Talking UK Power with David Holt
An Interview with David Holt, CEO of Enegen
ComTech Advisory: In the recent past, it has been made easier to bring smaller generation assets to the table. Can you describe how?
David Holt: Whilst National Grid ESO, the UK electricity system operator (NGE) have not updated their core systems since the early 2000s, they have implemented ‘Wider Access’ to encourage new, smaller asset operators to participate in the Balancing Mechanism – Great Britain’s core flexibility market. This has meant that small asset operators do not need to install fixed lines to communicate with NGE and can do so over the internet. NGE have also introduced the VLP – the Virtual Lead Party – a new type of industry participant. A VLP is an independent aggregator who controls (potentially on behalf of a third party) power generation and/or electricity demand from a range of assets for the purposes of selling Balancing Services to NGE.
ComTech Advisory: With the ongoing march to renewables and smaller distributed assets, and increased demand from EVs etc., where do you think changes will be made in the next few years to cater for this new world?
David Holt: Renewable generation, typically wind and solar, is by its nature intermittent in the UK. This increases instability on the network. Two key elements are volatility in output and frequency. To counteract both of these critical parameters, ‘gas peakers’ were initially deployed as the main solution. Gas peakers are hardly an eco-friendly producer of energy being under half as efficient as CCGT plant. More recently, battery storage has provided the answer alongside other stability services. Its deployment is gathering pace with many larger generation companies investing in large battery installations. Over the next few years, wind and battery and other emerging technologies will need to replace some of the UK aging nuclear fleet too. Increasing use of EVs adds the challenge and will require further significant investment and innovation in the generation space. One of our recent clients is leading the way in supplying battery technology to many EV bus operators in the UK.
ComTech Advisory: How does your ATOM product fit into this industry structure and where do you see it being deployed?
David Holt: ATOM was designed to meet the requirements of the trend towards Distributed Energy Resources (DER) rather than large power plants. ATOM is effectively a multi-VPP (Virtual Power Plant) enabling operators and traders to utilize the most profitable asset(s) in any trading period. Our original thoughts were that ATOM would be focused on smaller participants with 5, 6 or more assets but we are getting increasing interest from some of the older established generation companies too as they diversify their portfolios. ATOM allows a participant to trade many assets automatically releasing traders to focus on strategy rather than operational detail. Together with our partners, many of whom you are very familiar with, we can offer a complete IT suite for trade, optimization, scheduling and control of assets.
ComTech Advisory: Do you see other market opportunities for developing new solutions? If so, where?
David Holt: We see a number of areas where opportunities exist for new software and services as well as targeting new markets. Several new SaaS solutions are currently in the development pipeline that complement our existing portfolio. Watch this space!
ComTech Advisory: How has BREXIT impacted the UK power industry and do you expect further changes?
David Holt: The main impact has been the delay, or potential scrapping of the UK’s participation in TERRE (Trans European Replacement Reserves Exchange) – the new European market for exchanging replacement reserves – a trans-European Balancing Mechanism. I guess in a buoyant job market, which we are now encountering, it may impact recruitment, but we have seen little or no effects on our business or the UK power industry in general. We don’t expect to see any residual effects to be honest.
About David Holt, CEO of Enegen
Dave is the CEO of Enegen. Dave brings more than 24 years of experience in software development and project management as well as extensive experience of the electricity wholesale and retail markets in the UK, Holland, Italy and France. Prior to leading the management buyout of Enegen, Dave was the Chief Commercial Officer at Dunstan Thomas where he was also responsible for the management of the Energy business.
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