In 2019, legislation was passed in the UK, which required at least a 100% reduction of greenhouse gas emissions by 2050 against a 1990 baseline. As a result, the UK became the first major economy to commit to Net Zero by 2050.
In the past decade, the UK has reduced climate emissions at a faster rate than any country in the world. However, the urgency of climate change means that the UK has to go further and beyond its current commitments to decarbonisation and Net Zero. The Intergovernmental Panel on Climate Change (IPCC) reported that in order to reach Net Zero by 2050, we would need to reduce emissions by 45% by 2030.
Ahead of the COP26 Elexon joined the SME Climate Hub and the Race to Zero International Campaign. We have committed to halving our greenhouse gas emissions by 2030 and reaching Net Zero emissions by 2050.
At Elexon, we prioritise enabling innovation within the industry, and facilitating the changes needed in the energy industry to achieve Net Zero.
To support this, we have developed a new corporate purpose ‘Serving at the heart of the energy industry, building a path to Net Zero’.
What we are doing
Elexon has approved or is progressing the following BSC Modifications and activities, which facilitate Net Zero in the short term, medium term and long term.
Wider Access (P344)
Wider Access refers to opening up the Balancing Mechanism to independent aggregators – also known as Virtual Lead Parties (VLPs). VLP’s can help consumers and other market participants to provide more demand-side-response (DSR). This is an important development on the road to a smarter, greener and more flexible electricity system.
Metering behind the Boundary Point (P375)
This Mod will enable the activity of smaller asset owners to be recognised in Settlement through the use of individual ‘asset meters’. The issue was that there currently is limited visibility because the BSC only recognises flows of electricity to and from the ‘boundary meters’. This will make it easier for low carbon asset owners to offer their services.
Open Data and BSC Modification (P398)
Access to open data promotes the development of new business models and helps promote innovation towards more environmental-friendly technologies. Open Data can enable individuals, generators, distributors, suppliers and regulators to make better-informed decisions. It improves how we generate, trade and consume energy.
Elexon Kinnect is a new digital platform that will enhance Balancing and Settlement services. It is designed to be re-configured and expanded if needed to support faster changes to code rules than is present at the minute. The new platform will keep pace with the rapid rate of change that will be needed especially in code modifications to support Net Zero.
Market-wide Half Hourly Settlement (MHHS)
MHHS will send accurate signals to Suppliers about their customer’s electricity usage, which results in a more efficient system. At a consumer level, this allows the customer to track and monitor their energy usage in real time hence giving them the opportunity to make more energy-conscious decisions.
The BSC Sandbox enables limited pre-competitive trials of potentially innovative products or services in a live market environment. It achieves this by allowing BSC Parties to participate in the BSC Trading Arrangements with certain obligations removed or altered (a derogation).
At Elexon, we consider ourselves as innovation facilitators within the energy industry and we would equally like to inspire our stakeholders and the industry to make positive commitments towards Net Zero. This is a great opportunity ahead of COP26 to reduce our carbon footprint and show our commitment to achieving Net Zero. A joint collaborative effort is required to ensure we move towards a greener and brighter future.