UK Power Networks launches its largest flexible electricity tender

The 850MW flexible electricity tender is the UK electricity network operator’s largest-ever to date.

The tender round was initiated on the Piclo platform, opening opportunities of up to 850MW for bidders in London, the East and Southeast regions of England.

It encompasses demand turn-up and demand reduction across 452 zones, sufficient to power approximately half a million homes.

The tender enables flexible providers, including energy storage operators, renewable energy plants and generators to establish new revenue sources by ensuring the region’s power distribution infrastructure remains unburdened, prioritising renewable energy.

Commented Alex Howard, head of flexibility markets at UK Power Networks; Distribution System Operator: “We’ve been offering flexibility opportunities for several years now but this latest tender round is our biggest.

“It demonstrates how we are opening our networks through the use of technology and data. We need flexible assets on our network to cut costs for our customers and maximise the generation of renewable energy options which are so crucial for helping us achieve net zero.”

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Increasing demand calls for flexibility

As demand on the electricity network continues to rise due to increased use of low-carbon electric technologies, more capacity will be needed during peak times.

Flexibility manages the outputs between renewable energy generators like batteries or wind turbines, as well as energy consumers who can reduce their demand during peak times to gain financial benefits.

According to UK Power Networks, this approach offers a cost-effective solution to meet additional energy demand without requiring long-term infrastructure upgrades, while ensuring adequate electricity supply for the growing number of low-carbon technologies coming online, such as electric vehicles and heat pumps.

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These opportunities range from a few hours of flexible provision per year, with as little as 10kW per zone. Interested providers can access information on flexibility zones through the Piclo Flex website and the UK Power Networks DSO website.

UK Power Networks has been active in flexibility at the distribution level in the UK since its first flexible electricity tender of 95MW in 2019. Since 2018, the company has granted contracts to 38 firms for nearly 2GW of flexibility, extending up to 2028.