Demand Side Flexibility Routes to Market Review
Our Clean Power 2030 advice to Government highlighted that we need to ensure that demand side flexibility is enabled to participate in markets where it can meet system operability needs.
We want to enable all low carbon flexibility to move seamlessly between markets, driven by effective signals, delivering whole electricity system value. We believe that demand side flexibility has a key role to play in operating a fully decarbonised electricity system which is reliable, affordable and fair, but that demand side flexibility is currently underrepresented across our services due to market rules, policy and regulatory barriers.
This review is a part of the “Identify and remove barriers” workstream, as outlined in the Enabling Demand Side Flexibility in NESO Markets publication. This review aims to identify and prioritise barriers, and set out our approach to removing barriers and timeframes for doing so.
The “Enabling Demand Side Flexibility in NESO Markets” report outlines that identifying and removing barriers is a strategic priority for NESO. Our Clean Power 2030 advice to Government highlighted that we need to ensure that demand side flexibility is enabled to participate in markets where it can meet system operability needs.
This report updates our progress on Stage 2 of the NESO Routes to Market Review for Demand Side Flexibility. This review aims to identify and prioritise barriers, set out our approach to removing them and timeframes for doing so. A key indicator for success will be seeing a material increase in volume of demand side flexibility participating in our services.
In this second stage, we report on the outcomes of our engagement with industry and set our approach to prioritising the removal of barriers for demand-side flexibility to participate in flexibility markets.
Industry response to our questionnaire published for Stage 1 in June 2024 informed our work in this phase. More information about Stage 1 can be found here.
Demand side flexibility Routes to Market review Stage 2 prioritisation
We will be holding a Q&A session on Wednesday 29th January 2025, register to join us.
This Routes to Market Review for Demand Side Flexibility is aiming to remove barriers and pain points for flexibility across NESO services and markets. This review aims to:
- engage stakeholders in identifying barriers to markets & in informing NESO change activities to remove barriers,
- give NESO a better understanding of current & emerging demand slide flexibility capabilities,
- enable NESO to fully understand and prioritise the barriers that are stopping demand side flexibility from participating in our services.
In stage 1 of this review, we engaged with stakeholders to gain a common understanding of current demand side flexibility characteristics and capabilities, and the barriers that exists for demand side flexibility in participating in our markets.
Routes to Market Review for Demand Side Flexibility - industry engagement
| Supporting Documents | Published |
|---|---|
| Questionnaire | 22 May 2024 |
| Archetypes | 22 May 2024 |
| NESO Service Requirements | 22 May 2024 |
| Barriers matrix excel file | 22 May 2024 |
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We’re also open to 1-1 sessions, enabling you to ask us your questions directly. Please email us with your questions and availability.
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