An innovation project launched by National Grid Electricity Distribution (NGED) could provide grid connections for community energy groups at lower costs, working with TNEI, Regen and Energy Local.
It will test a new “Geoprint” approach to identify the best points for linking local generation and demand collectively. This will cut connection costs and help communities to form “energy clubs”, which match local energy generation with local demand.
The idea is a Geoprint connection will enable connections for community energy groups willing to operate in a smart local energy system. Groups will retain the benefits of doing so locally. The project will also help create an evidence base to tackle existing national policy and regulatory hurdles applied at a local level. GECCO builds on Innovate UK’s £104 million Prospering from the Energy Revolution programme which funded 80 smart local energy system (SLES) projects.
For example, currently community energy groups generating electricity may sell to a supplier which will sell it back to customers at two to three times the original price. By connecting smart systems, there should be bill savings for demand customers and greater income for local generators.
It is also anticipated the capability to offer connections to smart local systems rather than to a single generator will unlock new benefits to National Grid’s DSO, and to the network from flexibility and demand-side responses.
There are 170 community energy groups within NGED’s region and the sector is set to expand as the government’s Local Power Plan has an aspiration for more than 1,000 community-owned generation projects by 2030. Around 2 GW of this is expected to be installed in NGED’s licence areas.
NGED Innovation Engineer Rois Smith said: “GECCO seeks to understand whether there is a better way for us to connect and manage community energy groups on DNO networks.
“It aims to address the struggles community energy groups can have getting a grid connection – which sometimes isn’t economically viable for them due to network constraints – as well as the long-term financial stability issues they are facing due to regulatory frameworks.
“GECCO’s ambitions align with national net-zero goals and the imminent Local Power Plan. What we learn from GECCO will also expand the potential for smart local energy markets to accelerate connections more widely.”
Community energy groups, including Hook Norton in Oxfordshire, will test the Geoprint connection methodology and to assess its cost benefits. Last year Hook Norton launched Energy Local North Oxfordshire which has 30 households and two businesses as demand customers, who are incentivised to match their electricity usage to a nearby solar farm. It plans to expand to 120 domestic and six business demand customers, leading to a 44% increase in matching with the solar farm. It also wants to diversify its generation portfolio, to make it easier for demand customers to use electricity when it is local, but is struggling get a connection to the distribution network.