
Frequency Response Auction Trial
- Status:
- Complete
- Project Reference Number:
- NIA_NGSO0017
- START DATE:
- END DATE:
Project summary
- Funding mechanism:
-
- Network Innovation Allowance
- Research area:
-
- ED - Network improvements and system operability
- Technology:
-
- Commercial
- Demand Response
- Expenditure:
- £1,142,000
- Third Party Collaborators:
-
- EPEX Sport SE
- ESP Consulting
Summary
Learnings
Documents
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
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