Commercial Aggregators who want to participate in the DSO Flexibility Market.
Key messages for you:
- TRANSITION has delivered an evidential base to inform decisions on market design for flexibility services and proven the value of collaboration and coordination, leading to a whole systems approach in ED2.
- Simplified contractual arrangements are key to enabling wider participation and unlocking flexibility from aggregators and suppliers.
- A liquid market requires a fair price for flexibility that reflects the associated local and wider socio-economic benefits and the value obtained freely by other market actors, such as the ESO.
- TRANSITION successfully tested the neutral facilitation of a marketplace can enable the delivery of a variety of flexibility and capacity services and products (delivery timescales).
- Robust digital models of the LV network at the street level form the basis for accurate forecasts that can enable greater uptake of LCTs.
- The automation of PSA modelling at all voltage levels can facilitate the identification and communication of flexibility requirements within DNOs and to potential flexibility providers.
- Automatic constraint prediction and economic optimisation tools are required to enable the efficient use of flexibility at scale.
What does DSO mean for you:
- Simple and standardised services, processes and solutions to make it easier to participate in different markets.
- Improved data and a fair value for flexibility to support investment.
- A single marketplace for services with different routes to market.
- Increased market opportunity for flexibility services.
- Clear communication and transparent rules for contracting, delivering and settling flexibility.
The key learnings from TRANSITION and what we are doing next…
Key Learnings and Outcomes
- See the “Key learnings and outputs for flexibility providers”.
- Aggregators will be crucial in enabling small DERs at the grid edge to participate in flexibility services.
- Aggregated volumes of domesticated participation may be more reliable than a small number of large providers, highlighting the crucial importance of your participation.
- Some contractual terms in the TRANSITION Flexibility Service Agreement, including access and liability, were unsuitable for domestic aggregators.
- General Data Protection Regulation requirements increased aggregator and DSO workload to register DERs, requiring additional resource time.
What are we doing next?
- See “What we are doing next for flexibility providers”.
- Work with aggregators to ensure they can support the DSO transition.
- Work with the ENA and Ofgem to standardise processes and services across all networks and ensure aggregators can operate across different markets.
- Share our feedback on the technical barriers faced by domestic aggregators to ensure future solutions are appropriate.
- Share our feedback on the commercial barriers faced by domestic aggregators to ensure future solutions are appropriate.
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