Distribution network operators have taken the idea of storage on board with enthusiasm. It’s just the kind of option that appeals to such companies: a physical asset that can become part of a regulated asset base.

For distribution network owners – and for their planned successors, distribution system operators – storage is a convenient option to defray reinforcement costs and aid operation. DNOs are pleading for the opportunity to deploy storage themselves, but only at a point, they insist, when the market has “failed to deliver”. But who decides what the market is and when it has failed?

Now and again it seems that there is an innovative new niche where the DNOs can use storage. A DSO suggestion in this month’s New Power of using storage from electric vehicles as temporary supply or grid support where there is an outage on the network, at the same time or as an alternative to the hot drinks and other services already provided (see interview) sounds useful.

But innovation is an odd thing: within a couple of days of hearing about that proposal from Cardwell, I heard a very similar one from ZipCar. The car-sharing service is already laying plans to send electric – possibly autonomous – vehicles to the site of a blackout. It seems that disruptive companies can be as innovative as DNOs.

There is a natural tendency for networks to think that “command and control” is the way forward. That’s not surprising, given their past absolute focus on having control of the entire network and managing it out of view of the users. Times are changing, however. Talking to New Power this month (see interview), Open Networks chair Nigel Turvey spoke about how views had changed since that project began. Initially, there was a common view that the DSO should control all resources on the distribution network. But he asks whether it delivers all the outcome that you want – innovation, market entry and new participants in the market. Increasingly, companies are realising that it’s not always best to keep hold of all the strings.

The conclusion? Well, okay, DNOs and DSOs should have some opportunity to own and operate storage. But it should be very strictly limited.

There should be just two ways in for network operators. They can set up separate storage companies that compete on a level playing field with other providers. The market for connections already works in this way and it does work – although it has been a long and stumbling process to make the playing field truly level. That’s one option. The other is to convince Ofgem that a derogation is required. That means decisions on a case-by-case basis, and taken after all the other options – including using the demand side – have been rejected.