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Exploring Local Energy Flexibility Markets: Opportunities and Benefits

This presentation discusses the new opportunities in local energy flexibility markets, highlighting the role of system operators, distribution network operators, and the evolving role of DSOs. It explains the concept of flexibility services and revenue stacking, emphasizing the importance of flexibility in managing demand, enabling low-carbon electricity generation, and deferring network upgrades. The presentation also discusses the need for additional flexibility capacity and the potential for growth in domestic and community flexibility. It concludes by introducing the OpenDSR project, which aims to reduce barriers to domestic participation in demand side response through an open source, standards-based approach.

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Exploring Local Energy Flexibility Markets: Opportunities and Benefits

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  1. New opportunities in local energy Local Flexibility Markets Jodie Giles CARES conference, Perth, 9 May 2019

  2. Jodie’s Jargon Buster SO/TSO/ESO/NETSO: UK System Operator (National Grid), look after the electricity transmission network and system in the UK, working with DNOs DNOs: Distribution Network Operators, the 6 regional companies licenced to distribute electricity within 14 defined licence areas across GB DSOs: Distribution System Operators, the evolving role of regional DNOs to “…operate and develop an active distribution system comprising networks, demand, generation and other DERs” DERs: Distributed Energy Resources, assets connected to the distribution network that could be called upon to provide flexibility services. Flexibility services: Modifying generation and/or consumption patterns in reaction to an external signal for a financial reward (revenue). Revenue stacking: Using assets to access multiple incentive programmes, paid for services or contracts – i.e. national balancing & local flex services Aggregation: ‘Bundling’ smaller loads into a portfolio, which can participate in programmes with entry thresholds that are too high (i.e. 1MW)

  3. What is flexibility? Flexibility services: Modifying generation and/or consumption patterns in reaction to an external signal for a financial reward (revenue). Deferring network upgrades by turning to flexibility instead Saving customers money

  4. Why is flexibility important? New revenue streams - Payments are marginal but support new business models and revenue stacking Enable more low carbon electricity generation to connect Step towards local supply – same skills set and platforms could be used for local energy trading Manage demand on the network to avoid peaks Customers will be asked to: reduce their demand for electricity (a bit like Economy 7 but more dynamic) turn up their energy generation discharge power they have stored

  5. Additional flexibility needed Levels of additional flexibility-providing capacity required for 2030 carbon intensity targets Source: Roadmap for Flexibility Services to 2030, Poyry and Imperial College London, 2017 3-15 GW of additional capacity of flexible technology needs to come onto the network for the UK to meet 2030 carbon intensity targets Domestic and community flexibility could be a key area of growth Depends heavily on smart meters

  6. Things to think about Demand is the driver: These services are about managing demand (i.e. gen turn-up, demand-down, storage discharge) Entry thresholds: notably lower than that of national balancing services potentially 100kW - aggregation is also permitted Non-response: unlikely to pay a penalty, reduction or removal of payments for reduced or non performance Technology: Agnostic on approach, but if you are given a 15min notice, need to sustain for 2 hours and at any time - some technologies will be better placed than others Contract length: likely to be 2-4 years

  7. Who could easily participate? Generation Turn-Up variable generation with storage ‘Dispatchable’ (thermal?) generation Storage ‘discharge’ Quick response standalone storage (various techs) Demand reduction Commercial & industrial equipment switch off or process ramp down Tangible domestic flexible loads

  8. How SSEN’s Social Constraint Managed Zones

  9. Background to ECAS Regen won innovation grant with Carbon Co-op and Community Energy Scotland Aim to look into feasibility of service which aggregates flexible loads at the household/community level to participate in local flexibility markets Study based on Carbon Co-op’s concept of an ECAS

  10. What is the ‘OpenDSR’ project Assess the feasibility and demonstrate the real-world potential for an open source, standards-based approach to a demand side response (DSR) management service. This project demonstrates controllable, flexible demand in real domestic environments, with the potential to scale up, via replication through the UK’s widespread existing community energy sector. Aim is to try and reduce cost and barriers to domestic participation in DSR – achieving this through interoperability, open source and off the shelf hardware. 60 CC homes – smart EV chargers installed 40 social housing – immersion heaters, solar panels and solar divertors

  11. Any questions? …Thanks for listening Regen, Innovation Centre, Rennes Drive, Exeter, EX4 4RN T: 01392 494 399

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