ELEXON supports Government’s £4m flexibility exchange competition

ELEXON is offering advice and support to projects that win Government funding to trial exchanges where consumers trade unused electricity. This is part of the Department for Business, Energy and Industrial Strategy ‘s interest to develop flexibility exchanges which are marketplaces bringing together multiple buyers and sellers of energy system flexibility.

ELEXON’s offer

These exchanges would allow smart technologies such as energy storage and demand side response to access multiple markets for these services. The services could be bought by energy networks, the electricity system operator, suppliers or aggregators.

ELEXON is able to provide support to the flexibility exchanges, including:

  • advising on how the exchanges can be set up and integrated with existing electricity market arrangements
  • advising on changes to BSC rules that may be needed so the exchanges could become common place and introduced at scale across GB
  • advising on how exchanges can report data on how much electricity has been bought and sold so that it is widely available

ELEXON Chief Executive, Mark Bygraves, said:

‘In the future more consumers will be able to buy and sell electricity locally, and flexibility exchanges could play a big part in this.

We offer a range of support to existing market participants and also to innovators and new business models wanting to enter the market. We look forward to working with BEIS and offering our advice and expertise to the competition winners. Successful demonstrator projects can offer important insights on how local flexibility exchanges could be smoothly integrated into the electricity system.’


Background on the Government’s FleX competition

BEIS launched the £4m ‘FleX’ competition in January 2019 to fund up to three local flexibility demonstration projects. The winning bids are expected to be selected by June.

How ELEXON supports a smarter energy system

ELEXON are supporting moves to a smarter, more flexible energy system in various ways.

We are opening up Britain’s balancing mechanism so that independent aggregators can trade electricity in it. Working with National Grid Electricity System Operator, these changes will also allow independent aggregators to participate in Project TERRE (Trans-European Replacement Reserves Exchange).

Our BSC Sandbox helps new entrants into the electricity market by allowing them to test their ideas in a controlled environment without having to meet all the usual BSC requirements. The BSC ‘sandbox’ is the first of its kind in any of the energy industry codes.

We also set out how ground-breaking changes to electricity market arrangements could be made so that customers can buy and sell electricity from, and to multiple providers. This has been developed into BSC Modification Proposal P379, raised by new entrant, New Anglia Energy.


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