Since the publication of the 2016 Annual Report, we have seen an acceleration of activity by industry players, improved awareness among Industrial and Commercial (I&C) energy users and increased Demand Side Flexibility (DSF) participation in contracted markets. There have also been many significant policy, regulatory and industry-led developments.
The pace of change in the industry is an exciting challenge, and one that compels whole industry collaboration and markets that can be accessed by all technologies.
As we transition to a low-carbon and digitised world, Demand Side Flexibility has an increasingly important role. Electricity system needs are evolving on both a transmission and distribution level, and we need additional sources of flexibility to meet these needs – from an increasingly diverse range of technologies.
The 2017 Annual Report provides the opportunity to reflect on significant developments over the last 12 months – both within the Power Responsive programme and from wider initiatives – and to look ahead and signpost the milestones relevant to exibility stakeholders.
Progress has been made across DSF – Demand Side Response (DSR) distributed generation and energy storage. However, there are still barriers to accessing the full potential of these exibility sources. In order to fully understand and assess the growth in participation, it is necessary to ascertain the extent to which parties are pursuing exibility opportunities.
The 2017 Annual Report presents metrics for DSF participation in various markets, and considers the steps needed in the year ahead to unlock barriers and maximise future potential.
Power Responsive was launched in 2015 by National Grid, with the ambition of supporting the growth
of demand side participation in GB electricity markets. Now in its third year, priorities for the programme include continued awareness-raising among I&C customers, building confidence in flexibility opportunities, and supporting the evolution of flexibility markets. With innovations in technology solutions, the programme is also exploring the opportunities for domestic DSR and flexibility from electric vehicles.
The report is designed for an audience with some knowledge of DSF, with the purpose of reflecting on the progress and changes relevant to demand side providers, highlighting the remaining challenges and upcoming activity for 2018. The report also presents metrics for benchmarking demand side participation in exibility services.
The content covers:
- The Power Responsive programme – achievements over 2017 and engagement activity for the coming year (Section 2);
- Insights from market actors on the current state of play for DSF (Section 3.1) and highlights of recent policy, regulatory and industry-led initiatives supporting or impacting DSF (Section 3.2);
- Metrics on demand side participation in explicit (Capacity Market and National Grid Balancing Services) and implicit (network charge avoidance) markets and opportunities, creating a benchmark against which to assess growth (Section 4); and
- The future outlook on developments for DSF (Section 5).