Demand Flexibility Service 2023 (and beyond!)

mmmmikey

Hi @TheElectricCow many thanks for taking the time to write that up, made an interesting read. Be good to see how the scheme runs this year, guess it won't be long until we get more details.

TheElectricCow

Another update on DFS from NGESO, who have now released their initial proposal for the scheme next winter. There's a bit more substance that may be applicable to domestic consumers in this update. Summarised:

• There is expected to be enough energy supply for this winter with low expectation of blackouts, although there may still be days where balancing services like DFS are used to decrease demand during peak periods.

• Approval is being sought for a multi-year service, making DFS a permanent fixture (for now), instead of getting approved for just one year a time.

• Advanced notice (day-ahead) sessions are being removed - All sessions will be moving to the within-day model where notice of a session is given on the same day that the session takes place.

• There'll be no more planned test sessions, although the possibility of test events occurring (with a GAP) will remain should they be needed for any reason.

• Last winter's baseline calculations, without the in-day-adjustment, will continue to be used.

• Penalties and payment limits will be introduced for suppliers who under or over-deliver on their DFS demand reduction to encourage accurate forecasting from suppliers. This change doesn't directly impact domestic participants, although I would speculate some suppliers could decide to alter their payout rules to account for this.

• NGESO aims to introduce a "Demand turn up" version of DFS to be introduced to help balance the grid at times of excess supply, although this is a longer term goal and will not be in the next iteration of the service coming this winter.

Source for this update (aimed at industry participants rather than domestic, but good info nonetheless):
https://players.brightcove.net/6415851838001/default_default/index.html?videoId=6354800442112