By Duncan Oliphant, Head of Commercial Flexibility at Northern Powergrid. 
The government’s mission to achieve 100% clean power by 2030 is both ambitious and challenging and, as has been widely recognised, will require significant build out of new sources of clean energy and infrastructure. What is less recognised is the role demand and flexibility has to play.
The Age of Electricity is upon us. As we move away from fossil fuels and onto greener, cleaner renewable electricity to power our transport, heating, industry and other everyday needs the overall electrical demand in the UK will increase by up to 20% between now and 2030 - seemingly adding to the challenge of clean power. However, there is a massive opportunity in that new demand that must be unlocked - Flexibility.
Demand flexibility – it’s all about give and take
Demand side flexibility is the ability to change the time of use of electricity, as an example through smart charging of electric vehicles, in order to balance supply and demand, reducing peak demand and supporting an efficient system. Flexibility is essential to achieving a net zero energy system efficiently, hence the need for effective flexibility markets to create opportunities for customers to participate and benefit financially through lower bills.
But flexibility will not happen without clear action. We need innovation, collaboration and leadership.
Great Britain is a world leader in flexibility, but we still have a way to go to reach our full flex potential. We must use #CleanPower2030 as a turning point to galvanise our regulation, policies and markets to create the correct incentives, mechanisms and market functions to encourage consumers and companies alike to embrace flexibility.
At Northern Powergrid we are focussed on using flexibility to its fullest potential to support our network. In our Yorkshire and Northeast licence areas there are two key challenges that we will need to address as our energy system decarbonises, and focus on flexibility as an enabler.
Maximising generation capacity through flexibility
We are already seeing a high volume of generation connections being sought in our regions and expect this to continue to the point where we will be a net exporting licence area in the Northeast by 2030. This creates its own challenges in having a network that can accommodate power moving ‘up’ the system. Flexibility is the solution.
Flexible connections, where we retain the right to curtail access, will continue to give customers great value with quicker and cheaper grid access, most recently as a solution to providing transmission system access. However, flexibility services will unlock more capacity.
Through demand turn up we will manage the flow of power ‘up’ the system, avoiding constraints at times where there is greatest electricity being generated and make the most of the green, renewable energy – avoiding curtailment. We are beginning to trial these demand turn up flexibility services which will enable and accelerate the connection of renewable generation, critical to achieving CP2030.
In order to make this happen the industry needs to remain open to developing frameworks and policies for new products. And, given the upward impact of generation on the transmission system, coordination of flexibility between distribution and transmission systems is a critical point to get right. The new Market Facilitator role that is being delivered by Elexon must have the remit to coordinate both DSO and NESO flexibility markets and must take decisions that are most effective on a whole system basis.
Local flexibility to empower communities
We must unlock capacity on local, low voltage distribution networks, where individual assets supply pockets of up to ~150 properties, to accommodate growing numbers of low carbon technologies. As properties adopt electric vehicles and electric heating solutions those individual assets will need additional capacity - flexibility may be a long-term solution in some areas or a short-term solution while we work on more permanent solutions to grid capacity.
Local flexibility markets have their challenges, between the relatively low number of assets available per constraint and the management of potentially such high volumes of contracting and dispatching under current models. Low voltage flexibility is still in its early stages and is being procured under the same frameworks as HV flexibility, however we need to keep an open mind, explore new options and avoid policies that could hold progress back. Our flagship Community DSO project is exploring a fundamental shift in decentralising flexibility to manage and balance local communities, with peer-to-peer trading and highly localised markets. We’re also looking at alternative models such as dynamic DUoS (Distribution Use of System) charging to create implicit flexibility in the system.
There is a lot that needs to happen to fully integrate flexibility to enable net zero but we can get there. Getting it right means customers can save money on bills and the industry can make huge financial savings in its efforts to decarbonise. It could also mean we get to net zero quicker – or even on time. The energy sector is undergoing its biggest shake up in modern times. For a grid fit for the future, we need a flexibility first approach. And we’ll only get there through collaboration.
Have you checked out our Help & Advice directory, it may just have the answers that you're looking for.
