A first-of-a-kind electricity system which could save Great Britain’s customers £1bn has received special recognition from energy regulator Ofgem.
The system reduces, by very small amounts, the amount of power used by everything from streetlights to everyday household devices. The reductions are not noticeable to the human eye and does not affect the appliances but when the micro reductions are added up across a wide area they amount to massive savings.
Developed by regional electricity network operator, Electricity North West, the system known as CLASS, helps National Grid Electricity System Operator (ESO) smooth out the spikes and dips in electricity demand and supply across Great Britain.
In December, Ofgem published its decision to allow the system to be rolled out nationally. Describing it as ‘low cost’, a ‘reliable technology’ that will also in some cases ‘eliminate the need for automated disconnection’ of customers if there are power shortages.
Originating from an Ofgem innovation seed fund, the regulator has now further praised CLASS, recognising it as the only project to receive an award in its latest assessment of network company innovations.
In a report produced by a panel of judges, Ofgem states: “The Panel views the CLASS project as having GB-wide benefits that are, in its view, exceptional. Ofgem in its impact assessment anticipates CLASS delivering net savings across industry of between £0.9bn and £1.2bn over the next 30 years. It also helps accelerate the development of a low carbon energy sector.”
Ian Smyth, Electricity North West’s CEO, said: “We work tirelessly to develop energy solutions which reduce costs, improve service and maximise network reliability for the people and businesses of the North West. We’re proud of the teams that built this system. We’re very pleased with this further endorsement of our solution.
“As well as saving customers money, CLASS also has huge benefits for the environment. When National Grid ESO needs to balance the supply and demand of electricity in real time, they can either choose to fire up generators powered by fossil fuels or use technology like CLASS which provides the same benefit at a lower cost without creating any harmful emissions.”
Steven McMahon, Deputy Director, Onshore Networks, Price Control Setting at Ofgem added: “We know that to achieve decarbonisation without placing unnecessary pressure on consumer bills will require all the technological innovation that the energy system can muster. Innovation offers us huge opportunities to revolutionise how and when we use energy – through testing new technologies, new process, new IT and data opportunities that can help maximise efficiency.
“CLASS is a prime example of this, initially funded through Ofgem’s innovation programme. The technology has clear benefits to consumers through lower bills and also has the potential to help reduce harmful emissions. We hope that our new Strategic Innovation Fund will continue to fund more ground-breaking innovation projects like CLASS in years to come.”
As part of the assessment process, Electricity North West evidenced how it had accelerated the development of the low carbon energy sector; delivered net financial benefits to customers; made exceptional effort to ensure the project exceeds the expected delivery outcomes; and maximised the learning from the project for the good of all GB customers.
CLASS was deployed over two years ago and Electricity North West customers have seen their electricity bills reduce by £7.3m as a result. Additionally, all Great Britain’s energy consumers received benefits from lower national grid balancing costs.
To read the full report, please visit https://www.ofgem.gov.uk/publications/decision-low-carbon-network-funds-second-tier-reward-2022.
