Progress in Energy Flexibility
The good news is that progress is being made.
Virtual Lead Parties
Virtual lead parties allow energy companies that are not your suppliers to offer flexible services. This will free up the market, making greater choices available and easier to get to the value. For more details, visit the Ofgem decision on facilitating access to wholesale markets for flexibility dispatched by VLPs at Ofgem Website.
Locational Marginal Pricing
Ofgem has found that Locational Marginal Pricing (LMP) is likely to produce significant benefits for society compared to the current arrangement. This should encourage a more efficient energy system and offer value to energy consumers by location. Read the full report on Ofgem’s Assessment of Locational Pricing in GB.
Demand Turn Up
Where energy users are rewarded for advancing their use of energy at times of high generation. This has been around for a while but this year sees an increased focus. Expect more of this opportunity.
Heat Pumps and Thermal Storage: Ideal for Grid Flex
Heat pumps and thermal storage are ideal for grid flex. By electrifying heat and leveraging thermal storage (cheap and efficient compared to batteries), an energy user has both load and the ability to flex without affecting comfort or hot water provision.
We’re partnered with Drax for grid flex at Clade-ES Drax Partnership.
And we’re partnered with Plug Me In for finance at Clade-ES Heat-as-a-Service.
For industrial and commercial heat users, this is a winning combination that delivers value and decarbonisation.