UK power networks' DSO strategy paves the way for flexibility markets, offering new revenue streams for customers and efficient distribution system operation

UK Power Networks is transitioning to a distribution system operator (DSO) by defining the future of local flexibility with its customers, enabling markets and whole system benefits, and using technological advancements in the operation and planning of distribution networks. Flexibility services play a vital role in the proposed transition to a DSO, since they enable the use of smart, flexible and innovative techniques for operating and managing the network while minimising the cost impact on consumers. UK Power Networks’ commitment to a ‘flexibility first’ approach means that flexibility solutions can provide an economic and efficient alternative to traditional network reinforcement, while allowing evolving and disruptive solutions to participate, and creating additional revenue opportunities for flexibility providers. The removal of any perceived barriers is highly significant in this endeavour. UK Power Networks, as a neutral market facilitator, introduced competitions at HV and LV network locations, lowered the eligibility requirements to the lowest of any service, decided not to include any contractual exclusivity, published commercial and technical information, and allowed the choice of different contract lengths to accommodate different business models.