UK Power Networks has proposed adopting a “flexibility first” approach to the delivery of extra grid capacity.
In a new roadmap published today (21 August), the distribution network operator (DNO) outlined plans to “supercharge” local markets for flexibility services, possibly by creating them itself.
The company says the proposals will lower costs for consumers by delaying or avoiding expensive grid reinforcements, increase the resilience of the network and provide new sources of revenue for flexibility providers, including generators, storage operators, major energy users and aggregators.
According to its estimates, demand for flexibility within its licence areas across London, the South East and East of England could exceed 200MW by 2023.
UK Power Networks’ director of asset management, Barry Hatton, said: “We are not just talking about how we’ll manage the future of energy, we’re doing it right here and now. Our ambitious flexibility policy is going to drive value for our customers and create an important new market.
“The flexibility roadmap proposes a radical rethink to the way we do business, moving away from automatically building new assets and instead giving the distributed energy resources market the opportunity to offer their services.
“We strongly believe our role is to be a neutral facilitator of market-based solutions that provide the lowest cost option for our customers, not to prescribe them.
“Hence, we want to use open and transparent market mechanisms to procure the flexibility we need to manage our network. If the market can provide the capacity we need at a more cost-effective rate than building new infrastructure, that’s exactly what we will do.”
UK Power Networks is holding a consultation on the proposals which will run until 8 October. If accepted, they will come into effect from 2019.
In 2017, the company held a tender for flexibility services, awarding a contract to Powervault to help relieve pressure on its network using “virtual power station” made up of domestic solar panels and batteries in London.
The DNO is also taking part in a trial of a new online marketplace for local flexibility called Piclo Flex alongside Electricity North West and Scottish and Southern Electricity Networks.
If successful, the platform operated by Piclo (formerly Open Utility) is expected to be launched commercially next year.