Significant Code Review
In March 2017, the energy regulator Ofgem announced a consultation around holding a review of the way electricity system users such as generators and storage operators are charged for using the grid. This can be seen as Ofgem taking another step forward in leveling the playing field for electricity storage operators.
The Significant Code Review is proposed because the rapid pace of change and innovation – for example, rapid increase in small-scale renewable generation, increasing numbers of electric vehicles, and greater deployment of electricity storage – was not anticipated when the current charging approach was set up.
There are many different charges and fees depending on which part of the electricity system is being used when and by whom. In general, network users are charged for initial connection and then for their continuing use. This is to cover the costs incurred by network operators in maintain their systems, such as replacing cables.
One particular element that Ofgem intends to look at is how these charges affect operators of electricity storage. As ICE pointed out in their Realising the Potential report; because grid-connected storage both imports and exports electricity, they get charged twice whereas a generator which only exports electricity gets charged once.
At first this might seem fair – storage is using the system twice so should be charged twice.
However, one of the charges leveled is to cover the cost of balancing the transmission grid, that is, making sure the supply of electricity matches the demand. As providing this balance is one of the main functions of electricity storage – it can either take or generate electricity as the system requires – it is actually unfair and is holding back greater use of storage.
Why does this matter?
One reason is that an increasing amount of renewables on the system means more intermittency – fluctuations in the amount of power being generated as wind and sunshine varies minute-to-minute.
At present, gas power stations are generally relied on for back-up when there is too little power from renewables and curtailing wind generation when there is too much. This is very inefficient.
A better way, according to ICE, would be to store the excess power generated for times when there isn’t enough. The more storage, the more renewables the system can accommodate and the more efficiently they can run, keeping costs down for consumers. Ofgem’s proposals will hopefully result in removing a barrier to more storage.
This article was originally published here on 28 Mar 2017 by ICE. It was written by Gavin Miller, ICE Policy Manager.
--The Institution of Civil Engineers
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).
Ebenezer Howard: inventor of the garden city. Book review.
The Grenfell Tower fire, eight years on
A time to pause and reflect as Dubai tower block fire reported just before anniversary.
Airtightness Topic Guide BSRIA TG 27/2025
Explaining the basics of airtightness, what it is, why it's important, when it's required and how it's carried out.
Construction contract awards hit lowest point of 2025
Plummeting for second consecutive month, intensifying concerns for housing and infrastructure goals.
Understanding Mental Health in the Built Environment 2025
Examining the state of mental health in construction, shedding light on levels of stress, anxiety and depression.