Ministers need to change regulations and market mechanisms to enable greater use of demand-side response (DSR), energy storage and other flexibility services, according to a new report.
The paper from bodies including Energy UK warned that, despite widespread consensus on the importance of flexibility and its potential, progress with integrating it into the energy system has been “slow and patchy”, and that the UK risks failing to make the most of the opportunity.
Charles Wood, Energy UK’s Head of New Energy Services & Heat, said: “The products, technology and finance are all there, but the opportunities and incentives aren’t – meaning business cases for investment aren’t stacking up.”
The report came as the Department for Business, Energy & Industrial Strategy (BEIS) unveiled funding for two flexibility pilot projects.
Project TraDER will create an exchange to allow generators to interact with flexibility assets, while Piclo Flex will be launched as a nationwide flexibility marketplace.