Unlocking innovation at the grid edge: a regulatory proposal to extend 'complex site' arrangements

Connecting highly-distributed renewable generation to constrained electricity distribution networks poses challenges, to which two solutions are normally proposed: (1) costly and disruptive network reinforcement or (2) real-time matching of local supply and demand through local energy markets. (1) is widely held to be undesirable, for social, economic, and environmental reasons. Where (2) is concerned, local markets are being developed and tested1 but this is a slow process.

To accelerate matching of local supply and demand without recourse to competitive markets we propose an approach that is relatively rapid and straightforward, and that takes the system in the desired direction. The approach requires no primary legislation and builds on existing rules - complex site arrangements - that allow groups of individually-metered sites to be registered and accounted for as single entities within settlement. The arrangements were introduced to facilitate distributed generation on industrial sites with multiple network connections, and are now also used by some innovative energy communities.

There is a strong case for clarifying the balancing and settlement codes (BSC) related to complex sites, and for promoting the arrangements to further support group participation and confidence in smart local energy, whilst creating space for new business models. Below, we explain the reasoning behind our proposition, building on experience with an operational example and call for support towards realising increased innovation via clarifying complex site arrangements.