Kaluza, Flexitricity will offer a network flexibility service in the balancing mechanism
Energy management solutions company Kaluza has partnered with flexible energy company Flexitricity to provide a new combined grid flexibility service in the balancing mechanism in the UK.
The service will create a much needed demand response for the UK energy system, helping to ease the constraints that have recently pushed prices up to Â£ 4,000 per MWh in the balancing mechanism.
In order to reach net zero by 2050, the UK will need to electrify a large part of the economy and increase the volume of renewable energy on the system. Creating more dynamic demand and the right reward mechanisms are essential elements for a resilient and affordable transition. By unlocking the energy storage potential of electric vehicles (EVs) and other household devices, this new service will provide a valuable balancing resource for the grid which in the future will expand to millions of people. devices.
The partnership will allow domestic customers installed by the half hour with electric vehicles and / or energy storage to participate in the balancing mechanism and be financially rewarded for their participation with more advantageous tariffs and lower bills. . The Balancing Mechanism is one of the primary tools that National Grid ESO uses to balance supply and demand in real time. It is a profitable market where suppliers can offer to increase or decrease their production or demand to help balance the system. Now, as the country decarbonizes, National Grid ESO has made changes to encourage smaller, more agile energy assets to contribute. This represents a huge opportunity for a range of flexible energy consumers, including EV users.
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The collaboration between Kaluza and Flexitricity will enable the aggregation of home smart chargers, vehicle-to-grid (V2G) chargers and batteries, allowing National Grid ESO to exploit this flexibility to support grid balancing and benefit end customers with lower energy costs.
The new offering addresses several key priorities outlined in Ofgem’s recent report on the transition to electric vehicles, including ensuring that the network is prepared for mass adoption of electric vehicles, maximizing the benefits for consumers of electric vehicles. smart charging and by developing V2G technology.
Kaluza’s technology platform combines smart electric vehicle chargers, V2G chargers and home storage batteries as part of a unique flexibility service both for local grids and now nationwide. Its AI software leverages real-time data from wholesale energy prices, supply levels and weather to optimize connected devices to charge at the cheapest and most environmentally friendly times while meeting demands. customer needs.
The Kaluza platform is able to handle the half-hourly settlement of these devices through its energy retail partners – a critical requirement to participate in the balancing mechanism before the industry transitions to full settlement. half-hour to market scale in 2025. This allows customers to access cutting-edge proposals powered by Kaluza technology that reduce carbon emissions and energy costs, such as OVO Drive Anytime – the only type use of the UK EV charging tariff which allows customers to charge at an advantageous rate of 5p / kWh at any time of the day. The capacity of the platform also means that V2G chargers connected to Kaluza will be made available to provide residential flexibility in the balancing mechanism for the first time, helping customers save hundreds of pounds.
Flexitricity brings experience in the operations of the balancing mechanism as a provider and was the first UK aggregator to become a Virtual Lead Party (VLP) – a new route to access the mechanism. Collaboration enables faster scaling, flexibility and simplified asset integration.
Marzia Zafar, Director of Sustainability and Policy at Kaluza, said: âToday, industrial batteries provide the majority of the flexibility of our system while the potential for storing millions of smart devices in homes remains. intact. This partnership is an important step for the industry in enabling end customers to play a role in and be rewarded for a greener, cheaper and more resilient energy system. Kaluza has proven the value of its smart software in a number of local networks and markets, and we look forward to opening a new frontier in domestic flexibility nationwide with domain experts, Flexitricity.
Andy Lowe, Commercial Director of Flexitricity, adds: âThe electrification of transportation presents both a huge opportunity for suppliers and customers and a challenge for networks. The partnership with Kaluza allows us to take a leap forward by demonstrating what flexible EV charging can do to help balance the electrical system.
âThis partnership has the potential to revolutionize how the electric vehicle market works and, more importantly, it will have a significant impact on our 2050 net zero carbon goals.
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âFlexitricity made history last year when we were the first to use the Extended Balancing Mechanism Access Agreement to swap one of our customers’ battery assets. Now we are looking to do the same with an electric vehicle network.