Scottish and Southern Electricity Networks (SSEN) Distribution is launching a new project aiming to develop tools in order to ensure the flexibility market is inclusive, fair and transparent.
Being developed as part of the Household or Microbusiness Energy flexibility (HOMEflex) project, SSEN is aiming to support the flexibility market which could reduce the costs of modernising the UK energy system by up to £10 billion a year.
The project will enable distribution network operators (DNOs) to balance supply and demand and to manage constraints on the network cost effectively.
Working alongside HOMEflex partners, the project will develop a code of conduct for domestic flexibility services, frameworks and business models for a voluntary compliance scheme and a mechanism for customer complaints which could include dispute resolution.
As well as this, partners will also develop a recommended trust mark for aggregators and other market players who have signed up to the code and redress schemes.
“The embryonic flexibility market for domestic and microbusinesses will not develop if customers do not feel confident of a fair marketplace,” said Simon O’Loughlin, project manager for HOMEflex at SSEN.
“This would be a missed opportunity, given a recent trial found that households which own an electric vehicle can reduce the proportion of their energy consumed at peak times by 23%, in response to a request. This flexibility is valuable to network operators to balance the grid cost effectively, helping to keep costs lower for customers.
“The HOMEflex project will provide the tools to ensure all participants, from the DNO to the aggregator who acts as a go-between, to the domestic or microbusiness customer, can have confidence in the process and the market.”
The system will additionally support a just transition on the pathway to net zero – a major focus and concern for the globe. It requires a smooth energy transition not only for those that can afford it, but for those that are most vulnerable in the transition as well.
“SSEN is also working to ensure that vulnerable customers and communities are not left behind in the transition to a net zero energy system and we are delighted to be building on our previous work with CSE, to ensure the future is smart and fair,” concluded O’Loughlin.
SSEN builds upon its recent “Flexibility First” programme, which will be vital in balancing the energy grid which in turn allows distribution network operator (DNOs) to prioritise investment for network reinforcement.
This can also help connect low carbon technologies to the grid in a much quicker and efficient manner supporting the transition to green energy for all in the UK.
SSEN Distribution also announced a new tender for 70MW of flexibility capacity this year, with the firm anticipating a local network to become overloaded in central southern England.
To cater for this, the network operator is seeking contracts in 16 zones with a total value estimated at £6.7 million.
