UK Defence Ministry trials flexibility trading partnership with SSEN
Scottish and Southern Electricity Networks (SSEN) Distribution and the Ministry of Defence (MoD) have trialled what they call a ground-breaking new energy trading partnership, experimenting with local flexibility to manage energy bills and independence.
According to SSEN, as a major landowner and energy user within SSEN’s southern England licence area, the MoD (Ministry of Defence) is looking to manage its energy use and maximise its assets to increase energy independence.
This marks the first time, states the British utility, that the MoD has engaged in flexibility trading through SSEN’s TRANSITION project, responding to a request to turn down energy demand to help balance the local network during times of peak demand.
Brian Wann, project manager on the TRANSITION project commented on the importance of flexibility trading, as it allows network operators and customers to optimise use of available capacity:
“This will be essential for regional energy resilience and allow all participants more control over their energy bills. The Ministry of Defence has been the largest organisation to participate in our flexibility trials and a crucial contributor in helping us understand the potential of the fully-fledged markets that we are working to create.”
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Commenting on the TRANSITION project, Wann emphasized it will “design, develop and demonstrate the operation of DSO architecture and informed by the ENA open networks project.”
The five year project, initially awarded funding in 2018 through Ofgem’s network innovation competition, the TRANSITION project trials local flexibility in the hopes of facilitating and testing new markets, such as peer to peer trading, he added.
Major General Richard Clements CBE, director of basing & infrastructure, stated that the UK’s defence force, which “has sights set on net zero… By reviewing our energy use through initiatives like the SSEN flexibility trading trial, we can better understand how and where to achieve greater, ‘greener’ efficiencies.
“This will enable us to build a more sustainable Army estate, which protects both our future resilience and the environments where our people live, work and train, as well as supporting the UK Government target of net zero by 2050.”
In a press release announcing the MoD’s participation, SSEN described flexibility as the ability to shift the timing or location of the generation, storage or consumption of electricity in response to a request. They also claim flexibility as crucial for the utility, “because with electricity demand set to increase by 50% by 2035, every part of the existing network must be used as efficiently as possible.
“Recruiting customers who are able to flex their energy use can allow more renewables and balancing technologies – such as batteries – to connect to the network, without requiring network reinforcement.”
DIO’s chief executive Mike Green said: “Having facilitated the first Central Government Department participation in these Flexible Service trials, enabled by SSEN, we have gained useful insight into how we can manage efficiencies through existing assets and build much-needed resilience and independence into our future energy models, at a time when demand is set to increase significantly.”
The trial was undertaken with the support of the Defence Infrastructure Organisation (DIO) at RAF Benson and Dalton Army Barracks, Oxfordshire, during Spring 2023.
Further trials, including in peer-to-peer trades, are being explored, paving the way for improved future energy management across the defence estate.
