Our Distribution System Operator (DSO) will launch its latest long-term flexibility procurement round this month, introducing a new Local Voltage Management (LVM) flexibility service as part of its annual flexibility tender for the first time.
Opening on 21 September, the procurement round will offer flexibility opportunities across more than 800 zones, with a total flexibility requirement of more than 2.8TWh with a potential market opportunity of up to £4.6m.
The tender also features National Grid DSO’s largest ever high voltage (HV) flexibility procurement, covering 99 HV zones across its network creating new opportunities for flexibility providers. Successful providers will be awarded contracts in January 2027, with service delivery running from April 2027 to March 2028.
Flexibility services enable households, businesses and energy providers to adjust their electricity consumption or generation in response to network needs. By doing so, they help manage network constraints, reduce the need for costly network upgrades, and support the transition to a smarter, cleaner and more resilient energy system. In return, participants can earn revenue or reduce their energy bills by providing flexibility services.
A key feature of this year’s procurement is the introduction of Local Voltage Management (LVM), marking the first time National Grid DSO is procuring flexibility specifically to manage voltage constraints on the low voltage network.
The new service will include 100 targeted low voltage zones across all four licence areas, creating new opportunities for flexibility providers to support network operation.
Doerte Schneemann, Head of Flexibility Markets at National Grid DSO, said: "This year’s tender marks an important step forward with the introduction of our first Local Voltage Management flexibility service. This new service gives us the opportunity to explore whether flexibility can help support voltage management on local networks and complement more traditional network solutions.
"We hope the insights gained will help shape the flexibility markets of the future and inform our thinking as we prepare for ED3. We look forward to working with providers to explore this exciting new opportunity.”
Alongside the launch of the LVM, National Grid DSO is also expanding its demand-turn up offerings. This year's procurement includes Demand Turn Up (DTU) services across a greater number of zones, while FlexUp will be procured for a second consecutive year.
Together, these services create additional opportunities for flexibility providers, complement the new voltage management use case and enable participants to maximise value through product stacking.
The tender is open to a wide range of flexibility service providers, including aggregators, suppliers, community energy groups and commercial and industrial organisations. There is no minimum asset size requirement, with opportunities available for a broad range of technologies, including batteries, heat pumps, storage heaters or EV charging infrastructure.