Battery Aggregation and Demand Flexibility:
How communities in Sussex can benefit
Turn your neighbourhood into a Virtual Power Plant
The UK’s electricity system is becoming more decentralised and regulations are changing with it. As more homes install solar panels and battery storage, communities have an opportunity to play a direct role in supporting the national grid while generating income for local projects.
Through battery aggregation and demand flexibility, hundreds of homes can work together as a single, coordinated energy resource. The result is a cleaner, more resilient energy system that benefits both residents and the wider community, helping local economies to thrive.
What is battery aggregation?
Many homes with solar panels generate more electricity than they can use during the day. Rather than exporting this surplus electricity to the grid immediately for someone else to use, at a higher cost, it can be stored in a home battery and used later when it’s needed.
Battery aggregation in communities takes this process a step further.
By connecting batteries from multiple homes across a neighbourhood, they can be managed collectively as one large energy asset. This creates what is known as a Virtual Power Plant (VPP) – a network of distributed batteries that can respond intelligently to the needs of the electricity system.
Individually, a single battery may only have a small impact.
Together, hundreds of batteries can provide significant flexibility services to the grid, helping to keep standing charges down, as a result of reduced grid investment costs.
How does it work?
1. Solar energy is generated
Solar panels installed on homes generate clean electricity throughout the day, often producing more energy than needed as supply is matched to consumption..
2. Excess power is stored
Instead of exporting all surplus electricity to the grid, home batteries store this energy for later use.
3. Homes use more of their own energy
In the evening, when people return home and electricity demand rises, stored energy can be used to power homes, reducing reliance on grid electricity.
4. Batteries work together
When connected through a secure aggregation platform, batteries across neighbourhoods can be co-ordinated and combined as a single resource.
5. Flexibility is provided to the grid
At times when the electricity system needs support, the aggregated batteries can charge, discharge or reduce demand in response to signals from the National Energy System Operator (NESO) and other flexibility market participants.
6. Communities earn revenue
The grid pays for these flexibility services. Income generated can be shared with participating households and invested into local projects, like tree planting, hedgerows, village halls and others.
What Is Demand Flexibility?
Demand flexibility is the ability to adjust when electricity is used, stored or supplied in response to the needs of the energy system.
Traditionally, power stations were instructed to increase or reduce the power they produce to balance supply and demand on the network. Today, smart technologies allow homes and communities to help provide this valuable balancing service.
By coordinating batteries, solar generation and other flexible technologies, communities can help:
- Reduce pressure on the electricity network
- Support greater use of renewable energy
- Improve energy security
- Reduce the need for costly network upgrades
- Help maintain a stable and reliable grid
As the UK moves towards a low-carbon, decentralised electricity system, demand flexibility is becoming an increasingly important part of how the grid operates. Now you can be a part of this system and earn benefits from your participation.
Supporting NESO and the Future Energy System
The National Energy System Operator (NESO) is responsible for balancing electricity supply and demand on tranmission of electricity across the Country.
As renewable generation grows, the system requires more flexible resources that can respond quickly to changing conditions. Aggregated neighbourhood batteries are ideally placed to provide this support.
Rather than relying on powering down large generation plants, NESO can draw on thousands of smaller energy assets distributed across the country through aggregators. This creates a more resilient and decentralised energy system while enabling communities to participate directly in the transition to clean power.
Benefits for Communities
Generate Income Locally
Providing flexibility services creates a new revenue stream that can remain within the community.
Reduce Carbon Emissions
Battery aggregation helps maximise the use of locally generated renewable electricity and supports the wider transition away from fossil fuels that are the source of pollution and violence across the globe.
Strengthen Energy Security
Local energy storage can help communities become less vulnerable to fluctuations in energy markets and external shocks.
Support Vulnerable Residents
Communities can decide to direct revenue into benefit funds that help people struggling to pay their energy bills by providing useful advice, energy efficiency improvements and other types of support.
Invest in Community Projects
Funds generated can support projects chosen by local people, from improving community buildings to creating green spaces and other local initiatives.
BHESCo's Community Energy Model
BHESCo works hard to ensure that the benefits of the energy transition are shared by everyone.
Our approach combines rooftop solar, battery storage, smart energy management and community ownership to create local energy systems that deliver both environmental and social value.
By aggregating batteries across neighbourhoods, we can unlock new income streams from flexibility markets and reinvest those revenues where they can make the greatest difference.
The result is more than just cleaner energy. It is a practical way to build stronger, more resilient communities while accelerating the transition to net zero.
Interested in getting involved?
Whether you are a homeowner, housing provider, local authority, business or community organisation, BHESCo can help you explore how battery aggregation and demand flexibility could work to help you benefit from the energy transition.
Contact us to learn more about creating a community-powered virtual power plant, putting local energy to work for everyone’s benefit.