Smart investment: valuing flexibility in the UK electricity market

By Editor on 12th October 2016

A new Green Alliance policy insight reviews the electricity system in the UK, which is currently sustained by the exact correspondence of electricity demand and electricity supply. 

Maintaining the security of the system depends on two conditions: resource adequacy - that is, enough power generating capacity to meet demand - and flexibility adequacy, that is, the system’s responsiveness to changing conditions.  Resource adequacy has tended to be the more dominant security concern but the structural shift to variable renewables is making flexible adequacy a more pressing question.  The government’s current strategy is hindering investment in flexibility and this report outlines a smarter strategy which would prioritise the flexibility needed to balance the power system in the future.