We’re growing domestic participation in money-saving flexibility service
This winter, we’re actively encouraging domestic participation in our flexibility programme, giving domestic customers the opportunity to get paid for shifting their energy demand.
Following the completion of our most recent flexibility procurement, we’ve seen participation from flexible domestic assets increase rapidly. A total of 433 households with assets like EV chargers or home battery storage are set to participate in flexibility events this winter.
Participating households will be able to reduce their energy usage in response to signals from their supplier or appointed aggregator. This system can be used alongside other demand flexibility products or supplier tariffs to help further reduce customer energy bills. Customers will receive savings for taking part and reducing their energy usage.
Suppliers and aggregators must be registered through our Market Gateway platform which makes it easier for businesses to sign up to become Flexibility Service Providers (FSPs). The online tool digitalises the flexibility procurement process to accelerate marketplace interactions and simplify the process for FSPs to contract for flexibility.
National Grid’s Distribution System Operator Director Ben Godfrey said: “We know from stakeholder feedback over the last 18 months that flexibility needs to be more accessible to a broader market. By creating the Market Gateway and launching a suite of products to procure flexibility over different timeframes, we have been able to open up the market to more businesses and domestic customers.
“The Market Gateway is an online tool that reduces the administrative burden of gaining a contract, registering assets and trading services. It standardises and digitises the commercial and technical registration processes, enabling a level playing field for suppliers, aggregators and marketplaces to develop flexibility markets on our behalf.”
We estimate that there are more than three million customers in areas where flexibility services are in operation and we’re planning to expand on the success of our flexibility procurement with the introduction of Short Term flexibility procurement.
Helen Sawdon, National Grid’s flexibility Commercial Lea, said: “Short Term Trades will be procured on a weekly basis, with the availability and price agreed each week before delivery allowing opportunities for new flexible assets to enter the market as soon as they become eligible. In addition, we anticipate that, by reducing the amount of time between procurement and delivery, we’ll see a greater level of successful participation from intermittent assets that are unable to commit to delivery over longer timescales.”
We’re working with companies such as Electric Miles, an EV smart charging platform, to ensure that customers can benefit from the use of flexibility services.
Arun Anand, Founder & CEO of Electric Miles, said: "Working with National Grid is a vital step towards achieving the UK's green energy vision. The SmartFlex solution empowers EV drivers, charge point operators, and the grid itself. Users of the Electric Miles app play a pivotal role in EVs' contribution to grid stability."
Last year, £147 million of network reinforcement was deferred by using flexibility services. As the mass adoption of low carbon technologies increases demand on the electricity network and changes power flows, flexibility reduces loads and demands on the network by using customers’ ability to change their usage patterns by either switching on generators or reducing their energy consumption. Managing peak load through flexibility helps reduce costs to all customers by helping network operators like National Grid to avoid investment in costly and disruptive reinforcement works to meet a temporary spike in demand.
Importantly, flex providers are financially awarded for taking part in National Grid’s flexibility services, with the average provider typically receiving £3k per MWh per year. However, the recent increase in the maximum prices could see earnings of up to £18k per MWh, with some providers earning significantly more in areas where there is a greater need for flexibility.
Potential Flexibility Service Providers can register using the following link.
More information is available at Flexible Power Website.