A flexibility market

If consumers are flexible about whether and when to use energy, they could reduce grid stress and their own energy bills.

By buying and aggregating enough consumer flexibility to offer as solutions to grid operators and balance responsible parties, a central Aggregator could sell it on to be used for:

  • reducing grid congestion
  • avoiding expensive grid upgrades
  • limiting any penalties for failing to balance supply and demand
  • avoiding buying energy when prices are high

To achieve this requires that there is a market for the exchange and settlement of flexible energy use.

Prosumers define the average flexibility of their energy use in line with their own individual needs and comfort settings. The sum of this contracted flexibility is the starting point for the aggregator, who will contact the BRP and DSO to inform them about his capability to activate flex.

The aggregator assesses his portfolio of clients,and makes a forecast for the next day: how much energy will they need - and how much flexibility can his clients offer.

In interaction with one or more BRPs and DSOs, the offered Flex can be utilized to optimise portfolios or to ease congestion.

For the day of operations, USEF framework prescribes what the interaction between parties should look like and how this actual usage and flexibility delivered can be measured.

USEF framework supports the exchange and the settlement of UFLEX with transparent and unambiguous data.

The value of flexibility

Business and residential consumers can collectively maximise the efficiency, and lower the costs, of energy by offering to be flexible about whether to use, or when to use, energy. This flexibility has financial value and, with a market for buying and selling it, it could become a new commodity.

Consumers could sell flexibility to offer as commercial solutions to grid operators and balance responsible parties.

They could then use it to:
  • reduce grid congestion
  • avoid expensive grid upgrades
  • limit any penalties for failing to balance supply and demand
  • avoid buying energy when prices are high