National Grid Distribution System Operator (DSO) has awarded over 500 flexibility trades across its network in order to increase competition in local flexibility markets.
National Grid DSO has successfully procured over 18GWh of availability and 1GWh of scheduled utilization through the 525 contracts it has awarded across the South West, Wales and the Midlands. According to National Grid DSO, these new contracts will increase competition in local flexibility markets and deliver significant cost savings for the energy system, which will be passed on to bill payers.
Cathy McClay, DSO managing director, said: “The results of this trade round demonstrate we are building a growing flexibility market that is accessible, attractive, and fit for the future. Asset growth has been driven by the improved digital registration methods we’ve introduced, which have enabled large volumes of domestic low-carbon technologies to access our markets.”
McClay added: “Our efforts to provide flexibility service providers with greater choice on how they enter the distribution flexibility market are bearing fruit as we see an increase in the number of organisations registering to participate and the number of flexibility offers made to us.”
Flexibility market set for expansion and changes
The role of flexibility providers in the UK’s energy market has become an increased focus of the sector in recent months and years, as the increased presence of renewable energy necessitates a more adaptable and flexible energy system.
Earlier this month, the energy regulator Ofgem launched a consultation into proposed changes to the Capacity Market rules, including removing the 50MW limit on aggregate capacity for capacity market units.
Meanwhile, balancing and settlement code (BSC) manager Elexon has released its response to a consultation on the electricity distribution price control (ED3) framework, urging the regulator to better articulate the “critical role” of flexibility in the modern electricity network. Elexon has stated that it is “generally supportive” of Ofgem’s proposals and agreed with the reasoning behind them. However, the company added: “We believe there is an opportunity for Ofgem to enhance the strategic messaging around […] the critical role of flexibility as emphasised in the government’s Clean Power 2030 action plan is equally recognised.”
Additionally, UK Power Networks (UKPN) DSO recently celebrated a significant milestone in flexibility, with over 100,000 live assets being registered on its Localflex platform. These assets comprise a wide variety of market participants, ranging from electric vehicle (EV) smart charging, renewable generation sources like solar and wind farms, and domestic and commercial energy management assets.