Power 2.0: Building a Smarter, Greener, Cheaper Electricity System Power Stations, Storage, Demand Response, and Interconnectors
The power system in Great Britain is undergoing a radical transformation – Exchange Policy towards a decarbonised, decentralised, and digitalised system. These trends are profoundly changing the structure of the electricity market, and creating new Power 2.0 challenges for the management and operation of the power system. This report argues that in order to further decarbonise the power system, and Building a smarter, greener, integrate renewables, we will need to create a power system which is smarter cheaper electricity system and more flexible. Many technologies can provide this flexibility, including thermal system cheaper electricity greener, 2.0: Building a smarter, Power power stations, storage, demand response, and interconnectors. However, the current policy and regulatory framework appears to favour some of these Richard Howard and Zoe Bengherbi technologies over others. The regulatory framework has struggled to keep up with the pace of change within the power system, and needs to be modernised. This report identifies how to remove the regulatory and policy barriers facing technologies such as demand response and storage, and create a level playing field. It also identifies the need for longer term reform of the wholesale power market to ensure that it values and encourages flexibility, drawing on examples from other power markets such as Germany and the US. Taken together, these proposals could create a power system which is smarter, greener, cheaper, and fit for the 21st Century. £10.00 ISBN: 978-1-910812-20-4 Policy Exchange 8 - 10 Great George Street Westminster London SW1P 3AE www.policyexchange.org.uk Power 2.0 Building a smarter, greener, cheaper electricity system Richard Howard and Zoe Bengherbi Policy Exchange is the UK’s leading think tank.
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