What does Flexibility have to do with Net Zero?
Pamela Mathieson, Flexibility Procurement Manager
Quite a lot actually…the scale of decarbonisation means that by 2050 the peak demand on our distribution network is forecast to double. New demand, generation and storage will increasingly push our network assets beyond what they are designed for.
Our system will have to accommodate more variable sources of generation, and generation that is less controllable, which will increase the number of constraints and the associated costs of managing them.
Network congestion can be solved by massive expansion and upgrade of our network, but these reinforcements are costly and disruptive for customers. However, it’s not the only option.
Flexibility has a role to play, but what is it? Flexibility is where a distribution network operator (DNO) such as ourselves, pays a third party to lower or increase the power consumption of their assets, at an agreed price during an agreed service window. This allows us to manage network demand efficiently and effectively.
And it’s been procured and utilised right now. The SP Energy Networks Flexibility Team have been procuring for flexibility from 2021, tendering twice a year. However, there’s still lots to do, and we are developing new flexibility solutions by engaging with market, reducing barriers to entry and encouraging participation.
We’ve recently launched our month ahead market asking providers to take part on a more regular basis, delivering flexibility closer to real time. We are asking owners of generation demand assets, such as wind turbines, battery storage and aggregated demand customers to come forward and provide services.
What’s great about the local flexibility market is that everyone can take part, and help the UK move towards a cleaner, greener energy solution. It allows customers and producers to capitalise on opportunities arising from a transition to a smarter grid and low carbon future.
We have tested the flexibility market for every capacity shortfall forecast in RIIO-ED2, and have identified opportunities to utilise flexibility and avoid traditional reinforcement. It is forecasted that £9.2m of direct benefit will come from Flexibility Services due to deferring £36m of reinforcement beyond ED2.
To find out more about our flexibility services, including our new month ahead market, visit our flexibility page.