Demand Flexibility Service
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The Demand Flexibility Service (DFS) was developed by the National Grid Electricity System Operator (ESO) and began on November 1 2022. The intention is to allow the ESO to access additional flexibility when the national demand is at its highest, during peak winter days, something not currently accessible to the ESO in real time. What the National Grid is increasingly able to do though is to predict certain days when demand is likely to be close to outstripping supply, allowing them to prepare for this some days in advance. | The Demand Flexibility Service (DFS) was developed by the National Grid Electricity System Operator (ESO) and began on November 1 2022. The intention is to allow the ESO to access additional flexibility when the national demand is at its highest, during peak winter days, something not currently accessible to the ESO in real time. What the National Grid is increasingly able to do though is to predict certain days when demand is likely to be close to outstripping supply, allowing them to prepare for this some days in advance. | ||
| + | |||
| + | = Background = | ||
This service is one element in a range of tools that are designed to help manage the electricity system over winter, by collaborating with energy suppliers and aggregators to allow participating consumers and businesses to reduce their bills by shifting their demand times. In early 2021 a trial was run with Octopus Energy, which successful as a proof of concept for the demand flexibility service, since then working with suppliers, aggregators and consumer groups ESO has been aiming to scale up the scheme. | This service is one element in a range of tools that are designed to help manage the electricity system over winter, by collaborating with energy suppliers and aggregators to allow participating consumers and businesses to reduce their bills by shifting their demand times. In early 2021 a trial was run with Octopus Energy, which successful as a proof of concept for the demand flexibility service, since then working with suppliers, aggregators and consumer groups ESO has been aiming to scale up the scheme. | ||
| − | The innovation works on the same principles as longstanding energy tariffs such as Economy 7, 9 and 10 and so called time-of-use tariffs that were bring offered to customers after having newly installed half hour smart meters. That is that these are all routes | + | = Balancing = |
| + | |||
| + | The innovation works on the same principles as longstanding energy tariffs such as Economy 7, 9 and 10 and so called time-of-use tariffs or smart electricity tariffs, that were bring offered to customers after having newly installed half hour smart meters. That is that these are all routes aiming to balance the energy demand with the energy supply, which is increasingly variable as a result of the continuing expansion of wind and solar contributions. | ||
| + | |||
| + | In the more established examples such as economy 7 customers are encouraged to use energy at night, (with a separated meter) when demand is low in return receiving cost savings. The DFS on the other hand encourages customers to delay the use of electricity when demand is high, so this is at the other end of the scale but for the same purpose of balancing demand and supply. | ||
| + | |||
| + | = Requirements = | ||
The DFS service allows consumers, as well as some industrial and commercial users (through suppliers/aggregators), to be incentivised for voluntarily flexing the time when they use their electricity. ESO say the service is open to as many participants as possible, who meet the following requirements: | The DFS service allows consumers, as well as some industrial and commercial users (through suppliers/aggregators), to be incentivised for voluntarily flexing the time when they use their electricity. ESO say the service is open to as many participants as possible, who meet the following requirements: | ||
| Line 13: | Line 21: | ||
* Providers must provide relevant HH metering and base lining data to demonstrate delivery of demand reduction. | * Providers must provide relevant HH metering and base lining data to demonstrate delivery of demand reduction. | ||
| − | The following exclusions | + | The following exclusions applied: |
* Assets that are dispatchable via the Balancing Mechanism, or participate in Ancillary services or DNO services. | * Assets that are dispatchable via the Balancing Mechanism, or participate in Ancillary services or DNO services. | ||
* Assets that have a Capacity Market contract. | * Assets that have a Capacity Market contract. | ||
| − | The DFS began on 1 November 2022 | + | The DFS began on 1 November 2022 but was open to later sign ins, intending to run for a maximum of 12 tests for participants, where participants receive dispatch instructions with the opportunity to receive a Guaranteed Acceptance Price for tests. For those signed up, four tests occurred over the first full month followed by two tests in each subsequent month. Once bids from participants are accepted, participants contact end consumers / asset owners and request that they deliver a demand turn down for the specified bid window. The service runs until March 2023. |
| + | |||
| + | Only certain organisations can provide the service but individual consumers wishing to support and benefit from the service, can do so via approved energy suppliers, as well as a number of organisations who can provide access to the service by linking directly to smart meter data accessed via an app or online. | ||
| + | |||
| + | = Update in 2023 = | ||
| − | + | In January 2023 the National Grid ESO reported "[https://www.nationalgrideso.com/news/world-first-demand-flexibility-service-exceeds-expectations World-first Demand Flexibility Service exceeds expectations with businesses saving thousands of pounds while reducing carbon emissions]" . | |
| − | + | Data from the first two demand flexibility events (specific prearranged dates where demand and supply would be tight) confirmed great engagement with the service. During the first test, participants delivered a 50% increase in electricity reduction compared to expectation and across the second test, participants reducing their electricity use by 35% more than expected. | |
| − | + | On 23 January the first live demand flexibility event was launched between 5-6pm with huge support, data from the event will be made available at a later date. As well as households engaging with demand flexibility events, businesses benefitted from taking part. In many cases businesses reduced their working day with no impact on productivity, whilst one business generated £34,025 for their clients by taking part and a reduction of 200 tonnes of CO2 was projected by a single company | |
| − | + | And it’s not too late to take part. Find out below how three businesses have benefitted from taking part in the Demand Flexibility Service and their experience. visit the National Grid ESO website for more information and to read examples of companies that have taken part. [https://www.nationalgrideso.com/news/world-first-demand-flexibility-service-exceeds-expectations Here] | |
| − | + | Related article on Designing Buildings | |
Revision as of 20:51, 20 February 2023
The Demand Flexibility Service (DFS) was developed by the National Grid Electricity System Operator (ESO) and began on November 1 2022. The intention is to allow the ESO to access additional flexibility when the national demand is at its highest, during peak winter days, something not currently accessible to the ESO in real time. What the National Grid is increasingly able to do though is to predict certain days when demand is likely to be close to outstripping supply, allowing them to prepare for this some days in advance.
