Financial Wire

UK Grid Operator to Ask Households to Consume More Power This Summer to Soak Up Renewable Surges

-- UK households will be encouraged to consume more electricity at favorable rates when renewable output surges, the National Energy System Operator, or Neso, said on Tuesday, a measure designed to reduce costly curtailment payments.

While somewhat unusual in the midst of an unfolding global energy crisis, the measure reflects progress in the UK's renewables deployment, but also resulting bottlenecks that mean renewable energy producers are often paid to reduce output.

While wind and solar deployment are continuing apace, upgrades to the grid to transmit their power output have lagged behind over permitting and high cost, leading to hefty bills to pay renewable operators to turn output down.

Neso gained approval in March for the market mechanism dubbed the Demand Flexibility Service, to be implemented by utilities who will notify consumers of hours when they can consume more at less cost.

That could prompt households to delay use of domestic appliances to coincide with these periods for example. They are likely to occur on weekends, when consumption typically falls, when there is both wind and sunshine.

These scenarios are also expected to be transitory, pending investments in transmission network upgrades and additions of battery energy storage capacity.

Rising electrification of transport and fast-growing adoption of heat pumps replacing gas boiler systems as well as the proliferation of data centers will also help to end these supply and demand imbalances that can destabilize the grid.

While the renewables surge represents some good news for consumers, the UK looks no less vulnerable than other importing nations when it comes to oil. News reports this week say taxi drivers and farmer are planning to stage protests over fuel costs.

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