Flex Your Power Webinar Series: Domestic demand side response flexibility opportunities

Watch our final "Flex your power" webinar on Domestic demand side response assets co-organised with Energy UK and featuring case studies from Electricity North West and myenergi.

To find out more about participating in flexibility visit https://www.piclo.energy/ or book a demo at https://www.piclo.energy/form/book-a-demo

Don't forget to register your interest in our new Piclo Max platform designed to give Flex sellers access to all electricity markets : https://www.piclo.energy/max

Transcript

1. Thursday 23rd November, 11:00 - 12:00 Thursday 30th November, 11:00 - 12:00 Thursday 30th November, 11:00 - 12:00 Thursday 7th December, 11:00 - 12:00 Thursday 7th December, 11:00 - 12:00
2. Welcome This webinar will be recorded Matthew Billson Policy & Market Strategy Director Piclo Naomi Baker Senior Policy Manager Energy UK Lois Clark DSO Commercial Lead Electricity North West Tom Callow Head of Corporate Communications myenergi
3. Naomi Baker Senior Policy Manager Energy UK Policy and markets overview
4. Piclo – Flex your power webinar Domestic flexibility – Overview Policy and Markets 7th December 2023
5. Energy UK - who do we speak for? • Energy trade association • Over 100 members • Whole of the market (downstream) Membership: • delivers 80% of UK’s power generation • over 95% of energy supply (28 million UK homes and many businesses) • includes service providers across energy, transport, heat and technology.
6. Flex policy evolution 2017 – to 2023
7. Why? i) Ensure DERs support system (versus ‘parasitic’ loads) Cornwall Insight The Power of Flex
8. Why? ii) Optimise renewable output so surplus creates value (not cost) Chart from LCP Generation mix 2022 - 31% wind and solar. Gas 34%
9. Contribution of domestic flex now – nascent Local flex markets . • DNOs (congestion) • Contracted volumes grown from 116MW in 2018 to 2.4GW in 2023 • But lack of standardization = friction & procurement shortfall • LCP’s 2022 Market Monitor for Demand Side Capacity Market 2022/23 T-1 Auction • 45% - Gas • 7% DSR - 404MW 2022/23 T-4 Auction • 68% of Gas - 29.0GW • 2% DSR - 925MW (source Ofgem CM report 2023) Balancing Mechanism BM) • ~70% gas (ESO Markets Roadmap 2023) • Control room processes (part manual) and IT can’t manage small-scale assets in aggregated portfolios • ESO’s Open Balancing Platform - capability to dispatch multiple providers • Metering standards – ESO requires metering accurate to 1%. • ESO trial relaxed metering standards - EV role in system balancing.
10. Case study – Demand Flexibility Service • Gas crisis - winter 2022/3, the ESO developed a package of winter contingency options (coal contracts, and DFS) • The award-winning service was a nationwide trial of a demand reduction service, enabling domestic consumers, industrial and commercial users to be incentivised for shifting demand to avoid the peak 10
11. Case study – DFS • 2023/4 – the ESO expects to run 12 test events between November 2023 and March 2024. • First 6 tests at £3,000/MWh• Initial indication 2-3GW • Is DFS expensive? Compared to BAU balanced - Yes Compared to 2022/3 coal contracts - No 11
12. Contribution of domestic flex now – nascent The Future of Distributed Flexibility | Ofgem
13. Building the foundations for scaling future markets
14. Equity, Diversity and Inclusion • Follow TIDE on Linked In: https://www.linkedin.com/company/tackling-inclusion-diversity-energy • Sign up to EUK’s EDI updates: https://bit.ly/EUKEDISignUp • Industry EDI Calendar: https://bit.ly/UKEDICalendar • More about TIDE / EDI – diversity@energy-uk.org.uk
15. Young Energy Professionals Forum The Young Energy Professionals (YEP) Forum connects, develops and inspires the next generation of energy industry leaders. The Forum is free to join and available to those with up to 10 years in the energy industry. Visit: www.bit.ly/YEP_Forum for more info
16. Young Energy Professionals Forum The YEP Forum promotes and inspires the next generation of energy industry leaders, providing opportunities to connect, develop and recognise success • Free and open to professionals with up to 10 years of experience in the energy industry • Wide range of events held monthly, from site visits to networking, as well as opportunities for blog-writing for our members • Annual YEP Awards are an opportunity to recognise the impact of young professionals – sponsorship deals are available • Follow us on social media and sign up to our newsletter here • LinkedIn – Young Energy Professionals (YEP) Forum • Twitter - @YEPForum • Instagram - @yep.forum • Our latest annual report is available here
