Scottish and Southern Electricity Networks (SSEN) has teamed up with Piclo to provide flexible procurement services to consumers.
They could range from small-scale renewables, battery storage and electric vehicles (EVs) to demand side response and energy efficiency measures that help alleviate constraints on the networks, unlocking new opportunities for households, businesses and communities.
The marketplace identifies areas of network congestion and maps across flexibility providers, giving them the opportunity to alleviate this congestion, reducing reinforcement costs and enabling continued growth in embedded, renewable generation
Payments for providing the flexibility services will typically include an availability payment and a utilisation payment and total around £300/MWh.
SSEN will procure flexibility through four services: Constraint Managed Zone (CMZ) Prevent, which supports the management of peak demand; CMZ Prepare, which supports the network during planned maintenance work; CMZ Respond, designed to support the network during fault conditions as a result of maintenance work; and CMZ Restore, to support the network during faults that occur as a result of equipment failure.
The two organisations previously worked together in opening up six sites across SSEN’s licence area to tenders for flexibility – the distribution network operator (DNO) is now scaling it up across its entire network.
It is part of the DNO’s efforts to transition towards a smarter, more flexible electricity network.
Stewart Reid, Head of Future Networks at SSEN said: “SSEN is committed to being a neutral facilitator of local and national markets that are created by the transition to a flexible network. To do this successfully, visibility, transparency and accessibility will be key. Too often asset owners that may be considering providing flexibility services find that the process is neither clear nor simple.
“With Piclo, we are hoping to address that challenge, to provide the communities in which we operate a level-playing field that supports local solutions and builds a network of flexibility providers.”