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Audio Transcript: Flexibility Services Explained

To meet evolving customer needs. We're developing smarter, more flexible network solutions to help mitigate or defer the need for traditional reinforcement, reducing costs for our customers and supporting the transition to net zero. Flexibility services are where a distribution network operator pays a third party when generation or demand assets such as wind turbines, battery storage or aggregated domestic customers and ask them to reduce their electricity consumption or increase it during an agreed service window to balance the needs of the electricity network.


They will in turn be paid for that service. SP Energy Networks have been tendering for flexibility services since 2019, and are committed to facilitating and developing the market to support the needs of our customers and our networks. Over the past couple of years, we have tendered for flexibility, services and all locations identified as requiring a network intervention, seeking 1.4GW across 1500 locations.


And at all voltage levels for the full RIIO ED2 period. To date, we have accepted bids for over 700MW and worked with several flexibility service providers to reduce network loading, which officially delivers the capacity our customers need whilst also maintaining a safe, secure and reliable network and an industry first. We've partnered with Piclo, a third party platform trader, to ensure a seamless tender process from procurement to dispatch and settlement, simplifying the way customers engage with our flexibility needs.


From spring 2024, we'll be working towards implementing shorter term flexible to markets, which will allow more regular participation from flex flexibility service providers, ultimately improving overall efficiency and reliability. That flexibility provides our continued commitment to flexibility will be instrumental in balancing demand generation, increasing capacity in the network, and facilitating the transition to net zero at the lowest overall cost to UK consumers.

 

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