Unlocking commoditised local demand-side flexibility through a structured and competitive market, based on the universal smart energy framework (USEF): learnings from an innovation trial in Scotland

Local demand-side flexibility offers a cost-effective alternative to traditional grid reinforcement; however, participation remains in its infancy with its full potential yet to be unlocked. In particular, residential flexibility remains a vast and largely untapped resource. The innovative FUSION project investigated how to encourage flexibility from industrial, commercial and residential consumers with access to a broad spectrum of flexible assets connected to low voltage network. FUSION trialled commoditised local demand-side flexibility through a structured and competitive market, based on the Universal Smart Energy Framework (USEF) over an 18-month period. This paper discusses practical experience with flexibility markets, interaction with customers as well as the customer and aggregator experience with USEF innovative elements; a market coordination mechanism for standardising trading, a trading protocol for communication and data exchange between market participants, and the concept of 'free bids' enabling ad-hoc bidding outside of contractual arrangements. It also analyses the impact of baselining performance on the DSO and flexibility providers, as well the key DSO flexibility procurement cost drivers.