17. Current opportunities in local flexibility markets in the UK Matthew Billson Policy & Market Strategy Director Piclo
18. • Local flexibility markets are growing rapidly to balance grid demand and supply • Flex Service Providers (FSPs) provide flexibility services • Piclo provides opportunities to FSPs through: • End-to-end platform to connect system operators and flex service providers • Streamlined processes for qualification, competitions and results • Competition-based approach to maximise FSPs’ revenue potentials • Proven method to promote market awareness What are flexibility services, and what does Piclo provide? 18
19. How it works 19
20. Why should you participate? Revenue stacking Low market and financial risk Multiply your footprint Free to use £ Potential new assets 20
21. Autumn/Winter Flex Opportunities: 1.5GW+ | £27m+ | 1000+ locations 21 Volume: 413MW Value: £7m Locations: 29 locations across Cumbria, Lancashire and Greater Manchester Volume: 298MW Locations: 575 locations across Central and Southern Scotland and North Wales, Merseyside, Cheshire, and North Shropshire. Qualification 30th Oct- 26th Jan DPS deadline: 19th Jan Oct Nov Dec Jan Feb Bidding 12th Feb - 23rd Feb Qualification 30th Oct - 8th Dec Bidding 11th - 15th Dec Volume: 851MW Value: £20m/ ~600/MWh Locations: 452 locations across South East England including Norwich, Canterbury and London. Bidding 11th Dec - 29th Dec Qualification 4th Oct-15th Nov Closed Local Constraint Market Volume: Varied Locations: Scotland Qualification January 2023 - January 2026 The qualification period remains open and new competitions are added regularly. Pre-register to participate. Visibility only competitions Locations: North East, Yorkshire and North Lincolnshire Qualification 15 September - 31 December 2023 Additional service requirements until end of 2023 Provides visibility of future requirements Qualification closing tomorrow
22. Where can you find more information? • Piclo ‘System Operator Profiles’ – these profile pages contain links to key tender documents and timelines for participation • Piclo Data Hub: For data on past competitions and bidding. • Piclo Support: Piclo has an extensive set of help articles for FSPs • Piclo Academy: Dedicated training courses to help FSPs learn how to participate in flex markets. • ENA Website – summary of all DNOs procurement activities, including timelines and annual reporting • System Operator websites – DNOs publish additional information within their own data portals 22
23. Just announced 23
24. Lois Clark DSO Commercial Lead Electricity North West Market opportunities and development
25. Market opportunities and developments 25 Lois Clark DSO Commercial Strategy Lead ENWL
26. DFES 2023 26
27. Our latest requirements! 413 FLEXIBLE CAPACITY R E Q U I R E D 29 LOCATIONS ACROSS THE NORTH WEST MW OF 138 REQUIREMENTS £7m 2024 2028 Y E A R S OVER THE NEXT REVENUE AVAILABLE 4 U P T O Autumn 2023 tender 13 tenders Since 2018 76 locations 4GW requirements
28. Our requirements by region Cumbria 17 Locations 245 MW 87 requirements £2,954,212 Lancashire 7 Locations 76 MW 27 requirements £1,107,884 5 Locations 92 MW 24 requirements £2,866,680 Greater Manchester
29. Procurement timeline Anytime 30 October 19 January 26 January 12 - 23 Feb 22 March Technical qualification opens DPS Registration ITT published Commercial qualification close Technical qualification close Bidding window Contract awarded Tender opens Upload assets Confirm participation Commercial qualification
30. 2023 Flexibility Services Consultation Held over summer period to: • Engage with stakeholders to collaboratively shape our priorities and approach to procuring flexibility services • Ensure we continue demonstrating accessibility and simplicity throughout our flexibility processes, with a key focus on data sharing, engagement, technical requirements and contracting • Hear your views of how we can best support the flexibility services market in Great Britain The consultation and response summary are available to view within our flexibility document library: Flexible Services Document Library (enwl.co.uk)
