UK Power Networks looks to EPEX SPOT for flexibility market
Image: UK Power Networks
UK Power Networks anticipates growing its flexibility offering on the EPEX SPOT Localflex platform for local flexibility markets.
The partnership with EPEX SPOT, a major short term power exchange in Europe, is expected to open the market to a new segment of participants and bring its wholesale market expertise to local flexibility markets in Britain.
As part of the deal, EPEX SPOT will adopt the industry-standard processes and products defined through the Energy Network Association-led Open Networks programme.
The Localflex platform’s set of Application Programming Interfaces (APIs) also will be reviewed in the context of industry developments to simplify participation for flexibility providers and maximise interoperability with other market platforms.
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“EPEX SPOT offers the opportunity to exceed our commitment to avoiding £410 million of infrastructure investment between 2023 and 2028,” says Sotiris Georgiopoulos, director of DSO at UK Power Networks.
“We’re looking forward to working together with EPEX SPOT and our market participants to deliver a world class customer experience and contribute to a more joined up British flexibility market.”
To date, UK Power Networks has been developing its flexibility market on the Piclo Flex platform, which also is used by SP Energy Networks, Electricity North West and National Grid ESO.
Contracts for more than 1GW of flexibility have been awarded since 2019 and in 2023 alone savings of £60 million (US$77 million) were delivered towards the 2028 £410 million (US$521 million) commitment.
In December 2023 UK Power Networks began a trial of day-ahead flexibility procurement in East Anglia.
This process will be migrated to the Localflex platform from April 2024, followed by the long-term flexibility tenders from May 2024.
Ralph Danielski, CEO of EPEX SPOT, describes the partnership with UK Power Networks as “an important milestone” in facilitating net zero.
“The project serves as a lighthouse towards the entire energy sector, and we are looking forward to further shape the future of flexibility markets.”
Flexibility providers will be supported to register on the EPEX SPOT Localflex platform and will have the opportunity to help shape priorities for platform development.
