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UK Expands Year-Round Payments to Reduce Electricity Use

The National Energy System Operator aims to minimize blackout risks by incentivizing reduced energy consumption as reliance on renewables grows.

  • The Demand Flexibility Service (DFS) will now offer payments to households and businesses for reducing electricity use throughout the year, not just in winter.
  • This initiative follows the closure of the UK's last coal-fired power plant and the anticipated shutdown of several nuclear reactors, increasing reliance on intermittent renewable energy sources.
  • The UK expects to import more electricity from European interconnectors, with a significant portion of its power coming from countries like France, Denmark, and Norway.
  • Neso reports that the risk of winter blackouts is at its lowest in four years, thanks to increased battery storage, small-scale renewables, and abundant gas supplies.
  • The Viking power link, a new high-voltage cable with Denmark, is part of the UK's strategy to create a flexible, low-carbon electricity grid, critical for meeting 2050 climate targets.
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