Renewable energy deep dive biannual recommendations update 1 - Innovation
Outcome of the exercise to identify opportunities to significantly scale up renewable energy in Wales.
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21. Welsh Regulatory Derogation with Ofgem
Recommendation
We will call on Ofgem to develop a Welsh regulatory derogation to enable energy business model innovation in support of the wider recommendations of the Renewable Energy Deep Dive. The objectives of the derogation should include:
- Accelerate the scale-up of renewable energy in Wales
- Enable energy business model innovation
- Realise the benefits and wider co-benefits of renewable energy (from a Welsh and energy systems perspective)
- Unlock energy system value, such as that from demand flexibility customers and consumers peer to peer trading and local electricity supply
- Better engage and protect the interests of Welsh citizens.
Key highlights / milestones
This recommendation is in progress and is connected to recommendation 6.
Key highlights since the deep dive include:
- Ministerial and official engagement with Ofgem about innovation and considering regulatory options within Wales;
- Working with a subgroup of deep dive members to interrogate the barriers to innovation within Wales as well as consider the aims of a Wales Energy Systems Architect (recommendation 6).
Next steps towards completion
This recommendation will remain an ongoing priority for the Welsh Government. Our priorities for the next 6 months include:
- Using local energy plans (recommendation 2) to identify a series of challenges for the regulatory and funding regimes as evidence to present to Ofgem for a credible solution;
- Further shaping of the aims of the Wales Energy Systems Architect as a potential means for testing and championing innovation in Wales.