Scottish and Southern Electricity Networks (SSEN) Distribution has reached ‘overarching agreements’ worth £30 million to allow it to quickly procure flexibility services as the need arises.
Flexibility is key in areas which have capacity constraints at certain times or in certain circumstances.
Since creating a Constraint Managed Zone (CMZ) and focusing on local flexibility SSEN said it has learned that these types of agreement allow it 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 2024/25.
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.
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.
Overarching agreement for the delivery of flexibility services in its two service areas.
In the Scottish Hydro Electric Power Distribution Plc area, in northern Scotland, contracts were awarded to Equiwatt, Octopus Energy and Harmony JF (three bidders).
In the Southern Electric Power Distribution area, contracts were awarded to Statera Energy, Conrad Energy (Trading), Equiwatt , Octopus Energy, Hawkers Hill Energy Park, Fermata Energy, EV Dot Energy and Oaktree Power.
Flexibility Services for constraint managed zones in the Southern Electric Power Distribution Plc licence area were awarded to Ohme Operations UK
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.