UK grid to launch year-round flexibility rewards

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National Grid Electricity System Operator (ESO) has unveiled its strategy to transform the Demand Flexibility Service (DFS) into a year-round initiative.

Initially designed to mitigate peak electricity demand during winter, the DFS will now extend its operations throughout the year.

This expansion aims to enhance grid stability by encouraging consumers to participate in managing electricity consumption flexibly.

The ESO’s decision follows a forecasted increase in the de-rated margin for winter 2024/25, indicating greater generation capacity available during peak demand periods.

As a result, the DFS’s role as a winter contingency service will diminish, prompting its evolution into a versatile tool capable of supporting high-demand periods across all seasons.

The revamped DFS will introduce competitive elements, allowing providers and customers to combine its benefits with other revenue streams.

Industry consultation on the proposed DFS redesign will take place over the summer, culminating in a final design submission to Ofgem.

The ESO anticipates launching the updated service in time for the winter season, ensuring it continues to lead globally in consumer flexibility services.

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