The UK’s framework to ensure energy supply needs to be made more simple, efficient and reflective of the energy mix.
That’s according to a new report from Energy UK, in which the organisation sets out its recommendations on how the UK’s ancillary services can ensure stability can be delivered to the electricity system at the lowest possible cost to consumers.
Ancillary services are functions provided to the System Operator to support the continuous flow of electricity and ensure supply will continually meet demand.
These services will become more important as the load factors of large power stations change, driven predominantly by economic and environmental pressures as the UK transitions to a low carbon economy.
The reforms will allow a more flexible electricity system with greater capacity for new forms of generation such as distributed energy networks.
The report suggests National Grid needs to engage with industry groups, the investment community and new technology developers through workshops, consultations and webinars to review how ancillary services are procured in the UK.
Energy UK also proposes it leads the debate on future power market design.
This will include the interactions of the Capacity Market, low carbon support mechanisms and the ancillary services market to ensure least cost options for balancing the system are identified and developed.
However, it stresses the importance of doing this without undermining fair competition.
Lawrence Slade, Chief Executive of Energy UK, said: “This as an opportunity for all industry to work together to develop new, more efficient and economical solutions to balance the network at least cost to consumers while enabling existing and new technology to drive innovation within the sector.”