Heat Networks

Heat networks are inherently flexible. Flexitricity monetises that flexibility for our customers, helping them expand and build new schemes, benefit their communities and make environmental gains.

Flexitricity is already working with heat networks, proving the value of thermal inertia and heat stores in balancing electricity supply and demand. We believe that the adaptability of heat networks, for example in integrating large-scale heat pumps to create hybrid systems, will secure their role in a low-carbon future.

The more that flexibility is included at design stage, the greater the impact that heat networks can have. Flexibility is needed on the electricity system at all timescales, from under a second to many hours. It’s increasingly needed very close to demand—exactly where heat networks are located.

The physical heat network itself has a certain amount of thermal inertia and adding thermal stores can greatly increase it. This inertia means that heat networks can for instance use heat pumps to increase their demand at times of high solar output when National Grid needs it or turn on a CHP when there isn’t enough generation on the system.

It’s crucial that flexibility becomes a fundamental design consideration for all future heat networks, so they can not only play a part in the low carbon future of heat, but also help support the decarbonisation of the electricity system by offering their flexibility to National Grid and DNOs.

The opportunity:

Requirement for flexibility is growing and the market is set to triple by 2030—to £2.4 billion in revenue to flexibility providers.
Earning additional revenue through demand side response can make financing easier and help you to maintain affordable prices for your customers to help tackle fuel poverty.
Flexitricity has over a decade of experience in optimising revenue for heat networks. We’ve partnered with some of the leading schemes in the country, including Gateshead District Energy Scheme, Aberdeen Heat & Power and ThamesWey Central Milton Keynes.
Partnering with Flexitricity means you can always access the latest and most lucrative energy market opportunities. In 2018, Flexitricity became the first aggregator to take a behind-the-meter asset (Gateshead District Energy Scheme) into the Balancing Mechanism—the main tool National Grid uses to balance the electricity system in real time.

The main challenges in the industry are around price volatility so we need ways to make our business plan more resilient and that’s where grid services come in, extra income streams diversify the way we can generate revenue and that makes our business case much more stable.

The process of working with Flexitricity has been seamless, every step of the way we’ve been supported. Their professionalism and relatability have been second to none

Jim Gillon Energy Services Manager at Gateshead Council

Eligibility:

In our experience, the vast majority of heat networks can earn from demand side response.

Optimising revenue is a balance between:

meeting the needs of heat and private wire customers;
getting the most out of your power purchase agreement (PPA), wholesale market trading and the Balancing Mechanism; and
cost avoidance through triad management and earning additional revenue from the Capacity Market and applicable balancing services.