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Smart Grid - Recommendations - EY - United Kingdom

Smart Grid: A race worth winning?


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To address the challenges around developing smart grid infrastructure, our report explored possible solutions. It recommends fresh thinking by government, regulator and industry:

  • Policy makers need to provide as much guidance as possible. Creating additional flexibility in current standards will also be important. It will also be useful to discuss what is not needed yet, and create a holistic energy roadmap.
  • The regulatory process needs greater focus on protecting customers by making sure there is enough network investment to cover risks. This could come from the regulator, and companies publishing a risk review. We also need to identify and evaluate “no or at least low regrets” investments.
  • The risk / reward balance faced by DNOs for innovating should include incentives to apply learnings to their networks or move faster than others to deliver smart grid.
  • There needs to be greater focus on consumer engagement to ensure customers understand the advantages of smart grid and smart meters. It will be important to look at the best way to engage different types of customer, and whether a degree of automation is needed.
  • It is important not to take the current industry model as a given. There are complex challenges to address and alternative models need to be explored.
  • Further investment in skills is needed, for example by an extension of the workforce renewal elements of DPCR5, and a co-ordinated national approach covering the smart grid supply chain.
  • Projects under the successor scheme to the LCNF must progress to a larger scale of test, both in using a number of elements together, and in integrating them more fully over a larger area.


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Bill Easton

Bill Easton, Director
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