Local Energy Row Acquire ‘breakthrough’ as Flexibility Trading Platform Goes Live
Centrica, one of the UK’s largest energy companies is
celebrating a “major breakthrough” as its flexibility trading platform goes
live. Through this platform the UK’s transmission system operator, National
Grid SEO and one of its distribution operators (DNOs), Western Power
Distribution (WPD) will obtain flexibility concomitantly. The company said that
Centrica is the first platform to allow two operators to do this in the world.
Over 125 businesses are associated with a variety of
flexible low carbon energy technologies and also solar energy and storage. Ithas also combined heat and power units among other technologies.
A 1MWh redT vanadium redox flow battery system was
already installed in 2017. RedT is now in the middle of a merger with US
vanadium redT flow battery maker Avalon Battery, a move which now has the
backing of vanadium producer Bushveld Minerals.
Through Centrica’s flexible trading platform WPD and
National Grid ESO will place the bids for flexibility services. They can both
indicate when they will need and increase or decrease in generation or
consumption to balance the grid or manage a local network constraint.
These bids are then matched with different offers from
the sellers through auctions that can run from months in advance to intraday.
Sellers receive a financial reward for their services.
The transmission and distribution networks are able to
co-ordinate their procurement to avoid conflicting signals, making it the first
time ever both have traded for flexibility on the same third platform, Centrica
said.
Belgian advanced analytics company N-SIDE has made the
engine for this platform, which takes the bids and offers and finds the optimal
clearing solution, taking into account grid and asset constraints.
Colm Murphy, an electricity market change development
manager at National Grid ESo, said “The potential is really exciting as the system operator looks to unlock more
flexibility and greater cost benefits for consumers. Exploring the provision of
flexibility through a local energy market is a first for us and even though
we’re in the early stages of the trail, we’re looking forward to evaluating the
results. In particular, we’re keen to understand how flexibility can be procured
efficiently and cost-effectively between different markets.”
The platform manages the process for both sides,
including contract creation baselining and settlement.

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