Commercial aggregators

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

  1. See the “Key learnings and outputs for flexibility providers”.
  2. Aggregators will be crucial in enabling small DERs at the grid edge to participate in flexibility services.
  3. Aggregated volumes of domesticated participation may be more reliable than a small number of large providers, highlighting the crucial importance of your participation.
  4. Some contractual terms in the TRANSITION Flexibility Service Agreement, including access and liability, were unsuitable for domestic aggregators.
  5. General Data Protection Regulation requirements increased aggregator and DSO workload to register DERs, requiring additional resource time.

What are we doing next?

  1. See “What we are doing next for flexibility providers”.
  2. Work with aggregators to ensure they can support the DSO transition.
  3. Work with the ENA and Ofgem to standardise processes and services across all networks and ensure aggregators can operate across different markets.
  4. Share our feedback on the technical barriers faced by domestic aggregators to ensure future solutions are appropriate.
  5. Share our feedback on the commercial barriers faced by domestic aggregators to ensure future solutions are appropriate.

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