Britain’s electricity system is in transition, but flexibility still largely comes from dispatchable thermal generation. As that is replaced by inflexible, intermittent renewables, alternate sources of flexibility must be established. As low carbon technologies beyond the meter grow, so does the potential for demand side flexibility to replace conventional sources. Add the rising value of alternative sources of flexibility, and the incentive for consumers to make their flexibility available to the system is increasing.
Over the last three years, CGI’s market surveys have consistently identified uncertainty over market structure, roles and responsibilities as barriers to progress; as do contributors to this paper. If flexibility markets are to be established in time to facilitate access to these new sources of flexibility and enable value to flow to consumers, clear signals on the direction of travel and the desired policy and regulation are needed urgently.
But we need to think differently.
Energy needs will be increasingly satisfied locally and costs will be driven through economies of scale in producing devices, rather than by optimising a centralised system. An effective market framework won’t be an end-game - it will continue to evolve in response.
Read the full article, as published in the October 2018 edition of New Power and find out more about the winning value of power flexibility.