In this insight paper:
WSP, Cornwall Insight and Complete Strategy are undertaking a Network Innovation Allowance (NIA) funded project on behalf of National Grid Electricity System Operator (NG ESO) and Western Power Distribution (WPD). The project is investigating the optimal coordination of Active Network Management (ANM) schemes on both the distribution and transmission networks with Balancing Services markets.
Active Network Management (ANM) schemes are becoming increasingly widespread on GB distribution networks, alongside the development of some schemes on the transmission network. The schemes vary in complexity and scale, but to date all have a similar purpose: to enable generation to connect to the transmission or distribution network more quickly and at lower cost by actively managing generation output to avoid breaching existing network limits, rather than undertaking network reinforcement. ANM schemes benefit consumers by minimising the costs of connecting new, often low carbon, generation, which helps to decarbonise the network and reduce costs to consumers.