‘Flexibility is ready to change the energy landscape now'

In April 2022, the Government announced it will undertake a comprehensive Review of Electricity Market Arrangements (REMA), which marks a once-in-a-generation opportunity to build a system that truly works for users and the planet. Whilst there will be difficult compromises to be made going forward, it is crucial that users and their contribution to the system are placed at the heart of these reforms.At the Association for Decentralised Energy’s (ADE) annual President’s Reception, hosted by Lord Duncan of Springbank and supported by Flexitricity, leaders from across the industry gathered to learn, network and explore how we can ensure that both households and businesses will be able to provide enough flexibility to balance supply and demand, and critically, be fairly rewarded for doing so. The ADE calls for reform to see the system driving towards efficiency at all levels and enabling all households and businesses to make the right choice to electrify their heating, whether that is through individual heat pumps or collective heat network systems.Speaking on Wednesday, Dr Alastair Martin, Founder and Chief Strategy Officer at Flexitricity, emphasised the importance of meaningful market reform:Efficiency means using less energy, while flexibility means using energy when and where it’s cheap, abundant and green, or giving in back when it’s scarce, expensive or dirty.Flexibility is ready now – we don’t need to be incubated or trialled, we just need access. Not finicky, contingent access to side rooms and annexes, we need proper access to the markets and the networks that we can support. We are here to take everything that’s flexible, from batteries to heat pumps to electric vehicles to industrial processes, and align it to the lowest cost, best value, greenest resources available at the time.Today, energy flexibility, despite what I’ve said about its progress, about its availability, about its imminence, it punches well below its weight – for every flexible resource that Flexitricity brings to market, there are hundreds that we can’t, purely because of market rules.ADE President Lord Duncan of Springbank spoke to the audience about how decentralised energy technologies are essential to overcoming the worst effects of the energy price crisis – he said:The challenge for this country with a slightly antiquated grid, with challenges in that way that it has delivered energy in the past and with an opaque way of creating bills, people are going to be uneasy – in this room are the people that can help address that. Government is actually at its weakest when it tries to pick winners, what it has to be able to do is help you deliver what is required to help people feel less uneasy.The energy price spike will pass eventually, but it will be quite some time before that reality is realised. What is needed right now, and this is when the flexibility of the grid becomes important, we are going to need to take energy from many different sources now and we are going to have to use it wisely, we are going to have to be more efficient in the way we transmit and transport energy, much more efficient in the way we insulate houses to ensure we are not wasting energy at source or at the point of use.Highlighting the need for an increased focus on decentralised energy technologies, Philip Dunne MP, Chair of the Environmental Audit Committee (EAC), said:What we’re here to talk about today is REMA, which the Prime Minister announced in April, and which is a key component of the British Energy Security Strategy which Kwasi Kwarteng has brought forward.This is a really important moment to be able to put the decentralisation of energy onto the agenda – the grid will have to change very significantly in order to cope with the massive increase in demand and the changes in supply that are coming rapidly down the road. Getting access to the grid is one of the big impediments to rolling out capability and I think National Grid ESO and the Distribution Network Operators (DNOs) need to accelerate action in this area.Notes to editors:About FlexibilityFlexibility is used to balance supply and demand across the energy system. It can include, for example, energy users responding to a signal to turn down their demand which helps balance supply and demand without the need for additional generation (e.g. power stations). Energy users can also be asked to use excess energy from the grid, for example on a windy day.  About the ADE The ADE is bringing energy together to advocate on the priorities for the UK in achieving net zero. We have over 150 members organisations and together we are driving the decarbonisation of heat, championing the role of industry in the green transition and pushing for UK homes, places of work and public services to be energy efficient and smart. Only by getting users engaged and investing in energy efficiency, low carbon heat and providing smart flexibility will be the UK truly be able to decarbonise its energy system. For this to happen, energy must work for the user. At the ADE, we believe that an energy system designed around the user’s needs, enabling the right technology choice in the right place, serves everyone better.  About FlexitricityFlexitricity created and now operates the first, largest and most advanced flexible energy portfolio in Great Britain and has unsurpassed knowledge of the market and its requirements.Headquartered in Edinburgh, Flexitricity partners with businesses throughout Great Britain to help National Grid and distribution network operators to balance the system. The word “Flexitricity” means “Flexible Electricity”. The company looks for flexibility in electricity consumption and generation, creating revenue for energy users and generators as well as helping to secure energy supplies and balance variable renewable generation. Demand side response and broader flexibility provision will be crucial to achieving a net zero system at lowest overall cost.Flexitricity’s virtual power plant brings together a wide range of asset types across many industries - from large-scale energy storage projects and gas peakers, hospitals, universities and produce growers to smart homes and EV flexibility.Flexitricity’s team is fully engaged at industry and regulatory levels and has a track record that demonstrates innovation and delivery success. Many of the ‘firsts’ in the flexibility industry have been achieved by Flexitricity.