Utility Week

UTILITY WEEK | JUNE 2022 | 25 Policy & Regulation How flexibility holds the key to unlocking a net-zero future WPD is trying to turbo-charge the market for flexibility, with its Flexible Power platform and its Intraflex trial of continuous, close to real-time trading. Opinion Ben Godfrey, Western Power Distribution E nergy networks have a vital role to play to enable stakeholders across our regions to reach net zero as soon as they want to – in some cases up to two dec- ades ahead of UK and Welsh government targets of 2050. At Western Power Distribution (WPD) we have made a commitment to keeping customer bills flat over the RIIO- ED2 price control period irrespective of other wholesale cost increases or regulatory recovery mechanisms. To ensure we keep the network portion of customer bills affordable, it's vital that we maximise the utilisation of the existing network before new infrastructure is required. Flexibility services are therefore disrupting the tradi- tional energy market and introducing new opportunities for customers to interact with the electricity network, becoming active market participants rather than simply using energy from the grid. The potential of flexibility services and the democratisation they provide are key to placing local communities at the heart of the net-zero transition and empowering them to play an active role in a smarter, low-carbon energy future. In turn, managing peak load through flexibility helps reduce costs to con- sumers because it means network operators don't have to invest in a permanent upgrade to meet a temporary spike in demand. The energy system is currently undergoing its biggest transformation in decades in order to help our stakehold- ers to decarbonise and reach net zero. This creates excit- ing new opportunities for network operators like WPD to interact with its customers and ensure that every one stands to benefit from a smarter electricity system. The introduction of low-carbon technologies (LCTs) is creating two-way power flows, meaning networks are required to operate in ways that were never envis- aged when they were built. In turn, as heat pumps and electric vehicles become more mainstream, customer requirements and expectations from their local electric- ity networks are changing, with an even greater reliance on a reliable supply of electricity to go about their daily routines. In simple terms the average annual demand from an electric vehicle can be similar to a domestic home, but it isn't feasible or cost effective to essentially double the capacity of the existing grid by building new, larger assets to significantly reinforce the network. Instead, network operators are rising to the challenge of becom- ing smarter and more dynamic, and in doing so avoiding adding costs to customers' bills. This is where flexibility comes in as it offers a solu- tion for both consumers and their changing energy needs along with the network's drive to decarbonise. To give an idea of scale, in its business plan for the next regulatory period RIIO-ED2, WPD (which operates the network for 25% of Great Britain) has committed to accommodate at least an additional 1.5 million elec- tric vehicles and 600,000 heat pumps over a five-year period. The use of flexibility will be key to ensuring customers can connect these technologies quickly and at an affordable cost. Flexibility is mostly procured from industrial and commercial customers operating generation, but in the future we see domestic flexibility as providing the larg- est proportion of flexibility volumes. Currently, domestic customers make up 152MW out of the 709MW that WPD contracted via Flexible Power in 2021. However, we are striving to a future where all consumers can generate income from their energy habits while contributing to a low carbon future. WPD is leading the way with this technology, and this has been recognised within the industry as a whole. Our Flexible Power platform recently took the award in the disruptor category at the Utility Week Awards. Flexible Power allows distribution network operators (DNOs) to publish, procure, dispatch and settle flexibil- ity requirements. While Flexible Power was disruptive when it entered the market, it is now the norm within the UK's energy system as five out of the six DNO's use the portal, meaning it is being used to the benefit of around 75% of customers in Great Britain. And we want to go even further. WPD is now expanding flexibility across multiple time periods, complementing longer and shorter-term contracts, plus domestic specific flexibility products to open up more opportunities in the market. Our ground- breaking Intraflex trial allows flexibility services to be continuously traded in close to real time, delivering cost savings and dismantling barriers between DNOs and customers. This is only the start. At WPD our focus is not just on contracts signed, but on real world dispatching of flexibility services to support the operation of the exist- ing network. We believe flexibility services will become standard as part of a low carbon economy. Ben Godfrey, distribution system operator manager, Western Power Distribution Ben Godfrey's opinion piece can be read in full at: https://utilityweek.co.uk/how- flexibility-holds-the-key-to- unlocking-a-net-zero-future/

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