FSO, regulation and planning partners

FSO, regulation and planning partners who are developing a whole system approach.

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).
  • A diverse range of data sources from supply through delivery to use can improve short-term planning and decision making.
  • Robust digital models of the LV network at the street level form the basis for accurate forecasts that can enable greater uptake of LCTs.

What does DSO mean for you:

  • Learnings to inform decisions on market design and market facilitation to inform future markets.
  • Feedback on commercial requirements to inform future DSO flexibility markets.
  • An understanding of the barriers that restricted market participation.
  • Adapting shared data to reflect changes in policy and regulations.
  • Expertise that helps identify “whole system” energy solutions across home, business, heat and transport systems.

The key learnings from TRANSITION and what we are doing next…

Key Learnings and Outcomes

  1. There is a strong appetite for the standardisation of different flexibility market elements (e.g., products, terminology, solutions) to help design markets for scale.
  2. There is a high level of interest in DSO-Enabled Services, although limited liquidity meant there were insufficient trades during the Project Trials.
  3. The DSO can run a functioning market to mitigate constraints on their network; however, market liquidity needs to be increased by reducing barriers and ensuring flexibility is fairly rewarded.
  4. Service requirements and primacy rules should be reviewed to ensure that Market Participants can participate across markets.
  5. Local Authorities can oversee the development and implementation of Local Area Energy Planning (LAEP) but require an explicit mandate and access to open data in order to do so.

What are we doing next?

  1. Work with the ENA and Ofgem to standardise processes and services across all networks.
  2. Continue to explore and provide clarity around how and when market participants can trade capacity.
  3. Share our feedback on the Common Evaluation Model to industry to ensure adequate incentive for future flexibility.
  4. Work with the ENA to review the service requirements and primacy rules to ensure market participants can participate across markets.
  5. Work with Local Authorities and communities to deliver the most efficient ‘whole system’ solutions in our journey to Net Zero.

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