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.
Ofgem DNOs must make progress with flexibility this year
Compare the flex market: Piclo lands funding for next phase
SPEN joins Piclo platform for flexibility
EDF chief: Networks will need massive investment
UKPN: We’ll give flexibility every chance before we go to reinforcement
Charging reform ‘key to unlocking DNO flex’
Nordpool and WPD combine on flex market trial
Centrica’s local energy market now selling flex across transmission and distribution
Local flex markets: Centrica eyes the prize
All DNOs commit to considering flex over reinforcement
Click here to see if you qualify for a free subscription to the print edition of The Energyst, or to renew.
Follow us at @EnergystMedia. For regular bulletins, sign up for the free newsletter.