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Just transition
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Lessons from EnergyREV: The role of smart local energy systems in a net zero future

Date
March 25, 2024

Table Contents

At a glance

At a glance

Smart local energy systems (SLES) bring together energy supply, storage, heat, transport and buildings in a local area. They connect them in a smart way using data and digital technologies, and provide new opportunities for people, communities, and other local stakeholders to get involved.

This report summarises insights from across the huge body of EnergyREV research, outlining key recommendations for government, Ofgem, local authorities and others developing SLES, SLES programme funders, and relevant educators and qualifying bodies. In addition, the report reveals five cross-cutting challenges, and makes suggestions for next steps to address each of them.

You can watch the report launch event here.

The role of SLES

SLES have the potential to bring about significant value, both for the places that implement them, and the wider UK. Through these new forms of connection, management and engagement opportunities, SLES can bring about a range of local and national benefits. These include:

  • Benefits to the energy system itself, such as grid optimisation and balancing
  • Financial benefits through national-level cost savings
  • Economic benefits such as new jobs and businesses
  • Household and community-scale benefits such as protection from energy price volatility and reductions in fuel poverty
  • Environmental and social benefits such as improved air quality and enhanced health and wellbeing
  • Equity and justice outcomes through empowering marginalised and disadvantaged groups and encouraging fairer distribution of the costs and benefits associated with the net zero energy transition.  

However, unlocking this value is complex and requires aligned actions from many stakeholders. This helps to build the right socio-technical environments that allow contextually applicable SLES to be created and delivered effectively across the UK.

Key takeaways

Insights from across the huge body of EnergyREV research highlight seven key building blocks for unlocking the value of SLES. These include:

  • 1

    Developing robust policy regulation and governance

  • 2

    Creating a collaborative environment

  • 3

    Building local skills

  • 4

    Engaging and empowering the local community

  • 5

    Unlocking innovative business models

  • 6

    Ensuring market value and interoperability

  • 7

    Underpinning with robust cyber-physical infrastructure

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