Flex Forum: reducing barriers in distribution flexibility markets

Piclo, UK Power Networks, Electricity North West Limited, SP Energy Networks invited Flexibility Service Providers (FSPs) to an in-person event ‘Flex Forum: reducing barriers in distribution flexibility markets’, held on Wednesday 24 May 2023 at the esteemed Coin Street Community Centre by Waterloo Station in London.

This all-day event provided FSPs with the opportunity to meet and collaborate with DNOs who are involved in leading and organising flexibility markets in the UK. The event comprised a series of workshops, market insights and panel discussions followed by a networking drinks reception to catch up with colleagues across the industry.

Transcript

1. Flex Forum: reducing barriers in distribution flexibility markets
2. Welcome 9:30 - 9:45 Organised with:
3. 3 Flex Forum: reducing barriers in distribution flexibility markets Introducing Piclo Flex • 3 DNO clients covering over 50% of UK • 3,525 local competitions held • £56 million of contracts awarded The leading independent flexibility marketplace with over 711 MW of contracted capacity Alex Wilson Conrad Energy “Before Piclo, there was no standard way a DNO could offer flexible services to asset owners. Now that the Piclo Flex platform is in place, we can see multiple DNOs and the products they are offering at a glance. The platform offers greater transparency as to what services are on offer at any given time.“
4. Recap of 2022 9:30 - 9:45 Organised with:
5. 5 Flex Forum: reducing barriers in distribution flexibility markets Recap from last year Stimulate market engagement 57 attendees Boost confidence and transparency 14.06 Manchester Drive participation and liquidity “Flex Forum: Growing DSO flexibility markets to reach net zero”
6. 6 Flex Forum: reducing barriers in distribution flexibility markets Flex market data New! Piclo Data Hub provides updated and easy to access market information for all DNO competitions hosted on Piclo Flex. DNOs are now providing longer-term visibility Data availability: “The value proposition of DSO flex services must be made clearer, DSOs must increase visibility of what kind of services will be needed in future”
7. 7 Flex Forum: reducing barriers in distribution flexibility markets Short term markets “Short term markets are a significant opportunity for DSOs to prioritise over ED2” ““A variety of short, medium and long term contracts should be available to suit different FSPs” Short-term competitions We have developed the end-to-end functionality to deliver short-term markets and are working alongside the DNOs on how to enable this
8. 8 Flex Forum: reducing barriers in distribution flexibility markets Automation and APIs APIs “APIs can help with automation for FSPs” “There is a lack of standardisation across operations and dispatch is a barrier - e.g. Dispatch APIs” We have published a number of APIs for FSPs and DNOs to make use of and will work alongside industry to move towards common APIs
9. 9 Flex Forum: reducing barriers in distribution flexibility markets Greater standardisation Need image on qualification on Piclo? Procurement Standardisation “The procurement process is flawed and needs to change” “The lack of a framework contract acts as a barrier to participation” We will work alongside DNOs to deliver a standardised PQQ
10. Aims for the day To understand the future plans for DNO flexibility To grow participation in DNO flexibility markets To hear from you to remove barriers To connect and reconnect with energy peers!
11. DNO flexibility update and Q&A 9:45 - 10:30 Gemma Stanley (Chair) Senior Policy and Regulatory Manager Piclo Lois Clark DSO Commercial Lead Electricity North West Gerard Boyd Head of Flexibility SP Energy Networks Alex Howard Head of Flexibility Markets UK Power Networks Organised with: Maurice Lynch Head of System Flexibility Northern Power Grid
12. 12 Flex Forum: reducing barriers in distribution flexibility markets Evolution of distributed flexibility 2018 2019 2020 2021 2022 2023 Initial development of distribution flexibility markets Piclo Flex launches! First public flexibility tender All DNO’s sign up to the ENA’s ‘six steps for delivering flexibility’ focussing on simplicity, neutrality and transparency. Focus on improving visibility and establishing procurement processes First iteration of the ‘Standard Flexibility Agreement’ Standardised product names Development of the CEM tool First commercial dispatches Updated Smart Systems & Flexibility Plan Implementation of the CEM tool for standard evaluation New reporting conditions for procurement and contracting (31e) Standardised baselining methodologies approved and implemented Network Development Plans published First Piclo & DSO Flex Forum! RIIO-ED2 begins! Version 2.1 of the standard agreement Standardising pre-qualification Standardising product parameters 359 FSPs registered 422 FSPs registered 476 FSPs registered +63 +54
13. 13 Flex Forum: reducing barriers in distribution flexibility markets Key priorities for RIIO-ED2 Standardisation A key focus for all networks is the standardisation of pre-qualification and procurement processes and the move towards simpler contracting processes. Collaboration Working together for whole system outcomes. We are committed to collaborating with stakeholders and other networks to reduce barriers to entry for flexible service providers. Co-ordination Ensuring markets are fit for purpose and coordinated across distribution and transmission to enable maximum participation.
14. 14 Flex Forum: reducing barriers in distribution flexibility markets Distribution Flexibility Services Procurement Summary Capacity to be tendered 23/24 Value to be tendered 23/24 Capacity awarded 22/23 1536 MW >£15.5m 2212 MW Value awarded 22/23 Capacity dispatched 22/23 Value dispatched 22/23 >£1m 1162 MWh £0.21m
15. 15 Flex Forum: reducing barriers in distribution flexibility markets Upcoming tenders DNO May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar ENWL Spring-23 tender Autumn-23 tender NPg Spring-23 tender (own platform) Autumn-23 tender (on Piclo) UKPN Summer-23 tender Winter 23/24 tender SPEN Spring-23 tender Autumn-23 tender
16. 16 Flex Forum: reducing barriers in distribution flexibility markets Data and information provision • Piclo ‘System Operator Profiles’ – these profile pages contain links to key tender documents and timelines for participation. • DNO Websites – DNOs publish additional information including guides for participation, half hourly data, cost calculators and post code checkers alongside more detailed network information within their data portals. • ENA Website – summary of all DNOs procurement activities, including timelines and annual reporting demonstrating the development of the flexibility market.
17. 17 Flex Forum: reducing barriers in distribution flexibility markets Open Networks Project Planning & Network Development Network Operation Market Development Carbon Reporting DER Information NDP & Coordination register Common Evaluation Methodology ANM Curtailment Information Primacy Rules Dispatch Systems Interoperability Operational Data Sharing Standard Agreement Procurement Processes Flexibility Products Settlement Processes Conflict of Interest Register GB Flex Figures Baselining Strategic Roadmap for Flexibility
18. 18 Flex Forum: reducing barriers in distribution flexibility markets Timeline for implementation of key deliverables May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Standard flexibility products Standard qualification processes Standard agreement v2 (framework agreement) Standard agreement V3 Dispatch API standardisation Standard settlement processes ⭐ Industry focus groups ⭐ Industry consultation
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