UK Power Networks' DSO strategy paves the way for flexibility markets, offering new revenue streams

Full presentation title: UK Power Networks' DSO strategy paves the way for flexibility markets, offering new revenue streams for customers & efficient distribution system operation.

UK Power Networks’ flexibility programme is identified as one of the key enablers for its transition from a Distribution Network Operator (DNO) to a Distribution System Operator (DSO). UK Power Networks as an emerging DSO is adopting smart, flexible, and innovative techniques to support efficient network planning and operations in order to ensure delivery of outputs and minimal cost impact on consumers, while managing the uncertainty of a continuously evolving energy system.

UK Power Networks was the first utility in the UK committing to a Flexibility First approach – by market testing all capex prior to any reinforcement of the network – with its Flexibility Roadmap in 2018. UK Power Networks also pioneered the use of an online third-party platform to advertise information on upcoming network needs and allow Distributed Energy Resources (DERs) to register their interest. It developed and trialled the UK’s first GB-wide flexibility marketplace with Piclo, a single place for DSOs to source flexibility from the rapidly growing number of flexibility providers.

Through the 2018/19 tender, UK Power Networks fully secured its operational requirements in 4 flexibility zones. Hence, the network can be managed using flexibility services instead of building additional network assets. Approximately 6,200 assets have expressed interest with capacity more than 82MW thus far. This has enabled 43MW of cumulative firm flexibility to be contracted up to 2023 to manage localised areas on the network during high demand conditions. Figure 2 illustrates the innovation trial Shift which will see up to 1,000 electric vehicle owners

Furthermore, UK Power Networks is creating the world’s most advanced electricity network control system. The Active Network Management (ANM) system will provide state of the art functionalities in dispatch and DER management, network power flow and optimisation, and commercial and market management. This approach will reduce the need for building or upgrading network infrastructure, accelerate new connections and facilitate the development of new markets. UK Power Networks will use the ANM system to enable the connection of over 500MW of DERs to its network, with the majority being renewables.

A vital part of the DSO vision is to understand, engage and manage customers who provide services, and UK Power Networks is already recognised as a leader in customer engagement. The aim is to create inclusive markets, where active prosumers and local energy community schemes can participate on a level-playing field, and, therefore, UK Power Networks is continuously seeking feedback to develop new products and further improve the existing ones. Thus, UK Power Networks is transitioning to a DSO by co-defining the future of local flexibility with its customers, enabling markets and whole system benefits, and using technology advancements in the operation and planning of distribution networks.

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