Distribution network operators are getting closer to a standardised way of buying flexibility in what could be a breakthrough year.
After much legal legwork, industry body the ENA has drafted a common agreement with input from DNOs and National Grid ESO.
The 38-page document is available here.
The ENA said the contract, which caps liabilities and indemnities at contract value, should boost market confidence and participation.
It plans to launch a second version “that aligns with the needs of the ESO following a consultation later this year”.
Market participants have long urged DNOs to standardise procurement if they are serious about buying flexibility over network reinforcement.
Western Power Distribution has been most successful in terms of volumes procured to date, followed by UK Power Networks.
However, both Scottish network operators aim to significantly step up flex procurement this year.
According to the ENA, DNOs will attempt to procure around 2GW of flexibility in 2020. Of that Scottish and Southern Energy Networks and Scottish Power Energy Networks are together eyeing around a gigawatt. Western Power Distribution aims to buy up to 667MW; UK Power Networks 170MW and Northern Powergrid 100MW.
Details here.
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