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
What’s needed to build interconnectors for Southeast Asia’s energy transition?
The European experience of building interconnectors offers key insights.
Read more
Preparing for the EU's regulation on deforestation-free products
Is your supply chains prepared for the incoming EU Deforestation Regulation? In this article we share what you need to know in preparation for the new regulation, and how Baringa can help you.
Read more
Smart Water Metering: lessons learned to help us tackle water scarcity
This report includes recommendations for greater levels of central coordination, common standards and investments in customer engagement and data sharing. It also provides water companies with a wealth of lessons learned to help them successfully deploy meters and use the data to drive water efficiency benefits.
Read more
De-coupling from Russian gas: German industry begins to adapt
The abrupt loss of piped Russian gas has sent shockwaves through Germany's industrial landscape, prompting a fundamental reevaluation of energy reliance and business models.
Read more