Post: National Grid ESO plans future of Demand Flexibility Service

National Grid ESO plans future of Demand Flexibility Service

The Electricity System Operator (ESO) has unveiled its initial proposal for the future use of the Demand Flexibility Service (DFS).

According to the ESO’s early winter assessment, the de-rated margin—defined as the excess generation capacity available during peak demand in cold weather—is anticipated to be higher for winter 2024-25 at 5.6GW (9.4%), compared to 4.4GW (7.4%) last winter. As a result, the necessity for DFS as a winter contingency service has diminished.

But the ESO plans to enhance the DFS, extending its application to support high demand periods throughout the year and to be able to compete with other commercial tools in the ESO control room. Additionally, it is expected that DFS providers and their customers will be able to combine this service with other revenue-generating activities, offering consumers more opportunities to benefit from flexible electricity usage.

The proposed changes to the DFS will undergo industry consultation over the summer, with a final design set to be submitted to Ofgem for approval ahead of the planned winter implementation.

DFS, which was introduced in Winter 2022 to help the UK cope with tight energy supplies, saved over 3,300MWh during peak demand periods, providing valuable support to the grid during periods of heightened strain, National Grid ESO confirmed. In total, 1.6M households and businesses signed up to participate in 22 events across the winter, covering both live events to balance the electricity network and monthly test events to deliver savings for consumers and demonstrate how effective the system could be.

As an approved provider of DFS service GridBeyond has been supporting our clients to access revenues from the DFS scheme since its introduction.

Get in touch to find out how we could support your business in the future DFS programme.