Seven solutions to the rising cost of transmission network constraint management

The costs of managing network constraints in our energy system are rising – to the tune of £1.2 billion in just the last 12 months. Rather than waiting years for unpredictable market reforms, Regen proposes several actions that could be taken today to start reducing costs within existing market arrangements.

The paper explores the evidence around the current situation and makes the case for a more targeted approach using seven near-term solutions:

1. Improve and accelerate the planning, decision making, timing and delivery of network investment.
2. Send a stronger market signal – identify when and where constraints are likely to occur, their value and duration.
3. Expand the use of forward contracts for flexibility services.
4. Accelerate deployment of short and long duration storage – including addressing connection issues.
5. Open the BM to many more participants, offering flexibility services and improve dispatch processes to ensure that they are used effectively.
6. Continue to improve control room functions through better forecasting, digitalisation, automation and continuous improvement.
7. Accelerate policies and regulatory reforms that are already in progress.

Click here to download the insight paper.

To find out more, contact the paper’s lead author Johnny Gowdy, Director of Regen at jgowdy@regen.co.uk.