National Grid DSO will incorporate a Local Voltage Management service into its long-term flexibility procurement round for the first time. The initiative seeks to use flexible demand to respond to voltage constraints on local power grids.
The tender will open on September 21 and cover 826 zones, with a total requirement of approximately 2.82 TWh of flexibility. The potential market opportunity associated with the process could reach £4.6 million.
Furthermore, National Grid’s new voltage flexibility service will specifically begin in 100 low-voltage zones distributed across National Grid Electricity Distribution’s four license areas.
Demand will change according to grid conditions
For its part, National Grid will apply different responses depending on the source of the voltage constraints. This strategy will allow local electricity consumption to be modified during certain periods to alleviate grid conditions.
In areas with a high presence of electric vehicles, the operator plans to procure demand reduction between 5:00 PM and 7:00 PM. Participating assets will decrease their consumption during that period to reduce the pressure associated with the evening demand peak.
In contrast, areas with high solar PV penetration will have a different approach. National Grid may request an increase in demand between 12:00 PM and 2:00 PM, from May to August.
In this way, increasing local consumption when there is high solar generation can facilitate the absorption of electricity within the grid itself and decrease the risk of voltage exceeding permitted limits.
Batteries and electric vehicles will be able to participate
Likewise, the procurement will be open to aggregators, energy suppliers, community energy groups, and commercial and industrial organizations.
National Grid DSO will not set a minimum size for participating assets. Eligible technologies include batteries, heat pumps, thermal storage, and electric vehicle charging infrastructure.
These resources will be able to modify their consumption or generation according to the needs of the grid. In this way, electrical flexibility can complement conventional reinforcement solutions and help manage local constraints.
Local Voltage Management will also have a maximum price of £200 per MWh, according to information published regarding the procurement process.
National Grid expands its flexibility market
In turn, the tender includes the largest high-voltage flexibility procurement carried out by National Grid DSO to date. The process comprises 99 high-voltage zones, while the overall procurement reaches 826 zones.
National Grid will also expand its Demand Turn Up services to more areas and will procure FlexUp for the second consecutive year.
Selected providers are expected to receive their contracts in January 2027. Service provision is scheduled from April 2027 to March 2028.
The trial will serve to prepare the future power grid
Doerte Schneemann, Head of Flexibility Markets at National Grid DSO, explained that the new service will allow for the study of the extent to which flexibility can support voltage management in local networks and complement traditional solutions.
The company expects to use the results to guide the development of future flexibility markets and prepare its strategy for ED3, the next electricity distribution regulatory period.
Finally, the increase in electric vehicles, solar PV systems, and other distributed energy resources is changing consumption and generation patterns in local networks. The trial will allow for an evaluation of how flexible assets can respond to these changes before resorting to specific physical infrastructure expansions.
Source: Energy Live News
Photo: Shutterstock
