Load Managed Areas (LMAs) have helped us manage the peaks of electricity demand.
An electric storage heater is a great example of a technology that can ‘fill in the gap’. Storage heaters are normally programmed to recharge at particular times ahead of use. We have worked with electricity suppliers such that storage heaters (and other similar technology) are recharged, when electricity prices are the cheapest, and when the network has a ‘gap’. This lets the owner of the storage heater access low electricity cost and reduces our need to increase network capacity, a cost saving to everyone.
LMAs have been highly effective at managing the peak demand from pre-programmed loads, such as electric storage heaters. However, we believe that LMAs need to change as we accelerate to Net Zero for four reasons:
SSEN has committed to reviewing the future of LMAs within the ED2 and ED3 price control periods.
Reviewing LMAs will indicate areas where they may be removed. We can only do this when we are confident this will be safe for our network and the people who use it.
There are several actions we are taking to ensure this:
Updating our analysis and forecast of the network.
Reinforcing the network or deploying Flexibility where there is a peak demand close to capacity.
Working with Flexibility Providers to develop Demand Diversification Services at LV level.
SSEN are innovating to develop new flexibility services called Demand Diversification Services (DDS).
It is likely that constrained assets will need to be addressed by diversifying the demand of consumers at the low voltage end of the network. This is where Demand Diversification Services (DDS) come in.
DDS focus on distributing energy demand more evenly to maximise network access and reduce the need for interventions. Unlike traditional flexibility services, which are dispatched as needed and aim to shift demand away from peak periods, DDS ensures that demand is not only reduced during peak times but also spread across different periods to prevent everyone from shifting their usage to the same times.
Demand Diversification services will allow us to maximise network access and minimise our intervention.
The UK electricity network is adapting to new demands and technologies by trialling innovative methods to manage peak loads and optimise network capacity, including incentivising the scheduling of controllable loads like storage heaters. Currently, two demand diversification services have been identified for trialling:
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Allocated Capacity
Each flexibility provider is allocated a Maximum Demand Limit based on units consumed and number of customers in each “zone”. They commit to manage their local portfolio of demand below that the limit for a fixed period in return for a Service Payment.
When adding up all the demand limits given, demand of participating providers along with any demand that is expected but not participating in the service this must be below the network capacity in the area. -
Dynamic Congestion Response
Flexibility providers adjust to real-time congestion levels on the network by rescheduling controllable loads. This helps avoid periods of high congestion (and high flexibility prices) while taking advantage of times with lower network loading and wholesale prices.
Congestion is most common on winter evenings when households typically use lighting and cooking appliances at the same time. Rather than expecting such usage to shift, we anticipate that directly controllable assets like electric vehicles (EVs) and storage heaters will be optimised.
Take part in the upcoming market trials
We will be running trials for Allocated Capacity and Dynamic Congestion using an agile/sprint approach, to maximise learnings and allow us to pivot if required, from the beginning of March. The goal of these trials is to establish the commercial viability and accelerate introduction as a BaU service. To participate, you will need to be involved in at least two of the sprints and have customers in SHEPD, but not in one location.
If you are interested in taking part in the upcoming market trials, it is important to follow the steps below:
1. Register for a company account on Delta Platform:
2. Download Pre Qualification Questions (PQQ)
3. Submit the completed PQQ via the Delta Platform
If you successfully complete the first three steps, you will be invited to participate in the next stages which are:
4. Review Trial Contract
5. Participate in the ‘Mini Competition’