Energy networks and distributed energy resources in Great Britain

This paper examines the rules and incentives governing electricity, gas and heat networks in Great Britain from the perspective of ho w far these facilitate or prevent a shift towards an energy system with more ‘distributed energy resources’, including flexible demand, local electricity generation and heat production, and energy storage. Much of the analysis focuses on electricity distri bution network, where the greatest need for innovation is expected to lie. Most of the relevant rules and incentives arise from the economic regulation of networks, and from licence conditions and industry codes and standards. The paper goes on to describe the governance of these frameworks, and how that governance has evolved since privatisation. Finally, the paper offers an interpretation of why that evolution has taken the course it has.