UK Power Networks’ DSO broadens Flexibility Market with contract announcement
UK Power Networks Distribution System Operator (DSO) has unveiled a major expansion of its industry-leading flexibility marketplace in its latest round of tender awards.
The company is focused on broadening the market and opening up new opportunities for customers in its ninth flexibility tender. It includes significant growth in its industry-first demand turn-up product alongside its established demand turn-down products.
UK Power Networks DSO has successfully awarded contracts amounting to 327MW across 127 sites, to 17 different flexibility providers. This tender includes seven new participants taking part for the first time, underscoring the DSO’s commitment to diversifying its portfolio of providers.
The company has also streamlined the process for market participants by simplifying registration and awarding a standard framework contract to providers. The changes will make it easier for potential new providers to enter the marketplace.
This tender marks a major expansion of its demand turn-up service, which it first trialled in Summer 2023. In the demand turn-up product, consumers were incentivised to use more green energy when supply exceeds demand, such as in the middle of the day or night when it is exceptionally windy. UK Power Networks is also the only DSO offering generation turn-down services as well as demand turn-up flexibility services.
The latest tender round in early 2024 saw competitions between multiple providers in more than a third of the high-voltage zones it tendered for the first time.
Alex Howard, head of flexibility markets at UK Power Networks DSO said: “The awarding of these contracts marks a major milestone in our efforts to widen participation. Vibrant and competitive local flexibility markets will support a sustainable and resilient future for all.
“We are demonstrating that increasing levels of liquidity in this fast-growing market is contributing to driving down prices for consumers. Our approach is fostering a competitive, inclusive market which is setting the benchmark for others. It highlights the critical role of innovation and flexibility in the transition towards a more sustainable energy future.”
Support for this initiative came from participants including Elizabeth Allkins, head of energy strategy at OVO, who said: "UK Power Networks’ flexibility tender is an important step towards opening up routes to market for domestic flexibility. This is critical for enabling us to reach Net Zero at the lowest possible cost to consumers.
“We're excited to work with UK Power Networks to continue to evolve this market to remove barriers to entry and offer our consumers innovative opportunities as the energy transition progresses."
Published: 08/04/2024
The company is focused on broadening the market and opening up new opportunities for customers in its ninth flexibility tender. It includes significant growth in its industry-first demand turn-up product alongside its established demand turn-down products.
UK Power Networks DSO has successfully awarded contracts amounting to 327MW across 127 sites, to 17 different flexibility providers. This tender includes seven new participants taking part for the first time, underscoring the DSO’s commitment to diversifying its portfolio of providers.
The company has also streamlined the process for market participants by simplifying registration and awarding a standard framework contract to providers. The changes will make it easier for potential new providers to enter the marketplace.
This tender marks a major expansion of its demand turn-up service, which it first trialled in Summer 2023. In the demand turn-up product, consumers were incentivised to use more green energy when supply exceeds demand, such as in the middle of the day or night when it is exceptionally windy. UK Power Networks is also the only DSO offering generation turn-down services as well as demand turn-up flexibility services.
The latest tender round in early 2024 saw competitions between multiple providers in more than a third of the high-voltage zones it tendered for the first time.
Alex Howard, head of flexibility markets at UK Power Networks DSO said: “The awarding of these contracts marks a major milestone in our efforts to widen participation. Vibrant and competitive local flexibility markets will support a sustainable and resilient future for all.
“We are demonstrating that increasing levels of liquidity in this fast-growing market is contributing to driving down prices for consumers. Our approach is fostering a competitive, inclusive market which is setting the benchmark for others. It highlights the critical role of innovation and flexibility in the transition towards a more sustainable energy future.”
Support for this initiative came from participants including Elizabeth Allkins, head of energy strategy at OVO, who said: "UK Power Networks’ flexibility tender is an important step towards opening up routes to market for domestic flexibility. This is critical for enabling us to reach Net Zero at the lowest possible cost to consumers.
“We're excited to work with UK Power Networks to continue to evolve this market to remove barriers to entry and offer our consumers innovative opportunities as the energy transition progresses."
Published: 08/04/2024