You may have heard of green technology like electric vehicles or solar panels enabling “flexibility” for the electricity network. But what exactly does this mean and why is it so important when we’re thinking about how we generate and consume energy in the future? With several key policy discussions and Ofgem’s call for input on the future of flexibility, developing an understanding of flexibility services is now more important than ever.
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Energy networks have a limit to the amount of energy they can allow to flow at one moment in time. Flexibility in this context is enabling a two-way flow of energy, providing monetary benefits for customers ready to change where or when they consume or generate energy. This then allows more green technologies to connect to our network in a manner that does not exceed the physical limits of existing network infrastructure.
To deliver net zero, we need more green technologies, such as wind and solar generators which by their very nature are variable and more distributed across the country than the more centralised, dirtier gas and coal generators that have dominated our electricity system since supplies first began 150 years ago. The traditional model based around a single big power station powering a local area through a one-way flow of energy didn’t need system flexibility, as the power stations simply burned more or less fossil fuels to reflect demand.
Smart technologies like electric vehicles, heat pumps, solar panels and batteries can be called upon to provide “flexibility services” by making voluntary changes to the way they consume, generate or store electricity for specific periods of time. This includes releasing electricity back to the grid at times of high demand or storing it during times of lower demand. These devices are effectively mini-power stations that are able to monetise their change in energy consumption and/or generation patterns.
To illustrate this, imagine homes with solar panels and/or small wind turbines on the roof and electric cars in the driveway charging. On a mild, sunny and windy day, with significant electricity produced from wind and solar power and minimal demand, routine electricity use such as charging the electric car would be incentivised during specific periods when demand was at its lowest. In contrast, when demand for electricity is higher - on cold weekday evenings when everyone gets in after work - electricity produced and stored by the house’s solar panels not required for domestic use could be sold and released onto the grid network.
As more homes and businesses adopt technology like this and engage with their suppliers and network companies, they are able to vary significant amounts of energy demand and generation in support of network needs. This will drive efficiencies in existing infrastructure, lower overall demand and defer the need for costly network reinforcement preventing additional costs being passed on to the consumer. For example, last year the UK tendered 3.7GW of local flexibility, which was the equivalent of providing electricity to over four million homes across the UK, with no new cabling required. Recent analysis from the regulator Ofgem has also calculated that flexibility could significantly reduce the cost of meeting our net zero goals, delivering savings of up to £4.7bn a year by 2030 alone.
In short, flexibility means we can make better use of our networks, integrate more green technologies like heat pumps and electric vehicles onto the grid, and secure our energy supplies by reducing our reliance on fossil fuel imports - all whilst saving customers money. In order to unlock these benefits and savings for consumers, increased awareness and participation in these “flexibility services markets" are crucial.
Dr Avinash Aithal is Head of Open Networks at the Energy Networks Association
You can find out more about ENA’s energy flexibility services at https://www.energynetworks.org/creating-tomorrows-networks/open-networks/flexibility-services
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