Securing Digital Distributed Energy Infrastructure

Open Energi Engineer

The Internet of Things (IoT), a term used to denote the digital infrastructure where any digitalised asset, no matter how small, can connect to an invisible mesh of other assets through the internet, has recently become synonymous with security breaches and exploitation. This is true not just in a domestic setting, where flaws in Samsung’s ‘Smart Home’ let hackers unlock doors and set off fire alarms[1], but also in industrial IoT systems, where hackers were able to change the levels of chemicals being used to treat tap water[2]. While security breaches in websites are common, with credit card details frequently stolen, breaches to industrial systems connected to the internet are fewer and more recent, as such systems were previously isolated from public networks.

In the world of Demand Side Response (DSR), security is one of the priorities of most asset owners. DSR assets have a core purpose other than helping to balance the energy system, so a DSR provider must be able to demonstrate that they will never prevent the safe and correct operation of the asset, be that treating wastewater in a sewage treatment facility or refrigerating food in a supermarket. This condition must hold even in the presence of bugs in the DSR provider’s software, and even if their own systems are penetrated by hackers. The usual practices of data encryption, strong access controls and network segregation only provide part of the answer, as they still don’t guarantee safe operation under all possible failure modes.

This condition may seem unreasonable, but in critical systems development it is crucial. A nuclear facility operating normally is run through a software system, but all safety-critical checks are duplicated in hardware interlocks that take over should the software fail in any way[3]. These interlocks are immutable and thus immune to hacking or software bugs. In space missions, NASA has since the Challenger and Columbia incidents started to use consensus of multiple software systems developed by several independent teams to control rocket operation to eliminate the possibility that a single bug could affect the mission[4].

As the DSR industry progresses towards standardisation and common best practice guidelines, a key safety requirement must be safe operation of the asset under any failure mode. Open Energi on-site controllers are always supplemented by independent hardware or software interlocks that cannot be modified by us, creating an orthogonal layer of control required to operate critical assets. For example, on asphalt sites, we supplement our own controls with hardware interlocks to disable our control should the temperature of the tank increase beyond a safe limit. On water sites, we augment our controls with independently developed PLC code that checks that the asset is still within its control parameters and disables our control immediately if not. This dual layer of security means that even if our systems are compromised by an attacker, the DSR assets will continue to operate safely.

Michael Bironneau is Technical Director at Open Energi.

[1]     Wired Magazine. May 2016. ‘Flaws in Samsung Smart home let hackers unlock doors and set off fire alarms’. https://www.wired.com/2016/05/flaws-samsungs-smart-home-let-hackers-unlock-doors-set-off-fire-alarms/

[2]     The Register. March 2016. ‘Water treatment plant hacked, chemical mix changed for tap supplies’. http://www.theregister.co.uk/2016/03/24/water_utility_hacked/

[3]     L.J. Jardine and M.M. Moshkov. Nuclear Materials Safety Management, Vol 2. 1998. See eg. p.151.

[4]     Organizational Learning at NASA: The Challenger and Columbia Incidents. 1989. J. Mahler. See eg. p.63.

Battery storage project a ‘blueprint’ for EV charging infrastructure globally

Tesla South Mimms Supercharger and PowerPack

Pairing batteries with EV charging stations can help to align sustainable transport and energy needs for the future.

At South Mimms Welcome Break Motorway Services, we have installed a 250kW/500kWh Powerpack alongside one of Tesla’s largest and busiest UK charging locations. The Supercharger site can charge up to 12 cars at one time, and since popular charging periods often coincide with peak periods of grid demand – between 4pm and 7pm, when electricity prices are at their highest – flexible solutions are needed to ease the strain on local grids and control electricity costs.

Integrating a Powerpack at the location has meant that during peak periods, vehicles can charge from Powerpack instead of drawing power from the grid. Throughout the remainder of the day, the Powerpack system charges from and discharges to the grid, providing a Firm Frequency Response (FFR) service to National Grid and earning revenue for balancing grid electricity supply and demand on a second-by-second basis.

Open Energi own and operate the Powerpack, which is part of our portfolio of assets that help maintain the frequency of the grid. Combining batteries and electric vehicles makes vehicle charging part of the solution to integrating more renewables without affecting drivers, unlocking vital flexibility to help build a smarter, more sustainable system.

