The ENA aims hopes to simplify flexibility services offered by companies by streamlining a common contract used across the sector.
The updates offer more transparency and aims to unlock liquidity in local markets for flexibility, ultimately pushing down energy bills in the long term.
The standard contract has been created through ENA’s leading Open Networks project, with input from distribution network operators and National Grid Electricity System Operator. It provides a consistent GB-wide core agreement for those wishing to provide vital flexibility services to the networks.
The new contract has been developed with feedback from a range of industry stakeholders including Ofgem and the Department for Business, Energy and Industrial Strategy.
Key updates include:
- simplifying the core contract, providing increased alignment with ESO approach
- making clauses more accessible across the agreement
- making the process more accessible to aggregators
At the beginning of 2019 ENA’s Open Networks project launched a dedicated workstream for flexibility which helped DNOs tender over 2GW of flexibility.
Farina Farrier, head of Open Networks Project at Energy Networks Association, said, “The UK is already a world leader when it comes to energy flexibility and as part of the UK’s commitment to Net Zero, the whole of the energy industry is behind making it easier and more accessible to work with network operators. We’ve got lots of work ahead of us but by really focusing on providing a consistent, accessible way of working together, we can maintain that world-leading position and power towards Net Zero emissions.”
Alex Howison, flexible Solutions Manager at Scottish and Southern Electricity Networks said, “It’s brilliant to be able to take the lead in actioning another positive step towards a ‘whole industry’ standard agreement being finalised. Flexibility is critical for enabling the UK to reach Net Zero and is vital to help customers get the most from new technologies – while helping networks to manage their systems better and plan investment.
“The momentum ENA’s Open Networks project has built, and the pivotal role it plays in the energy transition, will continue into 2021 and this will be another year of action and delivery for the flexibility services workstream.”
A public consultation on the next version of the common contract will follow in August, with plans to launch at the end of the year. Its associated contractual evolution report will be launched later this month.