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Optional Downward Flexibility Management (ODFM)
The National Grid Electricity System Operator (NGESO) has announced a new scheme called Optional Downward Flexibility Management (ODFM) to combat the current drop in electricity demand due to COVID-19. By asking small-scale generators to turn down or turn off their generation, the NGESO can effectively manage demand across the entire electricity network. Meanwhile, it gives small-scale generators an opportunity to gain additional revenue through compensation payments for adhering to NGESO requests.
So far, in May alone, £7 million worth of payments have been given to small-scale embedded generators under ODFM.
To be considered for such requests, the minimum capacity threshold is 1MW. This can be from one site alone, or it can be a group of smaller sites (which share the same technology, grid supply point, and owner) amounting to 1MW of capacity or more.
This scheme is only available until the end of October 2020, so if you would like to be considered then it does make sense to act now.
Contact us to find out what our ODFM offering could do for you.
Read more about the announcement of the scheme from our CEO's point of view.