Ofgem is advancing plans to enhance the UK’s energy market flexibility, focusing on intermittent sources.
The Flexibility Market Asset Registration aims to simplify asset registration for electric vehicles.
Ofgem has unveiled plans to advance the flexibility of the UK’s energy market, which is becoming increasingly reliant on intermittent energy sources such as wind and solar.
A consultation has been announced on the proposed Flexibility Market Asset Registration (FMAR) system, intended as a unified registration point for flexible assets like electric vehicles and heat pumps. This new system aims to reduce the complexities faced by Flexibility Service Providers who currently register multiple times for separate markets.
In a concurrent announcement, Ofgem confirmed Elexon will act as a ‘market facilitator’ for local energy flexibility, as reported by various sources. Elexon, the entity responsible for the Balancing and Settlement Code, will serve as a central expert body to address challenges in local flexibility markets.
This role is integral to promoting flexible electricity usage across the UK’s distribution network, supporting the nation’s transition to clean energy sources by 2030. Elexon is poised to coordinate local and national energy markets effectively, thus unlocking the complete potential of flexibility.
As electricity usage in the UK is projected to escalate by 50% over the next decade, the necessity for flexible power becomes more essential. This surge is largely attributed to the increased adoption of electric vehicles and heat pumps.
Ofgem projects that flexible power could contribute to savings between £30-70 billion in system costs from 2020 to 2050. Flexible energy solutions are seen as vital to managing the unpredictable supply from renewable sources while meeting increased demand.
The implementation of a centralised registration system is expected to simplify processes for consumers, enabling greater participation in flexible consumption initiatives.
By facilitating this transition, Ofgem aims to lower energy bills, providing economic relief for households while contributing to the broader goal of efficient energy use. Ofgem Director Eleanor Warburton highlighted the potential of this approach to enhance the balance between network and consumer assets with demand needs.
Emphasising the strategic significance of flexibility, Ofgem underscores the value that streamlined asset registration will bring to consumers, boosting participation in flexible markets.
Elexon’s ability to coordinate local and national markets is anticipated to align energy consumption with the availability of renewable resources. This synergy is expected to optimise the energy system, fostering a resilient and sustainable future energy landscape for the UK.
Elexon is tasked with aligning the broader energy market to maximise local flexibility value, streamlining operations, and enhancing market engagement.
As market facilitator, Elexon will harness the full value of flexibility through coordinated efforts and streamlined asset registrations, aligning commercial objectives with consumer needs efficiently.
The financial implications of enhanced energy flexibility are significant. Ofgem’s approach is projected to reduce system costs substantially, presenting a promising economic outlook for both suppliers and consumers.
By streamlining energy market processes, Ofgem’s initiative aims for a cost-effective, flexible energy future.
This transition is vital for the UK’s clean energy goals, benefiting consumers and the economy.
