In our recent whitepaper and our webinar series: Unlocking energy flexibility at scale, Electron proposed an open-ecosystem approach to help increase both the volume and value of flexibility.
Some questions arose during the two webinar sessions, from standardisation to diluting ownership, so here are the answers to the top queries, from our expert speakers: Simon Evans, Global Digital Energy Leader at Arup; Dave Evans, Senior Digital and Data consultant at Energy Systems Catapult; and Electron’s CCO, Chris Broadhurst, and Head of Product, Nick Huntbatch.
Read on for more information about:
- The risk of diluting ownership through an ecosystem approach
- The potential for the duplication of work already underway
- If standardisation will be a priority for the new market facilitator
- The impact of P415 on DNOs/DSOs
Is there a risk that diluting ownership in the ecosystem could make processes more complicated?
Chris Broadhurst: “With any complex system evolving as fast as this space is, there is a risk that the smaller pieces can become uncoordinated. That’s why we’re pushing for an open ecosystem and standardisation.
“If we can agree what those standards should look like, what that common dataset should look like, and how we should communicate with each other, then we can be more confident that we’re all going in the same direction and working on similar rules.
“Without governance, standards, and open protocols, it could unravel, and we’ll end up with just many more silos. However, if you can ensure that data can move freely between systems, and that each of the participants can interoperate and integrate with each other within an open ecosystem, we’re solving that problem. The key is standardisation, so we can create that common shared digital infrastructure.”
Simon Evans: “I’d add that the biggest blocker here isn’t how fast you can build tech, or how fast you can align around things. It’s actually the politics and the people that go with it. This is not a single person conversation. You need to have everyone involved and moving in the same direction.
“This highlights the idea of collaboration alongside competition. We’re going to go much further if we do this collectively, while appreciating that we’re all different entities and have all our own drivers.”
Is the open-ecosystem approach a duplication of work?
Simon: “On the surface, it may sound like some in flight initiatives are similar, with a risk of duplication or friction with each other.
“However, there are a number of programmes pushing forward in this ecosystem approach. They are all actively collaborating and making sure that there is connectivity between them.
“They’re working in a Venn diagram, complementing each other where possible while playing in different areas – where they’re not necessarily competing – according to their own timelines and roadmaps. The key here is that it’s on us as a sector to pull the threads, together. I’m confident we can mitigate any risk of duplication by collaborating on the rules, while competing on the game.”
Do you believe the new market facilitator will have data standardisation high on their agenda?
Dave Evans: “There’s still some uncertainty surrounding the market facilitator role: what it will look like, which organisations will be involved. But, from my perspective – and from a digital infrastructure perspective – it links up with some of the emerging thinking that’s already happening with an industry from the ENA, through the Open Networks initiative.
“The new role will very much knit the pieces together into something more coherent, and there should be a degree of standardisation across both market platforms and system operators, to make sure that a lack of that doesn’t become a barrier to entry for other flexibility service providers looking to move between different platforms and markets.”
Nick Huntbatch: “Standards only work if people actually use them, so I do believe that one of the mandates should be at least to make sure that we choose the right standardisation, to facilitate our open ecosystem of interoperable actors.”
Could P415 open up too much competition for flex in the ecosystem – and what could the impact therefore be on DNOs/DSOs?*
Nick: “When P415 came out, some DNOs/DSOs were concerned that FSPs would be drawn to wholesale markets as a larger revenue stream. But it simply raises the need to use market design and technology to ensure that DNO/DSO markets are still attractive to FSPs alongside the P415 route to wholesale for FSPs.
“So, there’s maybe too much competition in terms of more need for flex than providers of flex – yet P415 will help to accelerate rollout of low carbon technologies to ultimately give DSOs a greater potential pool of flexibility to draw from. Inclusive and coordinated flexibility markets – which our open-ecosystem approach encourages – can enable aggregators to maximise value across multiple markets and services, boosting their participation.”
*P415 will amend the Balancing and Settlement Code (BSC). This code governs how electricity supply and demand is balanced at a national level. Read more in our blog.
These responses have been edited for clarity. For the full discussions, watch the webinar recordings on demand.
