The distribution networks are the focus of changes taking place in the energy sector to enable end-user engagement in realising affordable, secure and sustainable supplies. As their use increases, the capacity limits of the distribution networks will be reached and new tariff structures will be needed with more value placed on flexibility and pricing access to capacity rather than just energy. In contrast, the overall uncertainty in the sector has led to a dearth in investment in large-scale generation leading to unprecedented low plant margins. The proportion of large-scale supergrid connected generation that has already fallen by between 10% and 15% in the last 5 years. The requirement for increased flexibility to meet the increasing demands and manage intermittency could, in part, be met by gas-fired generation equipped with CCS without increasing emissions if viable tariffs are established that recognise the value of flexibility. There is considered to be a worldwide market for this technology that has been estimated at $31bn by 2021 offering export potential for early developers.

Chapter Contents:

• 18.1 Introduction
• 18.2 Policy and regulation
• 18.3 How can smart grids help?
• 18.4 The storage option to level demand
• 18.5 Smart domestic customers
• 18.6 Demand with Evs
• 18.7 Longer term national demand profiles
• 18.8 Interconnection trading
• 18.9 Flexibility using gas-fired generation
• 18.10 Power to gas
• 18.11 Demand scheduling and dispatch
• 18.12 Smart grid control and markets
• 18.13 Smart grid projects in Europe
• 18.14 Sponsors
• 18.15 Changing roles
• 18.16 Conclusions

Inspec keywords: investment; power grids; carbon capture and storage; power distribution economics; distributed power generation; tariffs

Other keywords: energy sector; pricing access; large-scale generation; end-user engagement; CCS; smart flexible grids; investment; large-scale supergrid connected generation; tariff structures; gas-fired generation; unprecedented low plant margins; distribution networks

Subjects: Distributed power generation; Distribution networks; Power system management, operation and economics