March 2025 Newsletter

Flexibility vibe at Downstream 2025

FlexForum Members from near and far found themselves in Christchurch last week for Downstream 2025.

Some shared their take on the 2025 Downstream vibe…

“Flexibility and FlexForum are getting more attention. Flexible firming capacity – whether through generation or flexibility – is in short supply. Increasing supply requires a smart system and more people are interested in getting actively involved in delivering the Flexibility Plan to help this happen faster.”

“…the biggest thing that struck me was the change in tone. Downstream discussions have tended to focus on the good news stories that people naturally want to discuss and duck the hard questions which need to be addressed. Things were more measured this year. Somewhat troubling is an apparent complacency about not having a strong voice speaking for households, businesses and communities.”

“…finally Downstream was not just a back patting exercise for the electricity industry. Key leaders outlined the challenges and the need for serious intent. The Minister for Energy clearly indicated the status quo is not an option. The continuing concern is the talk is not backed by real action.”

“The sessions gave the audience lots to think about. Two highlights from opposite ends of the spectrum. People are not getting good enough information and advice about their electricity retail options. For example, a retailer may not say if you are eligible for retail product providing a discount for hot water management. The most exciting thing was how AusGrid is trialling a 'local use of system' charge that means customers in an area with a community battery don't pay as much toward the upstream transmission and distribution network because capacity can be managed locally through the battery.”

FlexForum Insights: Five holes in value stack get in the way of people benefiting from their flexibility

FlexForum has discussed at length how to value and price flexibility since coming together in 2022. Fundamentally, everyone wants to be confident about what services flexibility can provide, what these services are worth, and what a flexibility buyer is willing to pay for them.

This confidence does not currently exist due to holes in the value stack.

These holes are the reason people are not routinely offered propositions that empower them to maximise the benefits of their flexibility due to holes in the value stack.

Harnessing the large and growing stock of latent flexibility in the hands of households and businesses is an opportunity to create value and benefits for system stability and people’s bills.

These insights lay out what ‘good’ looks like and provide a framework for achieving it.

The key to this opportunity is to create the transparent, tradeable pricing and cash signals that are needed to underpin customer propositions that give people the option and motivation to provide a dependable flexible response to unpredictable events.

Advice to the Taskforce

We gave this advice to the Energy Competition Taskforce on its 3 proposals to incentivise and motivate people to be flexible.

The advice was developed through Member workshops between September and November 2024 and a further workshop in February 2025. The thinking behind this advice is detailed in the FlexForum Insights: Filling holes in the value stack will let people and their flexibility do more.

Our advice is to deal with the root causes of the problem which are insufficient financial and non-financial incentives for retailers and network operators, collectively, to overcome the barriers getting in the way of flexibility friendly customer propositions:

·Practical and capability-related barriers to investing in learning to build experience in procuring, deploying and using flexibility and to integrate flexible resources into the system

·Financial and risk-related barriers to routinely buying flexibility at scale.

The 3 proposals from the Taskforce are a good starting point, and, with improvements to effectively address the root causes, they could help to fill the biggest holes in the value stack by leading to additional fit-for-purpose cash signals which dependably motivate a flexible response to unpredictable events experienced across the supply chain.

Check out the package of solutions we think can address the root causes of the problem and underpin a wider range of customer propositions to give people the option and opportunity to maximise the value of their flexible resources across all the ways that flexibility can benefit the system.

Flexy research interests of two Member universities

Four universities are FlexForum Members and contribute their insights and research experience to what we do. Each has extensive flexibility research interests and are keen to collaborate with the electricity ecosystem to learn more.

Here is a snapshot of the flexy research interests of the Sustainable Energy Research Group (SERG) at the University of Canterbury and the ANU Centre for Energy Systems (ACES).

Go talk to them if you want to know more about what research they have done, are doing, or want to do!

At the University of Canterbury, SERG focuses on energy research from national-scale pathways to city-scale transitions. They focus on topics like renewable energy integration, power-to-X systems, resilience, transition pathways, energy storage, and environmental impacts. 

Established in 2024, ACES is an amalgamation of research groups within the ANU School of Engineering, including the Battery Storage and Grid Integration Program (BSGIP) and the 100 Percent Renewable Energy Group (RE100). The Centre undertakes research, development and demonstration projects that aim to accelerate a just energy transition drawing together research and professional staff working on key areas of energy transition including socio-techno-economic analysis, multi-energy system modelling, the electrification of transport, pumped hydro energy storage, perovskite and tandem solar cell development and green hydrogen.

Flexibility is a research focus due to its central role in a transitioning energy system. By better understanding the dynamic and diverse ways in which real people live everyday life, and in the process consume energy, the energy sector can prepare more effectively and support their customers.

ACES has been involved in several projects that consider various aspects of flexible demand within the energy sector, with a focus on the role of the customer.

·       Customer-focused network management

·       Evolve: smart software for the orchestration of 21st century electricity systems

·       Converge: exploring the grid participation of Distributed Energy Resources

·       Edith: empowering consumers and energising the grid through dynamic pricing

·       New energy VOICEs (Victorian energy and water Ombudsman Investigation into Consumer Experiences)

March newsletter

March 2025 Newsletter

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Things FlexForum is working on

FlexForum is doing stuff in three areas.

1. A Deep dive on filling the holes in the value stack. This will result in advice to the Electricity Authority and a FlexForum Insights. Our thinking to date is here and here.
A working version of the FlexForum Insights was recently shared with Members and we are aiming to make it public by mid-March 2025 ahead of providing advice to the Energy Competition Taskforce.

2. Flexibility Plan 2.0. We are updating the to-do list. Several Members took time off from taking time off in January to give their view on what can be done to make the flexibility journey easy and routine for households, businesses and communities.

Members will get a list of possible updates to the steps in the coming days to reality check and to think about accountabilities, sequencing and timeframes for action.
The plan is to have Flexibility Plan 2.0 settled and ready to provide a second assessment of progress in mid 2025.

3. Supporting learning-by-doing. FlexForum Members really want to see stuff happen and to support things which make that stuff happen.

Just before Christmas we gave Members a heads up that we were working with EECA on a proposal for project involving real households and businesses doing flexy things.

A bunch of work later, we are sorting out with EECA the final details of how FlexForum can support learning-by-doing through a scaled demand flexibility demonstration pilot project. 

We are particularly excited that this project should deliver most, if not all, the Flex Day ideas. The details on this will be available soon.
 
FlexForum now has 42 Members. What about you?

We welcomed 2 new Members during March. Get in touch at info@flexforum.nz if you want to join too.

FlexForum Members want to make it easier for households, businesses and communities to maximise the value of their energy resources and their flexibility. This flexibility will help deliver an affordable and reliable operation of the electricity system and enable accelerated electrification as part of Aotearoa New Zealand’s transition to a zero emissions economy.  

If this sounds like you, check out our Intro to FlexForum for more on our what, why, how and who. 

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