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