31. 19 responses- thank you for your feedback! • Further industry standardisation of: Products, API interfaces, platforms, availability hours • Too many variations of processes, technical requirements, contracting across all the DNOs • Lowering minimum thresholds to allow smaller players to participate • Common contract: ability to adjust details for longer term requirements if circumstances change and mix of both short and long term contracts is preferable • More information on Energy Efficiency Measures and having it as a separate product • Barriers to entry: Minute by minute metering, penalties, location of requirements and lack of revenue certainty Responses collected via: • Webinar • Email • 1-2-1 feedback sessions • Online form
32. Our initial commitments 50kw minimum requirement Old approach New approach 10kw minimum requirement Annual commercial qualification requirement One-off commercial qualification requirement Minute by minute metering only Alternative metering granularity now accepted including half hourly Procure energy efficiency through the secure, dynamic and restore products Adopt separate energy efficiency product from Spring 2024 V2 Standard Flexibility Services Agreement Adopt V2.1 for Autumn tender and implement V3 as framework style agreement next year Continue working with the rest of the industry to design a common API interface
33. Market developments and standardisation 33 Products Pre- Qualification Contract Settlement Commercial & Technical parameters now finalised with templates to be made available on ENA page, and criteria embedded into Piclo. Version 3 To be utilised as a framework style agreement Actively seeking feedback Working through frequency of payments; under / over delivery; metering granularity, accuracy and location,. New standardised products have now been finalised and will begin implementation for Spring tender rounds All to be fully implemented by April 2024
34. Useful links All our current and previous requirements, webinar recordings, helpful guides and case studies can be found on ENWL’s flexibility portal We offer 1-2-1 discussions to assist with any queries relating to the process of providing flexibility Book here Sign up to our distribution list to receive our newsletters, latest requirements and event invites Piclo Flex Flexible services website Open Data Portal Register for updates 1-2-1 Discussions Head over to the Piclo Flex platform to view our latest requirements and take part in our tenders by registering onto our DPS and uploading your assets NEWS! Our flexible services requirements and reports are available on our Open Data Portal to view and download in a variety of formats including via API
35. Tom Callow Head of Corporate Communications myenergi Case study: myenergi
36. myenergi – Flex Your Power Tom Callow, Head of Corporate Communications 07 | DEC |2023
37. • Founded in 2016, UK-based manufacturer with 350+ employees and international presence with five subsidiaries • Pioneer of a range of smart home energy tech, including solar power diverter, solar EV charger and home battery system, with digital customer platform • Business model focused on hardware and installation sales to end consumers, with growing capability in trading aggregated energy • 600,000+ devices shipped with over 120,000 connected customers in 21 international markets • Patent-protected proprietary hardware and software, including market-leading home energy ecosystem • Fast-growing privately-owned company with past three years’ average growth of more than 125% myenergi group
38. The problem we are trying to address 38 Source: company information 1. Based on October 2023 energy price cap 2. Company estimate; assuming all households are in possession of both an EV and heat-pumps and absent mitigating technologies 3. Net increase in heating bill vs gas bill 4. Timera Energy, May 2022. National Grid 2021 balancing costs 5. Future Energy Scenarios, Leading the Way scenario 2050 Home Grid Increase in household consumption 5x increase in peak load expected(2) Increased renewable generation, leading to unbalanced grid Grid spend of £2.65bn today(4) Expected flexible system capacity increase – 280%(5) Increased stress and imbalance on the grid Total electricity consumption increase – 190% Increased electricity bills Current typical household electricity bill of £1,834(1) per year Electric Heating & Hot Water +£644 per year(3) Electric Vehicle +£990 per year
