EPEX SPOT and National Grid to launch frequency response auction trial
London / Paris, 28. November 2018. The European Power Exchange EPEX SPOT and National Grid Electricity System Operator are joining forces to develop and operate a platform which will host a brand-new firm frequency response auction trial in Great Britain in 2019.
Frequency response is an essential service provided by National Grid ESO. It ensures that in cases of interruption to supply, the frequency of the electricity system is kept stable at all times.
Colm Murphy, Head of Electricity Market Change Delivery for National Grid ESO, said “We are very excited to be embarking on this ground-breaking project with EPEX SPOT; this project is one of the key commitments in our Product Roadmap, and will unlock the potential of new technologies to provide frequency response. This is a big step on our journey to reform Great Britain’s balancing services and markets.”
EPEX SPOT contributes its expertise in providing and operating the auction platform. Ralph Danielski, Chief Executive Officer of EPEX SPOT, comments: “We are proud to partner with National Grid on this exciting project. It’s a brand-new and innovative market design that we are thrilled to develop jointly with National Grid. This is a new phase in the long-standing history of our company in Great Britain, where we have been operating markets for over 15 years.”
Compared to current procurement setup, in which market participants offer frequency response on a longer-term basis, the frequency response auction trial will be run every week for service delivery starting the same day. This new and improved frequency response platform will therefore open this particular market segment to more players than ever before, encouraging renewable generation and industrial as well as commercial sites to participate along with traditional providers.
The European Power Exchange EPEX SPOT SE and its affiliates operate physical short-term electricity markets in Central Western Europe and the United Kingdom. As part of EEX Group, a group of companies serving international commodity markets, EPEX SPOT is committed to the creation of a pan-European power market. In the first half of 2018, 284 TWh have been traded on EPEX SPOT markets. In 2017, its 285 members traded 535 TWh – a third of the domestic consumption in the eight countries covered. 49% of its equity is held by HGRT, a holding of transmission system operators. For more information, please visit www.epexspot.com.
National Grid is one of the largest investor-owned energy companies in the world. We own and manage the grids that connect people to the energy they need, from whatever the source. In Britain, we run the gas and electricity systems that our society is built on, delivering gas and electricity across the country. In the North Eastern US, we connect more than seven million gas and electric customers to vital energy sources, essential for our modern lifestyles.
National Grid in the UK:
- We own the high-voltage electricity transmission network in England and Wales, operating it across Great Britain
- We own and operate the high pressure gas transmission system in Britain
- We also own a number of related businesses including LNG importation, land remediation and metering
- Our portfolio of other businesses is mainly concerned with infrastructure provision and related services where we can exploit our core skills and assets to create value. These businesses operate in areas such as Metering, Grain LNG Import, Interconnectors and Property. National Grid Carbon Ltd is a wholly owned subsidiary of National Grid. It undertakes Carbon Capture Storage related activities on behalf of National Grid
National Grid in the US:
- National Grid delivers electricity to approximately 3.4 million customers in New England and upstate New York
- We own 3.8 gigawatts of contracted electricity generation, providing power to over one million LIPA customers
- We are the largest distributor of natural gas in northeastern U.S., serving approximately 3.5 million customers in New York, Massachusetts and Rhode Island.
Find out more about the energy challenge and how National Grid is helping find solutions to some of the challenges we face at www.nationalgridconnecting.com