National Grid ESO has confirmed that the hugely successful demand flexibility service (DFS) will return this winter period.
Despite the ESO’s early view of winter having outlined that system margins are expected to be “slightly higher than last year”, the organisation is continuing to implement measures to build further resilience.
ESO confirmed that the service will run between November 2023 and March 2024 and consist of 12 test events alongside the potential use of “live” sessions. The first six of the tests are expected to take place before the end of 2023 whilst the remaining six will take place between January and March 2024.
This year’s service will also offer providers a Guaranteed Acceptance Price (GAP) of £3,000MWh/£3KWh, for at least 6 of the 12 tests subject to the registered volumes from January 2024.
For live uses of this service there will not be a GAP, with the ESO instead set to take the lowest available bids to manage the network requirements, as it does with other market services.
Unlike last winter, all tests will be offered to all registered DFS participants and there will be no concept of onboarding tests.
“The ESO will be reintroducing the DFS for this winter and is keen for more consumers, both large and small, to get involved. We want to work with industry to build on the past success of this new and innovative service,” said Jake Rigg, corporate affairs Director at National Grid ESO on the reintroduction of the scheme.
“Across last winter the DFS successfully demonstrated the interest of consumers and businesses in playing a more active role in balancing our electricity needs and to be rewarded with savings for their action in the process.”
The previous DFS service which ran from November 2022 until March 2023, had 22 service events in total 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.
