The Energy Networks Association has launched a new consultation seeking views on modernising flexibility markets which it says are “no longer fit for purpose”.
Its ‘Commercial Principles for Contracted Flexibility’ consultation is seeking the views of energy stakeholders as it plans to feed into the formation of new markets and opportunities for distributed energy technologies –including solar and storage – to contribute towards the flexibility of the national grid.
The ENA said that consumers, distribution network operators and distributed energy technologies were no longer merely passive entities in the energy market and had the potential to be more active participants, and in particular could be an important source of flexibility in the future.
Meanwhile DNOs and the system operator National Grid are seeing their roles and responsibilities change and adapt to an emerging energy system which will need them to be more hands-on.
The consultation summarises five considerations which the ENA has said will need to be addressed in order for distributed generators to provide services in such a way that reduces overall system costs, very much building on work already being conducted by the likes of Ofgem and the Department for Business, Energy and Industrial Strategy.
These considerations include;
- The procurement and operation models used to allow distributed energy sources to offer multiple services,
- How DSOs and the SO ensure the levels of visibility and controllability required to effectively manage transmission and distribution network constraints,
- Assurances over routes to market for distributed energy sources, and that they can coexist and compete,
- How curtailment of distributed energy sources for transmission constraints is treated from a commercial perspective,
- And how distribution congestion management roles develop alongside the DNOs’ transition to DSOs.
Each consideration has been divided into more specific questions, with the consultation set to close on 29 September. The responses will feedback into the development of various frameworks required for flexibility services.
The ENA said that local electricity networks could deliver as much as £1 billion in savings as a result of innovations being rolled out more efficiently over the network, something which ENA chief executive David Smith expanded on by arguing that such networks would increasingly need access to new technologies and services to ensure cost-effective operation.
“The smart grid transition has the potential to create a whole new range of market opportunities for new technology and service providers, many of whom will be participating in the UK market place for the first time.
“This paper is about ensuring they have the access to those things, but also about how we can ensure that we make the most of the smart transition for those companies providing them,” he said.
Meanwhile Leonie Greene, head of external affairs at the Solar Trade Association, said that its members were now “especially keen” to see progress on the creation of new localised markets which would fully embrace solar and storage.
“Change cannot come fast enough for our industry which needs the electricity system to catch up with the rapid pace of technology change in clean power generation and storage. The consultation is a crucial first step towards defining the system change needed and therefore particularly important and welcome,” she said.
