net-Zero target is achievable. This is a call to become more determined than ever to immediately take the actions necessary to reduce greenhouse gases emission. The need for urgency was highlighted yesterday by the Committee on Climate Change’s critical assessment that despite the introduction of the new 2050 Net-Zero emission target last month, the Government’s actions are far behind what is required.

 

For more information, download the full report here.

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