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News & insights

Date: January 2024 | Client: DESNZ | Sector: Energy | Expertise: Modelling

Report about unlocking new sources of electricity system flexibility from households published

The Alternative Energy Markets Innovation Programme (AEMIP) was launched by the Department of Energy Security and Net Zero (DESNZ) to support innovative demand-side flexibility propositions in a future energy system. Phase 1 supported the design of innovative tariffs, products or services (demand side flexibility propositions) under alternative energy market scenarios of a future energy system.

Energy Systems Catapult (ESC) has published a report for DESNZ about the Alternative Energy Markets Innovation Portfolio, for which, CEPA led the modelling of consumer response (in terms of the time profile of household electricity response) to different retail offerings. The firm's work is highlighted in Chapters 1, 4, 9, 10 and 11 of the report, where CEPA modelled five retail propositions developed by the project that included:

  • Flex Bat (FB);
  • Pay as You Green (PAYG);
  • Smart Switch and Save (SS&S);
  • Let’s Get Moving (LGM); and
  • Have a Green Day (HaGD).

For each proposition, the modelling simulated a representative customer’s half hour demand over a whole year for six customer archetypes; and six pricing scenarios covering wholesale electricity, network costs and policy costs, each for three geographical locations (18 price profiles in total). The work therefore involved a total of 540 model runs for each customer archetype (5x6x18).

In addition to the model runs, CEPA also estimated a benchmark for bill savings from exposing customers to full pass-through of half-hourly price profiles (Pure Flex) and explored sensitivities on demand profiles and on wholesale prices.

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To find out more, please contact our experts listed below.

Theo Guthrie
Senior Consultant United Kingdom
Paul de Jong
Consultant United Kingdom