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Energy in Transition


UK to become world leader in battery technology – here’s how we can help you on this exciting journey!

We find the recent announcement by the Business Secretary to establish the United Kingdom as a world leader in battery technology highly encouraging! By launching the “Faraday Challenge,” the UK government will as part of its Industry Strategy invest £246 million in battery technology, and create a £45 million “Battery Institute” competition to establish a centre for battery research. The aim of this is to make the technology more affordable and accessible.

DNV GL has for several years invested heavily in this area and is now uniquely positioned with its team of experts, to support our customers on the implementation of the Government’s Industrial Strategy.

While the issues being discussed are wide-ranging and require in-depth analysis, we thought it useful to share some initial insights around how we can help customers – and industry more broadly. For these first thoughts, we have below focused on 1) Flexibility Markets 2) Cyber-security, 3) Storage and 4) Decentralised renewable production. Four of our leading experts on these issues outline their thoughts on how they can best support you.

Please share your input and comments with us below and don’t hesitate to reach out directly to our team, to discuss how we can help you make the most of these exciting new developments.

Flexibility Markets – by Michael Dodd, Business Development Manager: “DNV GL has long been working with our customers around the world, to help unlock the power and value of flexibility, to facilitate new technologies, accelerate the decarbonisation of our energy mix and reduce energy costs for consumers. It is encouraging that the UK Government and Ofgem have now embraced the rapid changes being seen in technology and our energy markets can be harnessed to bring real benefits for market participants, network companies and ultimately, consumers. The dynamic control and use of demand and small-scale generation has already demonstrated that it can deliver real benefits, particularly in the deferral of network investments and reduction of carbon – but there must be appropriate and more consistent routes for this flexibility to be accessed by those who value it. The concept of local flexibility markets is not a new one. DNV GL was instrumental in the development of the world’s first, real-life and truly smart energy grid, PowerMatching City in 2009 (PowerMatching City video) and since then has been helping our partners and customers bring smart energy from innovation to business-as-usual. PowerMatching City demonstrated that consumers can adopt smart technologies and interact with each other and the wider energy system to meet their energy requirements and goals whilst providing wider benefits. We are proud that, in doing so, PowerMatching City has been recognised by the United Nations as one of the world’s top 100 sustainable projects. Building on the learnings from PowerMatching City, DNV GL was one of the founding partners of the Universal Smart Energy Framework (USEF), which provides an international blueprint for local flexibility markets, bringing standardisation in: data flows, agreements, interfaces, processes, roles and responsibilities. USEF is the cement in the smart energy future and can be layered over existing energy market arrangements to facilitate the development of local flexibility markets and allow consumers to realise the value of their flexibility. We are pleased to be partnering with Scottish Power Distribution to explore the introduction and trialling of USEF in the British market as part of Project FUSION, their submission to the 2017 Network Innovation Competition. We now look forwards to exploring how DNV GL can bring our deep understanding of flexibility, and its use, to bear as part of the Government’s and Ofgem’s plan.”

Cyber security; smart homes and smart energy – by Simon Milford, Head of Section, Cyber Security & Product Evaluation: The rise of the number of ‘smart’ devices being installed in homes is leading to an exponential growth in the number of IP addresses associated with a home or business, including Internet of Things (IoT) devices as varied as CCTV cameras (which are anything but ‘closed circuit’ these days); remotely managed washing machines; energy storage devices, etc., as well as the more traditional broadband router. Each of these IP addresses is potentially a unique entry point for an attacker looking to gain control of your system. As the energy transition gathers pace, the opportunities for an attacker to disrupt, or maliciously manipulate data on energy systems grow. To understand the potential impact, an organisation needs to understand the cyber threats and vulnerabilities, and the energy market in which energy storage systems operate. DNV GL is one of the very few organisations with such a dual view – both understanding the threat environment and understanding the market – allowing us to tailor solutions to provide the most appropriate level of resilience.”

Storage – by Graeme Sharp, Head of Section, Smart Energy Advisory: “As the global leader in independent energy storage advice, we are encouraged by the Government’s announcement to clarify the definition, ownership and licensing arrangements for storage. This will provide greater confidence to the UK market, which has already made significant advances in the deployment of new technologies to support the energy transition. There are clear comparisons with the 2016 World Energy Council report on E-Storage that DNV GL co-authored; and we were pleased to contribute to Ofgem’s Call for Evidence with a supporting analysis on storage regimes in international jurisdictions and Energy Storage Use Cases. Based upon our depth of technical expertise and two storage testing facilities in the Netherlands and the USA, we are keen to support the creation of the Battery Institute and build further on our developments that support product development and standardization, such as our GRIDSTOR Recommended Practice. DNV GL has, and currently is, supporting many stakeholders in the UK such as the regulator, developers, network operators, investors and suppliers, with services across the entire value chain with a particular focus on technical advisory services. Many of our clients will support the message, transparency, clarity and action plan from the government around the next steps to transform the UK energy system to a smarter, more flexible system.”

Decentralised renewable production – by Robert Rawlinson-Smith, Service Area Leader, Renewables Advisory: “In the last two decades, renewable electricity generation within the UK has grown to a point where the contribution made by these distributed resources is now very significant. Renewable electricity generation in the UK was a record 24.8 TWh in the first quarter of 2017. This is an increase of 5.1% compared to the same period in 2016. Onshore wind generation in the same period increased by 20% – despite lower than average wind speeds – due to year-on-year increases in capacity. Current wind capacity now stands at almost 16 GW, with around two thirds of this capacity installed onshore across over 1,200 projects. Furthermore, on 26th May 2017, solar generation exceeded 8 GW, supplying nearly 25% of the UK’s total demand. Current solar capacity now stands at more than 12 GW installed across the country. With nearly 30 GW of installed capacity, wind and solar are now mainstream energy technologies. Given further projected reductions in cost and in combination with innovative storage technologies, these fantastic indigenous renewable energy resources can deliver the low cost, clean, flexible energy system the UK needs to meet its commitments on climate change, while also reducing its reliance on imported fossil fuels. DNV GL is very well placed to provide independent advice to a wide range of stakeholders wishing to exploit the combination of renewables and storage. For more about our role in storage more specifically, and the services we provide, please take a few minutes to watch this video.

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