Innovations sought to unlock flexibility markets

The government has launched a dedicated fund to develop technical solutions which can unlock “untapped” flexibility markets.

The £2.6 million Flex Markets Unlocked Innovation Programme has been established to find technical solutions “that can facilitate system-wide coordination, standardisation, and revenue stacking across multiple flexibility markets [to] allow a more diverse and competitive marketplace, unlocking flexibility”.

It is expected to fund three feasibility studies with one project developer then receiving £2 million to develop their solution.

An information guide released for applicants states that each solution must address four areas. They are:

• Information transparency – enabling greater visibility of asset, product and market operation data for all market participants and market owners
• Market access – enabling improved access to flexibility markets via common and streamlined processes
• Market coordination – improvement of operational efficiency by providing mechanisms to coordinate across multiple markets
• Trust and governance – enabling transparency in decision-making and governance, fostering trust in the marketplace

The guide adds: “The provision of distributed, small-scale flexibility is relatively untapped and there are challenges to realising its full system value; this value is fragmented across several markets that are not fully standardised, coordinated or fully accessible to this type of flexibility.

“The programme is seeking solutions which could improve ease of access to markets, market coordination and revenue stacking across markets to get DER [distributed energy resources] actively participating to provide system flexibility in large volumes.

“Solutions should reduce the barriers for market owners to access flexibility embedded in the system, and for DER to be used effectively and compensated at market rates. They should facilitate a more seamless and streamlined market access for DER operators, making market entry easier, facilitating revenue stacking, and reducing the marginal cost of market participation for smaller assets.”

While open to energy market experts, the government is encouraging applications from non-energy sector experts “who could bring relevant skills from other sectors”.

The programme is part of the overarching Flexibility Innovation Programme which seeks to enable electricity system flexibility through smart, flexible, secure, and accessible technologies and markets.

Those interested in applying have until 25 July to register their interest with the competition closing to applicants on 7 August.