Can Community Energy Meet Distribution Network Operators’ Expectations to Deliver Consumer Flexibility?

Abstract

Electricity demand in the United Kingdom is set to double by 2050. By the same date, the UK is committed to achieving Net Zero in its carbon emissions and the UK government has set a target for the electricity grid to achieve Net Zero by 2035. The need for a decentralised, flexible electricity network as part of the Net-Zero energy transition means there is potential for community energy to play a role in addressing the growing constraints in the electricity network, while simultaneously bringing benefits to communities. The six electricity Distribution Network Operators (DNOs) in Great Britain are about to enter a new price control period 2023–2028. Their business plans emphasise the role of community energy as a trusted actor which can engage electricity consumers and deliver the flexible demand that DNOs need to minimize capital expenditure on network improvements. The chapter situates the DNOs and community energy organisations in the United Kingdom in the context of the transition to Net Zero and current UK energy policy, summarises current progress in the community energy sector, sets out the plans for engagement with community energy, and explores the extent to which DNOs’ expectations of the community energy sector might be met. Following extensive document review and 40 interviews with key informants from across the community energy sector, the DNOs, and other stakeholders, this chapter argues that the conditions for successful cooperation on domestic flexibility between DNOs and community energy are yet to be met. DNOs may fail to deliver greater flexibility in domestic electricity demand unless there are greater incentives for community energy organisations to engage.