Transactive Energy Supply Arrangements

In recent years there has been a huge investment in micro generation from both customers and small scale providers, particularly in residential PV. However, current metering arrangements are very basic, which limits the effectiveness of this investment.

If there was provision for neighbours to trade energy directly with each other, and be compensated for doing so, the true potential of this investment would be unlocked. Identifying the biggest issues for small scale energy providers is challenge, facilitating micro payments, more representative billing algorithms and time of day pricing would allow a provider to sell energy to local end-users.

The inclusion of energy storage could play a key role in developing a low-carbon energy systems, bringing flexibility and providing back-up to intermittent renewable generation sources. Understanding how storage is to be used locally would improve the management of distribution networks, reduce costs and improve efficiencies, supporting grid decarbonisation and off-setting the need for costly network investment.

Our research will inform on the obstacles and enablers for future energy supply arrangements at the local, decentralised and neighbourhood scales. Transacting directly with end users and producers deep down in the utility networks in an economically viable manner is currently a significant business and technological challenge with not all barriers well understood.

Through cross disciplinary research the TESA project will landscape the social, technical, regulatory, and design pathways to enable the future supply of energy to customers that will further stimulate investment in electricity generation both from small scale providers and customers themselves, reducing the nation's demands for large scale infrastructure investments.

When realised as a full research programme, key beneficiaries from TESA research will include innovators in energy retail and through these, consumers. Emerging energy retailers will be informed of the technical areas considered valuable to support novel energy delivery practices, the means by which these practices can interact with existing systems while remaining within existing regulatory constraints and the human factors involved with interacting with such a system within domestic routine. Distribution Network Operators, small generation providers and rural communities served by networks with minimal capacity who will see benefits such as deferred infrastructure investment costs, increased return on investment (through reduced curtailment) and improved system resilience. Through our engagement with stakeholders and external partners through this scoping exercise early progression along these impact pathways will be achieved providing a platform for further development as the full programme of research is realised.

In particular:

*Housing Associations - will be in a more advised position to innovate on future energy service offerings and at a minimum move towards personalisation of fuel advice, providing their tenants with additional peace of mind regarding energy bills.

*Consumer Groups (e.g. Which? Centre for Sustainable Energy) - would have an increasingly informed perspective on the emerging independent energy retailers and the benefits they can offer over the mainstream alternative.

*Community Groups (e.g. The Findhorn Eco-Community, Community Energy Scotland, Feldheim, Muswell Hill Sustainable Energy) - may benefit them directly through seeing what is possible in the field of energy retail and, through their networking with Development Trusts and other Community Trust organisations, the wider sector of community asset management.

Additionally, past consortium experience provides impact leverage through the project team's contacts with the other RCUK energy programmes and the broader set of energy systems stakeholders, including:

* Governance/Policy: - Ofgem, Scottish Government, Scottish Enterprise

* Research: UKERC, ECCI, Energy System Catapult, EPSRC, BRE

* Industry: Scottish Power Energy Networks, Scottish and Southern Energy, Rolls-Royce, NGC, WPD, Open Energy, Kiwi Power, Flextricity, Utility Retail businesses

* Communications/ICT: Open Energy, Vodafone, Huwaui, Cisco

* SMEs: Smarter Grid Solutions, filamentpd, Swarmonline, Star Renewable Energy, VCharge

Dialog with these stakeholders will identify the specific problem cases routinely encountered with each aspect of energy supply which can be generalised to policy influence and evolution.