Commercial Arrangements Study – Phase 2
Overview
This report is the continuation of the first CLNR commercial arrangements study: review of existing commercial arrangements and emerging practice, written by Element Energy and published in 2013, which provides a detailed assessment of the legislative framework and commercial arrangements currently operating in the GB electricity market.
This report builds on the results and learnings from the CLNR trials to understand the role of the various customer-led interventions and their value in the electricity system, especially for DNOs. It reviews the key use cases for these interventions and their requirements, compares the relative value of these for different stakeholders and considers the opportunity to combine different value streams. An overview is provided of the key barriers that existing arrangements pose to the deployment of DSR solutions. Based on this review potential new commercial arrangements are assessed to bring the trialled interventions to business as usual.
The scope of this report covers the CLNR customer interventions, and the electricity storage trials. These are reviewed in a wider framework of industry demand side management options. The CLNR project also explored a range of other network solutions, which are not assessed in this report. The focus of the report is on the RIIO-ED1 price period (2015-2023), with an outlook to the next price period.
The report is based on the CLNR learnings and trial results, interviews and workshops with the CLNR project, and a review of UK and international literature. Previous and ongoing work in the UK, including Smart Grid Forum Work Stream 6and other Low Carbon Network Fund projects have also been reviewed and their results cross-referenced with the CLNR trials findings.
