Recipient organisationSouthern Electric Power Distribution PLC
Funding£14.6M
PeriodMar 2019 — Mar 2023
In plain English
AI plain-English summary
Oxfordshire’s local power grid is full, and a new project is building a digital marketplace to let homes, businesses, and solar farms trade energy with each other rather than relying solely on the national grid. This matters because the UK’s electricity infrastructure was designed for one-way flow—from big power stations to consumers. Now, with rooftop solar, electric vehicles, and heat pumps, power flows both ways and local grids are hitting capacity. Project LEO (Local Energy Oxfordshire) tackles that bottleneck by creating a neutral “Market Integrator” that gives everyone the information needed to trade energy locally, easing strain on the wires. If it works, the project will demonstrate how to unlock value from distributed energy resources—solar panels, batteries, smart neighbourhoods, EV charging hubs—without costly grid upgrades. Up to 90 plug-in projects will test new investment models and show how a Distribution System Operator can fairly manage local markets. The resulting data and tools will inform Oxfordshire’s energy strategy and provide a blueprint for rapid rollout across the UK, helping decarbonise the power system while keeping the lights on.
View original technical description
"Project LEO (Local Energy Oxfordshire) delivers a transformative integrated smart local energy system to maximise prosperity form local energy systems and demonstrate new value creation opportunities. The local power infrastructure is at capacity in Oxfordshire. SSEN will demonstrate a neutral 'Market Integrator' that provides information to allow a local energy market place to function effectively with the existing infrastructure. Three companies will develop and deploy market platforms for local energy trading and services provision. Up to 90 plug-in projects, (solar, heat networks, smart neighbourhoods, micro-grids, EV and transport hubs, new housing developments and large flexible loads) - demonstrating new models for investment. LEO is continually improved through the collection and analysis of data to provide insights to the team and to inform the County's energy strategy. This strong evidence base will enable rapid rollout across the UK and beyond. The six key outputs of the project are: 1. **Markets** - accelerating the development of a mature flexible energy market of Distributed Energy Resources that provides solutions to energy needs, constraints and decarbonisation. 2. **New Investment Models** - for Distributed Energy Resources that reflect the value of their assets and their flexibility. 3. **Model for DSO** - the Distribution System Operator is a new type of organization that facilitates the effective use of the local power infrastructure. In LEO, SSEN will demonstrate the DSO's core role of neutral facilitation of markets, to enable the utilisation of Distributed Energy Resources, and how it resolves possible conflicts of interest. 4. **Assets for Strategic Planning** - developing the tools needed to make effective and efficient whole-system decisions about the energy ecosystem. 5. **Datasets for Research** - sharing understanding so the experience can be replicated elsewhere both in the local context but also nationally through the Electricity Networks Association (ENA's) Open Networks project. 6. **Community of Skilled People** - improving the skill sets of participants and enhancing the social capital of the local energy sector in Oxfordshire and more widely across England's Economic Heartland (the Cambridge-Milton Keynes-Oxford Growth Corridor). With the support of the Local Enterprise Partnership (LEP) and in consort with other bodies based in the region such as the Energy Systems Catapult, the Faraday Institute and the Hydrogen Hub, workshops and networking events will be held to foster a rich innovation sector focused around the clean energy sector."
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