Smart investment

Valuing flexibility in the UK electricity market
Smart investment
Maintaining the security of the electricity system depends on two conditions: resource adequacy ie enough power generating capacity to meet demand; and flexibility adequacy, ie the system’s responsiveness to changing conditions.

Whereas in the past, resource adequacy has tended to be the dominant security concern, the structural shift to variable renewables is currently making flexibility adequacy a more pressing concern.

Our 2016 policy insight shows that the way government policy is currently designed hinders investment into flexible energy technologies. Green Alliance outlines a smarter strategy that is more cost effective, produces less carbon and prioritises the flexibility needed to balance the power system in the future.

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