UK Power Networks’ Distribution System Operator’s Day-Ahead Flexibility Market has delivered 4.4 GWh in just a year – enough to power more than 15,500 homes for a month.
More than 40 flexibility zones are now open and the network has run more than 150 flexibility competitions since April last year, it said.
Alongside building new infrastructure, the energy firm hopes flexibility will be part of a long-term solution to ensure there is enough capacity to connect green energy generators, such as wind and solar, or low carbon technologies like electric vehicles.
Initially, the Distribution Network Operator (DSO) ran tenders for flexibility twice a year, but opening up a day-ahead market last year to enable consumers with EVs, heat pumps or batteries to participate in distribution, transmission and wholesale markets.
UK Power Networks collaborated with the National Energy System Operator (NESO) and aligned to its transmission balancing markets, to help participants decide which was right for them on a day-by-day basis.
In particular, the UK Power Networks’ auction results were announced before participants needed to decide their availability for subsequent NESO day-ahead auctions. When consulted in summer 2024, three-quarters of participants said that the timings of UK Power Networks’ market aligned with their wider commercial processes.
The market is supported by an advanced forecasting model that predicts network usage with accuracy for the days ahead, ensuring flexibility services can be aligned precisely with network needs.
Since late 2024, UK Power Networks has also been ‘co-optimising’ its use of day-ahead flexibility with long-term contracts, choosing the cheaper option across these markets to drive the best outcome for bill-payers, it said.
Participants use the Localflex platform, operated by EPEX SPOT, which streamlines bidding, trading, and settlement processes and avoids any clashes with NESO’s market structure.
Alex Howard, head of Flexibility Markets at UK Power Networks’ DSO, said:
“Our goal was to open the flexibility marketplace up to as many potential providers as possible. By offering providers more opportunities to engage and aligning services with NESO schedules, we’re helping to build a smarter, more adaptable energy network that supports our Net Zero future.”
Caspar Ruane, head of Asset Management (Grid Flexibility) at AMP, said:
“The introduction of UK Power Networks’ Day-ahead flexibility market has enabled us to significantly expand our service provision, providing flexibility services to an increasing number of UK Power Networks’ customers.
“AMP’s Grid Flexibility business aims to provide grid-constrained areas with electricity during peak times, when and where it’s needed. We are pleased to have been one of UK Power Networks DSO’s largest flexibility providers since 2019, and have always found the DSO team pro-active, engaging and very helpful.”
Image courtesy of UK Power Networks
