electricity markets

The UK Electricity System: Supporting Operability Through Operational Data Infrastructure

Inkwelldata

08 Feb 2026 • 3 min read

The UK electricity system is undergoing a substantial transformation. Generation is becoming more decentralised, flexibility is increasingly important to system balance, and operational responsibility is being shared across a wider range of actors.

The establishment of the National Energy System Operator (NESO) reflects this shift and provides the institutional framework to manage the system on a whole-energy basis.

As this transition progresses, the practical requirements of operating the system are becoming more prominent. While market mechanisms and regulatory frameworks continue to evolve, equal attention is now being given to the digital and operational capabilities required to make these mechanisms function effectively in practice. This includes the ability to observe system conditions accurately, coordinate large numbers of assets, and act in a timely and secure manner.

Market Design and the Practical Operation of the System

Over recent years, the UK has introduced a range of reforms to support a low-carbon and flexible electricity system. These include improvements to the Balancing Mechanism, the introduction of new ancillary services, settlement reform, and closer coordination between transmission and distribution networks.

These measures depend on the availability of reliable operational data. As the number and diversity of flexible assets increase, the system must handle a much broader range of technologies, communications standards, and response characteristics. Batteries, demand-side response, electric vehicles and other distributed resources all contribute to system operation, but each brings different technical requirements.

            Ensuring that these assets can participate effectively in markets and operational processes requires a digital foundation that can represent them consistently, manage their data securely, and support timely coordination across the system.
        

Operational Data Infrastructure in a Modern Electricity System

Operational Data Infrastructure provides the means to connect physical assets with system and market platforms in a structured and reliable way. It enables assets to be represented digitally, allowing telemetry, control signals and governance rules to be applied consistently across different technologies and locations.

In the UK context, this type of infrastructure supports several important objectives:

Key Objectives

Providing system operators with a coherent view of distributed assets

Enabling reliable delivery of balancing and flexibility services

Supporting coordination between national and local network operations

Ensuring compliance with cyber-security and regulatory requirements

By addressing these needs, Operational Data Infrastructure can help translate policy and market arrangements into effective day-to-day system operation.

Altior's Role Within the System Architecture

Altior is designed as Operational Data Infrastructure for energy systems. It operates between physical assets and existing platforms such as optimisation, trading and control systems. Its purpose is to simplify integration, improve operational reliability, and support secure coordination at scale.

Asset Virtualisation

Altior provides a standard digital representation of physical assets. This allows different types of equipment to be managed through a common interface, regardless of manufacturer or communications protocol. From an operational perspective, this enables consistent handling of assets ranging from large-scale storage to aggregated domestic flexibility.

Telemetry and Control

Altior supports time-aligned telemetry and low-latency control. This ensures that operational signals are delivered and acted upon within predictable timeframes. Such capability is increasingly important as the system relies more on inverter-based resources, where precise coordination is required to maintain stability.

Data Governance and Security

Altior applies data ownership and access controls as a core part of its architecture. This supports alignment with the UK Cyber Assessment Framework and emerging requirements related to NIS2. Data can be shared between relevant parties, such as NESO and distribution networks, while maintaining appropriate security and commercial protections.

Coordination Across System Levels

Altior enables coordination across different parts of the system, including local and national contexts. Operational signals can be applied at suitable points in the network, allowing flexibility to respond to system needs in a structured and scalable manner.

Benefits for System Participants

Operational Data Infrastructure supports a range of stakeholders across the electricity system:

NESO

Benefits from improved visibility and confidence in distributed flexibility.

Distribution Network Operators

Gain better tools to manage local constraints and coordinate with national system operation.

Aggregators and Service Providers

Experience reduced integration effort and faster onboarding of new assets.

Regulators

Gain greater transparency into system behaviour and clearer evidence of operational performance.

Supporting the Delivery of Clean Power 2030

Delivering Clean Power 2030 requires not only investment in generation and storage, but also the digital capabilities needed to operate a more complex system reliably. Operational Data Infrastructure plays an important role in this context by providing the foundation for secure, coordinated and scalable system operation.

            Altior supports this objective by enabling consistent asset representation, reliable data exchange and secure coordination across the electricity system. In doing so, it helps ensure that regulatory and market arrangements can be implemented effectively in the operation of the UK's electricity system.
        