Renewable energy deep dive biannual recommendations update 3 - Grid
Outcome of the exercise to identify opportunities to significantly scale up renewable energy in Wales.
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5. Ofgem engagement
Recommendation
We will step up our engagement with Ofgem to set out Wales’ investment needs, with a focus on retaining value within Wales. We will set up a joint-working group to look at options for supporting new, flexible grid connections for renewables and energy storage solutions.
Key highlights / milestones
- The Minister for Climate Change laid Ofgem’s annual report before the Senedd to provide opportunity for scrutiny.
- Welsh Government and Ofgem have held bilateral discussions on the Regional Energy Strategic Planner proposals ahead of the October decision, and continue to participate in workshops to inform design.
- Welsh Government participated in the ongoing development of strategic network thinking.
Next steps towards completion
- The publication of the Electricity networks: transmission acceleration action plan and the Connections Action Plan address many of the systemic issues that prompted this recommendation. Welsh Government is involved in the advisory arrangements that steer this complex programme of activity.
- This national involvement, in addition to the energy planning activity under way across Wales, place us well to set out Wales’s requirements. This action is therefore embedded in our core delivery work.
6. Wales Energy Systems Architect
Recommendation
Building on the Future Energy Grid Project, we will press Ofgem to create a Wales Energy System Architect to oversee:
a. Demand side flexibility, domestic, non-domestic and dedicated, including energy storage
b. The mapping of fuel (& transport) poor households against Distribution Network Operators (DNO) current & predicted constraint management zones (where demand side response/flexibility has greatest system value) with a view to socialised deployment of low carbon flexibility technologies to these homes and households
c. Smart solutions for transmission and distribution including the use of Artificial Intelligence (AI) to maximise the use of the existing network. Including development of requirements, funding and opening up to the market for innovation. Engagement and inputs required from across industry.
d. Supporting business cases for whole system planning and bring together of plans across South, Mid and North Wales
e. Competition for network build to decrease costs and accelerate build times
f. Development of a detailed whole system plan covering transmission and distribution
g. Celtic Sea offshore network design and onshore reinforcements.
Key highlights / milestones
- The announcement by Ofgem of the Regional Energy Strategic Planner (RESP) is directly related to this recommendation and we have engaged directly with Ofgem and also with the ESO as it prepares to take on this role as part of its National Energy System Operator (NESO) role.
- Wales has offered to support both Ofgem and the NESO in piloting or testing areas of the RESP role, as our pan-Wales coverage of Local Area Energy Plans and regional energy teams make us a strong test bed.
- We have worked with the ESO and CGI plus other partners in the Powering Wales Renewably innovation project aimed at developing a digital twin of transmission and distribution networks in Wales. This, if it continues to be funded, provides a strong opportunity to maximise use of the existing network and test opportunities for future development, including the use of machine learning and AI.
Next steps towards completion
- We will continue to work with Ofgem and the NESO to help inform thinking about a Wals RESP and to ensure the existing work accelerates whole system thinking and network planning in Wales.
- We will continue to support the Powering Wales Renewably project, ensuring it is able to support Welsh communities and businesses to access the opportunities from a smarter grid.
- We will continue to explore the opportunities for smart local energy systems through Ynni Cymru, finding models that enable local benefit realisation.