An electricity system developed by DNO Electricity North West which could offer £1.2 billion in savings was the sole awardee of Ofgem’s latest innovation assessment and has been recognised by the energy regulator as “exceptional.”
Originating from an Ofgem innovation seed fund, the system, known as ‘CLASS’, makes minute reductions in the amount of power used by appliances such as streetlamps or household devices. These micro reductions do not affect appliances but, when added up, result in significant cost savings across the industry.
In a report produced by a panel of judges, Ofgem states: “The Panel views the CLASS project as having GB-wide benefits that are, in its view, exceptional. Ofgem in its impact assessment anticipates CLASS delivering net savings across industry of between £0.9bn and £1.2bn over the next 30 years. It also helps accelerate the development of a low carbon energy sector.”
Originally cleared to be rolled out nationally by Ofgem in December 2022, CLASS supports the National Grid ESO to manage spikes and dips in electricity demand and supply throughout Britain.
“We’re very pleased with this further endorsement of our solution,” said Ian Smyth, CEO at Electricity North West, a distribution network operator (DNO).
“As well as saving customers money, CLASS also has huge benefits for the environment. When National Grid ESO needs to balance the supply and demand of electricity in real time, they can either choose to fire up generators powered by fossil fuels or use technology like CLASS which provides the same benefit at a lower cost without creating any harmful emissions.”
CLASS was deployed more than two years ago to Electricity North West customers, whose electricity bills have been reduced by £7.3 million so far, according to the DNO.
“We know that to achieve decarbonisation without placing unnecessary pressure on consumer bills will require all the technological innovation that the energy system can muster. Innovation offers us huge opportunities to revolutionise how and when we use energy – through testing new technologies, new process, new IT and data opportunities that can help maximise efficiency,” said Steve McMahon, deputy director, onshore networks, price control setting at Ofgem added.
“CLASS is a prime example of this, initially funded through Ofgem’s innovation programme. The technology has clear benefits to consumers through lower bills and also has the potential to help reduce harmful emissions. We hope that our new Strategic Innovation Fund will continue to fund more ground-breaking innovation projects like CLASS in years to come.”