NGED introduces new flexibility contracts to aid grid balance

National Grid Electricity Distribution (NGED) has launched a new initiative offering demand turn-up and generation turn-down contracts for the first time, as part of its strategy to manage electricity demand more effectively this winter.

The initiative targets three specific locations across the South West, South Wales, and the Midlands, encompassing a total of 2,811 MWh in available energy.

These contracts are designed for owners or operators of flexible assets who can adjust their electricity usage or generation at short notice—within a day—to assist NGED in maintaining grid stability.

Helen Sawdon, NGED's DSO Flexibility Commercial Manager, stated, “Our new demand turn-up, generation turn-down opportunities will help match the volume of energy demand with the volume of energy being generated, incentivising energy consumers to use electricity at times when it’s in abundance – for example, on a sunny day when there's lots of solar generation. We’re trialling this in three locations this year and hope to roll it out wider in the future.”

In addition to these new contracts, NGED is seeking participants for demand turn-down and generation turn-up flexibility agreements at over 800 locations nationwide. This includes 744 low voltage zones, potentially impacting domestic customers, especially those with EV chargers, battery storage, or heat pumps, which could contribute up to a peak of 21.9MW. The high voltage areas offer 64 opportunities, capable of reaching a peak of 241MW.

The financial incentives for these contracts are significant, with high voltage opportunities valued at approximately £7 million in availability payments, plus additional compensation when assets are activated. For low voltage zones, which are coordinated in advance, the total market value stands at £1.15 million.

Interested parties have until Monday 4 November to submit their bids through NGED's Market Gateway, as the company opens this window for the next round of procurement.