Keeping up to speed: latest developments in the flexibility space 

Each month we hold our Flexibility Forum covering the latest developments in the flexibility space in GB, providing an opportunity for forum members to keep up to date with the goings on across policy, regulation, and markets – in a space that is seemingly everchanging and rarely static.  

In this blog, we explore some of these latest developments that we have covered at our forum – which highlight possible changes to the future landscape of the flexibility space, whilst also pointing out new or returning opportunities for flexibility providers moving forward.  

EAC platform launches 

As of the 19 October, the ESO’s Enduring Auction Capability (EAC) was launched. This has been developed by the ESO to host the bidding processes inhouse using its own single platform.  

Not only will the EAC replicate aspects of the existing processes for existing balancing services, but it will also look to make improvements to how auctions are run by introducing new bidding functionality and enhancements to the clearing algorithm and wider platform design.  

This will see Dynamic Containment, Moderation and Regulation and the new upcoming reserve services, Quick Reserve and Slow Reserve, procured simultaneously in a single, day-ahead, pay-as-clear auction. 

DFS returns this winter 

Following approval from Ofgem, the ESO recently announced the return of the Demand Flexibility Service (DFS) for the coming winter season, after its initial launch last winter.  

Several changes have been made to the service design such as: 

  • The addition of within day dispatch options alongside day-ahead  
  • Removal of domestic in-day baseline adjustments to counter against gaming
  • The inclusion of asset metering, replacing boundary metering – which is hoped will provide higher volumes 
  • There will also be a weekly indicative forecast published  
  • A Guaranteed Acceptance Price (GAP) for the first six tests (until 1 January 2024), remaining at the £3,000/MWh level from last winter 
  • Remaining test events will be competitive auctions if the total de-rated forecast volume surpasses 1.25GW, with the ESO anticipating an uptake of 1GW in order to maintain adequate margins in the event of reduced electricity supplies this winter 
  • Like last winter, DFS will run from November 2023 to the end of March 2024 

Trial on small scale aggregated assets entering the BM commences 

The trial is a part of wider work from the ESO to make BM operational metering standards more proportional for small scale assets – removing that barrier to entry and supporting their participation in the BM.  

  • The trial itself began in September and will run until April next year.  

Flexibility Forum 

Cornwall Insight’s Flexibility Forum is a monthly forum providing analysis on regulatory, policy and market developments impacting flexibility providers in GB, helping you keep updated on the latest issues in the market, whilst identifying risks and opportunities for your business.  

For further information of the service, please contact 

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