The project at South Mimms Welcome Break Motorway Services provides a blueprint for the development of electric vehicle charging infrastructure globally. Moreover, by reducing National Grid’s reliance on fossil fuelled power stations as a means of balancing electricity supply and demand, the Powerpack helps to reduce UK CO2 emissions by approximately 1,138 tonnes per year.

How Artificial Intelligence is shaping the future of energy

Artificial Intelligence can unlock demand side flexibility for end users

Across the globe, energy systems are changing, creating unprecedented challenges for the organisations tasked with ensuring the lights stay on. In the UK, large fossil fuelled power stations are being replaced by increasing levels of widely distributed wind and solar generation. This renewable power is clean and free at the point of use but it cannot always be relied upon. To date National Grid has managed this intermittency by keeping polluting power stations online to make up the difference but Artificial Intelligence offers an alternative approach.

What’s needed is a smart grid which can integrate renewable energy efficiently at scale without having to keep polluting power stations online to manage intermittency. This requires energy storage to act as a buffer, reducing demand when supply is too low or increasing it when it is too high. Most people associate energy storage with batteries, but the cheapest and cleanest type of energy storage comes from flexibility in our demand for energy.

This demand-side flexibility takes advantage of thermal or pumped energy stored in everyday equipment and processes, from an office air-con unit, supermarket fridge or industrial furnace through to water pumped and stored in a local reservoir. The electricity consumption patterns of these types of devices are not necessarily time-critical. Provided they operate within certain parameters – such as room temperature or water levels – they can be flexible about when they use energy.

This means that when electricity demand outstrips supply, instead of ramping up a fossil fuelled power station, certain types of equipment can defer their electricity use temporarily. And if the wind blows and too much electricity is being supplied instead of paying wind farms to turn off we can ask equipment to use more now instead of later.

Making our demand for electricity “intelligent” in this way means we can provide vital capacity when and where it is most needed and pave the way for a cleaner, more affordable, and more secure energy system. The key lies in unlocking and using demand-side flexibility so that consumers are a) not impacted and b) appropriately rewarded.

At Open Energi, we’ve been exploring how artificial intelligence and machine learning techniques can be leveraged to orchestrate massive amounts of demand-side flexibility – from industrial equipment, co-generation and battery storage systems – towards the one goal of creating a smarter grid.

We have spent the last 6 years working with some of the UK’s leading companies to manage their flexible demand in real-time and help balance electricity supply and demand UK-wide.  In this time, we have connected to over 3,500 assets at over 350 sites, operating invisibly deep with business processes, to enable equipment to switch on and off in response to fluctuations in supply and demand.

Already, we are well on the way to realising a smarter grid, but to unlock the full potential of demand-side flexibility, we need to adopt a portfolio level approach. Artifical intelligence and machine learning techniques are making this possible, enabling us to look across multiple assets on a customer site, and given all the operational parameters in place, make intelligent, real-time decisions to maximise their total flexibility and deliver the greatest value at any given moment in time.

For example, a supermarket may have solar panels on its roof and a battery installed on site, as well as flexibility inherent in its air-con and refrigeration systems. Using artificial intelligence and machine learning means we can find creative ways to reschedule the power consumption of many assets in synchrony, helping National Grid to balance the system while minimising the cost of consuming that power for energy users.

Lack of data is often an obstacle to progress but we collect between 10,000 and 25,000 messages per second relating to 30 different data points and perform tens of millions of switches per year. This data is forming the basis of a model which can look at a sequence of actions leading to the rescheduling of power consumption and make grid-scale predictions saying “this is what it would cost to take these actions”. The bleeding edge in deep reinforcement learning shows how, even with very large scale problems like this one, there are optimisation techniques we can use to minimise this cost beyond what traditional models would offer.

Artificial Intelligence model learning to control the electricity consumption of a portfolio of assets

Graph of AI model

More rapid progress could be made across the industry if energy companies made more anonymised half-hourly power data available. It would enable companies working on smart grid technologies to validate these ideas quickly and cheaply. In the same vein, it would be a major breakthrough for balancing electricity supply and demand if energy companies made available APIs for reporting and accessing flexibility; it would allow companies like Open Energi to unlock enormous amounts of demand-side flexibility and put it to good use balancing not just the grid but also helping to optimise the market positions of those same energy companies.

In the UK alone, we estimate there is 6 gigawatts of demand-side flexibility which can be shifted during the evening peak without affecting end users. Put into context, this is equivalent to roughly 10% of peak winter demand and larger than the expected output of the planned Hinkley Point C – the UK’s first new nuclear power station in generations.  Artificial Intelligence can help us to unlock this demand-side flexibility and build an electricity system fit for the future; one which cuts consumer bills, integrates renewable energy efficiently, and secures our energy supplies for generations to come.

