Reserve is essential in securing the electricity grid. Choosing how much reserve to procure is a balance between risk and cost. This problem has been tackled in a previously successful project named Probabilistic Machine Learning Solution for Dynamic Reserve Setting (DRS) NIA2_NGESO003; however, this project considered reserve at the national level and in practice, different amounts of reserve are required in different locations across Great Britain. This project will further the DRS work by building explainable, risk-based dynamic models for reserve that generate predictions at finer spatial resolutions. Using these models, NESO will have access to accurate, risk-based predictions of reserve requirements at different locations and can then make more informed decisions to maximise its usage and minimise costs.
Benefits
Setting the reserve regionally could unlock further savings by allowing NESO to procure reserve where it is required, lowering transmission losses, ensuring reserve purchased is not inaccessible due to constraints, further lowering overall reserve setting costs by allowing for offsetting of reserve in neighbouring regions. Also, the benefits to consumers would be lower energy costs and carbon emissions. Better modelling reserve requirements at desired risk appetites would maintain the trajectory that NESO is on to move to a carbon free electricity grid by 2035 and to do so in a way that maintains security of supply while optimising the balancing cost.
Learnings
Outcomes
The Project delivered and validated a suite of dynamic regional reserve forecasting models covering twelve zones and four operational horizons. Validation testing confirmed that the models perform at a level consistent with operational risk requirements and demonstrate improved reserve efficiency relative to static approaches.
The Project also delivered enhanced analytical and visualisation capability, including explainability metrics and comparison against historic static methodologies. These outputs provide a robust evidence base to inform future decisions on operational trials and potential integration with locational procurement arrangements, subject to further governance and assurance.
Lessons Learnt
The Project demonstrated that both national‑level system features and region‑specific variables are material drivers of regional reserve requirements. National‑level features were shown to capture broader system dynamics that influence local conditions, while region‑specific predictors such as demand forecasts and errors, embedded wind forecasts, and air temperature provided complementary explanatory power. These findings are consistent with related regional modelling activities, including constraint forecasting, and highlight the importance of forecast accuracy and data consistency in enabling effective reserve setting.
Differences between national and aggregated regional demand outturns were identified due to differing data sources and metering points. Appropriate mapping and adjustments were applied to ensure consistency.