To establish if Load Managed Areas (LMAs) can be removed by the introduction of Demand Diversification Services (DDS). To do this, Flexibility Service Providers (FSPs) are incentivised to provide enduring demand diversification to areas of the network that are (or will be) constrained. At the same time, consumers within current LMAs are enabled to fully participate in the electricity market and transition to Low Carbon Technologies (LCTs) at their discretion. This will be achieved by detailed network analytics, technical trials, and simulation exercises that are designed to gather early feedback on the feasibility of these services.
To confirm that any new DDS is technically feasible through the current smart metering infrastructure.
To engage with stakeholders and gather feedback that confirms that there is enough interest to establish workable market mechanisms.
That enough suppliers contribute to the simulation exercise to understand the DDS and are therefore, willing to provide services when the need is operational/Business as Usual (BaU) rather than an innovation trial.
Recommendations for what to do next, and in particular what is required before DDS can be launched as a Business as Usual (BaU) service.
Significant progress towards validating the appetite of FSPs to adopt new DDS commercial models was made by early March 2024 after several internal desktop exercises that culminated in an external Simulation Workshop held at the ENA offices in London. All attendees agreed that the workshop had been successful in presenting the pros and cons of the proposed DDS models and all FSPs expressed an interest in participating in the commercial trial being planned for the next phase of the project.
The project is currently preparing recommendations for the next phase that will prepare for the launch of DDS as a Business as Usual (BaU) service.
£330,500
February 2024 – September 2024
Kevin Stewart