Visibility, Control, and Risk: Operational Metering Strategies for a CER-Dominated Energy Future

(NESO), the Great Britain (GB) Electricity System Operator (SO), to review the real-time data metering requirements for participants in NESO markets. The project identified a need to update the existing requirements to address the growing impact of Consumer Energy

Resources (CERs) on system operation and resolve the barriers to market entry faced by

CERs.

CERs include smart consumer devices such as solar PV, home batteries, EVs, and heat pumps that can integrate into electricity markets. Their rapid growth poses challenges for

Transmission System Operators (TSOs) because CERs increase demand and respond dynamically to price signals and weather changes. Located behind the meter at low voltage levels, CERs are typically invisible and non-dispatchable by the SO.

Operational Metering (OM) requirements ensure real-time measurement and data submission meet standards for accuracy, latency, and intervals. The existing OM requirements were developed for large-scale centralised generators using industrial grade metering systems and dedicated communication channels. Aggregated CER units, however, rely on consumer-grade devices and public networks, making compliance difficult. This prevents CERs from entering electricity markets e.g. Balancing Mechanism (NESO’s primary tool for balancing supply and demand) and limits visibility and control in addition to market liquidity.

The project examined CER compliance challenges through research on CER capabilities, stakeholder engagement with aggregators and manufacturers, and international benchmarking of TSO metering standards. The main barrier is the requirement for CER assets to send meter readings every second. Relaxing this mandate would enable CER participation but could degrade OM data quality, introducing delays in aggregated signals and affecting NESO’s situational awareness and dispatch decisions during ramping periods.

An impact assessment evaluated options for CER OM requirements using NESO’s Future

Energy Scenarios (FES) for 2035 combined with a Python model for CER portfolio metering.

Data quality impacts were assessed against acceptable risk tolerance for discrepancies between metered and actual generation.

The recommended short-term solution is to reduce meter update frequency from one second to 30 seconds or less, to enable broader CER participation whilst developing new systems which can minimise the impact of relatively lower quality data by applying correction algorithms either on NESO or aggregator systems as CER capacity grows. This approach balances the need for high-frequency, high-quality data (originally designed for large generators) with practical requirements for scaling CER integration. It ensures NESO gains visibility and control over CERs without incurring excessive costs, supporting a more flexible and resilient electricity system.