RP7 Stakeholder Consultation WEB - Flipbook - Page 27
Figure 10 - FLEX in numbers
Q6. Do you agree with our
‘Flexibility First’ approach?
To further ensure an objective decision
making process when choosing
between FLEX and conventional
reinforcement, we have adopted the
Common Evaluation Methodology
(CEM) which has been developed
by the Energy Networks Association
and used by our counterparts in GB.
The CEM is a Cost Benefit Analysis
tool which models the optimum
investment option where both FLEX
and conventional reinforcement options
are available. The CEM contains
functionality to quantify the wider
societal issues to be considered when
determining the optimum solution for
network investment. This includes
factors such as the carbon impact and
network losses of each solution, as well
as placing a value on the benefits of
deferring conventional investment until
there is greater certainty (optionality).
We believe that it is appropriate to
use the CEM to recognise the wider
societal impacts of network investment.
By doing so this will reflect the true
value of ‘Flexibility First’ allowing us to
take a more sustainable approach to
investments, whilst accommodating the
uncertainty driven by the pathway to
net zero.
7. Do you agree with us
Q
including wider societal
impacts in our decision making
between FLEX and conventional
reinforcement?
Looking beyond RP7, we believe that
flexibility markets will play an even
greater role in supporting network
operation. In order for us to use
flexibility, sufficient volumes of flexible
assets and market liquidity need to be
available in the specific locations we
need them in; otherwise we may have
no option but to invest in conventional
reinforcement. We believe that the
following 2 stage approach will help
achieve this:
•Signposting – we will publish
detailed information about our
future flexibility requirements well
ahead of need. This will provide
the initial signals to potential
flexibility providers about upcoming
opportunities, including technical
requirements like location and
value, and ensure they are ready
to participate in future flexibility
competitions.
•Going further, faster – an initiative
whereby we stimulate flexibility
markets in local areas several
years ahead of need. Commercial
contracts will be designed to
support flexibility market growth in
areas where our research indicates
it is required, helping ensure that
markets are sufficiently developed
to meet our needs. This initiative
will support investment in flexible
assets, promoting increased market
liquidity, whole system flexibility,
and ultimately reducing costs for
customers. In RP7 we propose
spending up to £2 million going
further, faster, on flexibility and
unlocking additional savings in
RP8 and beyond. This will cost the
average domestic customer 28
pence per year in their electricity
bill during the RP7 period. For
our commercial customers this
represents an annual amount
between £1.14 for a small business
and £17 for a medium business.
Q8. Do you agree with our
approach of going further, faster,
with FLEX markets?
20
MW
Total capacity awarded
14,530MWh
Contracted availability
We predict
874 MWh
Utilisation
£400,000
Total value of contracts
awarded
Cost comparable with GB
22 Contracts awarded
3 Products
5 Operators
11
Zones
awarded
71
Assets
contracted
Smallest asset 3.4kW
Largest asset 1.54MW
RP7 Stakeholder Consultation
27
