National Grid ESO launches annual report on demand side flexibility

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A REPORT reflecting on policy, regulatory and market developments and trends in demand side flexibility participation over the last 12 months has been published by National Grid Electricity System Operator (ESO).

As we transition into a low-carbon world, demand side flexibility has an increasingly important role.

Electricity system requirements are evolving, at both a transmission and distribution level, and we need additional sources of flexibility to meet these needs – from an increasingly diverse range of technologies.

This Power Responsive report is designed to ‘help stakeholders navigate industry change and complexity and support the continued development of demand side participation in flexibility markets.’

Kayte O’Neill, Head of Markets of National Grid Electricity System Operator, stated in the foreword of the report: “The energy industry has a critical role to play in delivering net-zero emissions by 2050, and together we’ve been making significant progress, particularly in the area of providing flexible and greener energy that delivers cost benefits to the consumer.

“As the ESO, our mission is to enable the transformation to a sustainable energy system and ensure the delivery of reliable, affordable energy for all.

“Success in 2025 looks like an electricity system that can operate carbon free, a whole system strategy that supports net zero by 2050, competition everywhere and the ESO as a trusted partner.”

The aims of the report are stated to be the following:

  • Offer an overview of Power Responsive and the ESO’s future strategy for supporting the development and participation of the demand side markets.
  • Highlights of recent policy, regulatory and industry-led initiatives supporting or impacting demand side flexibility.
  • Demand-side metrics across ESO ancillary services, the Capacity Market and Triad activity in 2019, assessing how these markets have developed over a three year period.

Uncertainty was one of the most reported themes of 2018 and has continued as demand side providers face challenging times to unpick the flexibility landscape and its evolving developments.

This could be in part be contributed to the Clean energy package coming into force and Ofgem’s decision on its Targeted Charging review but the report also points out that greater chances lie ahead for demand side providers as Distribution Network Operators (DNOs) become more active in managing their networks.

The ‘Power Responsive: Demand Side Flexibility Annual Report 2019’ can be read here