National Grid, the UK’s electricity system operator, has for the first time in British history successfully demonstrated large-scale power consumption flexibility in trialing an operation dubbed Demand Flexibility Service, a maneuver designed to provide an extra buffer on network load during peak demand.

More than a million households and enterprises in the nation have signed on to participate, and 26 utilities are currently involved in the scheme, including major electricity generators British Gas, Eon, Octopus Energy and EDF Energy.

The system operator has carried out a series of tests over the last two months, but Jan. 23 marked the first instance of the service going live and at scale. 

Data from the first two trials show that consumer engagement in the program has exceeded expectations, with rate payers reportedly having delivered 35% beyond targeted savings in both instances. Data from Monday’s exercise is not yet available.

Pays households to avoid power outages

National Grid will offer Demand Flexibility Service to UK households for the second time this Tuesday between 4:30 and 6:00 p.m. to test ability to avoid blackouts, the operator informs. 

The UK’s power network is struggling for the second day in a row after a decrease in wind generation. National Grid aims for a 300MW reduction among 1 million households and businesses for three 30-minute periods.

Whether Britain will end up importing required electricity volumes via subsea interconnectors with Europe remains unclear; among other things, because France’s power supply is currently strained, leaving the nation unable to export as normal – but also due to malfunction at Norway’s Oseberg oil and gas field that has resulted in one of the Scandinavian nation’s fuel suppliers, Gassco, left unable to provide gas to the UK through pipeline Vesterled.

Monday, National Grid ordered three British coal power plants to start firing up to support grid balance if necessary.

The TSO has noted that its utilization of the Demand Flexibility Service and mandating coal plants to go online do not indicate jeopardized power supply, rather only that the system operator requires further options for maintaining normal network operationality.

Save to power to avoid coal firing

Octopus Energy was one of the companies that partook in the pilot trials.

”This evening the coal power plant is ready to supply extra electricity in the event it is needed to balance the grid. This means that every kWh saved in today’s reduction exercise makes a real difference in reducing dependency on dirty fuel,” the power company wrote to an update sent to 300,000 customers taking part in the program.

National Grid has said it will pay generators GBP 3-6 for every kWh saved between 5:00-6:00 p.m. Monday. Specific sums paid to consumers will depend on provider.

Octopus Energy paid its customers roughly GBP 3 per kWh on Monday and GBP 4 per kWh on Tuesday.

Important milestone

Demand Flexibility Service was introduced on Nov. 1, 2022, and will remain in force until March this year.

On the Monday before the service launched, test runs achieved savings totaling more than 780MWh ”of real and projected demand reduction, whilst delivering participating providers with an anticipated GBP 2.8m in savings”.

The TSO further estimates that demand reduction will expectedly cost approximately GBP 2.2m on Tuesday after the operator reported spending roughly GBP 1.3m on Monday to incentivize households to save energy, National Grid informs on its website.

As stated above, results from Monday’s live exercise have not yet been published.

”Because Demand Flexibility Services is a market offering, we have no immediate access to data for yesterday and evening’s DFS arrangements being that we must wait for the date to undergo an initial compilation process as is standard throughout the UK’s electricity market. When this process is complete we will provide confirmed data, but this will likely take two to tree weeks,” says National Grid ESO News & Social Media Manager Michael McLaughlin in a comment to EnergyWatch. 

After succeeding with the tests, the following statement was released:

”Delivering the first of the Demand Flexibility Service test events is a major milestone in the evolution of consumer flexibility in the UK. This service successfully proves that consumers up and down the country are standing by to get involved in flexibility solutions. These test results show that if called upon this service will help the ESO balance the national electricity network this winter and is a valuable addition to the ESO’s operational tools,” wrote Craig Dyke, National Grid ESO’s head of National Control.