National Grid ESO’s Demand Flexibility Service has gone live after Ofgem approved the proposal.
The new service – which will see the ESO send a signal to participants to turn down their demand during constrained periods – is one of a suite of tools the operator will use over the coming winter to protect the energy system.
It was set out in the ESO’s Winter Outlook report in October, when the operator stated that while there is a risk of blackouts, it is “cautiously confident” that it had the tools to manage the predicted constraints.
The Demand Flexibility Service will run from 3 November 2022 to 31 March 2023, with the first demonstration events expected in the coming days. For these there is a guaranteed acceptance price of £3,000/MWh (£3/KWh) for providers of flexibility.
“We are delighted that Ofgem have approved the use of our Demand Flexibility Service this winter. It will help mitigate the potential risks that the ESO has outlined in its Winter Outlook and will allow consumers to see a financial return for reducing their electricity use at peak times,” said Fintan Slye, executive director of the ESO.
“As a responsible operator of the electricity system we have developed this innovative Demand Flexibility Service to compliment the robust set of tools we already use to balance the electricity system every day.”
The service is open to electricity suppliers and aggregators (providers), who are being encouraged to make preparations to ensure customers can benefit from the suite of demonstration projects.
Participants must meet these requirements;
- -All assets must have half-hourly metering
- -All assets must be able to respond for a minimum of 30 minutes
- -1MW minimum unit size and 100MW maximum unit size
- -Members of the public can participate on an aggregated basis through their energy supplier
- -Providers must be able to respond to an instruction for day-ahead delivery
- -Providers must provide relevant HH metering and baselining data
Last month, National Grid ESO announced that Flexitricity will provide market access to the service.
“We believe this will be the first time that millions of households will be rewarded for helping to balance the grid on a national scale. Ahead of a difficult winter for customers, the launch of this service is great news – not only will it deliver Immediate benefits but it will give a taste of the exciting potential that flexibility can provide as part of a net zero future,” said Naomi Baker, senior policy manager at Energy UK.
“The energy Industry has been working hard with National Grid to get this service from concept to operational in record time. Doing so during such a busy and challenging period shows suppliers’ commitment and belief in what flexibility can deliver both now and in the future.”
In addition to the ESO’s flexibility service, a number of energy suppliers have also launched their own systems, such as Octopus Energy’s “Saving Sessions” and OVO Energy’s “Power Move”.