Michael Bironneau is Technical Director at Open Energi. He graduated from Loughborough University in 2014 with a PhD in Mathematics and has been writing software since the age of 10.

How can machine learning create a smarter grid?

Dynamic Demand 2.0

Across the globe, energy systems are changing and creating unprecedented challenges for the organisations tasked with ensuring the lights stay on. In the UK, National Grid is facing shrinking margins, looming capacity shortages and unpredictable peaks and troughs in energy supply caused by increasing levels of renewable penetration.

At the recent Reinventing Energy Summit, Michael Bironneau, Head of Technology Development at Open Energi, explored how the same machine learning techniques that have let machines defeat chess and Go masters, can also be leveraged to orchestrate massive amounts of flexible demand-side capacity – from industrial equipment, co-generation and battery storage systems – towards the one goal of creating a smarter grid; one that is cleaner, cheaper, more secure and more efficient.

For World Cities Day 2016, Michael talked to Nikita Johnson of Re:work about utilising data science in energy, creating a smarter grid, political challenges, and more.
What are the main transformative technologies that will help create a smarter grid?
A smarter grid is one where we can integrate renewable energy efficiently without having to keep polluting power stations online to manage intermittency. This requires energy storage to act as a buffer, reducing demand when supply is too low or increasing it when it is too high.

The cheapest and cleanest type of energy storage comes from flexibility in our demand for energy. Open Energi’s Dynamic Demand platform unlocks small amounts of stored energy from commercial and industrial processes – such as refrigerators, bitumen tanks and water pumps – and aggregates and optimises it second by second, creating a virtual battery.

How can machine learning be applied to help balance the grid?
The most transformative application of machine learning for grid balancing comes from unlocking and utilising flexibility in demand-side power consumption. Such algorithms can find creative ways to reschedule the power consumption of many demand and generation assets in synchrony to keep the grid in balance while helping to minimise the cost of consuming that power for energy users.

With sufficient data, a ML model can look at a sequence of actions leading to the rescheduling of power consumption and make grid-scale predictions saying “this is what it would cost to take these actions”. The bleeding edge in deep reinforcement learning shows how, even with very large scale problems like this one, there are optimisation techniques we can use to minimise this cost beyond what traditional models would offer.

What are the regulatory and political challenges to achieving a national smart grid in the UK?
Whatever your role in the vibrant menu of demand side innovations that are offered across Europe, a shared goal for serving consumers is advocating for the framework of flexibility adequacy at the energy system level. This opens so many possibilities – to facilitate Electric Vehicles, mitigate renewable intermittency, replace aging coal infrastructure, and realise a smart grid.

The key is market access. Currently, the UK market favours existing power generators to a disproportionate extent. To fully realise the potential of demand-side flexibility to help balance the grid, save energy and offer lower costs for consumers, we need a level playing field. Without it, there is a very real risk that we will lead ourselves into multi-decade contracts for power plants, paying for a system which is already over capacity and which has no incentive to get any smarter.

How can energy companies work with engineers and data scientists to achieve a more efficient energy system?
One obstacle that prevents many ideas from taking off is the lack of data to support them. If energy companies made more anonymised half-hourly power data available, data scientists and engineers working on new smart grid technologies would be able to validate these ideas quickly and cheaply. In the same vein, it would be a major breakthrough for grid balancing if energy companies made available APIs for reporting and accessing flexibility; it would allow companies like us to unlock enormous amounts of demand-side capacity and put them to good use balancing not just the grid but also helping to optimise the market positions of those same energy companies.

This post originally appeared on Re:work’s blog on the 31st October 2016.

VIDEO: Optimising data architectures for IoT & Cloud

Tech image

Rapid data growth from a wide range of new data sources is significantly outpacing organizations’ abilities to manage data with existing systems. Today’s data architectures and IT budgets are straining under the pressure. In response, the center of gravity in the data architecture is shifting from structured transactional systems to cloud based modern data architectures and applications; with Hadoop at it’s core.

Join this live and on-demand video panel – featuring Open Energi’s Head of Technical Development, Michael Bironneau – as they discuss how the landscape is changing and offer insights into how organizations are successfully navigating this shift to capture new business opportunities while driving cost out.

