MaxFlex (SIF Round 3)

Project Overview

Description

To maximise flexibility on electricity networks we need to know about two key facilitators:

  • Firstly, the potential for flexibility from properties
  • Secondly, the potential for connection to electricity networks

Without these, operators will struggle with network planning and flexibility procurement. This could increase costs and lead to expensive demand balancing solutions; especially where local authority, industrial and commercial buildings are concerned.

MaxFlex proposes to complement existing work assessing domestic flexibility by creating Energy Flexibility Certificates; for industrial, commercial, and local authority buildings. Adding electricity network capabilities, connection arrangements, and market opportunities should reduce bills and create more efficient electricity networks.

This project takes inspiration from the concept of Energy Performance Certificate and its innovation is to introduce a similar concept focused on provision of Energy Flexibility Certificates (EFC) to I&C properties. The concept introduces metrics and indicators and enables the visualization of flexibility at customer site level to energy networks.

Like the EPC, the EFC provides an intuitive format for I&C customers to understand the value of available and potential flexibility, allowing them to make informed investment decisions, better access revenue from flexibility services and minimise carbon emissions. Similarly, this will enable DSOs to target the most relevant business for additional support on entering flexibility markets.

The concept leverages research from CREDS at the University of Reading. The research specifies a set of relevant flexibility metrics that associate with certificates. These metrics when collated, will provide visualised data and information that can be used to assess the potential flexibility available to networks.

Expected Benefits

Network operators do not have clear visibility of the flexible technologies used by the I&C estates within their network. Visibility of these, together with a certification of how much demand and generation flexibility they can provide becomes valuable data, enabling the cost savings in the following areas:

  • More accurate modelling, leading to better informed forecasting
  • Ability to produce frequent and more complex models, leading to better planned outcomes
  • Speeding the dispatch of flexibility services, leading to more effective network operation
  • Ability to provide more options for non-network solutions, reducing the cost of network development through wider participation in flexibility markets
  • Increased market liquidity in flexibility markets through a diversification of service providers and sources of flexibility
  • Increased ability to make better informed and efficient network investment decisions. These reduce the costs to operate, develop the network and positively impact consumer bills.

During Discovery it will be possible to carry out studies into possible operational efficiencies gained in modelling, planning, speed of service dispatch and measure the benefits that can be achieved.

Revenues – improved access to revenues for users of network services

Because the EFC defines a commercialisation model for the I&Cs, there is opportunity for participation in flexibility markets, which brings revenue for the I&Cs, leading to further market maturity, potential evolution of other innovative products and services, and cross industry collaboration for the participants. Throughout the study, it would be possible to understand baseline consumption and generation for certain commercial archetypes and thus derive the benefits they might receive in terms of revenue or cost savings. Furthermore, by clearly identifying areas for improvement to increase flexibility, cost benefit analysis can be done by individual I&C to determine the best strategy to maximise their overall return on investment and minimise their carbon footprint.

Progress

Progress has been made with the EFC framework and its aims to demonstrate the existing and future potential flexibility capacity of properties by gathering and processing cross-vector data and making it accessible to industry actors to enable benefits for customers.

The static certificate provides the energy consumers / flexibility providers with an estimate of the flexibility capability of their property based on its current characteristics and installed technologies and the maximum potential flexibility rating the property can achieve.

The dynamic digital portal will be accessible by DNO / NESO to have an aggregated and individual dashboard of live data to inform decisions on balancing and operating the system and network planning activities.

The key learnings and outcomes from this Discovery Phase are:

  • Quantified costs and benefits of EFCs
  • Estimated £97m direct net benefit across 25 years
  • Defined the scope of data requirements for the data models behind the EFC framework
  • Discovered that there are limited publicly available information for I&C customers and thus physical assessments are even more critical for I&C customers to collect data
  • Define the scope of requirements for the infrastructure enabling EFCs
  • Identified that EPCs are undergoing reform and could influence to create synergies for EFCs
  • Identified two options for hosting EFC infrastructure: networks centric solution and publicly owned platform
  • Validated use cases of EFCs with various stakeholders: DNO/DSO teams, local authorities, I&C customers, government, and other innovation projects
  • Key stakeholders showed support of the idea and recognised the benefits
  • The MaxFlex Team are set up and confident of a successful Alpha delivery if funding is granted.

Funding

£157,334

Start/End Date

March 2024 to June 2024

Current Phase

Project Manager

Simon O’Loughlin

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