UK Power Networks’ Distribution System Operator (DSO) has made significant strides in enhancing the energy market by launching its Day-Ahead Flexibility Market.
In just one year, the market has delivered 4.4 GWh of energy, enough to power over 15,500 homes for a month, marking a major milestone in energy flexibility and coordination.
The DSO has opened more than 40 flexibility zones and conducted 150 flexibility competitions since April 2024.
This shift to a day-ahead market is part of a broader effort to ensure there is enough capacity to integrate green energy sources such as wind and solar, along with low-carbon technologies like electric vehicles and heat pumps.
Initially, the DSO ran tenders for flexibility only twice a year, but the introduction of the day-ahead market has allowed electric vehicles, batteries and heat pumps to participate in distribution, transmission and wholesale markets.
Collaboration between UK Power Networks and the National Energy System Operator (NESO) has aligned the flexibility market with transmission balancing markets.
This gives participants the option to choose the right market based on daily needs, with auction results provided before participants must commit to NESO’s day-ahead auctions. According to a summer 2024 consultation, 75% of participants stated that the timing of UK Power Networks’ market aligns well with their commercial processes.
The market is supported by an advanced forecasting model that predicts network usage with high accuracy, enabling flexibility services to be aligned with network needs.
Since late 2024, UK Power Networks has been co-optimising its use of day-ahead flexibility with long-term contracts, selecting the more cost-effective option to benefit bill-payers.
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