Introduction: 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.

Objectives: 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