What steps his Department is taking to ensure that the National Energy System Operator (NESO) integrates demand side flexibility into its market design.
NESO's role is set out in legislation and licences and is regulated by Ofgem. It has a statutory duty to have regard to the Strategy and Policy Statement, which was issued earlier this year and sets out the government’s intention for NESO to consider ‘opportunities to shift and manage demand through smart solutions, such as electricity or hydrogen storage, demand side response and low carbon generation.’ Demand side flexibility has a key role to play in delivering clean power by 2030 and making Britain a clean energy superpower. Such opportunities will include the potential to further integrate demand side response through changes to the design and operation of the markets that NESO operates.