The future of distributed flexibility

The future of distributed flexibility: IET comments to OFGEM on 10 May 2023.

For a net zero energy system, with large volumes of variable renewables and more electric heating and transport, flexibility is essential. Without it, renewable energy would be wasted, electric vehicles and heat pumps would increase peak demand, and all consumers would pay the price of a more expensive energy system.

Flexibility is hugely valuable: the challenge is how we unlock that value from assets connected to the distribution network – “distributed flexibility”.

Flexibility already exists in our energy system. However, we are not seeing the scale of distributed flexibility that we need due to market access and coordination issues. This is especially true for Consumer Energy Resources (CER) like electric vehicles and heat pumps. We need a flex-centric system which facilitates distributed flexibility, but it is not clear that this will emerge organically.

In this call for input, the IET and Future Power Systems Architecture (FPSA) group advises clear recommendations and answers Ofgem call for input.