Distribution System Operators need to evolve to maximise the potential of flexibility platforms

Distribution System Operators need to evolve: The second in the series of the future network research papers from Cornwall Insight has been released. Future Networks – Flexibility Platforms, focuses on how the role of Distribution System Operators (DSOs) will evolve if flexibility exchange platforms – tools that enable providers to trade flexibility in multiple markets – become widespread.

Key findings of the report are:

  • Flexibility exchange platforms offer many benefits including simplicity, reduced costs and increased participation
  • DSOs will have a different role if flexibility exchange platforms become widespread compared to if flexibility was procured through bilateral contracts between DSOs and customers connected to their networks
  • If DSO and flexibility exchange platform activities are optimised, the exchange platform will be able to signal requirements ahead of need, establish contracts to meet that need and operate those contracts including analysing their effectiveness

Andrew Enzor, Senior Consultant at Cornwall Insight, said:

“Regional flexibility markets are continuing to emerge as network and system operators seek to procure flexibility services to manage network constraints. Flexibility exchange platforms have massive potential in this area.

“From the perspective of a party procuring flexibility – for example, a network company – they enable a high volume of transactions to be completed quickly and at low cost. While flexibility providers, on the other hand, can engage with a single platform for assets in any location and potentially engage with multiple markets and multiple buyers through a single platform. This reduces their costs and removes barriers to participation – in turn, increasing market liquidity and leading to lower clearing prices.

“Platforms can carry out a range of functions but will be at their most effective if they can oversee an end-to-end process, from signalling the requirement for flexibility through to establishing contracts with flexibility providers and operating those contracts. This will enable the platform to be a ‘one-stop-shop’ for both providers and buyers, and crucially mean the platform has the complete picture against which to provide analytics on the entire process.

“If flexibility platforms become widespread and provide this full range of functions, the DSO role will no longer involve establishing contracts with individual flexibility providers. Rather, it will be to continue to standardise services and to provide information to the platform to enable it to operate effectively.”

Article by Cornwall Insight

, , , , , , , ,
Previous Post
Negative wholesale prices recorded for the first time
Next Post
Middle East tensions have the potential to increase energy bills

Related Posts

Good Energy buys majority stake in EV charging map app

Good Energy buys majority stake in EV charging map app: Good Energy will be increasing its share in Zap-Map, the app for electric vehicle (EV) charging sites it has announced. In March 2019 the energy supplier had previously invested £1.08 million in the company taking a 12.9% share in Zap-Map’s parent company Next Green Car.…
Read More

Walney offshore wind farm SSE stake sold for £350m

Walney offshore wind farm SSE stake sold for £350m: In a deal worth £350 million for the Walney Offshore Wind Farm, SSE has agreed to sell its non-operating stake. Greencoat UK Wind Plc (UKW) is purchasing the 25.1% interest, equating to a capacity of 92MW, following the sale SSE’s renewable generation capacity will be reduced…
Read More

Subscribe to our newsletter!

You have successfully subscribed to the newsletter

There was an error while trying to send your request. Please try again.

British Utilities will use the information you provide on this form to be in touch with you and to provide updates and marketing.