Grid flexibility: The quiet revolution

The concept of flexibility describes the capability of the power system to maintain balance between generation and load under uncertainty. While the grid has historically incorporated flexibility-specific resources such as pumped hydro to complement nuclear generators, modern trends and the increased deployment of variable energy resources (VERs) are increasing the need for a transparent market value of flexibility. A review of analyses, docket filings, tariffs, and business practice manuals from the past several years finds substantial flexibility-related activity. These activities are categorized as market and financial structures; incorporation of new operations, and technology; and legal or procedural reforms. The cumulative outcome of these incremental changes will be a major transformation to power systems that can rapidly adapt to new needs, technologies, and conditions.