Distribution system operator UK Power Networks (UKPN) has agreed a partnership with the power market operator EPEX SPOT to host its flexibility market.
The cooperation opens the market to a new segment of participants.
The DSO has committed to saving customers £410m by 2028 and has delivered £60m worth of savings in 2023 alone, by using flexibility as an alternative to the traditional approach of delivering network capacity by building more infrastructure.
Local flexibility markets are playing a key role in minimising the need for additional grid infrastructure to accommodate the growth of renewable generation and low carbon technologies such as electric vehicles and heat pumps, helping enable a net zero transition.
EPEX SPOT was appointed as the new flexibility market platform provider after a competitive tender.
As the only independent DSO, UK Power Networks has already awarded contracts for more than 1GW of flexibility.
Working together, the two companies are confident they have the ingredients for a highly scalable, innovative and coordinated flexibility market.
Flexibility providers will be supported to register on the EPEX SPOT Localflex platform and will have the opportunity to help shape priorities for platform development.
In December 2023, UK Power Networks began a trial of day-ahead flexibility procurement in East Anglia.
This process will be migrated to the Localflex platform from April 2024, followed by UK Power Networks’ long-term flexibility tenders from May 2024.
Sotiris Georgiopoulos, director of DSO at UK Power Networks said: “EPEX SPOT offers the opportunity to exceed our commitment to avoiding £410m of infrastructure investment between 2023 and 2028.
“We’re looking forward to working together with EPEX SPOT and our market participants to deliver a world class customer experience and contribute to a more joined up British flexibility market.”
Sourced by: reNEWS.biz