Scottish and Southern Electricity Networks (SSEN) Distribution has reached agreements worth £30 million to allow it to quickly procure more flexibility services when the need arises.
Flexibility is key in areas which have capacity constraints at certain times or in certain circumstances. These new deals, referred to as Overarching Agreements, cover flexibility services in both SSEN’s central southern England and north of Scotland licence areas.
SSEN has led the way in the development of local flexibility services with the creation of the first Constraint Managed Zone (CMZ), and through its focus on local flexibility in its TRANSITION innovation project. What SSEN has learned from this project has led to the decision to use this type of agreement. They will allow SSEN to buy flexibility services quickly and efficiently when needed.
These new agreements cover the eight years between now and 2032. Competition for ‘Call Off’ contracts under these agreements will now take place for the delivery of defined Flexibility Services in 2024 / 2025.
The bidding window for the first nine Constraint Managed Zones for ‘Secure’ Services (those obtained to reduce load on the network before it’s expected to occur) and for all zones for ‘Restore’ and ‘Dynamic’ Services (which support the network after an issue has occurred) was open during January, with multiple providers being awarded Call Off Contracts.
The next bidding round under these contracts began on 15 February, with 473MW – across multiple zones and years – open for competition. SSEN expects to continue to award more Call Off contracts resulting in its forecast contract utilisation figure of £30M.
Catherine Winning, Flexibility Manager at SSEN said: “The engagement in SSEN’s Flexibility Services is increasing, and I am delighted to apply some of the learning and feedback we have gathered to the practical delivery of these services. I expect this new approach will remove one of the barriers to getting involved in Flexibility, by reducing the level of contracting needed, thus allowing us to focus on the services we need and the value they deliver for the customer, and for ourselves.
“SSEN’s ‘Smart, Fair, Now” DSO Programme has it its heart making Flexibility Services open and accessible for wider society. The innovative, thoughtful way these agreements have been reached will underpin these goals.”