Water pumps get in on the balancing act

Welsh Water Court Farm

Dŵr Cymru Welsh Water is a not-for-profit water company committed to serving its customers. Thanks to demand side response (DSR), it has found that managing its energy demand more flexibly means it can do the right thing for its customers and the country. Mike Pedley, Head of Energy for Welsh Water, explains more.

At Welsh Water we have a very wide strategy to invest in energy efficiency, energy generation and indeed  DSR and other forms of tariff optimisation. Our not-for-profit model helps the company take a long term view when it comes to investing in low carbon and sustainable technologies which will run for many years and provide long term benefit for our customers.

Currently, we have some 56 sites generating renewable energy, which includes about 6MW of solar and 14MW of hydro. In addition, we’ve got around 11 anaerobic digestion sites. We plan to continue rolling out renewable generation as long as it delivers acceptable returns for the company and our customers.

A flexible approach

DSR is also something we’re doing more of. We’re aware that it is increasingly important to National Grid, and therefore the UK, to help balance the system cost-effectively, but from our perspective it’s a potential way of getting financial benefit from using our assets flexibly. Thanks to our not-for-profit model, if we benefit from it, then so do our customers.

We’ve contracted with National Grid directly for a couple of their  DSR schemes (last winter’s Demand Side Balancing Reserve and this summer’s Demand Turn-up) but following an open tender and successful trial, we’ve also started working with Open Energi on dynamic frequency response.

The service helps National Grid with its second by second balancing of electricity supply and demand, and responds automatically to changes in frequency. So if there’s a sudden shortfall in supply, instead of National Grid asking a power station to ramp up, Open Energi can ask our pumps to slow down temporarily.  Similarly, if there is excess power being supplied – say it was particularly windy or sunny – our pumps could increase their consumption to alleviate pressure on the grid and ensure no energy goes to waste. The key thing for us is our equipment is in control, and we set the parameters within which it can respond. We have found that if our pumps operate a little faster or a little slower for a few minutes at a time, that doesn’t impact our processes or customers.

What next?

Right now we’re targeting 25 sites and expect to have around 5MW of flexible demand. If that roll-out proves successful we’ll look at other assets to see whether we can expand its use. Not all of our assets are suitable but there are some that work well with this technology and I am sure that the same is true of a lot of businesses. I would expect more companies to adopt this type of technology for some of their assets. Increasingly in the UK now, companies  can benefit from using their assets as flexibly as possible and that also helps the country.

Transforming the UK’s energy future

Transforming the UK’s energy future

The UK is at a pivotal moment for investing in the future of its energy system. Two thirds of its power stations – mostly old coal, nuclear and gas-powered stations – are expected to close by 2030, increasing the risk of ‘brownouts’ and ‘blackouts’ in future.

A recent survey by the MEUC  found that nine out of 10 UK businesses are worried about the security of their energy supply. From businesses to households, our large and small energy consumers urgently need reassurance that our energy system is not only able to cater to growing demand, but is also ready for future challenges.

Our energy infrastructure was designed for a post-war world whose power sources were dominated by fossil fuel generators. It is linear, centralised and designed for passive, one-way distribution. Its static nature makes it unable to cater to overlapping demand: energy generation and pricing skyrocket during peaks in demand, stretching the system to its limit. Then as demand drops, or when renewable energy surges through the system, much of that electricity is wasted.

It’s clear we need to move beyond this wasteful, cumbersome system, and thanks to internet-enabled technologies, we can do so. Both the National Infrastructure Commission  and Ofgem  say that more flexible patterns of demand would reduce energy waste, make the system cheaper and more carbon efficient to run, and lowering consumers’ bills.

Harnessing the power of demand response

Businesses now have a unique opportunity to move away from polluting energy sources to help the UK achieve its carbon reduction targets, whilst being rewarded with new revenues at the same time.

The potential for demand response is huge: according to the National Infrastructure Commission’s Smart Power report, if just 5% of current peak electricity demand is met by demand-side response, our energy system would be £200m/year cheaper to run, and end-users could benefit by up to £790m.

This is the inspiration behind the Living Grid, a movement led by forward-thinking organisations and convened by Forum for the Future, to create a new approach to our energy system that is interactive, self-balancing and adaptive rather than linear and clumsy. This will not only help the grid cater better to peaks and troughs in demand and supply, but also enable it to make full use of renewable energy sources.

