In forthcoming years the energy sector is likely to undergo a major overhaul, if the predicted move from grid energy distribution to local generation comes into play. This movement will have a significant impact for energy providers, who will need to widen and restructure key services to be able to secure their ongoing place in the market.
With the mass rollout of smart meters
being set for completion in 2020, along with an increase in the installation of
domestic solar panels, consumers are becoming more informed about their energy
consumption and the energy services provided by retailers are adapting to include
technologies such as off-grid power storage, and energy monitoring systems.
Off-grid systems and ‘smart’ technology
Battery storage will form a key
facet of the ways that providers and MAPs alike can respond to the increase in
domestic energy production. These batteries comprise "off-grid” storage systems
that divert energy not immediately used into batteries (typically lithium-ion
batteries). Currently homes that have a solar PV system can reduce energy demand
from the grid. However with the installation of a solar PV system and battery
storage combined, householders can become prosumers, offering up flexibility to
the energy system. The financing of domestic batteries will then be a natural
market for MAPs to enter into.
Diversifying services
The UK’s binding climate targets
have generated significant opportunities for smart energy technologies to be
deployed at scale. The National Infrastructure Commission’s Report "Smart
Power” published in Spring 2016 highlighted the opportunity for the UK to
become a world leader in electricity storage systems. To accommodate the new
investment markets that will emerge, the energy system in the UK is
increasingly going to need to be more flexible.