UK Power Networks (UKPN) has procured 350MW of capacity in its latest flexibility tender, awarding contracts worth £30 million to 17 providers.
More than two thirds (248MW) will come from smart electric vehicle charging, with the winning parties expected to recruit up to 25,000 drivers to support the network.
The flexibility tender is the largest so far completed by a distribution network operator in Britain and brings the total capacity contracted by UKPN to 500MW.
The company’s director of strategy and customer services, Sul Alli, said: “Britain is leading the world at harnessing the power of all these electric vehicle batteries that are going to be connected and using them for public good.
“Three years ago, this market didn’t exist and now it’s offering as much capacity as a gas-fired power station. We’re working with some of the most exciting start-ups out there, and we’re proving it in the real world.”
Among the winners was Octopus Energy, whose chief technology officer, James Eddison, said: “This tender shows that we’re entering a new era in energy in which we are smart about the way we utilise the infrastructure in place and the devices connected to it.
“Time and time again, Octopus Energy and its smart tariff customers have proven that households will shift their energy usage out of peak times if they’re incentivised to do so, helping to balance the grid.”
He continued: “With this tender UKPN is opening up new markets. Octopus is building on its ability to help customers provide services to the local electricity network and demonstrating how a consumer-led energy system can fast-track us to net zero.
“Advances in technology on the electricity network mean that electric vehicles can now be harnessed into virtual power stations to help relieve pressure on the network all the way from your neighbourhood streets to a major substation that could be 20 miles or more away.”
To support pioneering technologies, UKPN said it has awarded several contracts for seven-year terms, enabling smaller companies to secure funding to realise their ideas.
Arun Anand, founder and chief executive of technology startup Electric Miles, said their contract would allow them to prove the capability of their platform and serve more customers in more areas: “Our Electric Miles app makes it easy for customers to make money from their electric vehicle by participating in flexibility markets.
“It’s essential to have our ears close to the ground to learn from this early experience to deliver a great product that can remove the friction from drivers and support the electricity network at the same time.”
UKPN said it will launch another flexibility tender later this year and plans to hold several more in 2022.