In the first phase, using smart technology provided by founding technology partner Open Energi, businesses’ appliances are upgraded to become part of an intelligent network that helps to balance supply and demand on the grid in real-time. Making tiny, second-by-second adjustments to their electricity use, they help to free up power at peak times or consume more when there’s energy surplus, benefitting the system as a whole.

By playing an active role in balancing supply and demand, pioneers of the Living Grid are rewarded by the National Grid’s Firm Frequency Response Market with additional revenue that they can reinvest in more energy efficiency measures.

Companies leading the change

To date, supermarket brand Sainsbury’s, building materials manufacturers Aggregate Industries and Tarmac, and water company United Utilities are part of the Living Grid’s network. Together, they are projected to free up 39MW of energy capacity by 2020, equating to almost 90,000 tonnes of carbon savings for the UK.

Sainsbury’s is the first supermarket to use Open Energi’s intelligent demand response technology on over 2,300 pieces of HVAC equipment at 200 stores. Sainsbury’s is now trialling refrigeration, and by 2020 it expects to free up 14MW of flexible power for National Grid, creating 31,865 tonnes of carbon savings per year.

Over the past 3 years, Aggregate Industries has connected its bitumen tanks and pumps at over forty asphalt plants and quarry sites UK-wide. Likewise, Tarmac is rolling out the technology to 70 Asphalt plants and over 200 bitumen tanks at sites across the UK.

United Utilities was the first water company in the country to implement Open Energi’s intelligent demand response technology. It has now connected equipment at over 10 of its larger wastewater treatment plants, and aims to activate more sludge plants and evaluate new processes that would work well with the technology. By 2020 it expects to earn up to £5m from Demand Response.

Not only will participating organisations become more resilient to future energy challenges, they will also demonstrate climate change leadership by unlocking massive carbon savings for the UK. With assets upgraded to automatically and invisibly manage energy consumption, they are at the forefront of opportunities to earn revenue and save energy through the use of new technologies.

Joining the movement

The Living Grid needs more pioneering organisations and technology partners to grow and scale up the transformation of the energy system. It aims to recruit 20 organisations by 2020 to free up 200MW of energy capacity. Through businesses acting together, it will show how demand-side management can make our system ready for the large-scale use of renewable energy.

It’s the first time a working partnership has been created by leading businesses to help modernise and relieve the pressure on the UK’s electricity system. Businesses have never aspired to transform our energy system so profoundly before. By working together to change how they use electricity, by making this visible to the world and by encouraging others to do the same, they can showcase the potential of demand-side management to reshape our energy system and catalyse change.

By Gemma Adams, Head of Innovation, Forum for the Future

1. October 2013. Powercut Britain: Are the lights about to go out for UK business? http://www.meuc.co.uk/userFiles/meuc_report.pdf
2. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/505218/IC_Energy_Report_web.pdf
3. https://www.ofgem.gov.uk/gas/retail-market/market-review-and-reform/smarter-markets-programme

 

Open Energi Harnessing the power of IoT for cleaner, more efficient and affordable energy

David Hill, Business Development Director at Open Energi speaks to theCUBE about how Open Energi is harnessing the benefits of connectivity to bring customers more efficient, more affordable and, ultimately, cleaner energy.

“We were an IoT company before we even knew what IoT was,” said David, discussing how Open Energi was founded pre-Hadoop. Becoming Hadoop customers was a “huge leap,” and Hortonworks Dataflow services are enabling much more cost-effective integration that has Open Energi extremely excited about the future.

David spoke to theCUBE whilst attending Hadoop Summit 2016, Dublin – http://bit.ly/1qIrgEN

Powering a Virtual Power Station With Big Data

Michael Bironneau, Data Scientist at Open Energi, discusses powering a virtual power station with big data.

At Open Energi in order to prove that we’ve delivered our Dynamic Demand service to National Grid and kept it running at optimum, we need to analyse large amounts of data relatively quickly. We’re also making our service smarter so that more assets will be able to participate in Dynamic Demand than before. This is where Big Data and Hortonworks Data Platform come in.

Big Data is a phrase that has been floating around companies like Google for the last two decades. It has never really had a precise definition, but when used casually it usually means that someone somewhere is running out of space for your data and/or computing power to analyse it, this can also mean that your data is so unorganised it is difficult if not impossible to analyse. Data is the most important asset when considering Dynamic Demand, it tells us when to flex certain assets, it proves we are providing a service and it allows us to better understand our portfolio.

