1. Take advantage of market opportunities
Through commodity trading – the strategic buying and selling of wholesale electricity in the day-ahead and within-day markets – you can take advantage of the dynamic pricing fluctuations, benefitting from buying and using electricity when it is cheaper and selling back any excess energy when it is most financially profitable.
2. Take control of costs
If you’re looking to take control of your electricity bills and reduce costs where possible, participating in non-commodity cost arbitrage allows you to shift your electricity consumption away from peak periods, limiting the network costs you need to pay during these times whilst reducing strain on the grid.
3. Find new value for your organisation
Flexibility markets, also known as ancillary support services, are mechanisms that energy system operators use to maintain stability and balance on the grid. They incentivise consumer flexibility by offering payments in return for providing flexibility to the grid. Operating at both local and national levels, these markets can enable you to unlock multiple additional revenue streams, without impacting your organisation’s activities.
4. Maximise returns for on-site technologies
Flexibility optimisation can also improve return on investment for on-site assets, such as on-site solar PV or Battery Energy Storage Systems (BESS). For example, you could maximise any on-site generation from solar PV by storing excess energy when not needed, to draw from at times when both demand and prices are high, to avoid costly peak charges. By using their on-site assets strategically to reduce costs and access new revenue schemes, organisations could look to improve the return on investment and decrease the payback period from their technologies.
5. Bring it all together
You can bring your energy assets (both new technology and existing operations) together and stack the flexibility optimisation revenue streams you participate in – using one asset to earn revenue from multiple services simultaneously. One MW of energy from a battery, for example, can be used in multiple different flexibility optimisation streams at the same time, maximising its value. You can also jump between these services, which means to use one asset to earn revenue across different hours of the day, with different services.
6. Contribute towards a resilient, affordable energy system
By engaging in flexibility optimisation, organisations can also help to save money for the British public money collectively. Flexibility optimisation saved the UK over £300 million in energy costs in 20242, and short duration flexibility could avoid system costs of £30-70 billion between 2020-20503, by limiting the need for grid upgrades as electricity demand increases. These are savings that could be passed onto the consumer, due to lower infrastructure costs and connection charges, and more use of renewable energy sources.