National Grid has started working with Piclo to deliver a platform for procuring flexibility services in New York to help increase the amount of renewables capacity on the state’s network.
The initial phase of the project will run for 12 months with the first flexibility competitions in early 2023.
The project covers the area of New York State, with emphasis on National Grid’s upstate New York region and is open to all flexible service providers with existing or planned assets.
The increasing deployment of clean technologies, including variable renewables and electric vehicles (EVs) has made grid management more complex.
The US grid is currently heavily dependent on natural gas and coal for 60% of its electricity generation.
By 2030, the goal is that 40% of the nation’s electricity will come from wind, solar and energy storage, increasing the need for a flexible energy system.
Flexibility is a critical tool for utilities to manage network issues such as increased peak demand, to connect distributed energy resources (DERs) and improve grid resiliency.
New York has been a leader in the use of flexibility services since the adoption of the Reforming the Energy Vision (REV) strategy in 2014.
Provisions of New York’s nation-leading Climate Leadership and Community Protect Act (CLCPA) signed into law in 2019 call for deployment of flexibility services, further expanding the usage of this burgeoning technology.
The more recent federal Inflation Reduction Act of 2022 will also have a monumental impact on delivering a net zero US electric grid by 2035.
The legislation aims to boost investment in wind, solar, battery storage, electric vehicles (EVs) and other clean energy technologies through the provision of energy security and climate change programs, worth about $369bn over the next ten years.
Piclo Flex will enable National Grid to accelerate the decarbonisation of the grid and simplify the process for flexibility services procurement at scale.
James Johnston, CEO of Piclo, said: “This moment marks a turning point for flexibility markets, showcasing their importance globally in the transition to a net zero future.
“We’re very excited to work alongside National Grid, a leading utility at the forefront of flexibility market development in the United States.
“By combining Piclo’s market-leading experience and technology from Europe with National Grid’s expertise we’re privileged to play a role in accelerating their transition to decarbonised and flexible energy system.”