DNO Flexibility

What is DNO Flexibility Service?

In the context of modern energy systems, the demand for flexibility has become increasingly significant due to the growing integration of renewable energy sources, electric vehicles (EVs), and distributed energy resources (DERs). Distribution Network Operators (DNOs), the entities responsible for managing and maintaining the electrical distribution network, play a critical role in ensuring that the power grid remains reliable, secure, and resilient. One of the key strategies DNOs use to manage this complexity is through the use of "flexibility services."

Flexibility services are supported by various flexibility products that are designed to address specific network challenges and needs. These products allow DNOs to access flexibility from energy consumers, generators, and other service providers to maintain a balanced and efficient power grid.

Types of Flexibility Products

1. Sustain

   • Purpose

     : Long-term network congestion management.

   • Description

     : This product is used to alleviate capacity constraints that are forecasted to occur over an extended period, typically during predictable high-demand times. It is used to manage long-term or ongoing network overloads by either reducing demand or increasing generation in specific areas.

   • How it Works

     : Flexibility providers offer to adjust their consumption or generation over a longer time frame, often during peak seasons (e.g., winter) when the grid is under sustained pressure.

2. Secure

   • Purpose

     : Short-term operational security.

   • Description

     : Secure products address temporary or anticipated short-term congestion issues, usually related to specific weather events, maintenance activities, or other predictable events. DNOs use this product to manage grid reliability over shorter durations.

   • How it Works

     : Providers of flexibility are required to adjust energy demand or generation to prevent congestion within a specific window of time, usually a few hours or days, when the grid experiences short-term strain.

3. Dynamic

   • Purpose

     : Real-time operational security.

   • Description

     : This product focuses on real-time or near real-time responses to unplanned events or network faults. It is used to quickly respond to emergencies, sudden fluctuations in demand, or supply shortfalls, often on short notice.

   • How it Works

     : Flexibility providers commit to delivering services with very little advance notice, typically within minutes to hours, ensuring rapid support for balancing the grid. This product is especially valuable during unforeseen events like network faults or unexpected surges in demand.

4. Restore

   • Purpose

     : Post-fault response and network restoration.

   • Description

     : The restore product is employed after a network fault has occurred, with the goal of helping DNOs restore the grid as quickly as possible. It focuses on returning the grid to normal operation and minimizing the duration of outages.

   • How it Works

     : Flexibility providers offer services that can quickly restore power or relieve the network in post-fault conditions, usually by increasing local generation or reducing demand to help the network stabilize during the recovery process.

5. Turn Up

   • Purpose

     : Support for excess generation or low-demand situations.

   • Description

     : Unlike most flexibility products that focus on reducing demand, the Turn Up product is used when there is too much electricity generation in the network, or demand is unexpectedly low. It encourages users to increase consumption or curtail excess generation.

   • How it Works

     : Providers are asked to increase their energy usage or reduce their generation, helping to absorb excess electricity and balance the grid.

How to Participate

DNOs procure flexibility in the so-called Constraint Management Zones (CMZs), which are locations where additional capacity is needed on the network. You can check if your postcode is in the CMZ atFlexible Power.

If you are in a CMZ, Flexivolt can help you participate in the flexibility service and earn revenue. There are three steps for participating in DNO flexibility services:

1. Register your asset.
2. Participate in flexibility tenders.
3. Deliver dispatch assets through the system and receive payment.

How Payment is Calculated

1. Availability: Availability represents a "payment for readiness." This means that payments are made for being ready to respond to a dispatch instruction requesting delivery. Availability payments can be recovered if the delivered capacity is lower than the contracted capacity.
2. Utilisation: Utilisation is a payment made for the actual delivery of flexibility after a dispatch instruction. The response to a dispatch instruction is expected within 15 minutes. Payments for utilisation are subject to a grace factor, and an under-delivery penalisation multiplier is applied for every 1% of delivery below the grace factor.