IPL, an IT services company specialising in business critical software solutions, is working with Swanbarton, the engineering and commercial consultancy business, and working as a consortium, they have won funding from the government-backed Technology Strategy Board – The partnership will specifically investigate how to link local energy producers with local consumers, utilising the current distribution network and associated services.

The study, entitled Local Energy Markets Modelling and Analysis (LEMMA), is one of 30 feasibility studies that have received a total of £2 million of government funding from the Technology Strategy Board, the UK's innovation agency. Funding the studies is the first, exploratory, phase of a new four–year programme of government investment that aims to develop new technologies to help integrate future demand and energy supply into a flexible, secure and resilient energy system.

A Local Energy Market is defined by IPL and Swanbarton as a framework for managing the integration of locally–generated energy with the various distribution networks and the financial modelling that underpins the entire activity – including the practical mechanisms for the safe input of locally–generated energy and the framework that makes it possible to attribute power usage to either local generators or the wider network.

The aim of the IPL–Swanbarton study is to develop an innovative approach to power distribution, demand management through an exploratory investigation into how domestic and commercial consumers will be able to act as local generators of electricity. The challenge faced is how these local energy generators will be able to interact with local energy markets to buy and sell energy between regional consumers and other energy generators/distributors.

IPL will be examining the pre–requisites and viability of various process models and information structures that will support the programme. Swanbarton will assess the infrastructure requirements for storing energy locally and distributing it throughout the network, and the legislative considerations surrounding its storage.

Neil Morgan, Head of Energy at the Technology Strategy Board, comments, “We are delighted to support the joint proposal from Swanbarton and IPL. Their examination of the viability of Local Energy Markets has the potential to lead to both lower energy costs and a reduction in emissions of carbon dioxide. We look forward to seeing the results of the study.”

Emma Goodwin, Divisional Director for Telecoms and Utilities at IPL, continues, “National energy consumption continues to rise year on year, making efficient energy production and distribution management absolutely vital, not only for environmental reasons, but also in order to ensure there is (frankly) enough power available at all times. Feasibility studies such as this are therefore vital in ensuring that measured and calculated on–going plans can be put in place and are sufficiently robust and long–term to be of tangible and substantial value.”

Anthony Price, Director of Swanbarton concludes, “Collaborating with IPL, bringing together their information management expertise and our knowledge of the energy sector, will bring huge benefits to consumers and the industry alike. By quantifying the benefits of Local Energy Markets and identifying practical methodologies to make the plans a reality, savings in energy network operational costs can be targeted, along with substantial contributions to the national reduction of carbon dioxide emissions.”

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