The rapid uptake of LCTs means there will be increased demand in certain parts of the network as well as challenges like secondary peaks and herding behaviour, when lots of customers use power at the same time. Shift 2.0 is exploring the potential for dynamic and locational pricing to address these challenges, and how they can complement flexibility procurement.
What is the project about?
Shift 2.0 will:
Understand the scale and timing of secondary peaks and herding behaviour
Investigate the potential for locational and dynamic price signals (both time of use and capacity-based price signals)
Understand the regulatory, commercial, and technical barriers that need to be addressed in the design of mechanisms and/or price signals and the enablers, roles, business models and data flows to make dynamic/locational pricing a viable mechanism
Further stimulate the development/evolution of market-led customer propositions and business
How we’re doing it
The project will first look to understand the change in demand profiles for different customer types over the coming years. It will determine when, and the extent to which, the assumptions currently underpinning reinforcement projections break down. It will then look to design, assess and trial potential measures to mitigate the impact of this need for additional reinforcement.
Phase 1 will deliver:
Initial analysis of changing load profiles and their interaction with price profiles
Scenario development and data collection
Modelling and CBA
Options for trial
Phase 2 will deliver:
Commercial design of products to be trialled
Trial design
Phase 3 will deliver:
Partner mobilisation and trial participant recruitment
Trial delivery and data collection
Phase 4 will deliver:
Trial analysis and reporting
Dissemination of trial findings
Implementation plan for successful product
What makes it innovative
Previous projects have looked at smart charging and flexibility services (including the precursor to this project, Shift). Shift 2.0 will be the first project to look specifically at secondary peaks, herding and the potential for implicit flexibility (i.e. delivered by DNO price signals rather than procured flexibility services).
What we’re learning
The project will deliver learnings on:
The network impact of changing load profiles and their interaction with changing wholesale price profiles
The potential mitigation options for this using implicit and explicit flexibility options
Understanding of customer views on different products that could be implemented, gathered through engagement
Trial results of these options and implementation plans if they are successful
Distributional impacts of these options, and how to ensure vulnerable customers are protected and/or benefit from them
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