Michael was speaking at the 2016 Hadoop Summit, Dublin – http://hadoopsummit.org/dublin/

The Business Case for Flexibility

The Business Case for Flexibility

The move to a low carbon economy coupled with rapid advances in technology and innovation are transforming electricity supply and demand. Grid agility and flexibility are essential as we move away from models of centrally dispatched generation and incorporate more intermittent renewable energy generation onto the system.

This flexibility can be provided in a variety of forms, from demand side response (DSR) and energy storage to new build gas generation. However, there is a clear merit order emerging in terms of both carbon and consumer cost of these offerings, and to enable this merit order to play out requires a technology-agnostic approach to the energy system, free of subsidies and long-term contracts that prevent these solutions from competing on an equal footing.

The National Infrastructure Commission’s Smart Power report signifies the concrete shift in thinking needed to unleash flexibility and shore up energy security for the UK. The conditions are right for innovation, and innovation is about being able to run systems effectively at tighter margins with no impact on reliability or risk through storage and invisible, automated and no-build DSR.

Demand response technology is, at its core, an intelligent approach to energy that enables aggregators to harness flexibility in our demand for energy to build a smart, affordable and secure new energy economy. True DSR technology invisibly increases, decreases or shifts users’ electricity consumption, enabling businesses and consumers to save on total energy costs and reduce their carbon footprints, while at the same time enabling National Grid to keep capacity margins in check. Although in its infancy, the UK’s demand side response market is a reality, delivering flexibility today.

Research by Open Energi, National Grid and Cardiff University published in October 2015 illustrates that smart demand side response technology can already meet the UK’s crucial grid balancing requirements faster than a conventional power station. Added to this, using new build gas to provide flexibility in a renewables-based system is counter-intuitive. DSR technologies are already working for the UK, providing flexibility to the UK grid at a far cheaper cost per MW than both batteries and gas.
This is precisely why National Grid has established its Power Responsive campaign as a framework for turning debate into action with a practical platform to galvanise businesses, suppliers, policy makers and others to seize the opportunity to shape the growth of demand side response collaboratively, and deliver it at scale by 2020.

It’s a well reported fact that electricity margins are tighter than they have been for a number of years, as illustrated by the NISM National Grid issued in late 2015. Knee jerk reactions to this are to incentivise infrastructure investment in power stations with long-term contracts, but this is inefficient and costly.

The £18 billion Hinkley Point project is a case in point. Looking at future demand curves, once the plant is up and running, there will be periods when its supply exceeds demand for power across the whole of the UK. The UK should capitalise on smart options for delivering flexibility which can be delivered faster and more cheaply than traditional infrastructure projects. Behind the meter solutions are much more empowering to consumers.

The conditions are right for innovation, and innovation is about being able to run systems effectively at tighter margins with no impact on reliability or risk. This is possible through storage and DSR. In this ‘year of innovation’, disruptors must be able to implement their solutions on a free-market basis, without guarantees and subsidies for certain technologies that block competition. To achieve flexibility goals, government must be technology agnostic.

US regional transmission organisation PJM provides a useful case study, with its real-time and near-term energy markets that incentivise the best and cheapest technology at any given time. PJM’s approach has seen a proliferation in innovative flexibility solutions accompanied by falling costs for customers. According to ABB, two thirds of the 62MW of storage deployed in the US in 2014 was located in PJM territory . Market intervention is not necessary for energy system innovation to flourish. In fact, PJM shows that the opposite is true.

National Grid is already on the case with its Enhanced Frequency Response auction, which has seen 63 generators, energy storage companies and DSR aggregators pre-qualify to bid for contracts that will make it easier to manage the system. Demand side response is part of a wider energy market picture that must focus on flexibility and achieving the lowest cost for consumers. If just 5 per cent of peak demand was met with flexible power, the response would be equivalent to the generation of a new nuclear power station, without the huge costs to consumers.

Government needs to recognise that gas sits at the bottom of the flexibility merit order. Storage will undoubtedly play an important role, but Rudd’s pledge to explore long term storage incentives to get battery market moving are anti-competitive, not to mention unnecessarily costly for consumers.

DSR technology is already working today – not only to reduce electricity load at peak times, but also to increase load when demand is low and support National Grid’s second-by-second frequency balancing needs. And this is happening at both national and local scales.

2016 must be the year of flexibility and, to achieve this, we need consolidated markets that are technology agnostic. An energy department that styles itself as pro-innovation must send clear signals to innovators that it doesn’t pick winners.

David Hill, Business Development Director, Open Energi