Contents |
Background
This service is one element in a range of tools that are designed to help manage the electricity system over winter, by collaborating with energy suppliers and aggregators to allow participating consumers and businesses to reduce their bills by shifting their demand times. In early 2021 a trial was run with Octopus Energy, which successful as a proof of concept for the demand flexibility service, since then working with suppliers, aggregators and consumer groups ESO has been aiming to scale up the scheme.
Balancing
The innovation works on the same principles as longstanding energy tariffs such as Economy 7, 9 and 10 and so called time-of-use tariffs or smart electricity tariffs, that were bring offered to customers after having newly installed half hour smart meters. That is that these are all routes aiming to balance the energy demand with the energy supply, which is increasingly variable as a result of the continuing expansion of wind and solar contributions.
In the more established examples such as economy 7 customers are encouraged to use energy at night, (with a separated meter) when demand is low in return receiving cost savings. The DFS on the other hand encourages customers to delay the use of electricity when demand is high, so this is at the other end of the scale but for the same purpose of balancing demand and supply.
Requirements
The DFS service allows consumers, as well as some industrial and commercial users (through suppliers/aggregators), to be incentivised for voluntarily flexing the time when they use their electricity. ESO say the service is open to as many participants as possible, who meet the following requirements:
- All assets require half-hourly metering.
- All assets must be able to respond for a minimum of 30 minutes.
- 1 MW min unit size / 100 MW max unit size.
- Providers need to be able to respond to an instruction for day-ahead delivery.
- Providers must provide relevant HH metering and base lining data to demonstrate delivery of demand reduction.
The following exclusions applied:
- Assets that are dispatchable via the Balancing Mechanism, or participate in Ancillary services or DNO services.
- Assets that have a Capacity Market contract.
The DFS began on 1 November 2022 but was open to later sign ins, intending to run for a maximum of 12 tests for participants, where participants receive dispatch instructions with the opportunity to receive a Guaranteed Acceptance Price for tests. For those signed up, four tests occurred over the first full month followed by two tests in each subsequent month. Once bids from participants are accepted, participants contact end consumers / asset owners and request that they deliver a demand turn down for the specified bid window. The service runs until March 2023.
Only certain organisations can provide the service but individual consumers wishing to support and benefit from the service, can do so via approved energy suppliers, as well as a number of organisations who can provide access to the service by linking directly to smart meter data accessed via an app or online.
Update in 2023
In January 2023 the National Grid ESO reported "World-first Demand Flexibility Service exceeds expectations with businesses saving thousands of pounds while reducing carbon emissions" .
Data from the first two demand flexibility events (specific prearranged dates where demand and supply would be tight) confirmed great engagement with the service. During the first test, participants delivered a 50% increase in electricity reduction compared to expectation and across the second test, participants reducing their electricity use by 35% more than expected.
On 23 January the first live demand flexibility event was launched between 5-6pm with huge support, data from the event will be made available at a later date. As well as households engaging with demand flexibility events, businesses benefitted from taking part. In many cases businesses reduced their working day with no impact on productivity, whilst one business generated £34,025 for their clients by taking part and a reduction of 200 tonnes of CO2 was projected by a single company
And it’s not too late to take part. Find out below how three businesses have benefitted from taking part in the Demand Flexibility Service and their experience. visit the National Grid ESO website for more information and to read examples of companies that have taken part. Here
Related article on Designing Buildings
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