Improving coordination in GB flexibility markets
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Project Harmony
With the UK's electricity system racing towards Clean Power 2030 and a net zero grid by 2035, flexibility will be essential to balancing growing demand and intermittent generation. But while flexibility volumes are increasing, markets remain fragmented.
Project Harmony: a collaboration between UK Power Networks and LCP Delta, identifies how the GB flexibility market can evolve to better support consumers, investors, and system operators through smarter coordination.
What is in the report?
This concise, action-oriented report explores:
- Why coordination matters: Unlocking the full value of flexibility to reduce system costs and improve resilience.
- What’s holding it back: The structural, operational, and data barriers preventing seamless interaction between NESO, DSOs, retailers and consumers.
- How to unlock it: Seven priority areas for reform, with clear timelines, responsibilities and actions.
Who is this for?
This report is essential reading for:
- System and market operators (NESO, DSOs, Elexon).
- Flexibility service providers.
- Aggregators, retailers and suppliers.
- Policymakers, investors and energy innovators.
Project harmony
Explore the reportScroll down to explore our key findings
Seven priority areas
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Objective
A single set of constraint management products to procure flexibility from distribution connected assets across both NESO and DSO markets. This would eventually allow for DSO and NESO to jointly procure flexibility in instances where an activation will benefit both NESO and DSO system operations.
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Objective
The settlement of flexibility procured and activated in NESO, DSO and wholesale markets is aligned to ensure that service providers are not incentivised towards or disincentivised against participation in certain markets due to how the flexibility they have provided is settled.
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Objective
A streamlined registration process where a single asset registration is required across all markets, with unique asset identifiers enabling seamless tracking of the asset's participation across different service providers and marketplaces.
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Objective
A single database provides information on all market volumes and prices in a standardised and comparable way, ultimately enabling service providers to better determine the business case for investing in demand-side / distribution connected flexibility.
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Objective
System constraints are coordinated between system operators to ensure that availability reservation and asset activations do not create conflicts between system operators.
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There is a joint understanding of the ways in which different tariff signals affect DSO activities, and which data is most critical to DSO operation. Tariff data is shared with the DSO and integrated into network operations.
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NESO shares BMU Physical Notifications and Final Physical Notifications with the relevant DSOs, who subsequently incorporate them into their system operation.
Why now?
The appointment of Elexon as Market Facilitator, coupled with the emergence of NESO as an independent system operator, presents a once-in-a-decade opportunity to rethink how Britain coordinates its flexibility resources.
Without reform, we risk:
- Duplicated or inefficient procurement.
- Poor price signals for providers and consumers.
- Missed opportunities to optimise the system as a whole.
