National Grid will start to focus more keenly on bringing smaller businesses, electric vehicles and households into demand-side response this year.
The System Operator outlined its plans in its Power Responsive annual report.
National Grid said while it has traditionally focused on bringing industrial and commercial firms into demand-side response (or, more broadly, demand-side flexibility), “attention is shifting to the potential of smaller-scale buildings and domestic level DSR, including smart charging of electric vehicles and two-way charging solutions (vehicle to grid)”.
“We anticipate this will become more prominent in the coming year and, as such, these opportunities will be incorporated in to Power Responsive’s engagement activities,” it stated.
The report also suggests patchy geographical uptake of DSR/DSF to date.
A survey of aggregators and suppliers conducted by the Association for Decentralised Energy (ADE) suggests flexibility providers are concentrated within certain regions. For example, 36% is concentrated in London and the South East, with only 2% in the North East, and 1% coming from Scotland.
National Grid said this represents an opportunity to tap less engaged regions.
The report also confirms the increasing number of providers of higher value firm frequency response services, which is increasing liquidity and driving down prices.
While that provides better value for bill payers, National Grid said it was therefore important for service providers to work out how to stack revenue streams in order to build viable business cases.
National Grid also outlined how incoming legislation such as the Medium Combustion Plant Directive (MCPD) may affect the mix of technologies providing short term operating reserve (Stor), one of its most mature balancing services. The directive stipulates that thermal plant cannot take on new balancing services contracts without meeting strict emissions limits. Those limits will particularly impact diesel generators.
MCPD’s impact on back-up diesel generators will also need to be considered this year, said National Grid.
See the full report here.
Interested in demand-side response? Download our free 2017 DSR report, featuring interviews with DSR providers including Marks & Spencer, NHS Scotland, Partner Logistics, Unite Students and Welsh Water.
It also contains views on market challenges and opportunities from industry participants, suppliers and aggregators, plus a survey of 180 end-users on their views towards DSR and battery storage.
Download the report here.