National Grid ESO has released its Winter Outlook for 2023/24 detailing the reintroduction and expansion of the demand flexibility service (DFS).
The Winter Outlook publication stated that the DFS scheme will be reintroduced this winter and will be “developed even further” to ensure more consumers and business are able to take advantage of the opportunity this scheme can provide.
The previous DFS service, which ran from November 2022 until March 2023, had 22 service events with 1.6 million households and businesses having signed up. In total, participants in the service managed to shift over 3,300MWh of electricity during peak times providing support for the grid during periods of increased strain.
Regular readers of Current± will note that the DFS scheme had widely been touted as a success with many, including Octopus Energy’s founder and CEO, Greg Jackson, being vocal on his desire for the scheme to stay in place for the coming winter and become a regular part of the electricity system.
This ultimately is a major boost to the UK energy sector with the scheme also being devised as a means to improve consumer engagement with the often-complex sector. Adam Hall, energy services director at Drax Energy Solutions has praised the move by ESO describing it as a “crucial safeguard” for the coming years.
“Last year’s DFS was successful in helping to keep Britain’s lights on, and we’re proud to have played a key role in supporting ESO with its delivery,” said Hall.
“Following the success of winter 2022/23, we will be a primary supporter of ESO’s scheme again this winter. We believe the scheme will serve as a crucial safeguard in the years to come, allowing us as a nation to manage our energy consumption throughout the winter and provide vital power to those who need it by flexing electric assets.
“This will be an exciting turning point for the UK’s energy supply, and we look forward to helping more businesses join the flexible future.”
ESO is ‘cautiously optimistic’ of sufficient energy supplies
ESO has also signalled that it is “cautiously optimistic” there will be sufficient energy supplies this winter. According to ESO’s modelling, the organisation forecast an operational de-rated margin of 4.4GW or 7.4%, slightly higher than last year’s 3.7GW.
The reason for this increase stems from an improved energy climate across Europe and the UK. Last winter was plagued with issues due to the wholesale gas crisis and complications with the French nuclear fleet. This winter, however, will see improved conditions with improved French nuclear power and stabilisation of European gas storage.
Despite this stabilisation, ESO is continuing to ensure the energy system is secure. This has therefore allowed the organisation to explore and expand on certain measures including the DFS scheme.
“Today’s report illustrates the different position we find ourselves in, compared to twelve months ago. The energy markets across Europe have responded, bolstering gas and electricity storage and supplies ahead of this winter,” said head of national control at National Grid ESO, Craig Dyke.
“Whilst this is reflected in slightly higher operational margins for this winter, we and the rest of the energy industry will as always continue to prepare for a range of potential eventualities, so that we are fully prepared for any changes in circumstances this winter.
“To support our preparations, we have chosen to reintroduce the DFS for this winter, following the impressive response from consumers and businesses to act as virtual power plants (VPPs). Following regulatory approval, we will be publishing more details on how households and businesses can get involved and participate in the service this year.”
