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Ofgem launches first Local Energy event

Ken McRae Pixie Energy General Manager

Ofgem held its inaugural Local Energy and the Energy System Transition event on 14 February. The event brought together stakeholders from across the local energy policy space to discuss emerging policy, regulatory challenges, and market innovations. Policy areas The day provided an opportunity for BEIS and Ofgem to outline their perspectives of the local energy and heat policy areas, and the associated regulatory framework. Patrick Allcorn, the Head of Local Energy at BEIS, opened the event and spoke about the need for a new approach whereby: innovation is brought to market more quickly where macro-focused policy is re-slanted to focus on the business model perspective, and that solutions should be more localised to involve local and planning authorities. He also highlighted that, in many cases, local solutions are often more cost-effective, but this needs to be both proven and articulated further. Advice and sandbox Daniel Kirk, Head of Ofgem’s Innovation Link, gave an overview of the two services – Advice and Sandbox – provided by the regulator to businesses looking to launch new products, services or business models. Kirk confirmed that Ofgem provides applicants with an informal steer and confirms whether the proposal can proceed within the boundaries of current regulation. If not, Ofgem will consider other forms of support, for instance derogations from licence conditions. Innovation Link will also publish guides on how regulation affects particular business models or provide a binding steer that a particular approach to running a trial would be acceptable. Kirk indicated that, to ...

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