The value of information in managing the electricity system
National Grid (NG) Electricity System Operator is responsible for balancing supply and demand in the GB electricity transmission system. To do so it requires accurate real-time information on both generation and demand. However, much smaller-scale and highly variable renewable generation is embedded directly in the distribution networks. NG does not have direct metering of how much power this generation is providing at any given time. This lack of knowledge increases the constraint and other costs to keep the system balanced. The problem posed is that of estimating the potential savings of having accurate real-time knowledge of such embedded renewable generation. This report considers two approaches to making such estimates and briefly explores a statistical approach to the modelling of non-constraint costs. Suggestions are made as to what further information might be collected by NG to make improved estimates of the benefits in system operation of direct metering of embedded resources.
