The different product types affect payment structure (i.e. whether FSPs are paid to be available or just to deliver flexibility) and define the procurement timelines (i.e. long-term or short-term).
In the UK, product types are standardised by the Energy Networks Association (ENA) through collaborative consultations with DSOs, FSPs, and other industry stakeholders.
Each market on ElectronConnect details the types of product that is required for each market.
Beyond standard products:
While industry standards provide a common framework, market operators (such as those running ElectronConnect) are not limited to these predefined product types. They can set the requirements of a market as they wish, and it is then up to FSPs to decide if they wish to participate.
Flexibility products explained:
Peak Reduction: This product aims to reduce peak power consumption over a specific period. It can be provided through long-term energy efficiency activities or by reducing demand during peak times.
Scheduled Utilisation: This involves flexibility delivered at a pre-agreed time in advance. It's often used by DSOs to manage seasonal peak demands and defer network reinforcement. This product is particularly beneficial for providers who may not be able to respond in real-time.
Operational Utilisation: This product allows the amount of flexibility delivered to be agreed closer to real-time. Assets are dispatched based on actual network measurement data, and DSOs pay only for the utilisation, not for availability. This can be used to manage changes in demand profiles based on near real-time network conditions or to restore supplies after an outage.
Operational Utilisation and Scheduled Availability: This product procures, ahead of time, the ability of an FSP to deliver an agreed change following a network abnormality. The availability is defined at the point of procurement, and assets are dispatched based on actual network measurement data, meaning payments are for utilisation. This product is particularly useful for short-to-medium range forecasting of network constraints.
Operational Utilisation and Variable Availability: This product allows DSOs to procure a contracted level of capacity but refine the availability requirements closer to the event. Similar to the above, payments are for utilisation based on actual network needs. This product is particularly useful for long-range forecasting of network constraints.
You can see how payment structures work alongside these products, as per the ENA's breakdown:
