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Flexibility could cut UK power grid costs by £125bn

  • Models of four flexibility scenarios find huge savings possible if ‘intelligent flexibility’ is embraced
  • Highly flexible scenarios could dramatically increase the electrification of heat
  • Electric vehicles could supply six times more energy than other forms of electricity storage
  • Unlocking these savings and opportunities requires market structures that are customer-focussed, allowing devices from different manufacturers to work in harmony, and offering sufficient incentives for people to participate in flexibility

Flexibility – the ability to change how and when consumers use electricity – could be worth as much as £125bn to the UK between now and 2050.

The figure comes from a new Insights report published by Energy Systems Nexus, an industry-funded research and development collaboration focussed on bringing together progressive energy industry leaders to overcome the biggest challenges faced by the energy sector on the way to a Net Zero energy system.

The Flex Mix Insights report, funded by United Kingdom National Nuclear Laboratory and E.ON, finds that whilst the overall direction of travel to achieve a cleaner energy system is clear, the precise path is harder to establish and will be heavily dependent on the level and mix of flexibility achieved.

To understand the uncertainties within the UK’s future energy system and what impact these would have on achieving a low-cost, clean system, the team modelled four possible flexibility scenarios.

These ranged from modelling a minimal ‘business as usual’ approach that achieves flexibility with limited coordination, through to simulating an AI-orchestrated system where the flexibility is so seamless it goes unnoticed. This ‘Intelligent flexibility’ would involve having ‘behind the meter’ appliances, batteries, heat pumps and electric vehicles that are all coordinated in the background, saving consumers money, reducing emissions and helping to keep the grid stable.

The key findings include:

  • Huge cost savings are possible: Prioritising an ‘Intelligent flexibility’ future where flexibility is embraced and enabled, could cut overall system costs by as much as £125 billion to 2050.
  • Greater electrification enabled: A mature flexibility market can accelerate electrification of both heat and transport, increasing renewable generation and reducing reliance on imported fossil fuels. Highly flexible scenarios could see electric solutions providing 90% of domestic and non-domestic heat compared to just over 50% in low-flexibility systems.
  • EVs could join forces to form a massive, decentralised battery: aggregating electric vehicles into a virtual power plant that releases energy to the grid when demand peaks could supply three to six times more energy than other forms of electricity storage.

Grant Tuff, Energy Systems Modelling Consultant at Energy Systems  Catapult, which led the research project, said:

“The average car stands idle for 23 hours a day. By coordinating the energy use of electric cars – drawing power when there is a cheap surplus and releasing it to the grid when demand is high – electric cars could become one of the most influential sources of flexibility. To unlock this future, we’ll need carmakers and charge point manufacturers to create devices enabled for flexibility, we’ll need energy providers to offer energy deals that entice consumers to take part, and much more beside.”

Among the actions needed to achieve a highly flexible energy system, the report calls for:

  • Developing device standards that make it easy for consumers to install and operate flexible devices at home. These standards should enable ‘plug and play’ devices from different manufacturers to work in harmony with one another without manual intervention, giving consumers the confidence that the resulting coordination will provide them with the best outcomes. For example, they will coordinate battery charge and discharge with heat pump operation or electric vehicle charging with solar generation.
  • Ensuring that regulations enable and support development of flexibility products and services that excite and reward consumers, encouraging their participation.
  • Robust data systems and effective digital infrastructure are needed to enable this participation. They must support easy registration and participation of consumer devices through common standards and high levels of automation.
  • Ensuring that the full potential of vehicle-to-grid flexibility is accessible through appropriate regulations on charge point and vehicle interface standards.

José Davila, Director of Strategy and Sustainability at E.ON UK, said:

“Flexibility is one of the most effective ways to deliver a cleaner energy system while keeping costs down for consumers. This research, which we’ve been involved in through the Energy Systems Nexus, shows that when we use energy more intelligently – shifting demand, making better use of existing assets and avoiding unnecessary infrastructure – the benefits flow through to lower system costs and, ultimately, lower bills. Flex Mix provides valuable evidence to support the case for treating flexibility as a core part of our future energy system.”

Iain Darby, Head of Strategic Research at United Kingdom National Nuclear Laboratory, said:

“We’re delighted to have worked with the Energy Systems Catapult and E.ON as partners in the Energy Systems Nexus to produce the Flex Mix Insights report. As the UK’s lead civil national laboratory for nuclear fission, we’re committed to collaboratively solving the biggest hurdles faced by the energy sector and it’s vital for us to contribute trailblazing research around how different scenarios of energy flexibility can impact upon the nation’s journey to Net Zero.  We look forward to continuing to help drive future research which paves the way for a clean energy future.”

The Flex Mix: Insights Report is available to read here.


Notes for editors

About Energy Systems Nexus
Energy Systems Nexus brings together the most progressive energy industry leaders with the sector’s brightest minds to define, fund and deliver a whole-systems R&D programme, in pursuit of Net Zero. Funded by our industrial members and led by Energy Systems Catapult, the Nexus is collaboratively solving the biggest hurdles faced by the energy sector. In the first collaborative piece of R&D, our founding members United Kingdom National Nuclear Laboratory and E.ON have co-funded a project called Flex Mix.

Flex Mix has also published a ‘Flexibility taxonomy’ document that provides technical definitions and everyday descriptions to describe key elements of the energy system that provide flexibility. It also maps how these elements connect and interact. It can be downloaded here.

https://www.esnexus.org.uk/

Enquiries
Adam Duckett
Communications Officer
Energy Systems Catapult
Email: Adam.Duckett@es.catapult.org.uk