
Opening up options for network operators
7 April 2021
With greater electrification seen as a key enabler on the path to net zero, Distribution Network Operators (DNOs), are seeking new ways to release electricity network capacity to accommodate low carbon technologies rapidly. Baringa has been working with the Energy Networks Association (ENA) to develop a Common Evaluation Methodology (CEM). This will harmonise the way DNOs assess the benefits of procuring flexibility services when planning and managing their networks.
One of the concerns raised during the CEM’s consultation phase was that the ‘option value’ associated with flexibility might not be taken into account. The option value of flexibility will become increasingly important as new sources of demand, storage and generation connect to the distribution network, and load growth become more uncertain. This report describes how the CEM can be used by DNOs to estimate the option value of flexibility, and explains why this method is well-suited to the scenario-based network planning approach taken by DNOs.
Related Insights

Insights from Baringa’s South Africa Wholesale Electricity Market Report
As South Africa's energy market takes its first steps towards liberalisation, development and investment potential abounds. However, significant barriers remain on the journey to a reliable, competitive, and decarbonised energy system. We explore the risks and opportunities in this rapidly evolving landscape.
Read more
Europe's Battery Profitability
Select the right market, battery duration, and get the timing right. Drawing on our extensive Flexibility Market Report coverage across 19 European markets, we compare IRRs.
Read more
Not net zero: Reframing the case for energy efficiency
The retrofit conversation needs to shift beyond net zero. It's a significant economic opportunity for GB PLC.
Read more
Dissecting the REMA decision
Three years in the making, the Review of Electricity Market Arrangements (REMA) decision has now been published: the UK Government has decided to retain the national wholesale price.
Read moreIs digital and AI delivering what your business needs?
Digital and AI can solve your toughest challenges and elevate your business performance. But success isn’t always straightforward. Where can you unlock opportunity? And what does it take to set the foundation for lasting success?