Near real-time energy flexibility trading demonstrated in Britain

Western Power Distribution has reported continuous trading of flexibility services in the local distribution network with market determination of prices.

The Intraflex trial led by the network operator has found that with the market determining the price of flexibility, savings of up to 4% emerged on the cost of flexibility through price competition. Such a liquid market is an indication that the benefits of flexibility can be realised in the wider market.

Intraflex was launched in late 2019 in partnership with the European market operator NODES and Smart Grid Consultancy to create a marketplace with different types of flexibility competing in near real-time.

Opening seven days ahead of flexibility needs, different pricing strategies were implemented in order to understand how the asset owners would respond.

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In phase one, 241 trades were recorded where a total volume of 50.51MWh was bought at an average price of £386/MWh. During the second phase of the project, a total of 1,198 trades and 774MWh of flexibility were bought.

While previous flexibility auctions have focused on the commercial market, Intraflex allowed low carbon technologies such as EV charging units and battery storage to compete against diesel generators on price for the first time, offering their availability to Western Power Distribution via a continuous near-term market.

This is claimed the first time in GB that a marketplace has facilitated this kind of market behaviour among flexibility service providers.

“Intraflex has proven to be a ground-breaking project with some compelling evidence for the future of what a market for flexibility could look like with competition emerging and the potential for reductions in cost to consumers as a result,” says Roger Hey, Electricity System Manager at Western Power Distribution.

“In the future, we can expect to see much more near real-time flexibility services being procured from domestic energy suppliers and those supporting the transition to net zero such as EV charging providers.”

Western Power Distribution delivers electricity in the Midlands and southwest of England and Wales.