Demand Flexibility Service
Contents |
[edit] Introduction
The Demand Flexibility Service (DFS) was developed by the National Grid Electricity System Operator (ESO) and began on November 1 2022. The intention is to allow the ESO to access additional flexibility when the national electricity demand is at its highest, during peak winter days.
[edit] Background
The Demand Flexibility Service (DFS) is one element in a range of tools designed to help manage the electricity system over winter, by collaborating with energy suppliers and aggregators to allow participating consumers and businesses to reduce their bills by shifting their demand times. In early 2021 a trial was run with Octopus Energy, which proved the concept for the demand flexibility service. Since then working with suppliers, aggregators and consumer groups ESO has been aiming to scale up the scheme.
[edit] Balancing
The innovation works on the same principles as longstanding energy tariffs such as Economy 7, 9 and 10 and so called time-of-use tariffs or smart electricity tariffs, that were bring offered to customers after having installed half hour smart meters. They are all routes to balance energy demand with energy supply, which is increasingly variable as a result of the continuing expansion of wind and solar contributions.
In the more established examples such as economy 7 customers are encouraged to use energy at night, (with a separate meter) when demand is low in return for cost savings. The DFS on the other hand encourages customers to delay the use of electricity when demand is high.
[edit] Requirements
The DFS service allows consumers, as well as some industrial and commercial users (through suppliers/aggregators), to be incentivised for voluntarily flexing the time when they use their electricity. ESO say the service is open to as many participants as possible, who meet the following requirements:
- All assets require half-hourly metering.
- All assets must be able to respond for a minimum of 30 minutes.
- 1 MW min unit size / 100 MW max unit size.
- Providers need to be able to respond to an instruction for day-ahead delivery.
- Providers must provide relevant metering and base line data to demonstrate delivery of demand reduction.
The following exclusions applied:
- Assets that are dispatchable via the Balancing Mechanism, or participate in Ancillary services or DNO services.
- Assets that have a Capacity Market contract.
The DFS began on 1 November 2022 but was open to later sign ins, intended to run for a maximum of 12 tests for participants, where participants receive dispatch instructions with the opportunity to receive a Guaranteed Acceptance Price for tests. For those signed up, four tests occurred over the first full month followed by two tests in each subsequent month. Once bids from participants are accepted, participants contact end consumers / asset owners and request that they deliver a demand turn down for the specified bid window.
Only certain organisations can provide the service but individual consumers wishing to support and benefit from the service, can do so via approved energy suppliers, as well as a number of organisations who can provide access to the service by linking directly to smart meter data accessed via an app or online.
[edit] Update in 2023
In January 2023 the National Grid ESO reported "World-first Demand Flexibility Service exceeds expectations with businesses saving thousands of pounds while reducing carbon emissions" .
Data from the first two demand flexibility events (specific prearranged dates where demand and supply would be tight) confirmed great engagement with the service. During the first test, participants delivered a 50% increase in electricity reduction compared to expectation and across the second test, participants reduced their electricity use by 35% more than expected.
On 23 January the first live demand flexibility event was launched between 5-6pm with huge support. As well as households engaging with demand flexibility events, businesses benefitted from taking part. In many cases businesses reduced their working day with no impact on productivity, whilst one business generated £34,025 for their clients by taking part and a reduction of 200 tonnes of CO2 was projected by a single company.
Visit the National Grid ESO website for more information and to read examples of companies that have taken part. Here
[edit] Related articles on Designing Buildings
- Smart electricity tariffs
- Can we keep the lights on.
- Changing patterns in domestic energy use FB 76
- Developing system intelligence for optimising building electricity networks
- Economy 7, 9 and 10
- Electricity generation
- Electricity supply
- Empower community energy management.
- Energy Use Intensity
- Energy targets for buildings.
- Smart grid electricity network
- The key trends making our cities greener, safer and smarter
- The Future of Electricity in Domestic Buildings
- The use of batteries to store electricity for buildings
- TV pickup
Featured articles and news
Key points for construction at a glance with industry reactions.
Functionality, visibility and sustainability
The simpler approach to specification.
Architects, architecture, buildings, and inspiration in film
The close ties between makers and the movies, with our long list of suggested viewing.
SELECT three-point plan for action issued to MSPs
Call for Scottish regulation, green skills and recognition of electrotechnical industry as part of a manifesto for Scottish Parliamentary elections.
UCEM becomes the University of the Built Environment
Major milestone in its 106-year history, follows recent merger with London School of Architecture (LSE).
Professional practical experience for Architects in training
The long process to transform the nature of education and professional practical experience in the Architecture profession following recent reports.
A people-first approach to retrofit
Moving away from the destructive paradigm of fabric-first.
International Electrician Day, 10 June 2025
Celebrating the role of electrical engineers from André-Marie Amperè, today and for the future.
New guide for clients launched at Houses of Parliament
'There has never been a more important time for clients to step up and ...ask the right questions'
The impact of recycled slate tiles
Innovation across the decades.
EPC changes for existing buildings
Changes and their context as the new RdSAP methodology comes into use from 15 June.
Skills England publishes Sector skills needs assessments
Priority areas relating to the built environment highlighted and described in brief.
BSRIA HVAC Market Watch - May 2025 Edition
Heat Pump Market Outlook: Policy, Performance & Refrigerant Trends for 2025–2028.
Committing to EDI in construction with CIOB
Built Environment professional bodies deepen commitment to EDI with two new signatories: CIAT and CICES.
Government Grenfell progress report at a glance
Line by line recomendation overview, with links to more details.
An engaging and lively review of his professional life.
Sustainable heating for listed buildings
A problem that needs to be approached intelligently.
50th Golden anniversary ECA Edmundson apprentice award
Deadline for entries has been extended to Friday 27 June, so don't miss out!
CIAT at the London Festival of Architecture
Designing for Everyone: Breaking Barriers in Inclusive Architecture.
Mixed reactions to apprenticeship and skills reform 2025
A 'welcome shift' for some and a 'backwards step' for others.
Comments
[edit] To make a comment about this article, click 'Add a comment' above. Separate your comments from any existing comments by inserting a horizontal line.