London, 18 April 2024: National Grid and Electron, provider of next generation market platform, ElectronConnect, have announced a strategic partnership that will increase the volume and value of flexibility for both system operators and flexibility service providers (FSPs) by enabling market interoperability.
The collaboration between National Grid’s Distribution System Operator (DSO) and Electron will see Electron integrate its next generation flexibility market platform, ElectronConnect, with National Grid’s innovative Market Gateway. This will give FSPs greater choice over how they access and participate in flexibility on National Grid’s electricity distribution network, lowering barriers to entry and increasing market participation.
ElectronConnect enables System Operators to procure flexibility from multiple technology types, network levels and time scales, from a day-ahead to a year-ahead. For FSPs, ElectronConnect streamlines the process of participation in flexibility markets, offering an end-to-end solution from onboarding through to bidding, dispatch and settlement – all delivered through an intuitive web-based UI and set of open APIs.
Network flexibility enables National Grid DSO to effectively manage peak-time demand. This is helping to connect more customers to the network, whilst simultaneously keeping customer energy bills to a minimum as National Grid delivers longer term investments to the infrastructure.
In the past year National Grid has deferred over £80m in network reinforcement works in its electricity distribution network through the use of flexibility services. For customers, if they participate in flexibility, they can potentially benefit from lower energy bills, depending on the rewards offered by their supplier.
This strategic initiative illustrates how National Grid is promoting an open ecosystem, demonstrating interoperability between market platforms. The aim is to make it easier and more valuable for FSPs to participate in flexibility, ultimately increasing adoption across National Grid’s electricity distribution network.
The standardisation that underpins this ecosystem will also promote greater transparency and accessibility of data – building on the existing initiatives led by Open Networks and the Department for Energy Security and Net Zero, which all aim to improve decision making and alleviate operational bottlenecks for both system operators and FSPs.
Jo-Jo Hubbard, CEO and Co-Founder, Electron said: “We’re excited to partner with National Grid to help extend the volume and value of flexibility delivered into its distribution network. National Grid’s Market Gateway is a unique solution, standardising key steps on the flexibility journey, simplifying FSP participation and promoting interoperability between market platforms.
“This approach is something we’re strong advocates for at Electron and sits perfectly alongside the open ecosystem-led design of ElectronConnect. This integration is another example of the interoperability we are building into ElectronConnect to help network utilities across the UK, EU, and US unlock the value of low carbon flexibility at scale.”
Helen Sawdon, Flexibility Commercial Manager, National Grid DSO said: “Our flexibility partnership with Electron is our latest step in making participation in distribution network flexibility more accessible for a wider range of customers. We know that customers want flexibility services to be easy to access and to understand. Strategic partnerships like ours with Electron are key to reducing the barriers to flexibility and increasing uptake.”
About National Grid
National Grid operates the electricity transmission network in England and Wales and is the distribution network operator for the Midlands, South West England and South Wales.
The company invests £1 billion in its distribution network every year.
About 10% of the average household electricity bill – around £100 a year or 27p a day – is used to fund this essential work.
National Grid is committed to creating a smarter, more efficient energy system for customers – and to helping the UK achieve net zero – through its industry-leading innovation programme.
National Grid is involved in a number of ground-breaking projects to support the mass adoption of electric vehicles and decarbonisation of power, placing it at the forefront of the country’s green recovery.
You can find out more about National Grid’s distribution network here: www.nationalgrid.co.uk
About Electron
Electron is a leading provider of marketplace software for flexibility and distributed electricity.
Electron’s vision is to unleash renewable abundance by connecting millions of distributed energy resources to thousands of coordinated markets using ElectronConnect, using a highly configurable Software as a Service platform. ElectronConnect allows electricity system operators, network utilities and municipal suppliers across the UK, Europe, and the US, to launch, operate, and coordinate local flexibility markets at scale.
Electron provides full life-cycle support to flexibility service providers to compliment the platform, to lower barriers to entry and maximise participation in flexibility markets. Electron’s goal is to deliver a reliable and safe network, at the lowest cost, and with industry-leading customer experience.
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