Frequency Response Auction Trial
National Grid Electricity System Operator and National Grid Electricity Transmission
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Network Innovation Allowance
ET - Network improvements and system operability and ET - New technologies and commercial evolution
Commercial and Demand Response
We propose to design, implement and trial a weekly cleared price auction for a volume of frequency response. The aim of the trial is to test the hypothesis that closer to real-time procurement of frequency response will lower overall procurement costs by increasing liquidity and transparency in the market, and deliver a stable market price for the relevant products.
At the end of the project, the ESO will understand the impact of closer-to-real-time procurement on:
- Market liquidity
- Diversity of providers
- Ability for renewables and DSR to bid
- Market and price transparency
- Market and price stability
- Cost of frequency response vs counter-factual
- Cost of administering frequency response market vs counter factual
- Internal systems and processes