Active Network Management (ANM) is central to enabling a decentralised, carbon-neutral grid, helping energy networks adapt to increasing demand and the integration of renewable generation.
How Do We Transition from Centralised to Decentralised (Distributed) Energy Systems?
Electricity in Great Britain was traditionally generated by large power stations that burned fossil fuels, with most of the supply coming from a few centralised locations. These facilities operated with unidirectional power flow from the power station to the demand location, and offered operational simplicity across the grid. However, this centralised structure has inherent systemic vulnerabilities due to the dependency on a small number of bulky electrical generators.
With the rapid increase in electricity demand in GB driven by factors such as the widespread adoption of Electric Vehicles (EVs), ongoing industrial expansion, increasing digitalisation, data centres and the electrification of heating, the centralised energy system is struggling to function with the transforming energy network we have today. The reliance of the traditional grid on fossil-based energy sources (such as coal, gas and oil power plants) has resulted in the energy sector being one of the largest contributors to global carbon emissions. To address these environmental and structural challenges, the integration of Low Carbon Technologies (LCT) emerged. The most widely used low-carbon technologies this century in the UK are wind turbines, Bioenergy and Solar Panels, currently generating about 50% of the overall UK electricity production according to Digest of UK Energy Statistics (DUKES).
Installing renewable plants (such as Wind or Solar PV) at large generation capacities is challenging, mainly due to the extensive land area they require. Therefore, these renewable sources and other forms of clean energy tend to be smaller in size and installed closer to the point of consumption, including at the residential and community-scale levels. This transformation marks a strategic shift away from the traditionally used centralised model and moves the network towards a Distributed Energy System, where multiple, smaller generating units contribute to the local grid security, sustainability, and economics at a lower Voltage level with smaller plant capacities installed.
What is Active Network Management (ANM)?
One of the primary concerns with the move towards a decentralised system is how the traditional power system will adapt to the multiple-source bidirectional power flows. In contrast to the traditional power system, the modern grid features assets that can both consume and export electricity to the grid, such as Battery Energy Storage Systems (BESS) or Electric Vehicles (EVs). This shift requires a fundamental reconsideration of system design, especially concerning protection schemes, voltage regulation, and grid coordination. Legacy infrastructure was not originally intended to manage the complexity of a decentralised system, and issues are appearing as more and more renewable energy sources are installed into the GB network.
To address these challenges, Active Network Management (ANM) has emerged as a key enabling technology. The ANM system enhances grid stability by actively monitoring, coordinating, and optimising distributed assets in real time. By integrating both hardware for continuous monitoring of thermal flows and voltage, as well as software that uses intelligent algorithms to automatically adjust grid operations, the system ensures more efficient and safer control of power flows under dynamic conditions in a distributed network. The stability of the grid hinges on maintaining the balance between generation and demand, which becomes harder to maintain within a decentralised, low carbon future grid. By enabling more flexible and adaptive control mechanisms, Active Network Management not only supports the technical integrity of the grid but also accelerates the transition toward a net-zero-aligned energy system.
The Energy Trilemma and ANM
With its roots starting at the beginning of the 21st century , the Energy Trilemma is a concept developed by the World Energy Council (WEC) and was initially brainstormed as an index to rank countries based on their management of trade-offs. It quickly became a widely used point of reference for companies and authorities to check that new ideas effectively balanced three critical energy-related aspects. As the name suggests, the Energy Trilemma is comprised of three key subjects: Sustainability, Affordability and Security of the grid, and these three pillars are the baseline of a robust electricity grid . ANMs contribution delves into all three of these aspects.
Security (Carbon Efficiency) is mainly about reducing the carbon emissions from the energy sector, which is primarily done by introducing more LCTs and gradually reducing the output of fossil fuel plants and in the best-case scenario , decommissioning them. Most of the LCT generation is harder to control due to its unpredictability in electrical energy production. The electricity outputs are variable due to the direct dependence on natural factors (such as wind or sun). Active Network Management counteracts this variability by coordinating assets on local and larger scales and making real-time automated decisions. For example, consider a specific area in GB has large amounts of energy being produced by wind at a specific point in time, but the demand is low. In this scenario, ANM will decide on whether to curtail the wind, while local energy storage systems may absorb excess energy, especially if other markets such as recently launched Distribution flexibility markets incentivise them to do so. Compared to a system with no ANM, this means that the electricity produced by LCTs will be used more effectively than the current scenario, which is to curtail renewable generation if production is in excess of demand.
Security of the grid depends on having clear visibility of key grid variables such as voltage, current, frequency, load, and generation. Monitoring these conditions in real-time helps to quickly detect and respond to any disruptions, maintaining overall grid stability. A resilient grid is built to handle disruptions smoothly by using a mix of energy sources, backup systems, and flexible operations. ANM allows the grid to adapt quickly to changing conditions, whether an unexpected renewable energy changes, sudden demand spikes, or equipment failures. ANM helps to strengthen grid resilience by almost instantly locating potential problems ahead of any worst-case fault. In this way, the grid is secured under the “N-1” (worst-case fault) concept, and this prevents small issues from escalating into widespread outages, helping maintain reliable and continuous electricity supply even during unexpected and unforeseen events.
Affordability is a major consideration for ANM, and is a primary reason why it is used over just reinforcing the grid to facilitate extreme worst-case scenario flows, or tripping off generation following network faults. The cost of electricity includes everything from generation and delivery, to grid management, with these costs being partially spread among consumers and traders. By involving ANM, the rapid decision-making processes allow for the more commercial certainty for power plant operators under this scheme. Additionally, ANM allows the grid to defer Capital Expenditures (CapEx) by avoiding or delaying asset reinforcements.
How Will Curtailment Evolve in the Future Grid with ANM?
Looking to the future, curtailment is shifting from being a blunt tool for grid protection to becoming a smart, data-driven control mechanism. Enabled by ANM, the future of curtailment will be dynamic, transparent, and curtailment in the traditional sense of “dumb” intertrips will become increasingly avoidable. ANM allows for real-time, location-specific export and import limits to be set based on live grid conditions, which means that generation is only curtailed when and where it is necessary.
Rather than viewing curtailment as a penalty or loss, ANM transforms it into a coordinated response. In many cases, ANM platforms will prioritise the use of demand-side flexibility or energy storage before curtailing clean electricity generation. This repositions curtailment as a signal within a wider market framework, driving smarter asset operation and informed investment.
At Blake Clough Consulting, we support clients across the energy sector with comprehensive curtailment analysis services. Our team models both Distribution and Transmission curtailment risks using real network data, LIFO stack modelling, Monte Carlo scenario-based simulations, and more. We help developers, operators, and investors to understand when, where, and how often curtailment is likely to occur, as well as the financial impact it could have. This insight enables more confident project design, flexible connection planning, and strategic participation in future grid markets.
Get in touch today to find out how Blake Clough can help you to understand the complexities of ANM and what it means for your projects.