7 September 2023
Scottish and Southern Electricity Networks (SSEN) has contracted for 202 MW of flexible energy in its central southern England (SEPD) license area, representing an increase of 140% in available flexible options a year compared to previous procurement rounds. SSEN is looking to further increase its flexibility service portfolio and is starting a new procurement round across its north and south regions to achieve this.
The transition to net zero is well underway, with increasing numbers of consumers shifting towards low carbon technologies (LCTs) such as electric vehicles and heat pumps. This means electricity demand is expected to increase by at least 50% by 2035, so the energy system must become smarter.
Flexibility is the ability to shift the timing or location of the generation, storage, or consumption of electricity in response to a request. Embedding greater flexibility across the entire energy system will reduce the cost of achieving net zero for all consumers while assuring energy security. To highlight the impact participating in flexibility could have, a study by Imperial College London and the Carbon Trust found that if the UK embed a fully flexible energy system, it has the potential to deliver material net savings of between £9.6 billion and £16.7 billion per annum in 2050.
SSEN's commitment to a ‘flexibility first’ approach will enable growth in LCTs, support the changing way customers use the network and will help retain its focus on efficiently delivering the pathway to net zero.
Following its flexibility tender in September 2022, SSEN has been working closely with five flexibility service providers and has now signed flexibility contracts with all participants, covering 2023 to 2028 financial years, with an expected contract utilisation value of 5.15M (from the Contract Award Notice (CAN)) for 202 MW across 16 areas in its central southern England (SEPD) license area. This represents an approximate 140% increase in available flexible options a year to manage the distribution network, when compared with the results from the December 2021 procurement round.
Catherine Winning, Flexibility Manager at SSEN said:
“We are delighted to secure these flexibility services, supporting our ambitious targets to accelerate to a Net Zero future. This is a vital part of our journey for flexibility services, and it’s encouraging to see an increase in response from flexibility providers for September’s tender.
“I would urge flexibility service providers to familiarise themselves with the opportunities available, to enable involvement in future tenders. The next tender round starts with our webinar in September which is a network wide call for flexibility for all assets.”
SSEN is hoping to speak with as many flexibility service providers and stakeholders over the coming months and years to support and further enhance the move to a fully flexible energy system, with its webinar explaining the next procurement round on 18 September 2023 at 11am. By adopting flexibility, we move quicker towards a decarbonised, decentralised, and digitised network which customers across the country can benefit from.
SSEN is therefore inviting all energy users and generators to attend its webinar on 18 September to find out how they can support flexibility.