Author: Shane Touhey, Commercial Analyst, Electron
As the energy sector evolves, flexibility service providers (FSPs) are becoming vital in creating a sustainable and efficient electricity system. At Electron, we work closely with grid operators and their FSPs to ensure the value and volume of flexibility can continue to grow, to support the sustainable, resilient grid of the future.
We’ve gathered insights and learnings from those FSPs to highlight challenges and opportunities within the energy industry that may affect their participation in markets. Here are five key learnings that can help shape the future of flexibility services.
1. FSPs need streamlined access across multiple flexibility platforms
One of the concerns today for FSPs is the complexity of operating on multiple trading platforms, with little interconnectivity. This fragmentation can lead to inefficiencies, missed opportunities, and increased operational costs.
The introduction of the Data Sharing Infrastructure (DSI) should significantly streamline processes, allowing FSPs to share data seamlessly across platforms. A unified approach enhances collaboration and reduces the burden on FSPs to manage multiple interfaces.
2. More standardisation will help smooth operations
The lack of standardisation across platforms remains a hurdle for FSPs. Many struggle to capture the full commercial value available to them due to disparate processes.
Developing industry-wide standards can facilitate smoother operations and improve the reliability of flexibility services. Some standardisation is in place with the standard products and a standard pre-qualification questions for assets, for example. Yet, there’s still work to be done.
With an open-ecosystem approach, DSOs and other market actors can create a more interoperable and cohesive environment that enhances market participation and supports the growth of renewable energy.
3. A shift away from spreadsheets is required
FSPs have expressed a preference for user-friendly solutions over traditional spreadsheet-based methods.
Application Programming Interface (APIs) and graphical user interface (GUIs) are greatly preferred due to their increased usability, decreased room for error, and time-saving abilities.
By prioritising intuitive design and seamless integration, we can empower FSPs to focus on strategic decision-making rather than focusing on cumbersome data management tasks.
4. Tech advances can help FSPs better allocate resources to flexibility services
Many FSPs operate with limited resources dedicated to flexibility services. This overarching challenge calls for simplification and standardisation in processes.
Streamlining operations and reducing complexity can help FSPs allocate their resources more effectively.
While the call for more resources is evident, the good news is that advances in technology and processes are making it possible to do more with less.
5. The value of flexibility services is growing
The value of flexibility services is on the rise – which is encouraging for all stakeholders, including FSPs.
As the market matures, there are more locations with markets, meaning more assets in those areas can participate, increasing the number of opportunities and revenue potential.
This growth will not only benefit individual providers but also contribute to a more resilient and sustainable energy system.
These insights and learnings gathered from FSPs engaging with Electron underscore the importance of collaboration, standardisation in the right way, and user-centric solutions at the heart of the evolving energy landscape.
At Electron, we are committed to supporting FSPs by providing innovative and intuitive tools that enhance their participation. This can help grow the volumes of flexibility available for system operators to procure.
By taking the time to understand user needs, we can accelerate the move to a more efficient and sustainable energy future.
