Smart local energy systems (SLES): A framework for exploring transition, context, and impacts

Abstract

Energy systems globally are becoming increasingly decentralised; experiencing new types of loads; incorporating digital or "smart" technologies; and seeing the demand side engage in new ways. These changes impact on the management and regulation of future energy systems and question how they will support a socially equitable, acceptable, net-zero transition. This paper couples a meta-narrative literature review with expert interviews to explore how socio-technical regimes associated with centralised systems of provision (i.e. the prevailing paradigm in many countries around the world) differ to those of smart local energy systems (SLES). Findings show how SLES regimes incorporate niche technologies, business models and governance structures to enable new forms of localised operation and optimisation (e.g. automated network management), smarter decision making and planning, by new actors (e.g. local authorities, other local stakeholders), and engaging users in new ways. Through this they are expected to deliver on a wide range of outcomes, both within the SLES boundary and to the wider system. However, there may be trade-offs between outcomes due to pressures for change originating from competing actors (e.g. landscape vs. incumbents in the regime); understanding the mapping between different outcomes, SLES elements and their interconnections will be key to unlocking wider benefits.

Local energy businesses in the United Kingdom: Clusters and localism determinants based on financial ratios

“…The new UK Infrastructure Bank 13 is expected to accelerate investment into major infrastructure projects, including decarbonisation. Its role in the financial and real assets markets could be critical in increasing the level of private investment in smarter, more local energy businesses.…”

“…The authors devised a qualitative scale to estimate degrees of localism and smartness, and used this to categorise LEBs in a matrix; the qualitative scale is used later in this paper 2 . Localism was estimated using a four-point scale, with constituent elements of relationships with stakeholders (via global participation in projects), asset ownership, and decision-making processes involvement at a local level [10,13].…”

“…The latter development enables characterisation of a UK local energy business (LEB) sector, which currently encompasses businesses with a diverse mix of owners, sizes, degrees of localism and smartness, revenue sources, and technologies [10]. Local, smarter energy systems are expected to support decarbonisation, reduce overall transition costs to a net zero carbon system, and improve local welfare [11][12][13][14].…”

“…Starting from a systemic perspective, researchers have proposed a methodology for designing 100% renewable smart energy systems [37]; others have explored the complex transition towards smart and local energy systems, considering the interaction between the incumbent regime (i.e. prevailing centralised ways of energy provision), changing trends and unexpected events, and social and/or technical innovations [13,38]; some authors have proposed a conceptual framework for estimating energy demand and supply more accurately, so as to inform energy transitions at local level appropriately [39]. Overall, little attention has been paid directly to LEBs and their finances from a sectoral perspective, and the implications for future development.…”

Customer Privacy Concerns as a Barrier to Sharing Data about Energy Use in Smart Local Energy Systems: A Rapid Realist Review

“…Smart energy systems are focused on more than the generation and distribution of electricity, integrating other sectors, such as heating and cooling, and transportation [4]. A key element of SLES, though-the element that makes them smart-is their use of data [5].…”