Network operator Northern Powergrid has launched its Spring flexibility tender, which could deliver £7.5 million in deferred network reinforcement costs.
In addition to these savings, the flexibility tender could also enable the uptake of low-carbon technologies like heat pumps and electric vehicles (EVs).
The network operator plans to sign contracts with customers in 19 specific locations within its operating area. These customers will be able to adjust their energy consumption and/or generation in response to a signal from the network operator. In exchange for this service, the network operator will pay these customers.
Potential flexibility service providers, including aggregators, industrial energy users, and storage and distributed generation customers, have until 1 May 2024, to express their interest in participating in Northern Powergrid’s Spring tender by registering their assets on the market platform Piclo Flex.
Maurice Lynch, head of flexibility services at Northern Powergrid, said: “Following a successful Autumn 2023 tender that saw us secure contracts with providers such as Octopus Energy and Equiwatt and defer £1.4 million in potential network reinforcement costs, we’re pleased to be offering customers in Yorkshire and the North East the opportunity to participate in our Spring tender round.
“Flexibility services will be key to enabling decarbonisation and developing a smarter, more flexible energy network that meets the evolving needs of the customers and communities we serve.”
Flexibility services viewed as an ‘effective tool’ in the energy transition
According to Northern Powergrid, flexibility is fast becoming an effective tool to help network operators manage future energy demand, with the company estimating that demand will more than double in the next 20 years as more of its customers turn to electricity to power their homes, businesses and transport.
As such, various network operators have seen an expansion of their flexibility services. For instance, Scottish and Southern Electricity Networks (SSEN) Distribution recently stated that it had contracted over 700MW of flexibility throughout 2023/2024.
This milestone was achieved by completing two further rounds of bidding, which resulted in an additional 433.3MW of volume. These new deals cover services in SSEN’s central southern England and north of Scotland licence areas.
UK Power Networks’ DSO also awarded contracts amounting to 327MW across 127 sites to 17 different flexibility providers. This tender includes seven new participants taking part for the first time.