39. An interconnected community of eco-smart homes: simple, accessible and convenient ecosystems, designed to pioneer a simple transition to renewable energy Vision Removing the barriers to a greener future Purpose
40. 40 Selling and installing hardware to end users, through various channels, with integration control via the myenergi digital platform Current business model, plus aggregating and trading energy, earning revenue from delivering grid services and sharing rewards with partners and customers Core capability Growing capability How we solve the problem
41. Smart single- or three-phase EV charger that adjusts charging rate to consume renewables or optimise against tariffs ©MYENERGI 2022 Our products Self-powered wireless sensor, enables zappi and eddi products to be installed without additional wiring All-in-one hybrid battery energy storage system, gives maximum installation flexibility and can optimise against dynamic energy tariffs as well as surplus solar generation Seamless control and access to devices such as zappi and eddi in order to optimise energy management across the home Controls electric water or space heating from surplus solar power or green energy from the grid via variable tariffs
42. ©myenergi 2023 Connected customers 600,000 devices shipped since myenergi was founded 21 markets with our devices • We have shipped over 600,000 devices to date, including zappi, eddi, libbi and harvi • We have shipped products to 21 global markets, with a focus on our five core markets • We have shipped more than 275,000 zappi EV chargers • Within the next five years, we expect to have well over one million connected customers with a total potential flexible capacity of over 3.6 GW
43. ©myenergi 2023 Intelligently connected smart devices delivering a sustainable future with a positive impact on the environment and seamless integration into day-to-day life • Options to charge as green, as cheaply or as quickly as possible • Integration with smart tariffs, automatically drawing energy from the grid at the lowest rate per kWh • Set energy management priorities including integration with solar generation • Monitor grid import / export, PV generation and battery storage • Grid flexibility services, including Demand Side Response Our digital customer experience
44. ©myenergi 2022 Unique insight into customers’ whole home consumption Very little grid import or export Taking advantage of ToU tariff for EV charging via zappi Discharging to EV after charging libbi using a ToU tariff
45. Flexibility Responsive Energy Delivery Delivered innovation and R&D FRED Domestic demand side response pilot – tested on 250 myenergi customers Tested a range of ‘flexibility’ strategies Demonstrated the customer accessibility of 3rd party control of home devices Completed Pilot Highlighted multiple revenue streams from electricity balancing, ancillary and wholesale power service Fred was funded by UK government (BEIS)
46. Domestic Infrastructure Network Optimisation Delivered innovation and R&D DINO Intelligent control solution for local energy network operators Demonstrates network investment deferrals; for EV, storage and heat pump optimization both in the home and for local networks Highlighted routes to ancillary revenue via local distribution network operators Shows that smart-charging can immediately reduce the cost of supplying electricity by around 30% in a sustainable fashion DINO was funded by Innovate UK Completed Pilot
47. ©myenergi 2022 • Recruited customers (opted in) to participate in the National Grid ESO Winter Demand Flexibility Service in late 2022 and early 2023 • Thousands of zappi chargers opted in, giving an aggregated flexible capacity of 12MW • Average demand reduction of 4.4kW per participant and an average value per participant of more than £15 per event • We are continuing to develop our capabilities to support future flexibility services Delivered Demand Side Response (DSR) Demand Flexibility Service DFS
48. Thank you!
49. Q&A Please use the chat window to ask your questions Matthew Billson Policy & Market Strategy Director Piclo Naomi Baker Senior Policy Manager Energy UK Lois Clark DSO Commercial Lead Electricity North West Tom Callow Head of Corporate Communications myenergi
50. Thank you Book a demo using the QR code or email support@picloflex.com for more information. BOOK A DEMO https://shorturl.at/clrz1