Learnings

Outcomes

Overview

The Demand Diversification Services (DDS) project set out to explore new DSO-led mechanisms for managing low voltage (LV) network constraints through predictable, consumer-aligned flexibility. Across six sprints, SSEN, the Energy Systems Catapult (ESC) and the Power Networks Demonstration Centre (PNDC) collaboratively developed, modelled and virtually trialled three complementary service designs: Allocated Capacity, Dynamic Congestion Response, and Load Factor Optimisation.

While the planned field trials could not be completed due to funding constraints, the virtual trials provided extensive technical and behavioural evidence on how such services could operate in practice. The DDS project has therefore achieved its core purpose – establishing a robust, evidence-based foundation for DSO-delivered flexibility products targeted at known network utilisation issues.

Headline Recommendations

Adopt DDS as a modular service framework for local flexibility, enabling Allocated Capacity (AC), Dynamic Congestion Response (DCR) and Load Factor Optimisation (LFO) to be deployed individually or in combination depending on network need.

Integrate DDS analytics into network planning and operation by embedding the data models, control logic and flexibility performance metrics trialled in the virtual environment into SSEN’s BAU digital systems.
Refine commercial structures to ensure clear market positioning of DDS services relative to existing DSO flexibility mechanisms, with appropriate risk-sharing and incentives.

Apply consumer insight findings to design transparent and trusted communication pathways, ensuring flexibility participation is perceived as equitable and beneficial.

Strengthen interoperability and data access frameworks to enable consistent deployment across DNOs and aggregators, using standardised data exchange and service definitions.

Progress to limited commercial release to validate operational performance under live conditions, with continued monitoring of consumer response and market interaction.

Technical and Analytical

Establish DDS as an integrated suite of services under a common control framework. The PNDC and ESC trials demonstrated that AC, DCR and LFO each address distinct operational use cases – respectively long-term headroom allocation, short-term congestion response and continuous load shaping – but, to a greater or lesser extent, share underlying data and control architectures.

Advance the digital integration of flexibility data into operational systems. Building on PNDC’s modelling and ESC’s scenario analysis, SSEN should incorporate DDS datasets into BAU analytics platforms to improve visibility of available flexibility, thermal loading and voltage headroom at the LV level.

Maintain weather-responsive and probabilistic approaches developed in Sprints 5 and 6. These proved effective for forecasting constraint likelihood and quantifying service value and should be carried forward into live operational tools.

Prioritise scalability and interoperability by aligning DDS data structures with ENA Open Networks and standardised flexibility APIs to ensure compatibility with national market developments.

Commercial and Regulatory

Position DDS services within the broader DSO flexibility ecosystem. The project confirmed that DDS complements existing market-based flexibility by targeting asset-specific network risks rather than system-wide balancing needs. This distinction should be made explicit in SSEN’s flexibility strategy and shared with Ofgem to support regulatory clarity.

Develop proportional contracting and settlement models. DDS services will require tailored commercial frameworks that reflect different timescales and value drivers, e.g., fixed allocation for AC versus dynamic response for DCR – while minimising transaction complexity.

Engage Ofgem and other DNOs to ensure consistent regulatory treatment of DSO-initiated services and to explore mechanisms for consumer protection, fairness and value sharing.

Consumer and Engagement

Embed consumer insights into future service design. ESC’s behavioural research highlighted that consumers prioritise trust, simplicity and perceived fairness above technical detail. Future DDS communication strategies should therefore focus on tangible benefits and automated participation.

Adopt a ‘flexibility-by-design’ principle where service enrolment is integrated into supplier or aggregator offerings, minimising behavioural barriers.

Continue research on acceptability and equity, especially for vulnerable consumers and those on low incomes, ensuring that flexibility participation does not exacerbate inequality or exclusion.

Delivery and Process

Strengthen data governance and sharing arrangements. The collaborative model between SSEN, ESC and PNDC proved effective but was constrained by data access limitations and differing protocols. Future projects should establish data sharing agreements earlier and align them with Ofgem’s Data Best Practice guidance.

Maintain agile, sprint-based delivery for innovation projects of this complexity. The DDS approach allowed iterative learning across modelling, analytics and consumer engagement, which should serve as a template for future service development.

Plan for continuous technical validation through future commercial releases, ensuring operational lessons can be captured under real-world network conditions before large-scale deployment.

Lessons Learnt

Key Implications for future projects from the Consumer Insights Survey

• Most participants reported that the DDS trial had no negative impact on their daily energy use or comfort. The automation provided by FSP platforms insulated users from operational complexity and created a positive perception of “set-and-forget” control.
  
  
• EV owners generally valued convenience and cost savings. They were highly responsive to time-of-use or incentive signals when these did not interfere with mobility needs.
  
  
• Heat-pump households, typically prosumers with PV systems, showed strong environmental motivation alongside financial reward, viewing participation as part of their low-carbon lifestyle.
  
  
• Storage-heater users, often low-income or vulnerable tenants, valued predictability and comfort above all else. When scheduling windows were rigid (e.g. E10 tariffs), perceived control and trust fell sharply.
  
  
• Across all groups, app reliability and clarity were decisive. Participants disengaged when control signals failed, interfaces were confusing, or schedules conflicted with existing tariff structures.
  
  
• Financial benefit was the primary motivator for engagement across all cohorts, followed by environmental or community benefits for heat-pump owners. However, the level of financial reward required to sustain engagement was modest compared to the operational savings achieved by DDS; participants valued fairness and transparency more than absolute payment size.
  
  
• The trials also confirmed that tariff alignment is essential. Where existing supplier tariffs (e.g. E7, E10, dynamic ToU) conflicted with DDS signals, flexibility potential was severely constrained. Participants and FSPs both indicated that DDS-based incentives should either be integrated into supplier tariffs or operate through trusted intermediaries to avoid conflicting price signals.
  
  
• ESC’s behavioural analysis identified four consumer archetypes relevant to future rollout:
  
  o Automated Optimisers – tech-confident households with EVs or HPs, comfortable delegating control to software.
  o Passive Followers – participants who engage when set-up is simple and benefits are clear.
  o Cautious Dependents – typically vulnerable customers reliant on predictable comfort (common among SH users).
  o Active Managers – minority group who prefer manual control and close monitoring.
  
  The first two archetypes represent most of the potential flexibility volume, indicating that automation and trust are more important than consumer education or behavioural change. Vulnerable consumers can participate safely when managed by trusted intermediaries – such as housing associations – who oversee comfort safeguards and communication.
  
  
• Participating FSPs reported that DDS structures were compatible with their existing business models but required clearer data-exchange standards and tariff integration with suppliers. They also highlighted opportunities to layer DDS services onto existing propositions (smart-charging, heat optimisation, comfort plans) rather than introducing standalone DDS offers.
  
  
• The trials confirmed that customer diversity and LCT mix strongly affect outcomes: aggregators managing portfolios with multiple technologies achieved greater diversity and reliability than those focusing on a single device type. Ensuring that DDS rewards reflect both availability and quality of response will be key to attracting sustained FSP participation.
  
  
• The consumer evidence confirms that automation, reliability and trust will determine the success of flexibility at scale. Engagement cannot rely on manual participation or behavioural change; instead, it must be embedded in the products and services consumers already use.
  
  
• To maximise inclusivity, DNOs should continue to work with FSPs, housing providers and suppliers to design tariff-aligned, socially fair DDS offers. This will enable flexibility to grow across all customer segments without compromising comfort or increasing cognitive burden.